Swiss packaged food major Nestle is betting big on the premium coffee segment in India with the introduction of the first Nespresso boutique in the country. This comes close on the heels of the launch of Nespresso coffee machines and coffee capsules in India. The company will look at tapping top metros for expansion of the Nespresso boutiques amidst a fast-growing coffee culture led by younger consumers, a top executive said on Thursday.
Nespresso has launched its first boutique in New Delhi, which showcases its premium coffee range and state-of-the-art machines. Consumers will be able to explore various blends and receive personalised recommendations from trained coffee specialists. The coffee blends range that have been launched includes Master Origins India blend sourced from the country.
Philipp Navratil, Global CEO, Nespresso, said, “ Nespresso is positioned at the very high-end of the pyramid in terms of quality and pricing. We are really hoping to revolutionise the premium coffee experience in the country. It’s not just about coffee capsules but we are bringing the whole Nespresso ecosystem in India which is tapping into the lifestyle trends. The boutiques will offer an immersive experience to consumers where they can explore the diverse range of blends and innovative machines.”
Nespresso and Nestle India have inked a distribution partnership in India with Thakral Innovation, covering the full range of Nespresso coffee products across all channels.
Growth opportunity
Navratil said that in a large market such as India, the brand typically looks at tapping into the big metro cities. He added that the company will open more boutiques in the country in the future depending on offline and online demand trends. “ India offers a massive growth opportunity for Nespresso. There is a huge consumer base. There is also a young consumer base that is longing for great coffee experiences. But it will take time to establish and we are investing in the country for the long term potential,” he added.
Responding to a query on India’s FTA with EFTA bloc which includes Switzerland, he added, “ There are still tariffs in place on coffee capsules. They will gradually go down and we will adjust and innovate. But also the prices are accordingly higher here than you could probably find anywhere else. So we are starting now with a limited assortment and then as demand increases we will bring more models of machines and coffee blends.”