Nestle is reportedly planning to invest 1 billion reais ($196.5 million) in Brazil by 2026 to boost production capacity and out-of-home sales of its Nescafe products, focusing on attracting younger coffee lovers. 

Nescafe Plans $196.5 Million Investment in Brazil 

The executives told Reuters that the goal is to position the Nescafe brand among premium products that are gaining popularity in the Brazilian market. They also said Nescafe aims to appeal to younger consumers who seek unique coffee experiences and are willing to pay more for innovative options. 

Valeria Pardal, head of Nestle brand Cafe Nestle, told Reuters about the growing demand for premium coffee in Brazil, which is making coffee consumption more sophisticated.

A portion of the investment will reportedly go towards expanding out-of-home consumption, especially through the business-to-business segment, with plans to double the number of out-of-home coffee machines to 44,000 within four years.

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Nescafe Sales in Brazil

Nestle expects Nescafe sales in Brazil's retail market to grow by up to 15% annually over the next four years, outpacing the general market growth of 5% to 6%.

Pardal emphasized the brand's importance to young consumers, noting their preference for new coffee experiences like iced coffee, coffee with cream, or coffee with caramel.

According to Nestle, coffee consumption among individuals under 24 has grown significantly compared to other age groups, underscoring the brand's focus on appealing to this demographic. 

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