Nestle perks up for China market
Nestle will target the food services sector in offices and hotels to expand its coffee business in China.
New ranges of coffee products under the Starbucks brand will be distributed throughout the country following the two companies’ US$7.2 billion alliance that allows Nestle to market, sell and distribute Starbuck’s packaged coffees and teas outside of physical stores of Starbucks around the world.
The move complements Nestle’s existing instant coffee line Nescafé as well as its Nespresso coffee machines.
“We will be accelerating innovation for better offerings, and a more diversified coffee experience to cater to consumer demand in China,” said Nestle China's Chairman and CEO Rashid Aleem Qureshi.
While instant coffee still dominates coffee consumption in China, freshly roasted coffee is becoming popular especially in coastal cities.
Coffee is one of Nestle’s fastest-growing sectors and China is the second-largest market for Nestle group globally.
Starbucks capsules are now also available.
They were developed by the companies using Nespresso and Nescafé Dolce Gusto proprietary coffee and system technologies.
Packaged Starbucks coffee beans, whole bean and roast & ground coffee will also be distributed by Nestle in selected offline supermarkets and online channels including flagship stores on Alibaba, Tmall and Suning.
Chairman and CEO of Starbucks China Belinda Wong said it is seeking to expand its reach and deliver a Starbucks experience based on consumers' evolving needs and habits by combining capabilities with Nestle.