22 November, 2007 – Nestles India has revealed proposals to grow its coffee business in the country by appealing to the mass market through its chain of cafes.
Company CEO Martial Rolland was reported as saying Nestle's strategy was to create a sustainable model of expansion that could be scaled up through its cafes.
He said: “In fact, we use these outlets as our laboratories to try out new products and gauge the reaction of consumers to the newer variants of coffee.”
Nestle said it has produced a special blend of coffee adapted to domestic tastes and hoped to use its own knowledge of the product to increase its market share. It said it planned to achieve this by expanding new product lines such as cold coffee.
Mr Rolland admitted the current coffee market in India was relatively small but that Nestle believed there was real opportunity for growth.
Nestle India’s recent 3Q 2007 results showed the company had increased its net sales by 25 pct and its net profits by 40 pct compared to the same period in 2006. This was thanks largely to an expansion in its dairy business, particularly its probiotics dahi arm.
The news also comes after the food giant’s Sri Lankan company, Nestle Lanka, announced it was to invest LKR 700 million ( 4.2 million euro) in expanding its Kurunegala food and drinks plant to boost production in Nestomalt, Maggi Noodles and Milkmaid Sweetened Condensed Milk.