New formula signals premiumisation of Nescafé brand as Nestlé acknowledges growing sophistication among convenience consumers
Nestlé has responded to the growing influence of artisan coffee in Europe by ‘completely reinventing’ Nescafé Gold Blend. The revamped recipe will now contain Arabica bean ‘micrograins’ to enhance taste and aroma, the global food and beverage firm said in a press statement.
Nestlé also unveiled new branding for the veteran instant coffee brand and said a FairTrade organic option would now be available.
Research by Allegra shows consumption of instant coffee in Europe has remained flat in recent years, with alternative convenience options, such as coffee pods, gaining in popularity among consumers. In the UK, where the new Gold Blend will be launched first, 35% of consumers drink instant coffee at home daily.
However, 43% say they drink less instant coffee at home than a year ago, indicating a shift in consumption habits away from coffee granules.
Signalling efforts to cater for increasingly sophisticated consumer palettes, Nestlé global brand manager, Claus Boysen, told reporters “a cup of Nescafé Gold should be able to compete with roast and ground coffee, and offer the consumer a premium cup.”
Nestlé still dominates the global instant coffee market, but increasingly faces competition from JAB Holding’s expanding coffee empire, which includes Keurig Green Mountain and Jacobs Douwe Egberts.
In September last year Nestlé made a foray into the US speciality coffee market, buying a majority stake in coffeeshop chain Blue Bottle for a reported $425m. Two months later it bought Texas-based organic frozen coffee producer Chameleon for an undisclosed sum.