35
-8%
11,089 $m
Nescafé
Nescafé’s focus on quality over convenience in 2011 proved to be too far of a leap for a brand most closely associated with instant coffee. Nescafé expanded beyond its typical offerings to sell its line of Dolce Gusto coffee machines and capsules. Single-cup coffee may only account for 8% of coffee sales worldwide, but it is the fastestgrowing trend in the coffee industry. The cost of the machine and the capsules that go into it make the average cup considerably more expensive than traditionally made java, and this posed several challenges for the brand, one of which was weakness in overseas markets. In Europe, the Nescafé brand is instantly recognizable, but in the US, the brand has significantly less equity. Attempting to elbow into an already crowded US market has proven to be a costly venture, and it remains to be seen if Nescafé can become the category leader in the US that it is in Europe.