2006 is the year of Nescafé

Leading coffee brand Nescafé experienced a momentous year this 2006, punctuated by the market’s warm reception to its two new premium products and the re-launch of existing bestsellers. It also took a leading role in promoting sustainable agriculture in the country.

Never far from the public eye, Nescafé made its presence felt throughout 2006 with one successful product launch after another.

"The very positive reaction we got for our products and our programs from both the public and the coffee industry is a concrete encouragement for us to continue with our initiatives," says Bruno Olierhoek, Nestlé’s business executive manager for the coffee business unit.

New and old products

In January 2006, the company successfully launched Nescafé Classic First Pick, a limited edition coffee product made from coffee cherries handpicked by Filipino farmers during the beginning of the harvest season.

"Sales of the product were overwhelming. In less than six weeks after its launch, its jar variant was sold out," says Olierhoek.

The same market reaction was given to the Nescafé Protect, a specially made coffee product that contains three times more antioxidant protection than green tea.

"We believe that Nescafé Protect has allowed us to raise awareness that coffee is not only an enjoyable beverage but also a healthy beverage that fits very well in a healthy diet and lifestyle," says Olierhoek. "In line with the ever-growing health trend we believe that Nescafé has a role to play in educating people about the link between coffee and health."

Two bestselling Nescafé products also drew the spotlight in 2006. The new Nescafé Classic was given a fresh new taste and aroma, while Nescafé 3-in-1 was repackaged in a more attractive design.

"The feedback for the new Nescafé Classic was very positive. Aside from the fact that people loved its new taste and aroma, they also loved its television commercial," says Olierhoek.

The TVC, which started running last November, featured five of the biggest celebrities in the country including Sam Milby, Toni Gonzaga, Dennis Trillo, John Lloyd Cruz, and Pia Guanio.

Nescafé 3-in-1 likewise continues to enjoy brisk sales because of the added convenience it affords to busy people on the go. "Its new packaging made it easier to spot on supermarket shelves where competition is strongest," says Olierhoek.

He adds that while most Filipino households have coffee in their homes, people tend to drink it in the morning only. "But we at Nescafé believe that you can actually enjoy coffee throughout the day either hot or cold and with or without other ingredients added," Olierhoek adds.

He cites a campaign they conducted last summer to educate consumers about cold coffee. From the favorable reactions they received, Olierhoek believes that "more and more people are starting to experiment with their coffee and enjoy it throughout the day."

Industry highlights

On the industry front, 2006 saw Nescafé take the lead in promoting coffee farming in the Philippines.

This year, it celebrated the 20th anniversary of its satellite buying stations operation, which has been reaching out to even the smallest coffee farmers and giving them the option to sell their coffee green beans directly to Nestlé at competitive world market prices.

Meanwhile, its Nestlé Experimental and Demonstration Farm (NEDF) continues to train farmers, free of charge, on good coffee farming practices and provide them with high yielding coffee seedlings and organic fertilizer at cost price.

Such measures are part and parcel of Nescafé’s faith in sustainable agriculture growth. As Olierhoek elaborates, "We have always believed that producing Nescafé responsibly (socially responsible, environmentally friendly and efficient economically) is the only solution for the future and that it is an essential step to ensure our product quality."

Another milestone in Nescafé’s efforts to promote sustainable agriculture in the Philippines took place last November when it took the lead in presenting the 1st Sustainable Agriculture Initiative (SAI) Platform Philippines convention.

The conference drew the participation of the country’s largest food companies, all pledging to advance sustainable agricultural practices in the Philippines.

Says Olierhoek, "We are confident that all the companies that participated will take concrete steps towards implementing sustainable agricultural practices and that we will meet again in 2007 to share the lessons we have learned with each other."

The year ahead

With 2006 almost over, Nescafé is already looking forward to more exciting developments in the coming year.

As Olierhoek relates, "The coffee harvest starts in the last few months of the year and that means we will soon be celebrating the much anticipated return of Nescafé Classic First Pick in January 2007."

Olierhoek is likewise optimistic about the growth of the coffee industry in the coming year.

"Coffee is a well established category and we can already foresee its growth to be in line with overall GDP growth and across the different channels. Furthermore, our research indicates that we can also expect the mixes segment growth to stay above average," Olierhoek says.

He adds that Nescafé will take it upon itself to ensure that consumers will continue to enjoy new and better coffee experiences. "You can count on us to keep bringing more excitement to the coffee category," he concludes.