Nestlé, one of the world’s largest food and beverage companies, announced on June 18, 2025, that it will increase its total planned investment in Brazil to $1.3 billion (approximately 7 billion reais) by 2028, up from a previous commitment of $1.1 billion. This decision underscores the group's confidence in Brazil, which remains its third largest market globally, behind the United States and China. In 2024, Nestlé reported revenues of around 4 billion Swiss francs (about $4.9 billion) from its Brazilian operations.

According to Nestlé CEO Marcelo Melchior, all business units in Brazil have delivered returns in line with company forecasts, which helped drive the decision to boost investment. Nestlé is currently ranked as the third-largest food company by sector in Brazil, with 2023 revenues reaching approximately 8 billion Swiss francs ($8.7 billion), trailing only behind industry peers such as Unilever and JBS.

The expanded investment will focus on several key areas. Nestlé plans to enhance the productivity of its local coffee, cocoa, and dairy suppliers—core commodities in its product portfolio. Sustainability remains a pronounced priority: since 2019, all coffee purchased by the company in Brazil has been 100% certified and sustainably sourced. Efforts continue to ensure full traceability of raw materials, utilize renewable energy sources in production, promote capsule recycling, and transition suppliers to regenerative agriculture practices (source).

Franchise development is also emerging as a central growth strategy for Nestlé in Brazil. Following its 2023 acquisition of CRM Group—the parent company of revered chocolate retailer Kopenhagen—the company is taking its first steps into the franchise business, with an eye on rolling out the model across its coffee brands, including Nescafé and potentially Nespresso. CEO Marcelo Melchior indicated that if successful, this approach may be extended to international markets as well.

Nestlé is also investing directly in its Brazilian Nescafé operations. In May 2025, the company announced an additional 500 million reais (about $88.7 million) earmarked for Nescafé’s Brazil business through 2028. This brings Nescafé’s total planned investment to 1.5 billion reais. According to Valeria Pardal, Nestlé’s business executive officer for coffee beverages in Brazil, resources will go toward expanding production at the Montes Claros factory in Minas Gerais and increasing the deployment of "Nestlé Professional" coffee machines. Pardal pointed to the double-digit growth of Brazil’s portioned coffee (capsule) segment—expanding about 20% over the past five years—as a key opportunity for further expansion (source).

Innovation and the premiumization of core categories are other strategic focal points. In 2024, the company will debut a new KitKat production line at its Caçapava factory in São Paulo, already recognized as Latin America’s largest chocolate production site. By 2028, the facility is expected to host a total of six exclusive lines as part of an ongoing industrial park expansion.

This latest investment cycle incorporates Nestlé’s 2023 commitment of more than $300 million to its coffee business in Brazil. As the company accelerates the development of high-growth brands and product lines, it aims to both solidify its presence in established sectors and pave the way for further innovation in food production, sustainability, and direct consumer engagement through franchises.

For further information, see Yahoo Finance coverage and the original Reuters report.