Delhi, July 05, 2023: India, with its burgeoning coffee culture and rapidly expanding market, has
emerged as a key growth opportunity for Nescafe, the renowned coffee brand owned by Nestle.
According to Philipp Navratil, Head of Coffee Strategic Business Unit at Nestle, India offers a “huge
opportunity” for both innovation and premiumization in the coffee segment. With the opening of new
coffee shops and an increasing consumer interest in coffee, Nestle is optimistic about the future
prospects of Nescafe in India.

The Growing Indian Market

During his visit to India, Navratil expressed his confidence in the potential of the Indian market for
Nescafe. He highlighted India’s status as one of the fastest-growing markets for Nescafe, citing the
opportunity for penetration-led growth through both in-home and out-of-home consumption.
Notably, Nescafe has already achieved a household penetration of 46 million in India, a significant
milestone.

Positioning Nescafe as a Global Coffee Brand

Navratil emphasized Nescafe’s potential to become a global leader in coffee, making it more
affordable and accessible to consumers worldwide. By offering competitive price points and
maintaining high-quality standards, Nescafe aims to introduce coffee to a broader audience. The
brand’s diverse range of coffee options caters to evolving consumer preferences and the increasing
sophistication of coffee consumption.

Innovation and Premiumization in India

As cafe culture evolves in India, consumers are becoming more discerning and curious about the
origins and brewing techniques of their coffee. Navratil emphasized that India presents a tremendous
opportunity for innovation and premiumization in the coffee market. Nestle aims to capitalize on this
trend by offering unique and high-quality coffee experiences to Indian consumers.

Nescafe’s Popularity in Non-Metro and Semi-Urban Areas

Despite tea’s dominance in the Indian market, Nestle has successfully gained popularity for Nescafe in
non-metro and semi-urban areas. This success can be attributed to Nescafe’s attractive pricing
strategy, with coffee available at affordable price points of Rs 2 and 10. By catering to the diverse
needs and preferences of consumers across different regions, Nescafe has been able to establish a
strong presence in India.

Local Sourcing and Farmer Partnerships

Nestle has been actively engaged in sourcing coffee locally from Indian farmers since the launch of
the Nescafe plan in 2012. Over the past decade, Nestle India has partnered with 3,500 coffee farmers
from three states in the country, contributing to sustainable agricultural practices and supporting
local communities.

Global Coffee Consumption Potential

Navratil highlighted that globally, there is ample room for growth in coffee consumption. With 4.5
billion people consuming less than 20 cups of coffee, Nescafe aims to tap into this vast market
potential and expand its global reach.

In conclusion, the thriving Indian market, with its evolving coffee culture and growing consumer
interest, offers a significant growth opportunity for Nescafe. Nestle, with its focus on innovation,
premiumization, and local sourcing, is well-positioned to capitalize on this opportunity and position
Nescafe as a leading global coffee brand.

Link: www.nestle.in

Disclaimer: This news article is based on current trends and available information as of the specified
date. Investors are advised to conduct their own research and due diligence before making any
investment decisions.