The completion of the foundation of Nescafé Coffee Center (NCC) located in Pu’er Industrial Park in Yunnan Province marks the end of the early stage of the project. This stage involved a range of engineering work, including site flattening, piling and underground infrastructure construction, designed to lay a solid foundation for the main-body construction. Despite it being the rainy season, well-organized deployment of employees guaranteed the successful implementation of scheduled tasks while still maintaining quality engineering standards…Full Article: The Global Times Sept 2015

Key Point

  • Construction on the coffee center began in March 2015 and is expected to be completed by October 2015.

ChinaAg Comments

  • In March 2015, Nestle China destroyed tons of instant coffee in its Dongguan, Guangdong province, factory due to poor demand.
  • During the 2014 to 2015 coffee season, Nestle reportedly purchased 10,000 MTs of coffee beans from the Pu’er region or Yunnan.
  • In December 2014, Nestle opened its first “coffee center” (e.g. training center, quality control, etc.) in Yunnan. Nestle stated they would only procure coffee beans in Yunnan that are “4C” certified.
  • In 2013, Yunnan province reportedly produced almost 100,000 MTs of coffee or approximately 98% of China’s total output.
  • In 2012, China produced approximately 70,000 MTs of green (raw) coffee.
  • In 2011, Nestle acquired a 60% stake in China’s Yinlu Foods Group (ready-to-drink Nescafé coffee).
  • In 1997 Nestle began acquiring Chinese companies and has since acquired eight (i.e. Hsu Fu Chi, Yinlu, and more).
  • In 1988, Nestle first established a presence (e.g. model farms, technical assistance projects) in Yunnan province.

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