Nestle to compete with Starbucks in Mexico

Global Business

Nestle to compete with Starbucks in Mexico tn2

The coffee competition is heating up in Mexico. Nestle’s launch of multi-million dollar pilot program could make it a contender against Starbucks.

For decades, Mexico was not especially known for its coffee culture. But that changed about a decade ago, when Starbucks stirred up the brewing field by opening the first of some 400 cafes across the country. Move over Starbucks. Nestle plans to wake up the competition.

CCTV’s Martin Markovits reports from Mexico.

Nestle to compete with Starbucks in Mexico

Nestle to compete with Starbucks in Mexico

The coffee competition is heating up in Mexico. Nestle's launch of multi-million dollar pilot program could make it a contender against Starbucks.

Executives hope this will help lift the brand, including the popular Nescafe, that’s mainly sold from coffee vending machines and brewed in homes. Although Mexico is still Nescafe’s biggest market, officials acknowledge it will be hard to break into the coffee store market dominated by Starbucks. But they will have some advantages.

“What they are going to do is have coffee trucks, where they will be able to go almost everywhere. They are also going to sell cheaper coffee, maybe not the same quality as a coffee stores. But the availability and the easy access to this in almost any block could help them take customers from the coffee stores,” said President of Mexico’s Cafeteria Association Arturo Hernandez.

Nestle said its first store will open in two weeks and two more in the coming months. There are already plans to expand outside of Mexico.