Nestlé Contemplates Expanding Into Booming Indian Coffee Market With Starbucks – CoffeeTalk

4

Nestle is considering extending its global coffee partnership with Starbucks to India, which has been one of the fastest-growing coffee markets for the company globally. The beverage retail business of Nestle India has crossed the ₹2,000 crore mark in the 12 months period ended December, led by brand Nescafe. The packaged food major is also introducing its super premium coffee portfolio under the brand Nespresso in the country.

Under the global coffee alliance inked in 2018, the two companies sell a range of products, including Starbucks capsules for the Nespresso and Nescafé Dolce Gusto systems, whole bean, roast and ground, premium instant Starbucks coffees, K-Cup pods, and creamers. The global coffee partnership is focused only on selling packaged coffee products in retail and for in-home consumption and does not include coffee outlets. In India, the Starbucks outlets are run under a joint-venture with Tata Consumer Products Ltd.

Nestle India has been steadily growing household penetration for brand Nescafe, with the brand strengthening its leadership position and bringing 3.7 million households into the coffee category. Axel Touzet, Head of Nestlé’s Coffee Strategic Business Unit, said that there is tremendous potential for growth of coffee in India, as more people in India look to coffee as their favorite beverage.

Nestle India is introducing the Nespresso portfolio, including coffee capsules, machines, and accessories. It is set to open the first Nespresso boutique in New Delhi and plans to expand it into other major cities. The coffee market in India is predicted to reach around $1.23 billion by 2032, driven by younger consumers who consider coffee drinking aspirational. Nestlé is one of the top buyers of coffee in India, working closely with about 5000 farmers in Karnataka, Kerala, and Tamil Nadu.

Read More @ Business Line

Source: Coffee Talk

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy