-4%

10,651 $m

Beverages

Nescafé continues to expand, investing in Nescafé Dolce Gusto and the recently launched Nescafé Milano, working to fortify its reputation as the world’s leading coffee brand. Both Dolce Gusto and Milano target the fast-growing single-cup coffee segment. The Nestlé-owned brand has invested heavily in European production facilities in Germany and the UK as it capitalizes on the growing popularity of Dolce Gusto. Achieving profitability in its last fiscal year, coupled with double-digit top-line growth, the strength of the brand has been clearly demonstrated. Despite its success in Europe, Dolce Gusto has struggled to gain traction in the US marketplace. It is too early to make any declaration on the Nescafé Milano brand and its impact on the market, however. Early adoption rates and consumer feedback are positive while Nestlé appears happy with the early results. The brand’s “Really Friends” social campaign in France created a successful narrative around authentic connections over coffee, arming a charming gentleman, Arnaud, with Nescafé coffee, two mugs, and a video. Arnaud introduces the series that captures meetings with some of his 1,200 Facebook friends, “Moi c’est Arnaud. Je suis allé vérifier si mes amis Facebook sont vraiment mes amis dans la vie!” (I’m Arnaud. I’m going to see if my Facebook friends are truly my friends in real life!) The videos garnered up to 500,000 views each, celebrating great moments with friends over coffee.

Nescafé

Product type	Instant coffee
Owner	Nestlé
Country	Switzerland
Introduced	1938
Markets	Worldwide
Previous owners	None
Website	Official website

Nescafé is a brand of instant coffee made by Nestlé. It comes in many different product forms. The name is a portmanteau of the words “Nestlé” and “café”.^[1] Nestlé’s flagship powdered coffee product was introduced in Switzerland on April 1, 1938^[1] after being developed for seven^[1] or eight^[2] years by Max Morgenthaler.

Branding and marketing[edit]

Nescafé, a brand introduced by the Nestlé company, can be traced back to the 1930s.^[3] In the United States, the Nescafé name was used on its products until the 1960s. Later, Nestlé introduced a new brand in the US called “Taster’s Choice”, which supplanted Nescafé for many years. Taster’s Choice was also introduced into Canada at the same time, and continues to be sold as a separate product, branded as superior to Nescafé, and is higher priced.

In the United Kingdom, a television advertisement campaign, the Gold Blend couple starring Anthony Head and Sharon Maughan ran in 12 installments between 1987 and 1993.^[4]The first 11 episodes were released as a promotional compilation video called Love Over Gold in 1993. A novelisation of the same name written by Susan Moody (under the pseudonym Susannah James) was released in the same year.^[5]

In 2003, the company reintroduced the Nescafé brand in the US, and the product is now known as Nescafé Taster’s Choice. It is sold in US supermarkets in both glass and plastic packaging.

While the Nescafé brand was created for soluble coffee, it has subsequently been used as an umbrella brand on a number of instant coffee products, including, in the UK, Gold Blend and Blend 37 freeze-dried coffees.

In 2006, Nescafé launched the new coffee machine system “Dolce Gusto” (“sweet taste” in Italian). The system allows consumers to make various styles of coffees themselves (cappuccino, latte macchiato, espresso, lungo, etc.). Additionally, hot chocolate and cold drinks can be prepared with the machine. The machines are now sold in more than 60 countries worldwide. Unlike other Nescafé products, most Dolce Gusto beverages use roasted and ground coffee, instead of instant coffee.

Other marketing activity included experiential marketing/relationship marketing, which led Nescafé to become the headline sponsor of Good Food Show 2008 at Birmingham NECas part of their campaign to drive awareness of the increased Nescafé collection. About 95% of consumers at this popular event rated the Nescafé Collection stand the best at the show.^[6] Nescafé used advanced 3D technology to engage their consumers, led by iD Experiential.

In the UK in August 2009, Nescafé unveiled a £43 m ad campaign for Nescafé, focusing on the purity of its coffee and featuring the strapline “Coffee at its brightest”.^[7]

Lawsuits[edit]

In February 2005, the Associated Press reported Nestlé lost a lawsuit and was ordered to pay $15.6 million US to Russell Christoff for using an image of him without his permission on their Taster’s Choice label for approximately five years (1998–2003).^[8] The $15.6 million judgment was subsequently reversed in its entirety by the California Court of Appeal.^[9]On 31 October 2007, the California Supreme Court, with a vote of 6–0, granted review. On 17 August 2009, the court reversed the judgment (opinion S155242) and remanded the case to the trial court to consider whether the ad campaign covered a “single publication”, which would have prevented Christoff from suing because the statute of limitations would have lapsed, or multiple publications.^[10]

English band Muse successfully sued Nescafé in 2003 when its song “Feeling Good” was used in a television ad without permission, donating the £500,000 compensation toOxfam.^[11]

Products[edit]

Nestlé claims that 3,000 cups of Nescafé are drunk every second.

Nescafé products include:^[12]

Nescafé has a speciality range which includes:

• Nescafé Cappuccino
• Nescafé Cappuccino Unsweetened
• Nescafé Cappuccino Skinny
• Nescafé Cappuccino Decaffeinated
• Nescafé Decaffeinated
• Nescafé Latte Macchiato
• Nescafé Latte
• Nescafé Latte Skinny
• Nescafé Ice Java Coffee Syrup
• Nescafé Excella

Nescafé has a Café Flavours range which includes:

• Vanilla
• Irish Cream
• Mocha
• Double Choca Mocha
• Mocha Skinny

They also have 3-in-1 sachets,namely:(Available in Philippines only)

• 3-in-1 Original
• 3-in-1 Sweet And Creamy
• 3-in-1 Creamylatte (more cream)
• 3-in-1 Chocolatte (chocolate flavored)
• 3-in-1 Strong and Rich (stronger flavor)
• 3-in-1 Cappuccino (cappuccino with choco crumble)
• 3-in-1 Mocha

A five-gram sachet of instant coffee contains 57 mg of caffeine.^[14]