Starbucks "helps" Nestle Coffee, another giant increases the size of the Chinese market

Starbucks, the "predator" of coffee grinding, has intersected with Nestle, the "ancestor" of instant coffee.

Starbucks announced plans to sell espresso for Nestl é home capsule coffee machines in Europe, Reuters reported.

This marks that Starbucks products will also be made by Nestl é capsule coffee machines.

Almost at the same time on the 23rd, Nestle Coffee Center was officially completed in Pu'er, Yunnan Province. Its CEO Paul. Bok Kai said that China will become the largest market for Nestle coffee.

It seems that Nestl é, an aging "enlightening teacher of Chinese coffee", will usher in new development opportunities.

[1]

Starbucks "helps", Nestl é increases its Chinese coffee business

On March 23, local time, Starbucks announced plans to sell espresso "suitable for Nestle home capsule coffee machines" in Europe.

This means that Starbucks products can also be made by Nestl é capsule coffee machines.

Almost at the same time, the Nestle Group's first modern Nestle Coffee Center project was officially completed in Yunnan, which was "fighting" with Starbucks that year.

Nestl é said the coffee center is to train local farmers to grow coffee better in order to improve the quality of local coffee, which will also reserve more coffee raw materials for Nestl é.

"any investment has a purpose, and it does cost a lot of money."

Bok Kai, CEO of Nestl é, said: "the purpose of our investment is to be based on the long term, based on the long term of China, Yunnan and the region, as well as the long-term service for the coffee category."

To meet the global demand for coffee, 25 million farmers in more than 80 countries are engaged in coffee cultivation.

At present, China is playing an increasingly important role in the coffee production chain.

In fact, as early as 1998, Nestl é began to purchase coffee beans for its products in Yunnan. In 2002, Starbucks came here a few years ago. The two keep fighting in secret, seizing the "upstream coffee base" of Yunnan, and at the same time making the team of coffee bean buyers here more and more large.

Nestl é plans the entire coffee supply chain and value chain. Quality control from the source, for large international enterprises like Nestl é, can greatly reduce the risk in the supply chain.

At the same time, the establishment of a modern coffee center will not only "save trouble" for Nestl é in the long run, but also improve product quality and reputation.

[2]

Wa, Starbucks, Unification, Coca-Cola. The competition for ready-to-drink coffee is white-hot.

In the 1980s, the classic slogan "Nestle, delicious" spread all over the streets, and the Chinese coffee journey began.

However, Nestle's performance has declined for six consecutive years! 2015 recorded the lowest growth rate.

In the face of good market prospects, the beverage giants also frequently attack to seize the market.

In March last year, Starbucks formally signed a cooperation agreement with Master Kang, which is responsible for the production and sale of Chinese mainland ready-to-drink beverages.

At the same time, Coca-Cola launched Joya Coffee in a high profile.

Yibao "Marriage" Japanese Kirin Fire Cafe

Uni-President also launched a new ready-to-drink coffee strategy, the "Yaha hey" series and the high-end "Rondo Coffee".

Wa also launched Maoyuan Coffee at the beginning of this year.

……

In the field of instant solution, brands such as Maxwell are a headache for Nestl é.

Chinese consumers are pursuing more advanced, more tastes and more choices. Competition in the ready-to-drink coffee market is becoming increasingly fierce.

[3]

The old brand "rejuvenation", reconstructing consumption cognition

Today, the domestic consumption structure and market environment have undergone fundamental changes, personalized consumption, fine service has become a trend.

The era of "choosing Procter & Gamble, Food Buy Kraft and Nestle", which was previously regarded as fashionable and popular, has gone, and consumers have more choices.

Nestl é is clearly adjusting all categories, including coffee.

Just last year, Nestle Coffee launched a sugar-free 1: 2 coffee in China, which is concerned about Chinese consumers who like to drink coffee without sugar or hope that there is no sugar in the product.

At the same time, Nestle Coffee has made strategic adjustments, laying out the capsule coffee business and infiltrating into the high-end market as well as the second and third-tier markets.

The elegant decoration of the Nespresso store on the fifth floor of Beijing Xingguang Tiantian makes drinking coffee seem to be an artistic enjoyment. This is the first high-end experience store opened by Nestle in China. The name of the store is a combination of Nestle and Espresso.