Nestlé to invest US$88M in Brazil to expand Nescafé production, foodservice innovation 

BRAZIL – Nestlé has announced plans to invest 500 million reais (US$88 million) by 2028 to expand its Nescafé coffee operations in Brazil, reaffirming the country’s strategic importance to its global coffee portfolio. 

The investment will be directed toward enhancing manufacturing capabilities at Nestlé’s Montes Claros facility in Minas Gerais, where the company currently produces Nescafé Dolce Gusto coffee capsules.  

A portion of the funds will also support the modernisation of Nestlé Professional, the company’s foodservice division in Brazil. 

Nestlé said the investment would bolster its commercial equipment network under Nestlé Professional, which supplies over 26,500 coffee machines installed in cafés, offices, bakeries, and convenience stores throughout the country.  

The planned expansion aims to increase this footprint by 30% by 2026, reflecting growing demand for quality and convenience in coffee consumption. 

“Coffee consumption in Brazil is evolving. There’s growing demand for quality, enjoyment, and practicality, whether at work, in cafés, or on the go,” said José Argolo, business executive officer of Nestlé Professional Brazil.  

“Our portfolio reflects this evolution by offering distinctive, personalized experiences.” 

Brazil is one of the largest markets for Nescafé, along with India and the UK. According to Nestlé, coffee is present in 98% of Brazilian homes and is considered essential by 80% of the population. 

The upcoming investment follows Nestlé’s 1 billion real capital injection in 2023 into its Araras factory in São Paulo, aimed at diversifying production lines and introducing new product formats such as iced coffee.  

The company noted that iced coffee now accounts for more than 10% of out-of-home coffee consumption in Brazil, with notable growth among consumers aged 16 to 24. 

In April 2025, Nestlé also expanded its ready-to-drink (RTD) cold coffee range in Brazil to meet rising demand for convenient, on-the-go beverage options.  

The move targets the country’s 87 million consumers under 30, a key demographic driving innovation in the coffee sector. 

“Brazil has become a strategic hub for coffee innovation and consumption,” said Valéria Pardal, business executive officer for Nescafé. “Our long-term investments reaffirm our commitment to delivering high-quality products while generating positive impact across the entire supply chain.” 

Nestlé, which has operated in Brazil for over a century, currently runs 16 production facilities across several states, including São Paulo, Minas Gerais, Bahia, and Pernambuco. 

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