Nestlé SA NESN.VX -0.14% wants to brew up interest in one of its oldest brands—Nescafé instant coffee.
Sales growth of the venerable brand has slowed in Europe as more consumers buy pod coffee machines—including Nestlé’s own Nespresso line—that make fresh espressos with comparable convenience to preparing instant coffee. In North America, a new generation of coffee drinkers raised on Starbucks Corp. SBUX +0.31% cafes views instant coffee as fusty.
Putting pep in Nescafé sales is a priority for Nestlé, which missed an important revenue target in its most recent fiscal year. The brand is Nestlé’s single largest and anchors the Swiss food giant’s powdered-and-liquid beverage category, which generated sales of $22.8 billion in 2013. Analysts estimate Nescafé generates as much as $13.5 billion, or 59% of the category’s revenue, and about a fifth of Nestlé’s operating profit of 14.05 billion Swiss francs ($15.61 billion).
Read more about how Nestle seeks to revitalize Nescafe brand here.
