Nestlé expands cold coffee production in Malaysia

Nestlé has opened its first coffee concentrate production line in Asia at the Sri Muda factory in Malaysia to meet rising demand for cold coffee across the region.

The new line will produce Nescafé Espresso Concentrate for domestic and international markets, including Singapore, Oceania, and the MENA region, with the possibility of expansion into Europe.

Axel Touzet, head of Nestlé’s strategic coffee business unit, says the project reflects the company’s ambition “to become a leader in the rapidly expanding cold coffee segment” and notes the factory’s strategic location near coffee sourcing regions.

Market and investment positioning

The facility builds on the factory’s existing expertise in liquid manufacturing, where Nestlé also produces brands such as Milo and Nescafé.

Nestlé highlights the investment as part of its effort to strengthen its position in the fast-growing cold coffee segment, particularly among younger consumers seeking premium, café-style experiences at home or on the go.

Malaysia remains a central hub in Nestlé’s supply chain. The company reports investing around CHF 290 million (US$326.3 million) in the country over the past five years and plans to invest an additional CHF 150 million (US$168.8 million) by 2028 to expand manufacturing, digital infrastructure, and innovation capacity.

In an interview with Food Ingredients First, Nestlé recently discussed the science of coffee and the freeze drying technique it has developed to address the solubility and clumping challenge in cold coffee.