The investment comes 12 months after the Swiss food and beverage giant allocated $196.5m to scale instant coffee production and B2B coffee machine sales in the South American country
Nescafé will invest an additional R500m ($88.7m) in Brazil by 2028, parent company Nestlé has revealed.
Swiss food and beverage giant Nestlé announced a two-year R$1bn ($196.5m) investment in Brazil in May 2024 to expand Nescafé production and tap into rising consumer demand for premium coffee.
Nestlé’s additional investment in South America’s largest country will focus on expanding production at its Nescafé Dolce Gusto production facility in Minas Gerais.
Opened in January 2016 with an investment of $71m, the Nescafé Dolce Gusto site was Nestlé’s first instant coffee factory outside of Europe and primarily produces single-serve coffee capsules for Brazil’s domestic market, as well as for export to neighbouring South American markets.
“In the last five years, Nestlé’s capsule coffee category has grown around 20%, so we are estimating this level of growth going forward,” Valeria Pardal, Business Executive Officer for Coffee Beverages, Nestlé, told journalists in São Paulo on 22 May 2025.
The fresh investment will also enable Nestlé to scale its business-to-business segment in Brazil by increasing sales of its Nestlé Professional self-serve coffee machines, as well as broaden its coffee product portfolio and tap into new sales channels.
In April 2025, Nestlé expanded its Nescafé ready-to-drink (RTD) cold coffee range to Brazil to tap into rising demand for convenience, variety and on-the-go options among the country’s 87 million consumers under the age of 30.
Brazil is the largest coffee-growing and second-largest coffee-consuming country in the world, after the US. Nestlé, which has been operating in the country for over 100 years, currently operates 16 production sites across the states of São Paulo, Minas Gerais, Bahia, Pernambuco, Goiás, Rio de Janeiro, Rio Grande do Sul and Espírito Santo.
The Swiss group, which also produces infant formula, cereals, yoghurts and confectionery, claims its products are present in 98% of Brazilian homes.
