Nestlé expands Nescafé Espresso concentrate production with new Line in Malaysia 

MALAYSIA – Nestlé has expanded its presence in the coffee category with the launch of a new Nescafé Espresso Concentrate production line at its Sri Muda factory in Malaysia.  

This facility marks the first coffee concentrate production line established in Asia, underscoring the company’s long-term growth strategy in the region. 

The new line will meet both domestic and international demand, supplying markets such as Singapore, Oceania, the Middle East, and North Africa, with plans to extend exports to Europe in the future. Other iconic Nestlé brands, including Milo and Nescafé, are also produced at the Sri Muda facility. 

According to Axel Touzet, Head of Nestlé’s Strategic Coffee Business Unit, the expansion reflects the company’s ambition to lead in the growing cold coffee segment, which is particularly popular among younger consumers seeking premium, café-style beverages for home and on-the-go consumption.  

“This factory is perfectly positioned to meet the increasing demand for Nescafé Espresso Concentrate in Asia,” he said. 

Nestlé emphasized its continued commitment to sustainability with the launch of this product, which will be packaged in 100 percent recycled PET bottles with carbon black-free pigment caps.  

The Sri Muda factory has been at the forefront of sustainable packaging initiatives, having eliminated over one billion plastic straws since 2019, introduced paper wrappers, and pioneered the use of 100 percent recycled PET across all bottled drinks in ASEAN. 

The investment is part of Nestlé’s broader strategy to strengthen Malaysia as a regional hub for innovation, exports, and halal manufacturing.  

Over the past five years, Nestlé has invested approximately US$360.1 million (CHF 290 million) in the country, with an additional US$186.6 million (CHF 150 million) planned by 2028. The future investment will focus on enhancing manufacturing capabilities, digital infrastructure, and innovation. 

Nestlé Malaysia Chief Executive Officer Juan Aranols highlighted the significance of the project, noting that it reinforces Malaysia’s position within the global group.  

“With the group renewing its trust in Nestlé Malaysia to bring to life important projects like this, we are seeding new platforms for future growth, while bringing exciting and convenient ways to enjoy Malaysians’ most loved coffee brand,” he said. 

He added that the expansion would create employment opportunities while further strengthening Malaysia’s role as a regional export hub and key halal manufacturing centre for the group. 

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.