Nestlé to open first Nescafé Dolce Gusto factory outside of Europe

Nestlé has announced it will open a Nescafé Dolce Gusto (NDG) factory in Southeast Brazil in 2015. It will be the first production facility for NDG capsules outside of Europe and underscores Nestlé’s confidence in rising coffee demand in the country and across Latin America.

Nestlé marked the beginning of construction for the new factory at a ceremony attended by Nestlé Chief Executive Officer, Paul Bulcke, Nestlé Executive Vice President and Zone Director for Americas, Laurent Freixe, and Nestlé Brazil Chief Executive Officer, Juan Carlos Marroquín.

“We have been continually investing in people, in technology and in innovation in Brazil over the years. The new Nescafé Dolce Gusto factory reflects our long-term commitment to Brazil and evidences our trust in a country where we have had successful operations for over 90 years,” stated Paul Bulcke.

Brazil factory

The company is investing CHF 72 million (BRL 200 million) in the factory, which will be located in Montes Clares in the Minas Gerais state. The new operation will generate 90 jobs initially and a further 1,000 indirect jobs via its supply chain.

Brazil is the largest coffee producer in the world by volume and is also one of the fastest growing markets for coffee capsules. The coffee capsule market in Brazil grew by over 45% in 2013.

Nestlé’s new factory will produce a variety of Nescafé Dolce Gusto capsules popular in Brazil, ranging from European favourites like Caffe Buongiorno and Barista Espresso to local flavours like the Nescau chocolate capsule.

Nescafé’s Brazilian heritage

Juan Carlos Marroquin said the investment represented a major step for Nestlé in Brazil. “We have been developing the coffee industry in Brazil for over 60 years. The Nescafé Dolce Gusto plant reinforces our commitment to the local coffee industry and our dedication to innovation in coffee. The new factory will benefit the domestic market as a whole; adding value to the coffee value chain and all its stakeholders,” he said.

In addition to supplying the domestic market, the factory in Montes Claros will export to other Latin American countries as well.

Nestlé has been manufacturing Nestlé products in the country for more than three decades. Nestlé started selling Nescafé Dolce Gusto products in Brazil in 2009. The brand is the top selling single pod coffee capsule in the country today.

Nescafé was developed in 1938 as the world’s first soluble coffee, using surplus Brazilian coffee beans. Today Nescafé is present in more than 180 countries and continues to lead the coffee beverage category. One of the brand’s biggest successes and breakthrough innovations is Nescafé Dolce Gusto, which is the fastest growing coffee machine in the world and close to becoming a billionaire brand in its own right.

Nescafé REDvolution was launched in 2014 to create a unified global identity for the brand to appeal to younger consumers. With a new Nescafé brandline, ‘It all starts with a Nescafé’, the campaign was the brand’s first makeover in its 75-year history.