INDIA – Nestlé, the Swiss multinational food and beverage giant, has introduced its Nespresso brand in India, aiming to cater to the increasing consumer demand for single-serve coffee in the country.
The move comes as Nestlé observes India as one of its fastest-growing coffee markets, driven by the trend of in-home consumption.
The Indian arm of Nestlé reported a significant nearly 27 percent increase in net profit to Rs9.34 billion (US$112.03 million) for the three months ended March 31, surpassing analyst estimates.
Suresh Narayanan, the managing director of Nestlé’s business in India, highlighted the growing trend of coffee consumption within Indian households, stating, “With its growing young population that has exposure to global trends and is open to new experiences, India is one of the fastest-growing coffee markets for Nestlé.”
The Nespresso range will be available in e-commerce channels and through a branded boutique in Delhi initially, with plans to expand to other Indian cities through brick-and-mortar stores.
Guillaume Le Cunff, CEO of Nespresso, expressed excitement about the brand’s growth prospects in India, stating, “Having sourced green coffee from India since 2011, I am excited to see the brand continuing to grow in this promising coffee market.”
Nestlé works closely with more than 2,000 farmers in India to source coffee for Nespresso, leveraging its three factories in Switzerland for production.
The brand, which is available in over 90 markets worldwide, boasts more than 800 boutiques in 500 cities globally.
This expansion in India follows Nestlé’s recent investments in the coffee sector in Asia, including a US$100 million expansion of its production site in Vietnam to double processing capacity.
Additionally, in the UK, Nestlé has launched Nespresso Bar, an on-premises venture in London, expanding its retail presence to enhance customer accessibility.
However, amidst these developments, Nestlé has faced challenges with its Perrier bottled water brand in France.
Following contamination claims at its Vergèze site in the Gard region of southern France due to heavy rainfall, Nestlé temporarily suspended a well supplying water for Perrier.
Although several batches of Perrier water were discarded, a spokesperson from Nestlé reassured consumers that all products available on-shelf were safe to drink.
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