In a bid to fuel coffee consumption and push one of its mainstay brands Nescafe, Nestle has entered the consumer-facing small appliances category. The company is in the process of launching app-based coffee machines, which will be sold through non-FMCG distribution channels as well.
Addressing the media at a roundtable at its Gurugram headquarters, Nestle India chairman Suresh Narayanan said, “We are seeing a surge of speciality coffee outlets, and coffee consumption are growing specially among millennial consumers.”
The company said India is among its first few markets to begin retailing the smartphone-connected machines. Last year, Nestle had crossed the Rs 10,000 crore sales threshold.
Commenting on the India impact of the global USD 7.15 billion Nestle-Starbucks licensing deal, Narayanan said it would pan out in India as well, though not in the immediate term.
The licensing deal grants the Swiss food giant the right to market Starbucks’ packaged coffees and teas around the world, including Starbucks, Seattle’s Best Coffee, and Teavana.
As per the association, the two companies will work closely together on the existing Starbucks range of roast and ground coffee, whole beans, instant and portioned coffee.
The alliance will also capitalize on the experience and capabilities of both companies to work on innovation with the goal of enhancing its product offerings for coffee lovers globally.