The Swiss chocolate-to-pet food giant boasts of launching 15% more innovations and renovations in H1 2020 than in H1 2030, with an increase of 20% expected by the end of the year.
Nestlé has already made its global coffee giants, such as Nescafé Ice Roast Coffee and Nespresso, the highlights of its first-half sales. The company is now focusing on the innovations of Nescafé cold brew concentrate and the Vertuo system.
Vertuo Coffee+ and More
Nestlé Group announced last week its organic sales growth for the first half of 2024.
The three major coffee brands Nescafé (a Nestlé brand), Nespresso and Starbucks were the biggest contributors to organic growth with mid-single-digit increases. Via a global agreement with the coffee giant).
Nespresso sales increased by CHF 1.81 billion to CHF 3.1 billion (US$ 3.5 billion), representing growth of CHF 3.11 billion.
North America is the fastest growing market, driven by Vertuo's continued success.
This system, which allows consumers to choose from 35 types of coffee and prepare a variety of drinks: gourmet, short, iced or long coffees, has always performed well in this market.
Anna Manz, Nestlé's CFO, said: "Vertuo is attracting new consumers and building loyalty through its cold formats that are very popular with young consumers. We are also doing this by introducing limited editions, exciting collaborations, such as the one we did with Pantone, and exciting limited edition products."
She added that once consumers join the franchisee, they remain interested in the wide variety of products.
Nescafe: Concentrated Espresso
Nestlé has identified its Espresso Concentré Café as one of its priority launches. It is designed to offer consumers at home personalized barista-style iced beverages with a proprietary liquid coffee concentrate.
This drink offers many customization options: you can add espresso concentrate in small quantities to water, milk or lemonade.
Espresso Concentrate is available in two flavors: Sweet Vanilla (“for an added touch of flavor” to your coffee ritual) and Espresso Black (“for a bold and intense coffee”)
This product is available in English. Launched in May this yearIn Australia, the product is available in bottle form. It can also be purchased on Chinese e-commerce sites as a single dose. The company plans to expand globally.
Compostable capsules
Since the semester, compostable capsules have been introduced in Europe. These capsules were launched for the first time in Switzerland in 2022 and can be composted at home.
Nescafé Ice Roast Coffee is also a brand that has embraced the cold coffee trend. It was launched in 2023 and is the first-ever instant coffee designed to be used with milk or cold water.
The majority of Gen Z and younger consumers drink their coffee cold.
Nestlé also launched Maison Perrier, a variant of Perrier sparkling water and the Milo extension.
Nestlé SA CEO Mark Schneider told investors on its first-half earnings call last week that “in the first half of 2024, we will significantly increase our product launch intensities.”
These launches will gradually boost the Group's sales and offer retail partners broader value propositions.
Our approach to product launches is not only quantity, but also precision and focus. We focus on what can be expanded, segments to develop and new growth opportunities. Innovation is the key to reconciling growth and premiumization.
Nestlé has a priority launch for each of its categories. It's a way of evaluating what works.
Schneider said he tracks launches to ensure a high level of consumer support and to know what is gaining popularity.
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