Swiss food and beverage giant Nestlé reports strong nine-month sales for its coffee brands, with Starbucks out-of-home and Nescafé cited as key performers in most regions globally
Nestlé said it had achieved ‘positive sales developments’ across all its coffee brands and channels | Photo credit: Nestlé
Nestlé has reported high single-digit sales growth for its coffee brands in the first nine-months of 2023 despite lower-than-expected group sales of CHF 68.8bn ($76.6bn).
The Swiss food and beverage group said it had achieved ‘positive sales developments’ across all its coffee brands and channels, led by strong Starbucks out-of-home and Nescafé performances.
As part of its $7.1bn Global Coffee Alliance partnership, Nestlé holds the exclusive rights to market and distribute Starbucks-branded retail packaged coffee, pods and ready-to-drink (RTD) ranges across more than 80 markets outside of Starbucks’ retail stores.
Sales of Starbucks out-of-home products in North America, Nestlé’s largest market by revenue at CHF 19bn ($21.1bn), continued to grow at a strong double-digit rate, which the Swiss group attributed to new customer acquisition and e-commerce momentum.
Nestlé also highlighted ‘robust demand’ for Starbucks RTD products across Asia and Oceania, particularly in South Korea where its coffee category achieved high single-digit sales growth.
Nestlé’s coffee revenues in Europe achieved mid-single-digit growth, led by Nescafé sales. In September 2023, the company launched its Nescafé Dolce Gusto Neo paper-based pods in France and Switzerland.
Nescafé was also credited as a strong performer in North America, Asia and Oceania, and Latin America, where its instant coffee range achieved double-digit growth. Additionally, Nestlé highlighted recent Nescafé Dolce Gusto Neo and Nescafé Farmers Origins product launches as strongly resonating with consumers in Brazil – its third largest market globally.
Nespresso sales reached CHF 4.6bn ($5.1bn) during the period, 1.2% lower than the first nine-months of 2022. However, Nestlé reported ‘broad-based momentum’ in sales of its Nespresso Vertuo coffee pod machine, as well as increased sales of its office-focused Momento machine.
Nestlé’s total sales for the first nine-months of 2023 fell 0.4% to CHF 68.8bn ($76.6bn), aided by an average 8% product price increase. The food and beverage giant forecasts full-year sales growth above 7%.