Key Takeaways
- Nestlé is investing CHF 563M (~$697M) in a new Nescafé facility in Samut Prakan, Thailand — a 500-person, greenfield site producing soluble coffee, coffee mixes, and RTD beverages, targeting 170,000 metric tons/year capacity, operational by late 2028.
- The plant doubles as a regional export and logistics hub, pairing production with an on-site distribution center to shorten delivery times and support Southeast Asian growth, while sourcing local Robusta coffee (Thailand’s local ingredient spend already exceeds CHF 100M/~$124M annually).
- The move reinforces Nestlé’s long-term Thai coffee strategy, building on 40+ years of farmer support (plantlets, regenerative agriculture programs) and using AI-enabled automation to boost efficiency in what the company calls one of its biggest coffee markets globally.
As of July 9, officials from Nestlé announced plans to invest CHF 563 million (~$697 million) at a new Nescafé production facility in Thailand, according to a company press release which highlighted Thailand’s importance–a market valued at about CHF 1 billion (or $1.24 billion). The to-be-500-person team at the new Thai facility will be able to procure local coffee, add value by producing a product for sale, and also manage a logistics hub for exports.
With operations set to begin by late 2028, the factory, to be built in Samut Prakan province, will produce soluble coffee, coffee mixes, and ready-to-drink coffee beverages. Plus, the plans include an on-site distribution center aimed at shortening delivery times and improving inventory management, according to the media alert.
“Coffee is Nestlé’s largest business globally, and Thailand is one of our biggest coffee markets,” said Remy Ejel, Executive Vice President and CEO of Nestlé’s Zone Asia, Oceania and Africa (AOA). “By investing in Nescafé, one of our most iconic global brands, we are strengthening our ability to meet growing consumer demand and ensuring local brand relevance to deliver consistent, volume-led growth. This new state-of-the-art factory will increase our Nescafé production capacity in Southeast Asia and contribute to the long-term growth of our coffee business in one of the world’s most dynamic coffee markets.”
The investment signals confidence in Southeast Asian demand growth and in Thailand’s role as a coffee grower, producer, and exporter. Local ingredients and raw materials are worth more than CHF 100 million (~$124 million) annually, according to company officials who said Nestlé is already a major buyer of locally grown Robusta coffee.
“Through its Nestlé (Thai) Co. unit, the Swiss consumer goods giant will develop the greenfield project at the Araya Industrial Estate in Thailand’s Samut Prakan province,” reported MT Newswires. “[The facility] is designed to accommodate the annual production of 170,000 metric tons of Nescafe soluble coffee, coffee mixes, and ready-to-drink beverages.”
The plant will use advanced technology, automation, and AI-enabled systems to improve quality, efficiency, and sustainability, read the release which cited coffee extraction and aroma recovery technology.
“Reinforcing its long-term commitment to Thailand’s coffee sector, the new factory builds on more than 40 years of support for Thai coffee farmers through the supply of coffee plantlets and programs that promote regenerative agriculture and climate resilience, helping improve livelihoods, strengthen coffee quality and protect the environment,” read to the document.
Written by Ryan Gallagher
