Nestlé launches new capsule production line in Vietnam as Asia demand booms

25-Jul-2018 - Last updated on 25-Jul-2018 at 02:22 GMT

The new line in Nestlé’s Tri An factory in Bien Hoa City will raise the volume of Vietnamese coffee passing through the firm’s production lines in the country.

Related tags Vietnam Coffee Beverages South east asia

Nestlé has launched a new Nescafé Dolce Gusto capsule production line in Vietnam, which will use locally-grown coffee beans top process 2,500 tonnes of coffee per year — the equivalent of around 130 million capsules.

The new line in Nestlé’s Tri An factory in Bien Hoa City, Dong Nai province will raise the volume of Vietnamese coffee passing through the firm’s production lines in the country.

It said its Dolce Gusto coffee machine and premium coffee capsules, introduced to Vietnam in October 2015, have been a huge hit with Vietnamese consumers.

As such, the use of local Vietnamese coffee beans in production will help to satisfy domestic demand while enabling Vietnamese coffee lovers to enjoy high quality coffee at reasonable prices, added the firm.

Catering to Asian export

The new production line also helps to meet the growing demand of coffee drinking in many countries in Asia. Approximately 90% of the Nescafé Dolce Gusto output from facility will be exported to other markets in the region including Thailand, the Philippines, Malaysia, Singapore, Hong Kong, Taiwan and Indonesia.

"The new Nescafé Dolce Gusto production line will help make great coffee widely accessible to Vietnamese consumers and to 13 export markets," said Ganesan Ampalavanar, managing director of Nestlé Vietnam.

“Moreover, the new production line reaffirms Nestlé Vietnam's commitment to adding value to and developing Vietnam's coffee industry.”

Leading coffee player

Nestlé claims to be the leading coffee buyer in Vietnam, with an annual purchase volume of 20-25% of the total coffee production output of the South East Asian nation.

The firm operates six factories in Vietnam with a total of more than 2,500 employees. To date, Nestlé’s total investment in Vietnam amounts to US$527m.

To raise the profile and value of Vietnamese coffee beans, Nestlé Vietnam implemented its Nescafé Plan in 2011. Through the project, the firm has helped to improve the output and quality of locally-grown coffee beans for export while, at the same time, increasing its production volume of coffee products.

Dignitaries who graced the launch included the vice-minister of the Ministry of Industry & Trade, Do Thang Hai, representatives of the Ministry of Agriculture & Rural Development, representatives of the Ministry of Natural Resources & Environment, the Deputy Director-General of Dong Nai Industrial Zone Authority, Le Van Danh, and the Consul General of Switzerland in Vietnam, Othmar Hardegger.