Business secretary Sajid Javid officially cut the tape at the new Tutbury facility today (10 March), which will create a total of 425 jobs.
Nestlé already employs nearly 1,000 people at the site, and its latest £325m investment is recognition of the highly-skilled labour force, which includes apprentices.
The factory now produces 40 million cups of coffee every day, making it one of the world’s most productive coffee factories.
Nearly 90% of all coffee capsules produced at the site are exported to Brazil, Italy, Mexico and the USA amongst others.
Javid said: “The investment made by Nestlé is a tangible sign of the strength and energy of the Midlands economy.
“The Midlands Engine is home to a diverse range of exciting businesses and universities, so it’s no surprise the economy here has been outperforming the rest of the country since 2010.”
Dame Fiona Kendrick, chairman and CEO of Nestlé UK and Ireland, added: “Today’s opening is a proud moment for Nestlé and for me personally.
“It represents a very significant investment in our Tutbury factory which is now a true centre of excellence for our coffee business.
“We are taking the UK’s productivity challenge incredibly seriously at Nestlé and this investment has made Tutbury one of our best examples of that.
“We have made processes more efficient, given our employees new skills and equipped them with state-of-the-art machinery with which to do their job.”
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