Nestlé Surprises The Industry And Announces R$ 1 Billion Mega Investment In Its Nescafé Factory

Written by Valdemar Medeiros

Published on 28/08/2024 at 12:01

Foto: Dall-e

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Nestlé, Food Industry Giant, 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 funds will also be directed towards expanding the production park of Nestlé Professional, a division focused on beverage solutions that provides coffee machines for commercial environments.

What Is the Goal of the Mega Investment in the Nescafé Factory?

Currently, there are 22,000 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 primarily be aimed at developing new technologies such as roast curves, which are graphs that show how the temperature evolves over time during the roasting of coffee beans.

It will also be applied to the flexibility of production lines for creating varieties of products, aromas, and flavors, as well as solutions related to sustainability.

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Initiatives by Nestlé to Expand the Brazilian Coffee Segment

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

Among them are coffee capsules and roasted and ground coffee beans with different roast levels. According to Valéria Pardal, Executive Director of Nestlé Cafés, Brazilians consume between four and six cups of coffee per day, and the company aims for this cup to have higher quality.

According to Valéria, the company is at a point of expanding the consumption of premium coffee, which has greater added value, and this is elevating coffee consumption in Brazil. The company works with the mass-consumption Nescafé brand to make this improvement in Premium more 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 especially popular among younger consumers.

Food Industry Will Receive Investments of R$ 120 Billion

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

According to Nielsen research conducted at the company’s request, 12% of cups of coffee consumed away from home are iced coffee. Among Generation Z, this number rises to 18%, and it is to meet this demand that Nestlé targets expanding the production of Nestlé Professional machines.

It is worth mentioning that data from the Brazilian Food Industry Association (Abia) indicates that, by 2026, R$ 120 billion will be invested in the expansion of the Brazilian food industry, with about R$ 75 billion for expanding and modernizing plants and constructing new units, and R$ 45 billion in research and development.

Nestlé Surprises The Industry And Announces R$ 1 Billion Mega Investment In Its Nescafé Factory

Nestlé, Food Industry Giant, Announces Mega Investment in Brazil. Company Will Invest R$ 1 Billion in Its Nescafé Factory in Araras (SP) by 2026.

What Is the Goal of the Mega Investment in the Nescafé Factory?

Initiatives by Nestlé to Expand the Brazilian Coffee Segment

Food Industry Will Receive Investments of R$ 120 Billion

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Nestlé Surprises The Industry And Announces R$ 1 Billion Mega Investment In Its Nescafé Factory

Nestlé, Food Industry Giant, Announces Mega Investment in Brazil. Company Will Invest R$ 1 Billion in Its Nescafé Factory in Araras (SP) by 2026.

What Is the Goal of the Mega Investment in the Nescafé Factory?

Initiatives by Nestlé to Expand the Brazilian Coffee Segment

Food Industry Will Receive Investments of R$ 120 Billion

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Norway is drilling 27 kilometers of rock 392 meters below the bottom of a fjord to build the world’s largest and deepest underwater road tunnel — when completed, a 21-hour journey will be reduced to 10.

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