Nestle Group's first modern coffee center project has been established in China's Yunnan province.
Nestle said that this coffee center aims to train local farmers about better coffee cultivation to improve the coffee quality. Meanwhile, it will be able to supply more coffee raw materials to Nestle, and China is expected to become the largest coffee consuming country for Nestle in the future.
From 2009 to 2014, the Chinese coffee market sales saw a fast growth from CNY5.545 billion in 2009 to CNY10.343 billion in 2013, marking a compound annual growth rate of 16.2% during the five years. Coffee has become the fastest growing category in the Chinese non-alcoholic drinks market. Meanwhile, in 2012, China's coffee consumption market scale was merely CNY70 billion; however, by 2017, the scale is expected to double to over CNY150 billion.
Commenting on Nestle's performance in the Chinese coffee market, Nestle's chief executive officer Paul Bulcke said there is no doubt that China will become the largest contributor to Nestle's coffee business in the future. Apart from the traditional instant coffee, Nestle also launched innovative products such as capsule coffee. In addition, the company's new coffee center in Yunnan represents its enhancement of Chinese coffee business.