Nestlé to reportedly invest $196.5m to expand Nescafé production in Brazil

Coffee consumption among under 24s is 10 times higher than other age groups, according to Nestlé | Photo credit: Daniele D’Andreti

Swiss food and beverage giant Nestlé is set to invest R$1bn ($196.5m) in Brazil over the next two years to expand production capacity and out-of-home sales of its Nescafé brand, according to Reuters. 

Nestlé executives quoted by the news agency said out-of-home coffee consumption in the South American country is rising and there are increased opportunities to attract younger consumers who are typically willing to spend more on premium coffee beverages.  

Consumption growth among those aged under 24 is 10 times higher than other age groups, according to Nestlé, driven by increased interest in iced and flavoured coffee.   

“We are at a time of expanding consumption of premium coffee, and that is making coffee consumption more sophisticated in Brazil,” said Valeria Pardal, Business Executive Officer for Coffee Beverages, Nestlé.  

Investment will focus on growing business-to-business (B2B) sales, with Nestlé expecting to double its out-of-home coffee machine footprint to 44,000 by 2028.  

The news comes six months after Nestlé announced it would invest R$6bn ($1.2bn) in Brazil – its third largest market in the world – by 2025 to scale its existing business segments, invest in new technologies and expand its manufacturing units.  

Nestlé has been operating in Brazil for over 100 years and is currently the largest buyer of certified Brazilian coffee.