Nestlé’s Nescafé to Invest Additional $89 Million in Brazil by 2028

Nestlé has announced plans to invest an additional 500 million reais (approximately $88.7 million) in its Nescafé operations in Brazil by 2028, further reinforcing the country’s strategic importance in its global coffee portfolio.

This new investment comes on top of the 1 billion reais Nestlé committed to Brazil last year, bringing its total investment in Latin America’s largest economy to 1.5 billion reais. The company highlighted that Brazil, the world’s second-largest coffee consumer and the largest producer and exporter, plays a crucial role in its growth strategy.

The investment will primarily focus on the expansion of Nestlé’s Montes Claros factory in the state of Minas Gerais, and on growing the presence of Nestlé Professional coffee machines across the country. These machines cater to foodservice businesses and are part of the company’s broader strategy to expand its out-of-home coffee consumption channels.

According to Valeria Pardal, Business Executive Officer for Coffee Beverages at Nestlé Brazil, a significant portion of this investment will go toward the “portion coffee” segment—Nestlé’s term for capsule-based coffee products. “In the past five years, our ‘portion coffee’ category has grown around 20%. We expect this pace of growth to continue,” she said during a presentation to journalists.

Nescafé, originally launched in Brazil to market instant coffee, has since evolved into a diverse coffee brand offering a wide range of products. With the additional funding, Nestlé aims to strengthen its position in the rapidly evolving Brazilian coffee market, where demand for convenient, high-quality coffee continues to rise.

This expansion signals Nestlé’s confidence in the long-term potential of Brazil’s coffee industry and aligns with its global commitment to innovation and market responsiveness in the coffee sector.