Nespresso expects Brazilian taste coffee like wine

The Brazil has the second largest market of coffee in the world, but the version of the drink in capsules is still restricted to about 1% of homes in Brazil. In his first visit to the country as global Chief Executive of Nespresso, the Swiss Jean Marc Duvoisin said he estimates that the category is present in 20 percent of Brazilian households in the long run, marks similar to the developed markets. This advance, he said, will take place under the leadership of the brand.

The brand of Nestlé arrived in Brazil for seven years. Currently, the country ranks among the ten largest Nespresso's operations in the world, out of a total of 59. "The upper middle class is a group that is growing very strongly in Brazil and is the audience to which we dedicate our brand," says Duvoisin.

Executive's ambition is that consumers degustem coffee similarly to wine, valuing its origin, aroma and flavor. "In Europe, is growing much knowledge of the world of coffee. In Brazil, I am sure that we will also reach this level. It is a country that loves coffee and already has a coffee culture, "he says.

Despite not having a factory in Brazil, the Nespresso production starts in the country. The Group buys the grain of 2.2 thousand local producers, and about 70% of coffee sold in capsules is of Brazilian origin. "If Brazil grow enough, we can fight for a factory here," says Stefan Nilsson, Executive who inaugurated the local operation and is in front of you. The brand has two factories of capsules, which are located in Switzerland, where Nespresso was born 28 years ago.

At the end of 2012, Nespresso has reduced by more than 20% the price of capsules in Brazil. The account went from R $ 1.90 to $ 1.50. This adjustment, according to Nilsson, it was possible from negotiating with carriers and it was important to boost the growth of the brand. Still, the product is more expensive than the competition. The traditional Brazilian brand 3 Hearts, for example, began acting in that category this year, and its capsules cost of $ 1.10 to $ 1.50.

Although not the focus of the brand, the sale of machines and capsules for companies, hotels and restaurants also "grows well" in Brazil, second Duvoisin. "When people have the ability to make good coffee in the House, they require that out too," he says.

The Brazilian coffee pod grows 30% per year, according to Nilsson. In February, the Vice President of Nestle for strategic business units, Patrice Bula, reported that in Brazil both Nespresso and Dolce Gusto system-most popular-grew up 50% last year.