Nescafe R&G Coffee - Not an Easy Sell.

by Southpointman

Nescafe Milano Roast and Ground Coffee

In the Out of Home trade, there are only two ways your coffee products can go in, you either convince the owner that do not have any coffee solutions to use yours or your convert it from a competing brand.

For Nescafe R&G, it will be very difficult to do the latter.

Why?

When you mention Nescafe, people immediately see it as an Instant coffee brand. This is not a case of not knowing the brand, this is a case of knowing the brand so well, that this brand awareness limits the lateral expansion of this brand.

Try this, if you walk into a cafe and you see a Nescafe Branded machine, would you imagine a good cuppa or a consistent instant coffee beverage.

Now, there is nothing wrong with instant coffee. In fact, they are consistent and the morning companions for millions worldwide. The problem is the perceived value of this brand will mean converting another brand to Nescafe is tough.

Here are the pointers that will restrict their growth:


Price point. If you are paying $0.50-0.80 for a packet of instant coffee, will you pay for a $4 Nescafe branded coffee in an F&B?

Availability. Most offices come with Nescafe and while the R&G promises a different taste profile, the perceived of the brand will turn people away simply because why should I drink a coffee that I have in my office.

Competition: The R&G market is very competitive, courtesy of the many smaller roasters. So, Nescafe R&G might not have a cost advantage unless they are willing to generate below cost.