Coffee products netted Nestlé $25bn in 2021 – more than a quarter of sales

Nestlé's headquarters in Vevey, Switzerland | Photo credit: Nestlé

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Nestlé has highlighted the importance of coffee for its overall business as part its 2021 annual report.
 
The document, which provides an overview of the food and beverage giant’s vast global operation, revealed that coffee products, including Nescafé, Starbucks, Nespresso, and Milo plant-based beverages, achieved sales of CHF 24bn ($25.7bn) in 2021, representing 27.5% of the company’s total sales.
 
By product category, coffee was the largest contributor to organic growth, Nestlé said, fuelled by strong momentum across its Nescafé, Nespresso, and Starbucks brands. Sales of Starbucks products grew by 17.1% to reach CHF 3.1bn ($3.3bn), the company added.
 
The Swiss company also highlighted a CHF 270m ($290m) investment in its Romont production facility in Switzerland to add additional capacity for its Nespresso Vertuo and Nestlé Professional coffee ranges.
 
The results underline the strength of retail packaged coffee sales around the world as coffee chains and equipment manufacturers reap the benefits of increased at-home consumption following the pandemic.
 
Meanwhile, Nestlé’s research and development division reported a ‘major breakthrough’ in discovering two new Robusta varieties that produce up to 50% higher yields per tree versus standard varieties along with lower carbon emissions.
 
Additionally, Nestlé’s Nescafé Plan programme says it has distributed more than 250 million high yield and disease resistant coffee plantlets since 2010, resulting in an additional $750m income from coffee beans annually for farmers in Mexico.
 
Coffee is also enabling the company to reduce its carbon footprint, with excess coffee waste from Nescafé and Nespresso factories fuelling a biogas digester that heats its Henniez bottled water plant in Switzerland while providing electricity for local residents.
 
Reflecting more gloomy market conditions in 2022, on 9 March, Nestlé said it has suspended all capital investment in Russia in response to the war in Ukraine, joining a growing chorus of western companies to suspend operations in the country.
 
The company is also reportedly attempting to resume some of its supply chain in Ukraine after it temporarily shut down operations in the wake of Russia’s invasion.
 
Reporting its full-year results for 2021, Nestlé posted group sales of $94bn, 3.3% higher than the $91bn earned in 2020. Underlying trading operating profit increased 1.4% to reach $16.4bn.