Nestlé Invests Further $100 Million in Vietnam to Expand Coffee Production

Nestlé has a strong presence in Vietnam to make products to sell to the Vietnamese consumer, but particularly with coffee, export is also the goal. Coffee consumption has soared 60% in Vietnam in just five years owing to increased purchasing power and continued adoption of a culture already coffee lovers. Vietnamese coffee beans are known for higher caffeine content and bolder flavor than beans from places such as Brazil and Kenya. This investment will ramp up the production capacity by an additional 20,000 tons of coffee beans annually, which translates into an additional 1 billion cups of coffee annually.

A production line at the Nestlé Tri An factory in Dong Nai Province, where Nescafé Dolce Gusto coffee pods are manufactured

Nestlé Vietnam has announced a substantial $100 million investment in a coffee factory in Vietnam. This initiative aims to meet the booming Vietnamese coffee market, which has witnessed a staggering 60% surge in consumption over the past five years. The move further solidifies Nestlé's position as a key player in the country. The company entered Vietnam in 1993 and has since then pumped over $3 billion to grow its operations, including manufacturing and distribution networks, creating over 3,000 jobs.

Nestlé has six factories in Vietnam and while domestic consumption is strong a good deal is exported to various international markets. The company is the largest coffee buyer in Vietnam and estimates are that over half of this is exported to be sold through their Nescafé brand. The investment will increase production by over 20,000 tons of coffee beans annually which equates to 1 billion cups of coffee.

Beyond coffee, In 2020, Nestlé Vietnam reported a total revenue of VND 51.8 trillion ($2.2 billion), with coffee, dairy, and culinary divisions all contributing significantly. The dairy segment alone boasts a 70% market share, fueled by popular brands like Milo, which sees Vietnam as its third-largest market globally. Nestle's instant noodles segment, anchored by Maggi, enjoys a similarly dominant position, capturing over 50% of the market. Nutrition fields also do well in Vietnam where NAN formula and Boost beverages cater to Vietnamese families' health needs. KitKat and La Vie ice cream carve out loyal followings in the confectionery and ice cream sectors.