Nestle, the Swiss giant known for its Nescafe brand, is set to pour 1 billion reais ($196.5 million) into Brazil’s coffee market by 2026. Their goal? To jazz up production and out-of-home sales of Nescafe, specifically targeting Brazil’s trendsetting younger crowd.
What’s the buzz? Nestle is on a mission to revamp Nescafe, originally introduced in Brazil as an instant coffee, into a lineup that caters to the evolving tastes of the country’s coffee aficionados. With an eye on the younger demographic, Nestle aims to position Nescafe as a brand for those seeking new coffee “experiences,” willing to fork out a bit more for a cup that’s anything but ordinary.
Valeria Pardal, head of Nestle’s Cafe Nestle brand, explains, “We are at a time of expanding consumption of premium coffee, and that is making coffee consumption more sophisticated in Brazil.” The company is doubling down on this trend, betting big on the rising demand for higher-quality coffee products.
A key part of their strategy? Expanding the out-of-home coffee experience. Nestle plans to beef up its business-to-business segment, aiming to double its out-of-home coffee machines to 44,000 within four years. This move aligns with Nestle’s vision to elevate the coffee-drinking experience beyond traditional retail settings.
What’s brewing in the market? Nestle expects Nescafe sales in Brazil’s retail sector to surge by up to 15% annually over the next four years, outstripping the 5% to 6% growth forecasted for the overall market. Pardal highlights the cultural significance of coffee in Brazil, noting that Brazilians consume an average of four to six cups a day, emphasizing the importance of ensuring these cups are of the highest quality.
Nestle has its sights set on the young and the restless. Consumption among those under 24 has skyrocketed, growing at a rate ten times higher than other consumer groups. “This is something new for the market. They drink iced coffee, coffee with cream, coffee with caramel,” Pardal explains. The company’s shift in approach reflects a broader trend in which coffee is no longer just a pick-me-up but a source of pleasure and indulgence.
As Nestle steams ahead with its ambitious plans, the Brazilian coffee landscape looks set for a flavorful transformation, one cup at a time.
(Source: ESM Magazine | MSN)
