Relive the Nescafe turn Nestlé 's priority

Nestlé wants to reinvigorate interest in one of its oldest brands, the instant coffee Nescafe.

The growth in sales of respected brand slowed, as more consumers buy coffee capsule machines — including Nespresso, Nestlé 's own line — making espresso with convenience similar to preparation of soluble coffee. In many regions, a new generation of coffee drinkers who got used to the drink prepared by networks of coffee shops, such as Starbucks Corp., SBUX-0.08% considered instant coffee without taste.

Animate the sales of Nescafe is a priority for Nestlé, which has failed to fulfil an important goal of revenue in the last fiscal year. The brand is Nestle's largest and serves as the anchor for the category of liquid and powder drinks giant's Switzerland, which produced revenue of $ 22.8 billion in 2013. Analysts estimate that the Nescafe is responsible for about $ 13.5 billion, or 59 percent, of the billing category and about 20% of the company's operating profit of $ 15,61 billion.

"He is a cornerstone for the company," says Patrice Bula, responsible for marketing at Nestlé. "It is one of the founders of our company products and a symbol for Nestle."

Nestle, which is based in the city of Vevey, Switzerland created the instant coffee market in 1938, when it launched its first product line of Nescafe. After World War II, the consumption of Nescafe spread to France, England and other parts of Europe. United States soldiers who have served abroad have introduced the product to the Americans when they returned home. Currently, the Nescafe is sold in 180 countries.

The rise of a culture of coffee in Europe and the USA, however, has created a generation of more demanding consumers in relation to its taste and preparation. Many see the instant coffee — common kitchen shelves in the decades of 60 and 70 — as a thing of the past.

In developing markets, particularly in Asia, the instant coffee is still seen as a luxury item and sales grow faster than in Europe and the USA.

"The perception of instant coffee around the world is very different," says Dana LaMendola, an analyst at market research firm Euromonitor International. "In Western Europe and the USA, he is seen more as a commodity of low quality and substitute other types of coffee."

The change in taste of consumers has affected the Nescafe. The brand has also been challenged by rival brands of instant coffee, as sold by food giant Mondelez International MDLZ + 1.79% Inc.. Other companies, such as Starbucks and the Food Empire Holdings Ltd., F03.SG 0.00% of Singapore, also came out of nowhere to conquer part of this market.

Nestlé itself competes with Nescafé, selling their Nespresso machines and capsules of coffee to the consumer through a network of stores. The product, which has the Hollywood Heartthrob George Clooney as poster boy outside the u.s., is especially popular in Europe, where coffee lovers prefer the Espresso to café strained preferred by Americans.

The Nespresso brand is responsible for revenue of about $ 5 billion, analysts estimate, and has grown rapidly in the past ten years. Such as the Nespresso capsules are starting to reduce the popularity of instant coffee, say analysts.

The competition should be fierce. Last month, the Mondelez, the second largest producer of instant coffee in the world, reported that is uniting its operation of coffee with that of Master Blenders 1753 BV, the second runner-up.

Last year, the participation of Nescafe instant coffee on the world market fell to 44.3% compared with a peak of 47% in 2004, according to Euromonitor.

The Nescafé brand has also been hit. Since 2009, she has already fallen 12 positions for the 37th place among the most important brands in the world, according to the market consultancy Interbrand. The brand Nescafé is well less than 0.17% ColaKO + coke or Pepsi, according to Interbrand, but is above the Starbucks. Nestlé expects this fall can be contained.

The company plans to launch a marketing campaign to revitalize the 76-year-old mark to attract young consumers, in their teens, who are starting to drink coffee. The headquarters of Nestle Switzerland is leading the campaign to create a single global identity for the brand, breaking a traditional practice which allowed the local unit to take care of their own advertising.

The campaign, whose slogan can be translated as "Everything begins with a Nescafe", will feature young models that appear drinking Nescafe while learning to play the guitar or before leaving to do exercises.
In a bid to attract young people, the campaign has many components in digital platforms like Facebook, FB-0.46% where the company will display a redesigned logo for Nescafe using a bright red accent on the final letter to symbolize inspiration and creativity.

Nestlé also hopes to attract young customers with products such as Shakissimo, a coffee with cold milk ready to drink that will be released in Europe before other markets. And leveraging the experience of Nespresso, the company also throws a machine to prepare Nescafe, called Nescafé Red Cup, in Asia, as part of an effort to strengthen brand presence in one of its best markets.

"Is a brand that introduced coffee in many markets," says Bula. "The Nescafe became ' the first coffee ' of many people and we have to do it the ' first ' coffee the next generations."