Whenever we think of coffee only one thing comes to our mind and that is ‘Nescafe’. Nescafe, being a product of a famous brand nestle have been successful in capturing a high market share of instant coffee. The word Nescafe is actually the portmanteau of two words that are “Nestle” and “café”. Max Mergenthaler along with his team members had worked hard for almost seven years to make coffee powder into a big hit.
In the year 1975 Japan thought of introducing Nescafe into Japan in the hope that they might be interested in drinking coffee. But japanese culture is steeped in tea, and it has strong emotional imprint, meanwhile coffee had a superficial/ non existent imprint on the japanese people.
Nestle started making (caffeine-free) coffee-flavored desserts for kids. Most children love candy and dessert, and Japanese kids were no different — no culture issue there. Fifty years later, Japan spends $22 billion on instant coffee, more than any other country. When Nestlé made coffee-flavored desserts, they were able to positively imprint on Japanese children. This grew into a strong emotional resonance with coffee in Japanese culture and a huge market for Nescafé to tap into and monetize.
Both Nescafe & Bru are locked in a fierce battle for market leadership today, with each commanding about 36% market share by value in the Indian retail coffee market in 2020. Operating Profit was $12.17 billion. Sales was $94.69 billion. Current Share price is 120.58 CHF i.e. Rs. 9906.16
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