Nestlé Invests In Significant Columbian Opportunities

By Karla Paris

Colombian coffee farmers may catch a financial break as Nespresso brand coffee plans to open commercial operations in the Land of El Dorado

Nespresso announced on March 18 it is entering the Colombian market in a big way.  The company is opening commercial operations in Colombia for the first time, beginning later this year.

Historically, Colombia represents the most important source of green coffee for Nespresso with more than 80 percent of its coffee coming from Columbia.  Colombia was one of the first countries to join the Nespresso AAA Sustainable Quality™ Program.  Through this program, created in collaboration with the Rainforest Alliance, Nespresso has forged enduring partnerships with coffee farmers, coffee suppliers, and local organizations to help farmers produce the highest quality coffee, while improving their standard of living and protecting the natural environment.  This comes at a convenient time as coffee farmers have recently lost their government subsidies. In 2013, government subsidies for coffee farmers contributed to nearly 50 percent of the farmers’ income.   

While Nespresso’s product line is enjoyed in 59 other countries worldwide, Columbia has been an untapped market for Nespresso.  Nearly 95 percent of Colombian adults drink coffee, with approximately 75 percent of coffee being consumed in Colombian homes. Knowing this, Nespresso also sees the potential to tap into the specialty coffee market within the country.  Nespresso appears to be following the trend along with other manufacturers’ seeking to invest abroad to help build strategic assets, such as distribution networks or new technology.  Nespresso plans to invest $10 Million per year over the next five years in this endeavor.

What is the recommended equipment for coffee production?

Accompanying the commercial operations facility, Nespresso is also opening a Nespresso boutique in Bogota. The company’s boutique model provides customers with face-to-face service and expert advice in addition to the online and phone service offered by Nespresso.

Executives from Nestle have collaborated with officials from the Columbian government to launch the Nespresso Colombian Terroirs Limited Edition duo, which are harvested from very different regions of Colombia and offer distinct aroma and taste.  Colombian Terroirs are on sale now in Nespresso markets worldwide and will be available for a limited time in Colombia once the market opens later this year.  Nespresso coffees, machines, and accessories will be available in Colombia in the second half of 2014 through exclusive retail partners.