The Nestlé Tri An factory currently exports coffee products from iconic brands, such as Nescafé, Nescafé Dolce Gusto and Starbucks, to more than 29 countries all over the world. Nestlé has invested more than USD 500 million in this facility since 2011.

Vietnam is currently the world’s second largest producer and exporter of coffee and an important coffee origin for Nestlé. The company is the largest coffee buyer in the country, with annual purchases reaching up to USD 700 million.

The Nescafé Plan, Nestlé’s sustainability programme for the brand, was implemented in Vietnam in the Central Highlands in 2011. It is a cornerstone of the sustainable development of coffee in the region. It supports farmers transitioning to sustainable farming methods, helps rejuvenate coffee plots through the distribution of high-quality coffee plantlets, and protects water resources and biodiversity.

Nestlé currently operates six factories in Vietnam, focusing on the production of coffee, cocoa malt beverages, cooking aids and water. The company has been present in the country for nearly three decades and currently employs around 3,000 employees.

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On 9 November, the keynote speaker at the Canadian Coffee Association’s (CAC) conference, Daniel Lamarre, vice-chair of the board, Cirque du Soleil and author of Balancing Acts: Unleashing the Power of Creativity in Your Life and Work, challenged the coffee industry to both identify and embrace their innate creativity. During this dynamic conversation, he shared several examples of how creativity was an essential element of the company’s success and its role in reviving Cirque du Soliel after the mandated shutdown during the pandemic.

Ideas, on their own, are not enough, stressed Lamarre, as ideas will fall flat without a sense of purpose and direction. Advanced artificial intelligence can use algorithms and data to populate ideas for products and services. However, where artificial intelligence fails is in distinguishing which of these ideas should be put to fruition.

The human element is required to determine which of these concepts aligns with the purpose and brand of the business and to help put the strategy in place to move the idea into reality.

The core of creativity is not an artistic pursuit but about developing and implementing something that was not there before. This includes facing challenges and investing the time to discover new solutions. True creativity requires collaboration, listening, debating, paying attention to your intuition, and being willing to move quickly. “In an accelerated world, you cannot predict everything and eliminate all risks,” shared Lamarre. It is about going beyond the idea and investing the time to discover your purpose and allow that to drive you.

“Creativity is about leaning into, not just advertising, agility, problem solving, all of those things are important in a sea of change, to be able to navigate that and have a creative advantage is massive,” said Tracey Cooke, SVP, marketing and commercialisation, head of the Centre of Marketing Excellence, Nestlé, during a panel discussion at the CAC Conference. “There are types of tasks that artificial intelligence can do well; it is all about embracing it for what it can unlock. However, generating ideas and implementing the strategy are areas that require human expertise.”

Integrating artificial intelligence and automation into an operation will not extinguish the need to be creative. In fact, it might give businesses the drive to adopt a more creative mindset to ensure their operation remains unique and relevant. By allocating automation to standardised tasks, human resources can focus on tasks that require deep thinking and, in turn, present the opportunity for more innovation and increased alignment with brand values and purpose.

• Anne-Marie Hardie is a freelance writer, professor and speaker based in Barrie, Ontario. She may be reached at: annemariehardie1@gmail.com.

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Nespresso customers now have two new options for recycling their coffee capsules with Royal Mail. They can arrange a free doorstep collection from their local postie using Royal Mail’s returns service. Alternatively, they can drop them off at any of the 14,000+ Royal Mail drop-off locations, including Royal Mail Customer Service Points and Post Offices.

Research commissioned by Nespresso to mark Recycle Week demonstrates just how important it is for recycling to be simple and convenient: despite 91% of Brits claiming they often recycle, many said they find recycling confusing (42%), and difficult (32%)*.

This partnership will increase nationwide access to easy and effective recycling methods for Nespresso capsules. Just over half of Royal Mails’ routes are wholly or partly on foot which helps to keep emissions low when compared to other carriers**.

Anna Lundstrom, CEO, Nespresso UK & ROI said, “Nespresso’s official partnership with Royal Mail brings recycling to the heart of the community, no matter where you live in the UK. Royal Mail is not only an iconic British institution, it also is recognised as having the lowest emissions per parcel** as their ‘feet on the street’ posties walk up to a billion steps a day. Recycling needs to be convenient, simple, and sustainable – and our partnership with Royal Mail is central to achieving that vision.”

Nick Landon, chief commercial officer at Royal Mail said, “We’re really pleased to be working with Nespresso to support their coffee capsule recycling. Everyone knows when their postie delivers so it’s really convenient to arrange for them to collect at the same time. If customers aren’t going to be in, Royal Mail can also collect from a safe place. To make it even more convenient, if customers don’t have a printer our posties can print and bring the label to the doorstep.

“And if Nespresso customers don’t want to arrange a collection, they can drop their capsules off at one of our 14,000+ Royal Mail locations. This is part of our commitment to continuously make our services more convenient as we re-invent the way we deliver to and collect from our customers.”

A pioneer of coffee capsule recycling, Nespresso also co-founded not-for-profit coffee pod recycling service, Podback. Nespresso UK customers can still use this service and can still drop their used capsules at any Nespresso Boutique.

Nespresso’s capsules are made with 80% recycled aluminium which is infinitely recyclable. Recycled aluminium is turned into new products such as beverage cans and car components. Used coffee grounds are also used to create soil improver, used on cereal farms in East Yorkshire, and renewable energy to power UK homes.

* Research was carried out by One Poll between 4th and 6th October 2023 with 2,000 adult respondents.
** When measured in terms of the CO2e emissions per parcel reported by the UK parcel delivery companies who currently publicly report these.

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Oritain’s innovative forensic science provides a guarantee of Brazilian coffee’s provenance and origin no matter where it ends up in the world. Building on existing provenance mapping work in Brazil with Nestlé and the Federation of Coffee Growers of Cerrado Mineiro, this initiative puts Brazil at the forefront of scientific traceability in coffee. Through this work with the BSCA, Oritain will be able to ascertain, at any point in the supply chain, the origin of Brazilian coffee at both a national and regional level, providing a new level of assurance and transparency to buyers and consumers.

Regulation is demanding origin verification. Verification systems put in place by BSCA and Oritain are compliant with recent European Union anti-deforestation regulations, which veto imports that do not comply with environmental requirements.

Consumers too are demanding proof of origin. Research commissioned by Oritain in May 2023 indicated that Brazilian consumers are deeply concerned about the origin of their products, especially coffee. It showed that 96.9% of respondents were positive toward manufacturers that disclose origin; and 78.2% considered that a product is only truly sustainable if its origin is known.  Coffee lovers in markets such as Europe, North America, New Zealand and Australia are also demanding proveable actions from coffee brands with regards to sustainability.

Vincius Estrela, executive director of Brazilian Specialty Coffee Association, shared the announcement; “Putting in place traceability systems is an essential way of walking the walk and avoiding greenwashing accusations. Sanctity of Brazilian origin is essential to our specialty coffee growers, roasters and exporters. Brazilian coffee is exported all over the world. We are looking for a way to provide a guarantee to regulators, investors, buyers and most importantly our valued customers all over the world that our coffee is 100% Brazilian and compliant with international regulations to combat deforestation, environmental harm, unethical labour practices and food fraud.

“Our partnership with Oritain and the ‘Oritain Fingerprint’ gives our customers, investors and partners 100% confidence that the coffee they enjoy every day is ethically sourced, environmentally positive and of Brazil. For BSCA, it supports our claim that Brazilian coffee is true to source, from earth to cup, we have always been able to taste the difference – today we can prove it scientifically, even at regional level.”

Pioneered in New Zealand, Oritain has become the global leader in applying forensic science and data to verify product origin.

Commenting on the partnership Oritain CEO, Grant Cochrane said “Oritain is delighted to be partnering with the Brazilian Specialty Coffee Association to leverage the integrity of forensic science for the benefit of award-winning Brazilian regional coffees. Oritain and Nestlé Brazil launched a partnership that covered three Brazilian regions in June this year. BSCA is building on this work and paving the way for coffee consumers worldwide to benefit from unmatched traceability of Brazilian coffee, which we can scientifically prove at farm, regional and country level. The strategic vision and commitment to the project by BSCA is key to establishing Brazil as a global leader in coffee traceability.”

How does it work?
Wherever you are in the world, the geochemistry of the land differs, even in the case of parcels of land that are only a few metres apart. As coffee grows, it absorbs a unique ratio of elements depending on the mesoclimate, altitude, precipitation, soil type and growing conditions. Using cutting edge forensic science, Oritain can identify this unique ratio in the soil that is ‘imprinted’, creating an unchanging scientific link that runs through the land, the beans and the eventual cup of coffee.

The BSCA partnership with Oritain will map key coffee regions of Brazil based on these geochemical elements, to create origin fingerprints that can be then used to test against.

Gabriela Castro-Fontoura, Oritain regional director for Latin America said, “Coffee lovers around the world demand to know that the coffee in their cup comes from its claimed region, is the genuine article and has not been a part of deforestation or unethical labour practices. Oritain’s partnership with BSCA means the Brazilian coffee industry can now offer buyers, traders, importers and roasters all over the world an enhanced level of traceability – which they can share with consumers, regulators and investors. At any stage of the supply chain, Oritain can verify and guarantee, with forensic science, the origin of the coffee at a regional level, no matter how many transactions are involved or how complex the market is. BSCA has paved the way for Brazilian producers and exporters, but also for importers, roasters and brands worldwide, to work with Oritain to share the outcomes of this origin mapping work with their customers, regulators and investors.”

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Climate change is putting coffee-growing areas under pressure. Smallholder coffee farmers are exposed to the risk of irregular weather conditions that can affect their crops.

On the occasion of International Coffee Day, Nestlé announced that it is piloting a weather insurance programme in Indonesia for more than 800 smallholder coffee farmers that supply coffee to its brand, Nescafé. The company is launching the insurance scheme in collaboration with Blue Marble, a specialist in climate insurance. The insurance provides financial protection to help farmers cope with unpredictable weather patterns of rainfall and severe drought.

Marcelo Burity, global head of Nestlé’s green coffee development, said, “This weather insurance helps to establish a support mechanism for smallholder coffee farmers in Indonesia. It allows them to access financial resources to re-establish their crops in the event of irregular weather conditions while building resilience in coffee farms.”

The insurance uses satellite-based climate data to determine when coffee output has been impacted by either too much or not enough rainfall during key phases of the crop cycle. Payments are issued automatically to registered coffee farmers that have been affected, according to the severity of the weather.

“Smallholder coffee farmers in Indonesia are vulnerable to climate risks and need access to insurance to protect against extreme weather events,” said Jaime de Piniés, CEO of Blue Marble. “We are proud to partner with Nestlé and its brand Nescafé to develop innovative ways to support the climate adaptation of smallholder coffee farmers and their families.”

This initiative is an integral part of the Nescafé Plan 2030, the brand’s vision to support the long term sustainability of coffee and to help improve farmers’ livelihoods. Based on the results of the pilot, Nestlé will determine whether to expand the approach to other Nescafé sourcing locations around the world.

Sharing knowledge to accelerate the transition to regenerative agriculture

Changing agricultural practices requires access to knowledge and time to learn and implement. By moving to regenerative agriculture, coffee farmers can help restore soil health, reverse biodiversity loss, and strengthen ecosystems. Doing so also helps reduce the amount of greenhouse gases released into the atmosphere.

Nestlé, has contributed to the ‘Regenerative Agriculture for Low-Carbon and Resilient Coffee Farms – A Practical Guidebook,’ developed by the Alliance of Bioversity International and the International Center for Tropical Agriculture (CIAT). This guidebook provides field agronomists, trainers and professionals working with coffee farmers with a set of best practices that they can use and adapt to different farming contexts, helping farmers transition to regenerative agriculture. These best practices include agroforestry, intercropping, soil conservation and cover crops, integrated weed and pest management, integrated nutrient management, efficient water use, waste valorisation, landscape actions and the rejuvenation of coffee trees with well adapted varieties.

Pascal Chapot, global head of sustainable agriculture development at Nestlé, said, “The guidebook gives coffee farmers a set of field actions they can implement tomorrow to help them become more resilient to climate change and to diversify their sources of income. Knowledge is key, and we hope that this guidebook makes these regenerative agriculture practices more accessible to farmers and supports an accelerated transition towards them. This is essential to tackling the climate challenges ahead.”

Mirjam Pulleman, senior soil ecologist and co-author of the guidebook said, “Creating real impact on the ground requires learning from real experiences with farmers in different origins and providing incentives to support farmers in their journey. The best practices highlighted in the guidebook are a starting point. Each practice will need to be tailored to the specificities of each country of origin, the different farm types, the surrounding landscapes and the resources available.”

From Nestlé’s perspective, the guidebook complements the Nestlé Regenerative Agriculture Framework (pdf, 18Mb). Nestlé considers regenerative agriculture to be a key component of its efforts to reduce greenhouse gas emissions and to reach net zero by 2050. It is also a central pillar of its coffee sustainability programmes, the Nescafé Plan 2030 and the Nespresso AAA Sustainable Quality programme.

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Through the Global Coffee Alliance, Nestlé and Starbucks bring to market a wide range of products, including Starbucks capsules for the Nespresso and Nescafé Dolce Gusto systems, whole bean, roast and ground and premium instant Starbucks coffees, K-Cup pods and creamers in the at-home category and in foodservice channels.

Nestlé has expanded the Starbucks on-the-go business globally and recently launched a range of ready-to-drink coffee beverages across Southeast Asia and Oceania. It has significantly strengthened its coffee business in North America. In 2022, the Starbucks business generated USD 1.6 billion in incremental sales for Nestlé.

The two companies have expanded the reach of Starbucks branded premium products to nearly 80 markets worldwide, and to-date, more than 14 billion cups are brewed at home and served through foodservice channels.

The alliance builds on the experience and capabilities of both Nestlé and Starbucks. Together, the companies have developed new, innovative products and have introduced the brand to new formats and markets, leveraging both organisations’ product knowledge and Nestlé’s distribution footprint.

“We are proud of the work we have achieved together,” said Mark Schneider, CEO, Nestlé S.A. “Nestlé and Starbucks are deeply committed to growing this business. The results show that. The outstanding collaboration between the two teams is based on common shared values and a commitment to deliver exceptional coffee that is responsibly and sustainably sourced. I look forward to taking our partnership to new heights.”

Laxman Narasimhan, CEO, Starbucks Coffee Company, said, “The formation of the Global Coffee Alliance has allowed both companies to focus on their core strengths, which has proven to be highly successful over the past five years. We are confident that there remains enormous opportunity for the Starbucks brand in this segment and only expect this business to continue to grow and reach more consumers through the alliance.”

The two companies will continue to strengthen the business and expand the Starbucks brand by seeking to create new coffee moments. They aim to capture new opportunities with cold and seasonal coffees – two categories driven mainly by young consumers. They will grow out-of-home programs and solutions, and they will continue to innovate and bring new coffee experiences to consumers.

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Coffee roasters are increasingly exploring ways to make their business climate positive, turning to advanced roasting machines to lower carbon emissions and improve energy efficiency. Roasting machine manufacturers, in turn, are putting ample effort into developing sophisticated solutions to meet their customers’ expectations.

On average, it is estimated that roasting contributes to around 15 percent of the overall footprint of coffee’s journey from field to cup. Making the roasting business more sustainable, among other things, helps the environment and helps companies to capitalise on responsible consumption trends.

A recent study by the United States think tank First Insight showed that a lion’s share of Gen Z shoppers prefers to buy sustainable brands, and they are most willing to spend 10 percent more on sustainable products. The report also found that Gen Z, along with millennials, are the most likely to make purchase decisions based on values and principles, including environmental.

In light of this, the leading coffee companies rolled out sustainability initiatives, looking to lower the carbon footprint throughout the supply chain to the maximum possible extent, including in the roasting segment.

Illycaffè has embarked on a decarbonisation roadmap which consists of actions along all the value chain: from green coffee to finished products, taking into account all the different steps, including transportation, packaging, distribution and use of coffee machines, said David Brussa, chief total quality and sustainability officer of illycaffè. The eventual goal is to reduce the carbon footprint to reach carbon neutrality by 2033 as a company.

“We strongly think that we need to act quickly to avoid impactful problems for the next generations—a climate disaster. As we often hear, the non-return point is very close to being reached, and we need to start acting responsibly for the sake of our planet and of the generations to come. We have a limited amount of time to put in place the necessary changes. But the change we should aim for is cultural first of all,” Brussa explained.

Nestlé has made the commitment for 100 percent of its coffee to be produced sustainably by 2025. In the roasting segment, the company said it considers lowering emissions by working in the field of consumption of energy, water and protecting atmosphere gases at factories. In addition, machinery use, waste generated at factories, employee commuting, and business travel are also to be reviewed and, if necessary, adjusted. Again, advanced technology is due to play a vital role.

Image: Bühler

Engines of sustainability

Sustainability consists of three basic pillars; all are necessary but not sufficient. Therefore, all must coexist to have a sustainable process: lower environmental impact, lower social impact, and lower economic cost, commented Elena Parmi, a spokesperson for Brambati Spa.

“The first engine of sustainability is tangible affordability for the user, basically lower energy consumption, lower maintenance cost, and lower operation cost. Automatically it leads to less environmental impact, meaning less energy is equal to less greenhouse gas, less social impact, meaning less need for night staff and emergency intervention leads to greater worker welfare, and greater economic sustainability as less need for energy, less need for spare parts, greater staff efficiency allows lower cost of operation,” Parmi said.

Brambati’s development program, which is already in place includes reducing the consumption and reuse of residual energy, reducing the number of components that make up the machinery, and permanent monitoring of the entire system with AI (artificial intelligence) that allows all operating variables to be under permanent analysis.

Parmi said that this is similar to if a person were being monitored with an electrocardiogram, blood analysis, and brain activity while doing a swimming competition or other physical and/or intellectual activities.

“Any deviations from optimal values are promptly identified when they are incipient, thus enabling timely intervention when appropriate and not in an emergency, avoiding the costs of interventions, spare parts and lost production,” Parmi said.

Among the concrete examples of how Brambati’s technological solutions help lowering carbon footprint, Parmi lists the elimination of transmissions with mechanical gearboxes, resulting in increased efficiency and reductions in components, weight, lubricants and maintenance. In addition, the reduction in energy consumption is achieved with regenerative and other innovative exhaust air abatement systems, as well as through intelligent system monitoring and management.

Preserving energy

Other companies also see energy consumption as the key segment, which could do wonders in terms of lowering carbon emissions. For instance, Berkeley-based coffee roastery Bellwether Coffee told Forbes in 2020 that its recirculating roasting technology eliminated particulates and volatile organic compounds in real-time during the roast process, eventually reducing the carbon footprint of each roasting cycle by 90 percent on average.

The company estimated that if a roaster uses renewable energy sources, it can save more than 157 metric tonnes of CO2 emissions. In addition, traditional coffee roasters use a single-pass system that intakes fresh air from outside the roaster, flash-heats it to roast the coffee, then releases it as exhaust through ventilation stacks. Bellwether’s roaster takes the exhausted air, cleans it, and reuses it. This provides hot, stable air throughout the roast cycle.

Image: Scolari Engineering

Energy efficiency and renewable energy are in the spotlight of several technology suppliers. “We focus on the efficiency of the roasting process by means of very fine control of the burner and energy recovery from the roaster stack, always focused on the coffee quality,” said Fabio Clivio, coffee roasting machinery engineer with Scolari Engineering SpA. “We have been doing this for years, so we have fine-tuned the software and the roaster to always get the best aroma from the coffee. We are using a smart green coffee preheater totally synchronized with the roasting cycle.”

In addition, Clivio said, the company has been continually reducing the quantity of CO2 emitted for a batch of roasted coffee by reducing the use of fossil fuels. Scolari realised that the roaster does not need a long warm-up, and when it is on standby, the software activates the energy-saving mode to reduce airflow and gas consumption.

“The preheating follows a specific profile of temperature and time; in this way, as the roaster is ready to load the new batch, the software ensures that the green coffee reaches the target temperature at the same time, with no risk of leaving the green coffee ìn the GBPH longer than necessary. In that way, the quality of the roasting process is guaranteed,” Clivio said.

“We are testing a roaster using a mix of natural gas and hydrogen. Also combined with electrical heating. The combination of hydrogen and electrical heating is the key for carbon-neutral coffee roasters,” Clivio explained, adding that the company uses the last generation of burners already designed to run with a mix of hydrogen and natural gas. “As the hydrogen will be available on industrial bases, our customers will be able to switch to hydrogen.”

Smart heat use

Bühler Group also has a roaster, though not for coffee yet, in its portfolio, running on hydrogen, commented Michael Blatter, head of business segment coffee and nuts, Bühler Group. “We are not only looking at the roaster but the entire value chain, and I think with our sustainability team, we are capable of offering unique customised solutions which are helping in various aspects of sustainability. The roasting process is one step, and we do have solutions in reducing fuel consumption, changing the type of fuel used and using the energy for alternative processes within a factory.”

Among the concrete measures applied to lower carbon footprint, Blatter lists, recirculation of hot air to reduce fuel consumption, preheating of coffee beans with off air from the roaster, and the use of heat recovery systems. In addition, a sustainability service analyzes the CO2 footprint of a factory and implements solutions into existing plants.

“We are working together within different businesses to use ideas and concepts, which already exist,” Blatter said, adding that the company has an R&D roadmap and is working on several solutions called to curb carbon emission of the roasting operations. However, Bühler is not disclosing the concrete details to the public, he added.

• Vladislav Vorotnikov is a Batumi, Georgia-based multimedia B2B freelance journalist writing about the tea and coffee industry since 2012.

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For the first time, the reports provide an overview of the nutritional value of Nestlé’s global portfolio. They also provide an update on the company’s progress of its Net Zero roadmap.

As part of its focus on ‘Good for You’, Nestlé strives to be an industry leader in bringing tasty, balanced diets within reach for people around the world. Today, Nestlé is setting a new standard in corporate transparency: It is the first company to report on the nutritional value of its entire global portfolio. Nestlé has benchmarked its products against the Health Star Rating (HSR) system, a nutrient profiling system used by the Access to Nutrition Index. The results show that Nestlé products with an HSR rating of 3.5 stars and above, together with its specialised nutrition products, like infant or medical nutrition, account for close to 60% of the company’s sales (excluding Nestlé’s pet care business). The company has committed to setting a global target for the healthier part of its portfolio. Nestlé will complement this with more stringent responsible marketing practices as well as nutrition education programmes and services to help people enjoy all foods as part of a balanced diet.

As part of its ‘Good for the Planet’ work, Nestlé further reduced greenhouse gas emissions to below its 2018 baseline. It is now well beyond peak carbon. The company achieved this result while growing its business substantially. Nestlé is tackling the emissions within its own operations head on. For example, it increased its use of renewable electricity last year and is on track to achieve 100% renewable electricity by 2025.

In line with the recommendations of the Task Force on Climate-related Financial Disclosures, the company also released its second voluntary Climate Risk and Impact Report. As a business leader, Nestlé is committed to transparency and action on climate-related risks and opportunities. Consequently, the company is releasing this report ahead of Swiss regulatory requirements.

Throughout the reports, Nestlé gives examples of how it consistently creates value. It focuses on growth through continuous innovation, operational efficiency and disciplined resource and capital allocation. Carefully balancing these objectives enable the company to generate reliable, sustainable returns. Nestlé stayed the course yet again in 2022.

The full Annual Report contains Nestlé’s Annual Review as well as its Corporate Governance & Compensation Reports and Financial Statements, which were published on February 16, 2023.

Read the:
Annual Review (pdf, 17Mb) | Annual Review online
Corporate Governance Report (pdf, 2Mb) (published on February 16, 2023)
Financial Statements (pdf, 2Mb) (published on February 16, 2023)
Creating Shared Value and Sustainability Report (pdf, 16Mb)
Climate Risk and Impact Report (TCFD) (pdf, 2Mb)

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Recently adopted practices include intercropping, mulching and integrated weed management. In 2022, the Nescafé Plan 2030 farmer trainings on regenerative agricultural practices reached more than 100,000 farmers in 14 countries. In addition, 1.4 million trees were planted in and around coffee farms that supply coffee to Nescafé, providing shade to prevent coffee’s over-exposure to the sun and additional revenue sources for farmers.

Rejuvenation of coffee trees is key to improving the yields of coffee farms. In 2022, Nescafé distributed 23 million disease and drought-resistant, high-yield coffee plantlets to help rejuvenate coffee plots, increase productivity and reduce the use of agrochemicals.

Philipp Navratil, head of Nestlé’s Coffee Strategic Business Unit said, “The Nescafé Plan 2030 Progress Report shows the potential of regenerative agriculture to help make coffee farming more sustainable over the long term. We are supporting coffee farmers to make this transition and are giving them the know-how and tools they need to increase yields and income, while helping reduce carbon emissions at the same time.”

Climate change is the number one concern for coffee farmers in the 14 countries assessed by the Rainforest Alliance. It is followed by high input costs and low raw material prices. Most farmers say that the main reasons for the Nescafé Plan’s success are its consistent and high-volume purchases, regular technical assistance on the ground and access to markets.

The Nescafé Plan 2030 is piloting financial support schemes to help farmers transition to more sustainable practices. The pilots have engaged around 3,000 coffee farmers in Côte d’Ivoire, Indonesia and Mexico, countries where farmers earn, on average, less than a living income. These pilots include testing conditional cash incentives to reward the transition to regenerative agriculture and the rejuvenation of coffee plots as well as weather insurance schemes to protect farmers’ income against the unexpected effects of climate change. Although the pilots are still ongoing, Nescafé is seeing encouraging results and strong farmer engagement.

Yustika Muharastri, monitoring and evaluation manager from the Rainforest Alliance said, “The Rainforest Alliance works with the Nescafé team to monitor and assess their efforts through the Nescafé Plan. We have observed encouraging trends, including improved incomes in some countries, and increased adoption of important regenerative practices, such as integrated weed and pest management. We are excited that our ongoing collaboration will continue to provide valuable insights to the Nescafé Plan, further supporting its ambition to improve the livelihoods of many more coffee farmers.”

The Nescafé Plan 2030 aims to issue a progress report every year to provide an update on the evolution of its work in helping coffee farming communities transition to regenerative agriculture practices and improve their livelihoods.

Read the Nescafé Plan 2030 Progress Report (pdf, 12Mb)
Read the Rainforest Alliance Impact Assessment

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To meet this demand, Nestlé Professional has been increasing its range of plant-based dairy alternatives for food service professionals, leveraging Nestlé’s global R&D expertise on plant-based innovation. It is also sharing that expertise with baristas and other out-of-home providers with a series of webinars led by the team of Nestlé Professional.

New additions

A focus of recent out of home launches has been in Asia; a Nestlé Barista plant-based coconut drink was launched in Thailand earlier this year, primarily for use in cold beverages to meet consumer tastes there.

In China, Nestlé has launched two new plant-based dairy alternatives in the past year – one pea- and one oat-based – under the Nestlé Barista brand. The drinks were developed by baristas and can be used in hot and cold coffee and tea applications that meet local tastes.

Furthermore, a barista-focused dairy alternative made with peas was launched under the Nestlé Barista brand and launched in South Korea, Taiwan, and Singapore.

In Latin America, the Nature’s Heart Barista plant-based oat drink was launched in Brazil at the end of 2022 for hot and cold applications. The beverage is easy to steam and pour – making it perfect for latte art.

The Nature’s Heart brand also rolled out a powdered plant-based creamer based on rice, designed for Nescafé automatic machines. This new product enables customers with self-service machines to be able to offer plant-based drinks to their consumers as well.

As Manuel Aleman, global category lead coffee ingredients & plant-based beverages at Nestlé Professional, explained, “The trend towards more plant-based options remains, with around 40% of consumers around the world already moving to a diet with less or no animal products. Taste is key for people to choose and stay in the category, especially flexitarians who are an important target group for dairy alternatives in out of home.”

In addition to the recently launched out-of-home offerings, Nestlé has a strong and growing portfolio of plant-based alternatives to dairy that people can use at home. A recent addition in the retail space are the oat and fava plant-based beverages which were launched in the US under the natural bliss brand.

R&D capabilities for dairy alternatives

With wide-ranging innovation expertise in both dairy products and alternatives to dairy, Nestlé is equipped to deliver relevant solutions for out-of-home use across different countries.

Zenon Mandralis, head of R&D for Nestlé Professional said, “Our goal is to offer baristas and our customers plant-based alternatives that are very easy to froth, making the perfect latte or cappuccinos. Our scientists, product developers and baristas work together to ensure that the products are also great-tasting and nutritious, with the right foam texture, mouthfeel, and appearance.”

This work is primarily driven by R&D experts at Nestlé’s largest research and development center for milk and milk alternatives in Konolfingen, Switzerland. The center collaborates closely with the Nestlé Professional R&D team in Orbe, Switzerland to ensure that the products are adapted for use in professional machines at cafés, bars and restaurants worldwide. Through Nestlé’s regional innovation centers, including in China, the products are further tailored to local taste preferences, beverage menu variety, and dietary needs.

Plant-based expertise for food service professionals

Nestlé Professional shares its experience with food service customers in regular webinars. In its latest iteration, it will be sharing Nestlé Professional know-how and insights on plant-based beverage dairy alternatives at a live ‘Plant-Based and So Good’ webinar via Zoom on 7 June, 2023.

Register for the webinar here.

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Anna Manz, currently chief financial officer and a member of the board for the London Stock Exchange Group (LSEG), will join Nestlé as CFO as soon as she is released from her present duties. At that time, she will also become a member of the executive board of Nestlé SA as an executive vice president. To ensure a smooth transition, François-Xavier Roger will remain in his role until his successor’s arrival.

Before LSEG, Anna served as CFO and executive director at Johnson Matthey plc, leading the strategy, finance, procurement and IT functions. Prior to that, she spent 17 years at Diageo plc in a number of senior roles, including chief strategy director, CFO of Asia Pacific and Group Treasurer.

Mark Schneider, CEO, Nestlé commented, “On behalf of our board of directors and our executive board, I would like to offer our sincere thanks to François. He has supported us in shaping and implementing our value creation strategy and has helped steer Nestlé through a very turbulent macro-economic environment over the last three years. We wish him all the best for his next endeavors. At the same time, we are thrilled to welcome Anna Manz to Nestlé. Anna has spent her career growing businesses and improving operational efficiencies. Her deep knowledge of the consumer goods industry, combined with her extensive experience across many corporate functions, make her uniquely positioned to help lead Nestlé into its next phase of value creation.”

François-Xavier Roger, CFO, Nestlé, commented, “I am very proud to have been part of Nestlé’s remarkable value creation journey. I have had the pleasure to lead a highly professional finance team, and I feel this is the appropriate time to hand over my responsibilities. I would like to thank Mark, the board of directors, the executive board and my colleagues for their support. I am eager to ensure a smooth handover to Anna.”

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Stephanie Pullings Hart, currently senior vice president of operations for Warby Parker, will return to Nestlé, effective 1 July 2023, as the deputy head of operations. After a handover period, she will take over as the head of operations and become an executive board member by 1 January 2024.

At Warby Parker, Stephanie Pullings Hart is responsible for manufacturing, supply chain and customer experience. Prior to Warby Parker, Stephanie Pullings Hart was the senior vice president of global operations for Beyond Meat, where she transformed the company’s manufacturing and supply chain activities to help it achieve a significant sales increase. Until 2018, Stephanie Pullings Hart had a 23-year career at Nestlé, with roles of increasing responsibility in manufacturing, factory management, supply chain, research and development and human resources. She worked in several of its businesses and across multiple continents.

Mark Schneider, CEO, commented, “On behalf of our board of directors and our executive board, I would like to extend a heartfelt thanks to Magdi for his many contributions to Nestlé. We wish him all the best for this next chapter. At the same time, we are delighted that Stephanie is returning to Nestlé. With her appointment, we are gaining a highly qualified leader with extensive experience across all areas of operations, and a proven track record in growing businesses. Her highly entrepreneurial and digital experience combined with her knowledge of Nestlé make her the ideal leader to take us forward. Welcome back, Stephanie!”

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Speaking at the inauguration, Paul Bulcke, Nestlé chairman, said: “We have nurtured direct relationships with generations of farmers around the world. To continue providing people with tasty, nutritious and affordable foods, we need to transition together to a more sustainable food system. The new institute will strengthen our expertise and use our global network to support farming communities and protect our planet.”

With global food systems under pressure, there is an urgent need to accelerate new approaches that ensure a sustainable food supply for a growing world population while contributing to farmer livelihoods.

At the new institute, Nestlé experts screen and develop solutions in key focus areas such as plant science, agricultural systems and dairy livestock.

It builds on the company’s existing plant science expertise in coffee and cocoa. Over many years, Nestlé plant scientists have been contributing to Nestlé’s sustainable cocoa and coffee sourcing plans – the Nestlé Cocoa Plan and Nescafé Plan (pdf, 9Mb) – including the recent discovery of more disease and drought-resistant coffee varieties.

Nestlé is now strengthening this expertise and expanding it to further crops, including pulses and grains. The institute is also working with farmers to trial regenerative agriculture practices to improve soil health and encourage biodiversity. In addition, experts explore novel approaches in dairy farming that have potential to reduce greenhouse gas emissions in the areas of cow feed and manure management.

Jeroen Dijkman, head of Nestlé Institute of Agricultural Sciences, said: “Our goal is to identify the most promising solutions to promote the production of nutritious raw materials while minimising their environmental impact. We take a holistic approach and look at several factors including impact on yield, carbon footprint, food safety and cost, as well as the viability of scale-up.”

As part of Nestlé’s global R&D network, the institute collaborates closely with external partners including farmers, universities, research organizations, startups and industry partners to assess and develop science-based solutions. The new institute reaffirms the company’s commitment to strengthening Switzerland’s unique innovation ecosystem.

Speaking at the official opening, Valérie Dittli, state councilor of the Swiss Canton of Vaud, said: “The new institute is strengthening the Canton of Vaud as a center of excellence for research and education in agriculture and nutrition. It also contributes to the efforts that are underway to support farmers in the face of climate change. Agriculture is at the core of quality nutrition and in the Canton of Vaud we can count on an innovative ecosystem that brings together partners including agricultural professionals, schools for higher education and private research centers such as the one from Nestlé.”

In addition to its new facilities at Nestlé Research in Switzerland, the institute incorporates an existing plant science research unit in France, and farms based in Ecuador, Côte d’Ivoire and Thailand, as well as partnerships with research farms.

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In 2023, twenty grants of 10,000 USD each will be awarded to young leaders, entrepreneurs and youth organizations to help them create and implement changemaking solutions for social impact. Grantees will benefit from training sessions and mentoring throughout the development of their projects from Nestlé’s and UNESCO’s experts. With UNESCO’s support, the grantees will also showcase their ideas and solutions to policy makers and civil society actors, to increase impact.

A global jury composed of young leaders and experts from Nestlé and UNESCO will assess the applications. The grantees, aged 18-30, will be selected on the basis of their potential to achieve social change in their communities.

This partnership aims to help young people to reach their full potential at a moment when the multiple crises are affecting the world. Countries struggle to recover from the impacts of the Covid 19 Pandemic, prevent and mitigate the effects of climate change and contend with the shocks of the war in Ukraine. Youth are among those most affected: their mental health is deteriorating – 80% of young people across the globe are vulnerable to depression and disillusionment,¹ and more than one in five young people (under 25) are not in employment, education or training, compromising their future employment prospects.² Young women are particularly vulnerable to poor mental health and poverty. The fact that young people now number more than 1.2 billion, increases the urgency of this call.

“Young people must be given the opportunity to become entrepreneurs and innovators. They drive economic and social progress and yet, the world does not support them enough. They lack financial support and are not part of decision-making. Through this exciting new partnership with UNESCO, we hope to make a difference and help future leaders find their voice and put their ideas into practice,” said Laurent Freixe, Nestlé’s CEO for Zone Latin America and founder of the Nestlé Needs YOUth initiative, launched in 2013.

This new partnership builds on Nestlé’s 10 years of youth empowerment through its Nestlé needs YOUth initiative. With the goal of enabling 10 million young people around the world access economic opportunities by 2030, the initiative helps youth gain access to apprenticeships, traineeships and job opportunities. Globally, it has benefited more than 5 million young people across the three pillars: employment & employability, agripreneurship and entrepreneurship. Partnering with UNESCO’s Social and Human Sciences Sector is an important step in Nestlé’s commitment to youth.

“Young people deserve a chance to succeed, and by succeeding, to change the world. We cannot continue with business as usual; UNESCO is partnering with Nestlé, to help bring young peoples’ ideas to fruition so they can help transform our society. Our joint program will create a space for young people to have impact, inspiring many others, old and young, to follow suit. The solution to the multiple crises we experience is to have all young hands-on deck.” Gabriela Ramos, assistant director-general for Social and Human Sciences of UNESCO.

‘Because Youth Matter‘ is part of UNESCO’s Global Youth Grant Scheme, a program that mobilizes financial and in-kind support for young people around the world. The program also benefits from the Organization’s 20 years of experience working with young people worldwide by establishing and supporting youth-led initiatives and networks, strengthening youth capacities, fostering their knowledge production, through the ‘Young as Researchers Initiative’ and creating dialogue spaces between youth, policymakers and other partners.

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Carbon, and in turn, the carbon footprint, has been recognised as one of the leading causes of human-induced climate change. Over the past few decades, companies have shifted their infrastructures to reduce the negative impact, hoping to protect plants, waterways, and animals. However, when carbon is in the soil, it improves its ability to retain water and its overall fertility. So, the challenge is how do we get carbon out of the air and back into the earth? The solution is regenerative agriculture.

Bringing soil to the forefront

For decades, the climate change conversation centered around harm reduction with the goal of shifting agricultural practices to become carbon neutral. The challenge with this model is that it simply maintains the environment where it is today, which means that the current challenges plaguing the industry, including climate unpredictability, drought, and pest infestations, remain. Minimising harm is no longer enough to mitigate the risks of climate change; the environment needs to improve. Instead of adopting methods that will sustain, the focus needs to be repair and regeneration, beginning with adopting agricultural practices that will build healthy soil.

Regenerative farming begins with recognising soil’s role in the health of the planet and those living on it. “Conventional, which is the majority, this is where we have been, and sometimes it is where we are still stuck, but the method is destructive and unsustainable,” said Michael Ham, president, Well AP, Mt Kisco, New York. “Sustainable, which is achieving net zero, will maintain the status quo, but we need to reverse the damage that has been done and the only way to do that is through regenerative. This is where the focus needs to be in the next decade for us to really bring things back to where they should be. “Recognising the benefit, both for the earth and farm itself, Ham shared that their Korean tea farm Wild Orchard made the commitment to shift its practices from organic to regenerative. This past May, Wild Orchard obtained the Regenerative Organic Certification, becoming the first tea farm to receive this certification.

Curious deer traipsing through tea plants that are surrounded by other plants and wildflowers. Image: Wild Orchard

“Regenerative agriculture takes it one step further by focusing on the health of the soil,” said Ham. The model emphasises that soil requires living microbes to achieve its optimal health, which is obtained through various methods, including crop cover, minimising the amount of tillage, biodiversity, and intermittent grazing techniques, can grow nutrient-dense plants and reduce the amount of carbon in the environment.

In 2014, the Rodale Institute, Emmaus, Pennsylvania, released the white paper “Regenerative Organic Agriculture and Climate Change: A Down to Earth Solution to Global Warming,” urging the agricultural sector to consider the long-term impacts of its practices and to adopt regenerative methods. According to the Rodale Institute, most agricultural soil has lost between 30 to 75 per cent of its organic carbon. The loss has been linked to the atmosphere and conventional farming practices. Six years later, the Rodale Institute published “Regenerative Agriculture and the Soil Carbon Solution,” reiterating the harm in conventional practices, and urged the agricultural industry to adopt regenerative practices to build healthy soil, and in turn, reduce the levels of carbon in the atmosphere.

Dr Rattan Lal, director of carbon management and sequestration centre, Ohio State University, Columbus, Ohio, and winner of the 2020 World Food Prize, has extensively studied soil health. He continues to emphasise the importance of protecting the soil, both for the health of the environment and to improve food security. He explained the interdependency between the health of soil and the health of the planet, stating that if the health of the soil goes down the health of everything else goes down with it.

Making the shift to regenerative practices

In November 2020, the World Coffee Research organisation invited both Dr Lal and Andrea Illy, chairman of illycaffè, Trieste, Italy, to discuss soil health, and more specifically regenerative agriculture and the need for the coffee industry to shift its farming practices to mitigate the risks of climate change. Over the last five years, several coffee and tea manufacturers have adapted their sustainability strategies to focus on regeneration and soil health. Starbucks launched a holistic sustainability project with a focus on regenerative agriculture in Nariño, Colombia, with 100 smallholder farmers. Nestlé committed to investing 1.3 billion dollars, over a five-year period, to aid farmers with the transition to regenerative practices.

illycaffè announced its goal of becoming a carbon-free company by 2033, including zero-emission coffee plantations in both Guatemala and Kokkere, Ethiopia, where the farmers are adopting the principles of regenerative agriculture. While Unilever released its five regenerative agriculture principles, which would serve as a model of standards that they would use to help educate suppliers and guide their farmers.

Tazo launched a regenerative organic tea line in August. Image: Tazo Tea

This past August, Tazo Tea (formerly owned by Unilever, now owned by ekaterra) launched a regenerative organic tea line made with ingredients grown with regenerative agriculture practices. The product launch included four Tazo original tea blends relaunched as regenerative organic blends. The commitment to becoming regenerative included not just the farms themselves but also a focus on developing resilient communities and replenishing the planet’s resources.

“Tazo has always been a brand that challenges the status quo, and this regenerative organic transition is no exception,” said Laraine Miller, president, ekaterra Americas, New York. “For too long, business as usual has been killing our planet. It is time for every company, including the entire tea industry, to overhaul their means of production to combat climate change and help people and planet thrive.”

The tea and coffee industries are taking action, adopting strategies that focus on regeneration, beginning with educating farmers on the importance of soil health and providing the resources that will support them with making this transition. However, the path to become regenerative, is still in its infancy. “Regenerative agriculture might be the new buzzword on the block, but the key aspect behind it to shift the focus of sustainable farming from ‘doing no harm’ towards delivering positive impact is urgent and garnering more corporate commitment,” said Piet van Asten, head sustainable production systems-coffee, Olam Food Ingredients (OFI), Singapore. “This momentum is proving powerful in driving efforts around decarbonisation and pesticide reduction.”

The message from both the tea and coffee communities is clear. Instead of sustaining, we need to reduce the amount of carbon in the environment, a term, called decarbonisation, and the adoption of regenerative practices provides a strategy to help achieve this goal.

For regenerative practices to be viable at the farm level, the strategies adopted need to be responsive to the particular needs of the farmer.

“From our experience, it’s important to present it to farmers as an extension of what they already do well, rather than as a requirement to change existing practices,” said Van Asten. “To encourage uptake, we need to go beyond the buzzwords by translating what ‘regenerative,’ ‘climate-smart’ or ‘agro-ecological’ practices mean on the ground in terms of better productivity and livelihoods.”

OFI strives to do this through education, including highlighting the benefits that some of these shifts, that may initially appear counterintuitive, like integrated weed management, can provide. For example, through education, the farmers begin to see soil erosion, recycle nutrients, and harbour natural predators to control insect pests. “Educating farmers and supporting them to meet demand by shifting to more eco-friendly production makes what might initially seem a daunting task, an economically viable route in the long-term,” said Van Asten.

From an economic standpoint, this model is being looked at for its potential in developing more resilient crops, and in turn, aiding with food security. However, converting to this model requires farmers to look at the entire process, from soil to the harvest, including both the short- and long-term outcome of each of the techniques that are used. Machine harvesting, for example, traditionally uses fossil fuel emitting these toxins into the environment, which in turn, enters the soil, and the plants. However, innovation in agrotech is looking at eco-friendly alternatives to respond to these challenges so that large scale farms have an option that will maintain their productivity without causing harm to the environment.

At Olam AtSource agronomist shows the benefits of a properly pruned coffee plant. Image: Vanessa L Facenda

Currently, the tea at the 1000-acre farm of Wild Orchard is hand-picked, however, the company is looking at investing in battery powered harvesting machines to pluck their second and third flushes of their crops. The hope is that by incorporating these types of tools into their operation will help accelerate the amount of regenerative tea that enters the supply chain.

The long-term benefits of regenerative agricultural practices continue to gain recognition throughout the tea and coffee industries. On a positive note, each shift that is made at the farm level, whether it is increasing biodiversity, integrated weed management, or maintaining cover crops, will help to feed the soil, and over time, reduce the amount of carbon that is emitted into the atmosphere. The launch of the regenerative organic alliance certification is a tool that will help increase consumer recognition of this agricultural model. However, now, it is up to the industry to share the positive actions that their companies are taking so that the products that are grown through the regenerative model receive both the recognition and the economic value that they deserve.

• Anne-Marie Hardie is a freelance writer, professor and speaker based in Barrie, Ontario. She may be reached at: annemariehardie1@gmail.com.

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Seattle’s Best Coffee’s approachable line of whole bean, roast and ground packaged coffee, and K-Cup pods are available in a variety of roasts and flavour profiles across both foodservice and grocery channels. In addition to Starbucks packaged coffees distributed by Nestlé under the Global Coffee Alliance, Seattle’s Best Coffee joins Nestlé’s roster of well-known coffee brands in the United States including Nescafé, Nespresso and Blue Bottle. The addition adds depth to Nestlé’s North America coffee portfolio by further expanding the company’s position in the category.

“We continue to deepen our partnership with Nestlé to deliver the best of the Starbucks Experience to our customers in channels outside of our retail stores,” said Michael Conway, group president, Starbucks international and channel development. “We’re confident that Nestlé will continue to grow the Seattle’s Best Coffee brand as we focus on our strategy to elevate the premium coffee experience for consumers through the Starbucks brand.”

“Our partnership with Starbucks has confirmed Nestlé’s leading position in the dynamic and growing global coffee market,” said David Rennie, head of Nestlé Coffee Brands. “With the well-known Seattle’s Best Coffee brand, we will continue to build our leadership in coffee by offering consumers more choice for their everyday coffee.”

Since forming the Global Coffee Alliance in 2018, Vevey, Switzerland-based Nestlé and Seattle, Washington-based Starbucks have brought a wide range of premium coffee products to new markets at a fast pace – including whole bean coffee, roast and ground coffee as well as Starbucks capsules for Nespresso and Nescafé Dolce Gusto proprietary systems. Today, Nestlé distributes Starbucks consumer products and foodservice beverages across more than 80 markets outside Starbucks retail stores under the Global Coffee Alliance. The total global sales of Starbucks products distributed by Nestlé in 2021 reached CHF 3.1 billion (approximately USD 3.085 billion).

Through the Global Coffee Alliance, Nestlé and Starbucks will continue to work together closely to develop new, innovative products and go-to market strategies that will amplify the reach and expand the unique experience of the Starbucks brand locally and globally.

The transaction is expected to close by the end of 2022, subject to respective board and customary regulatory approvals. Terms of the transaction have not been disclosed.

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The brand is investing over one billion Swiss francs by 2030 in the Nescafé Plan 2030. This investment builds on the existing Nescafé Plan as the brand expands its sustainability work (pdf, 8,65Mb). It is supported by Nestlé’s regenerative agriculture financing following the Group’s commitment to accelerate the transition to a regenerative food system and ambition to achieve zero net greenhouse gas emissions.

“Climate change is putting coffee-growing areas under pressure. Building on 10 years’ experience of the Nescafé Plan, we’re accelerating our work to help tackle climate change and address social and economic challenges in the Nescafé value chains,” said David Rennie, head of Nestlé coffee brands.

Rising temperatures will reduce the area suitable for growing coffee by up to 50% by 2050. At the same time, around 125 million people depend on coffee for their livelihoods and an estimated 80% of coffee-farming families live at or below the poverty line. Action is needed to ensure the long-term sustainability of coffee.

“As the world’s leading coffee brand, Nescafé aims to have a real impact on coffee farming globally,” said Philipp Navratil, head of Nestlé’s coffee strategic business unit. “We want coffee farmers to thrive as much as we want coffee to have a positive impact on the environment. Our actions can help drive change throughout the coffee industry.”

Supporting farmers’ transition to regenerative coffee farming

Regenerative agriculture is an approach to farming that aims to improve soil health and fertility – as well as protect water resources and biodiversity. Healthier soils are more resilient to the impacts of climate change and can increase yields, helping improve farmers’ livelihoods.

Nescafé will provide farmers with training, technical assistance and high-yielding coffee plantlets to help them transition to regenerative coffee farming practices. Some examples of regenerative agriculture practices include the following:

Planting cover crops helps to protect the soil. It also helps add biomass to the soil, which can increase soil organic matter and thus soil carbon sequestration.
Incorporating organic fertilizers contributes to soil fertility, which is essential for good soil health.
Increasing the use of agroforestry and intercropping contributes to biodiversity preservation.
Pruning existing coffee trees or replacing them with disease and climate-change resistant varieties, will help rejuvenate coffee plots and increase yields for farmers.

Focusing on origins from where Nescafé sources 90% of its coffee

Nescafé will be working with coffee farmers to test, learn and assess the effectiveness of multiple regenerative agriculture practices. This will be done with a focus on seven key origins, from where the brand sources 90% of its coffee: Brazil, Vietnam, Mexico, Colombia, Côte d’Ivoire, Indonesia and Honduras.

Nescafé aims to achieve:

• 100% responsibly sourced coffee by 2025 (pdf, 8,65Mb)
• 20% of coffee sourced from regenerative agricultural methods by 2025 and 50% by 2030 as part of Nestlé’s ambition for its key ingredients

Piloting a financial support scheme in Mexico, Côte d’Ivoire and Indonesia to accelerate the transition to regenerative agriculture

Nescafé is committed to supporting farmers who take on the risks and costs associated with the move to regenerative agriculture. It will provide programs that aim to help farmers improve their income as a result of that transition. In Mexico, Côte d’Ivoire and Indonesia, Nescafé will pilot a financial support scheme to help farmers accelerate the transition to regenerative agriculture. Through this scheme, Nescafé, together with coffee farmers, will test and learn the best approach in each country. These could include measures such as:

• conditional cash incentives for adopting regenerative agriculture practices
• income protection using weather insurance
• greater access to credit lines for farmers

Nescafé will track the progress and assess the results of its field programs with coffee farmers through its Monitoring and Evaluation partnership with the Rainforest Alliance. Its efforts will be complemented by new and expertise-focused partnerships, like the one with Sustainable Food Lab for topics related to coffee farmers’ income assessment, strategy and progress tracking.

Reducing greenhouse gas emissions also by capturing and storing more carbon in the soil

Regenerative agriculture also contributes to drawing down carbon dioxide from the atmosphere and reducing greenhouse gas emissions. That’s why regenerative agriculture is a key part of Nestlé’s Zero Net roadmap. Nescafé aims to contribute to Nestlé’s Zero Net commitment to halve greenhouse gas emissions by 2030 and reach zero net greenhouse gas emissions by 2050. It will work with farmers, suppliers and partners to help protect agricultural lands, enhance biodiversity and help prevent deforestation. The brand intends to help farmers plant more than 20 million trees at or near their coffee farms.

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The new publication provides insights on the sustainable coffee purchases of JDE Peet’s, Melitta Group, Keurig Dr Pepper, Nestlé, Strauss Coffee, SUPRACAFÉ, Tesco and Westrock Coffee, all of whom have committed to disclosing their responsible sourcing progress using aligned, comparable metrics. According to GCP, the eight leading coffee companies have taken exemplary public action by transparently sharing their sustainable coffee purchase volumes in the new report, published on Tuesday.

“Over the past four years, innovative Collective Reporting of Sustainable Coffee Purchases from prominent coffee companies in GCP’s Snapshot has provided transparent information showing the sector how increases of sustainable coffee purchases are expanding the global marketplace for sustainable coffees,” said GCP executive director, Annette Pensel. “As regulatory, financial and reporting environments continue to evolve, GCP Snapshot partners are providing substantial leadership, actions, and impact to foster increased production and consumption of sustainable coffees throughout the world.”

This year’s report is the result of GCP’s expanding collective reporting efforts, which has included new participating GCP Members, new reporting features, and an expansion of sustainability schemes eligible for reporting by using the GCP Baseline Coffee Code as a reference. The following GCP-recognised sustainability schemes have been included for reporting on 2021 volumes:

•3rd Party Schemes: 4C, Certifica Minas, Fairtrade, Rainforest Alliance/UTZ, and Starbucks’ C.A.F.E. Practices;
•2nd Party Schemes: Ecom’s SMS, Enveritas Gold, Enveritas Green, Nespresso AAA, ofi’s AtSource Entry Verified and AtSource Plus, LIFT by Mercon, and Neumann’s NKG Bloom.

Highlights of the GCP Snapshot include data on the increasing share of sustainable coffee purchases as reported by GCP Members for 2021, climbing up to 1,254,141 MT (55% of total received green coffee – a relative increase of 29% compared to 2020). The report also presents the breakdown of purchases per participating company, as well as a feature on companies’ sustainable coffee purchases according to sourcing regions. Moreover, it offers insights into origin diversity (sustainable coffee purchases received from 33 coffee-producing countries), and the shares of sustainable coffee purchased according to different GCP-recognised sustainability schemes.

“While important work is underway, even bolder individual and collaborative efforts are needed to achieve transformational change that results in economic viability of sustainable coffee farming and a living income for producers and workers while preserving nature and addressing climate change, effectively,” said Pensel. “We’re excited by the progress made and look forward to welcoming more roasters and retailers reporting in the next GCP Snapshot.”

The full report is available to read here.

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Special guest Andrés Manuel López Obrador, the president of Mexico, attended the factory’s opening event. He commented, “With the inauguration of this plant, Nestlé is supporting close to 100,000 coffee producers in Mexico. This demonstrates the importance of the public and private sectors working together to bring investment to our country.”

The new factory leverages state-of-the-art equipment and green energies to reduce water and energy consumption. It uses wastewater treatment systems to ensure 100% of water recirculation, zero wastewater discharges and zero waste to landfills. And it consumes 100% green electricity and is equipped with a biomass boiler that will use the biological waste from the coffee process to generate energy.

“The coffee factory is one of the most technologically advanced in the world and our company’s most modern and sustainable coffee plant,” said Fausto Costa, executive president of Nestlé Mexico. “At Nestlé, sustainability is a fundamental pillar of our purpose, and we are committed to taking actions that have a positive impact on our planet.”

Through the Nescafé Plan, coffee growers from whom Nestlé sources have access to the advice of specialists. Nestlé’s global initiative supports the sustainable production and supply of green coffee, strengthens small producers’ production capacity and promotes the economic and social development of their families and communities. The Nescafé supply chain comprises 80,000 Mexican coffee growers, and Nestlé has pledged to ensure that by 2025, 100% of the coffee it purchases is responsibly sourced.

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The coating or ‘ganache’ that covers the Nescafé Gold Cappuccino Ice Cream is made using Nestlé’s patented ‘soft coating’ technology. In contrast to the hard coatings used in typical chocolate-based stick ice creams, this soft ganache uses Nescafé Gold coffee, which also features in the ice cream core.

Guglielmo Bonora, head of Nestlé R&D Singapore, said: “Leveraging this ‘soft coating’ technology, our teams met the challenge of finding the perfect balance between ‘coffee-ness’, milkiness and sweetness, to bring the Nescafé Gold Cappuccino experience to life!”

“The ganache is designed to melt at a similar rate to the ice cream core, so people can better enjoy the release of sweetness and coffee from the coating, alongside the ice cream.”

Global Head Confectionery and Ice Cream Strategic Business Unit, Alexander von Maillot, said: “We didn’t just want to make a coffee-flavored ice cream, but rather take the Nescafé coffee experience and recreate it in the ice cream category. This indulgent, premium ice cream is the perfect treat for consumers.”

Sold in a paper wrapper that is designed to be recycled via the paper stream, Nescafé Gold Cappuccino Ice Cream will be sold in Malaysia over the next few months, with a view to possible rollouts in further Nestlé ice cream markets worldwide.

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