FDBusiness.com

Nestlé will open a Nescafé Dolce Gusto (NDG) factory in Southeast Brazil in 2015. It will be the first production facility for NDG capsules outside Europe and underscores Nestlé’s confidence in rising coffee demand in the country and across Latin America.

The company is investing SFr72 million (Eur60 million) in the factory, which will be located in Montes Clares in the Minas Gerais state. The new operation will generate 90 jobs initially and a further 1,000 indirect jobs via its supply chain.

In addition to supplying the domestic market, the factory in Montes Claros will export to other Latin American countries as well.

Nescafé Dolce Gusto is the fastest growing coffee machine in the world and close to becoming a billionaire brand in its own right.

Brazil is the largest coffee producer in the world by volume and is also one of the fastest growing markets for coffee capsules. The coffee capsule market in Brazil grew by over 45% in 2013.

Nestlé’s new factory will produce a variety of Nescafé Dolce Gusto capsules popular in Brazil, ranging from European favourites like Caffe Buongiorno and Barista Espresso to local flavours like the Nescau chocolate capsule.

Nestlé has been manufacturing Nestlé products in the country for more than three decades. Nestlé started selling Nescafé Dolce Gusto products in Brazil in 2009. The brand is the top selling single pod coffee capsule in the country today.