Nestle (NESN.S), opens new tab plans to invest 1 billion reais ($196.5 million) in Brazil by 2026 to expand production capacity and out-of-home sales of its Nescafe lines, targeting younger consumers, executives told Reuters.
The company aims to consolidate the brand as a vehicle for higher value-added products that are rapidly growing in the country, according to the firm.
The Nescafe brand, which was first created in Brazil to sell instant coffee, today has a broader range of products. It seeks to capture consumers who are increasingly younger and want new “experiences” with the beverage, and who pay more than they normally would for a traditional cup, the executives said.
“We are at a time of expanding consumption of premium coffee, and that is making coffee consumption more sophisticated in Brazil,” Valeria Pardal, head of Nestle brand Cafe Nestle, said in an interview.
Part of the investments will be directed into expanding out-of-home consumption, mainly through the business-to-business segment, with the company expecting to double its number of out-of-home coffee machines in four years to 44,000.
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