According to the company, Nescafe's primary strength is in its line of instant powdered coffee, which remains a key product across Asia. In addition to this, Nescafe has enhanced its innovation in new formats and products to align with current trends and consumer preferences.
Vietnam has a vibrant coffee culture and has seen some interesting new trends in recent years, according to Mostafa Youssef, Business Executive Officer at Nestle Vietnam, as reported by FoodNavigator-Asia.
"Cold coffee is quite popular in this area, and there is a trend towards liquid coffees. That's why we recently introduced a new coffee concentrate in a convenient stick form."
"The convenience of these coffee sticks is impressive. Consumers only need to open the stick, pour over ice, and they can quickly enjoy a cup of coffee without the hassle of sourcing hot water to dissolve the powder. They can even skip the step of diluting the coffee if they prefer."
The Nescafe Coffee Concentrate is categorized as a ready-to-serve product where ice is usually added before consumption. It comes in two varieties – black coffee and milk coffee, both retaining the authentic flavor and aroma of Vietnamese coffee beans.
Youssef mentioned it is unlikely for the more modern coffee consumption format to surpass traditional Vietnamese drip coffee culture in the near future. Both can peacefully coexist in the local industry based on consumer preferences.
"Currently, the coffee market in Vietnam is mainly characterized by traditional authentic coffees such as milk coffee (ca phe sua) and black coffee (ca phe den), accounting for about 90% of consumption," he explained.
"Vietnam has a strong coffee culture, making traditional coffee products very popular. Authentic coffee can be easily found in cafes and ordered online for home consumption."
"These innovative products cater to the modern preferences and convenience of office-going, younger consumers who prioritize saving time by having their coffee readily available in their bags."
Nescafe Coffee Concentrate is sold in various supermarkets and convenience stores throughout Vietnam, as well as online.
The appeal of different tastes
The Nescafe brand has already gained significant popularity in Vietnam, covering both urban and rural areas. However, the company aims to expand its reach among younger consumers by introducing new product flavors and variations.
"Nescafe is a powdered business we will continue focusing there, but we are always keeping an eye on emerging trends like salted coffee, RTD products and convenient concentrates," he added.
Another interesting approach to attract new customers involves using different flavors. This strategy is particularly effective when targeting Gen Z consumers who are still exploring their preferences in coffee. For these individuals, starting with a simple black coffee may not be the most appealing option as they begin their coffee journey.
"By adding products like milk coffee with coconut or almond flavors to our range, we can meet their needs. We are also considering options like salted coffee, mocha, and caramel."
