Nestlé has unveiled a substantial investment plan of BRL 1 billion (approximately $193.97 million) to be deployed by 2026 aimed at enhancing its business-to-business (B2B) and business-to-consumer (B2C) operations in Brazil.

The multinational coffee corporation intends to use this investment to introduce advanced technology, including new roasting equipment and increasing production line flexibility. This will enable the creation of new products and flavours, particularly those with higher value-added, and incorporate technological advancements to boost sustainability.

The primary focus of the investment will be on the Nescafé factory in Araras, São Paulo, and on expanding the Nestlé Professional machine park, with a goal to achieve a 50% increase in capacity over the next two years.

According to Reuters, the investment will also support the expansion of Nestlé’s production capacity and enhance out-of-home sales of its Nescafé product lines, particularly targeting younger consumers. The company plans to significantly increase out-of-home consumption through its B2B segment, aiming to double the number of out-of-home coffee machines to 44,000 within four years.

Brazil is seen as a key market for Nestlé due to the substantial growth opportunities in coffee consumption. The Brazilian Coffee Industry Association notes that domestic coffee consumption is six times higher than the global average, underscoring the potential for market expansion.

“We believe in the segment, and in addition to product launches, we are enhancing messages focused on Gen-Z, a demographic that shows greater interest in discovering new flavours and ways to enjoy coffee,” stated Valéria Pardal, executive director of Nestlé Coffees.

The coffee culture in Brazil has evolved significantly, particularly with the trend towards premiumisation and the growing popularity of iced coffee among the youth aged between 16 and 24. Last week, Nestlé launched a new line of espresso concentrates specifically designed for iced coffees.

Pardal added: “We are in a moment of expanding premium coffee consumption, with higher added value, which is sophisticating coffee consumption in Brazil. We work with the Nescafé brand for mass consumption so that this premiumisation is democratic. Brazilians consume between four and six cups of coffee per day, and Nestlé’s mission is for that cup to be of higher quality.”

This investment represents Nestlé’s commitment to not only strengthen its foothold in the Brazilian market but also to contribute to the evolution of the country’s coffee culture towards higher quality and more diverse product offerings.


Sam Allcock, a seasoned entrepreneur with over two decades of expertise in Food & Drink Editorial.

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