China Food

This time, Nestle really wants to sell more local specialty coffee in China!

Facing the huge but quietly changing Chinese coffee market, Nestle began to accelerate the pace of creating high-end coffee. The latest attempt is to rely on local coffee bean resources.

Recently, Nestle announced that “CAF is a new coffee in Yunnan”. This means that caf É has launched three series of new products in half a year since the first hanging ear coffee “latitude coffee series” was launched in May this year.

All kinds of signs show that this high-end coffee brand described by Nestle as “built for the Chinese market” will play a more important role in the future. The snack generation learned that caf É plans to launch more new products in the future, including “building block coffee series” and “African regional coffee bean series”.

Previously, he Wenlong, head of Nestle’s coffee business in Greater China, clearly stated that high-end is one of Nestle’s important strategies in the development of China’s coffee market.

High end coffee

It is understood that in addition to latitude coffee and the launch of the bright coffee, CAF É also launched a series of unaccompanied instant coffee earlier. The series claims that the coffee beans produced in Colombia and Ethiopia and Yunnan coffee beans are combined into different combinations, focusing on the technology selling point of faster dissolution.

Instant coffee without accompaniment

The snack reps noticed that the three product series launched by caf É can sell for about 7 yuan to 13 yuan per cup, which is much higher than ordinary instant coffee. However, in Nestle’s view, high-end is the new opportunity that the company sees in the Chinese coffee market.

He Wenlong once told the snack reps that the biggest change of Nestle coffee this year is the change from the past, which only made instant coffee and did not involve instant coffee, to a more diversified supply role of the whole coffee category. “We found that if we really want to promote coffee culture, we need to develop other product lines.”

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According to reports, on the one hand, many Chinese coffee consumers have “upgraded” this year during the epidemic period. They have time to start in-depth research on coffee, including different coffee bean producing areas and grinding technologies, and are willing to try various coffee products.

At the same time, it means that the demand for Nestle’s off-line coffee products will be limited to some extent during the epidemic period.

On the other hand, for Nestle, in addition to cultivating new coffee consumers, it also hopes to establish its own coffee brand positioning and improve brand viscosity through high-end.

“Yunnan story”

In addition, telling the “Yunnan coffee story” is also the direction Nestle is striving to promote in China.

“China’s market is very special. There are both producing areas and big consumers. Many countries do not have such conditions.” He Wenlong said that Nestle has been rooted in Yunnan for 30 years, introducing new Arabica coffee varieties with high yield and high quality, and seven generations of agronomic experts to help improve the quality of local coffee in Yunnan.

He pointed out that in order to help realize high-end and high-quality coffee beans from China, Nestle has launched many high-end products from Yunnan this year. In the future, Nestle plans to create a high-quality Yunnan coffee product matrix, and even bring Yunnan coffee beans to the global market.

As an example, Nestle points out that this product is a “localized high-end coffee product” specially designed for the Chinese market and Chinese consumers. It adopts the unique global and first-line gilt patented technology in China. The first three products of latitude series launched by the brand are coffee beans from Baoshan and Puer of Yunnan.

According to Nestle, “Yunnan coffee story” is also a way to attract more young Chinese consumers to try coffee.

He explained that for today’s young consumers, “you can’t just put a product in front of him.”. Because of Yunnan coffee base in China, Nestle has been cultivated for many years, and can tell a good story about coffee.

Behind the war

For a long time, Nestle has occupied a very significant share of China’s instant coffee market, and its first mover advantage is very prominent. Interestingly, however, behind Nestle’s latest bet on China’s coffee market is the changing situation.

According to a report by inmate earlier this year, coffee has been gradually accepted by Chinese consumers after years of marketing cultivation, and consumption has also increased year by year. In recent years, new instant coffee brands have also risen with the help of e-commerce platforms, and achieved good growth.

According to statistics, in the first half of this year, three and a half meals, Shicui coffee and yongpu coffee have won the favor of capital, among which the latter two claim to have completed the financing of tens of millions.

 

According to the report, during the epidemic period, the growth rate of new coffee brands in e-commerce platforms was estimated to reach 80%, which was due to the increase in home consumption. According to the above report, the new instant coffee brand has become a consumption upgrading choice compared with ordinary instant coffee by focusing on quality, taste and popular image.

 

According to the online survey of 2600 Chinese consumers aged 20-49, 48% believe that coffee has become a part of life, 54% believe that the quality of coffee is more important than the convenience of purchasing, and 45% agree that the price of freshly ground coffee is too expensive.

 

In the past, instant coffee was considered cheap. However, Chinese consumers now want to find a solution that doesn’t sacrifice taste for convenience. The new instant coffee brand identified this opportunity by adopting higher quality coffee beans and advanced manufacturing technology, and consolidated the product advantages compared with ordinary instant coffee. Among them, cold extraction and freeze-drying technology are often used by manufacturers in consumer communication.

 

In addition to improving quality, instant coffee can also play its unique advantages and provide consumers with the opportunity to make their own drinks at home. For example, instant coffee products, especially when mixed with other beverages, can help expand the category to more consumer occasions. According to the survey, 64 percent said they had tried mixing drinks to create new flavors.

 

“Start up brands have found the opportunity to turn instant coffee into a fashionable drink.” It is worth noting that the strong growth of new coffee brands may pose a threat to the world’s major instant coffee brands, the report said. “Obviously, these brands need further innovation to develop products suitable for the Chinese market.”

Mark Schneider, chief executive officer, Nestle

 

In February this year, Nestle CEO Snyder said that Nestle has some high-end products with good performance in China, and Chinese consumers are also pursuing better food and beverage. Therefore, Nestle regards high-end as a main axis of its work. At the same time, Nestle also has a lot of popular products, and has been doing a lot of work to make these products closer to the high-end and become more attractive.

He believes that nestle will also invest in faster growth, higher profit margins, more in line with industry trends, more able to meet younger and higher consumption groups, and higher end products at the global level.

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