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Nestlé surprises the industry and announces mega investment of R$ 1 billion in its Nescafé factory

Written by Valdemar Medeiros
Published 28/08/2024 às 12:01
Nestlé surprises the industry and announces mega investment of R$ 1 billion in its Nescafé factory
Photo: Dall-e

Nestlé, giant in the food sector, announces mega investment in Brazil. Company will invest R$1 billion in its Nescafé factory in Araras (SP) by 2026.

In line with the recurring increase in coffee consumption in the national market, Nestlé will make a mega investment of R$ 1 billion by 2026 in its Nescafé factory, located in Araras, in the interior of São Paulo. The resources will also be directed to expanding the machine production park at Nestlé Professional, a division focused on beverage solutions and offering coffee machines for commercial environments.

What is the objective of the mega investment in the Nescafé factory?

Currently, there are 22 thousand Nestlé machines installed in Brazil and the focus is to grow 50% in the next two years. According to Nestlé, the mega-investment in the Nescafé factory will mainly be in the development of new technologies such as roasting curves, that is, graphs that show how the temperature evolves over time during the roasting of coffee beans.

It will also be applied to making production lines more flexible to create varieties of products, aromas and flavors, as well as solutions linked to sustainability.

Nestlé sees great growth potential in the national market given the population's high interest in coffee. According to the Brazilian Coffee Industry Association (Abic), consumption of the product by Brazilians is six times higher than the global average.

The segment helped sustain the company's positive results in Latin America in the first half of 2024, when overall sales in the region increased by 1,4% to reach 6,2 billion Swiss francs (R$39,3 billion). Among the factors driving this result are sales in Brazil, where ready-to-drink Starbucks and Nescafé products were launched.

initiatives from Nestlé to expand coffee segment Brazilian

The company, which owns the brand Nespresso, aimed at the upper-middle and upper classes, has been expanding the range of premium Nescafé products at more affordable prices, which justifies the mega-investment in the Nescafé factory in Araras.

These include capsule coffee and roasted and ground coffee beans with different roast levels. According to Valéria Pardal, executive director of Cafés Nestlé, Brazilians consume between four and six cups of coffee per day and the company seeks to ensure that this cup is of higher quality.

According to Valéria, the company is experiencing a period of expansion in the consumption of premium coffee, with higher added value, which is making coffee consumption more sophisticated in Brazil. The company works with the mass-consumption Nescafé brand so that this improvement in Premium is democratic.

Another variation of coffee whose consumption in Brazil has been growing and is part of the mega-investment in the Nescafé factory, in Araras, is iced coffee, which is gaining prominence especially among younger consumers. 

Food industry will receive investments of R$120 billion 

Following the trend created by Starbucks coffee shops, which have a strategic partnership with Nestlé, the so-called Generation Z sees coffee consumption as a Comfort Food experience, in variations of drinks that contain different essences and flavors.

According to Nielsen research carried out at the company's request, 12% of cups of coffee consumed outside the home are iced coffee. Among Generation Z, this number rises to 18% and it is to meet this demand that Nestlé aims to expand production of Nestlé Professional machines.

It is worth mentioning that, data from Brazilian Food Industry Association (Abia) point out that, by 2026, R$120 billion will be invested in expanding production in the Brazilian food industry, with around R$75 billion in expansion and modernization of plants and construction of new units, and R$45 billion in research and development sector.

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Valdemar Medeiros

Journalist in training, specialist in creating content with a focus on SEO actions. Writes about the Automotive Industry, Renewable Energy and Science and Technology

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