Nescafé’s high-end brand Dolce Gusto launched the Yunnan Espresso Limited Edition to the Chinese market on September 22. Made with raw materials from local coffee plantations in Yunnan Province, the Yunnan Espresso Limited Edition is now available in 70 countries and regions across the global market…Full Article: The Global Times Sept 2016

Key Point

  • The new Nescafé product is sourced from Arabica coffee producers in Puer (5 suppliers) and Xishuangbanna (2 suppliers), southern Yunnan Province. The product can be purchased in Beijing, Shanghai, Hangzhou (Zhejiang Province), and Shenzhen (Guangdong Province), as well as online at Alibaba’s Tmall.com and JD.com.

ChinaAg Comments

  • Yunnan province has three main coffee growing regions, with Dehong (bordering Burma) and Pu’er (bordering Burma, Laos, and Vietnam) being the most developed. Dehong Hogood Coffee Company is the primary buyer of Dehong coffee while Switzerland’s Nestle is a major purchaser of Pu’er beans (south of Dehong).
  • In September 2015, the construction of the Nescafé Coffee Center (NCC) in Pu’er Industrial Park, Yunnan Province, was nearing completion.
  • In March 2015, Nestle China destroyed tons of instant coffee in its Dongguan, Guangdong province, factory due to poor demand. During the same month, construction on the Nescafé Coffee Center (NCC) began and was expected to be completed by October 2015.
  • 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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