Nestlé strengthens coffee investment with Nescafé Dolce Gusto production in Vietnam

19 Jul 2018 --- Nestlé has inaugurated a new Nescafé Dolce Gusto capsule production line in Dong Nai Province, Vietnam which will ramp up processing to 2,500 tons of coffee per year (equivalent to 130 million capsules), using high-quality coffee beans from Vietnam. And over the next few years, the volume is expected to grow further.

Nestlé says the investment reflects its focus on high-growth, high-margin categories, including coffee. It also meets the growing trend towards coffee drinking in many countries in Asia.

The new production site will use indigenous beans to provide high-quality coffee products for domestic consumption and export. Approximately 90 percent of the Nescafé Dolce Gusto output from the Dong Nai facility will be exported to other markets in Asia including Thailand, the Philippines, Malaysia, Singapore, Hong Kong, Taiwan and Indonesia.

“The new Nestlé Dolce Gusto production line will facilitate high-quality coffee to more Vietnamese consumers as well as access to 13 export market in the world. In addition, the inauguration of the production line reaffirms Nestlé’s commitment to bringing value and contributing to the development of the Vietnamese coffee industry,” says Ganesan Ampalavanar, General Director of Nestlé Vietnam.

Currently the leading coffee buyer in Vietnam, Nestlé has an annual purchase volume of 20-25 percent of the total coffee production output in the country.

Last year, Nestlé began to review its strategy and respond to shifts in appetites and preferences and in January the Swiss food giant announced it was offloading its US confectionery business to the Ferrero Group in an estimated US$2.8bn deal that bolsters the Italian company’s footprint in the American market. It allows Nestlé to concentrate on a range of growth categories including bottled water, coffee, frozen meals and infant nutrition.