STiR coffee and tea magazine

Volume 4, Number 5

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STiR tea & coffee industry international 55 The $74 million Gusto factory under construction in Montes Claros is the first built outside Europe. Nestlé says Brazil's capsule market grew by 45% in 2013. Two new capsule factories Together, Tres Corações Group and Dolce Gusto (Nestlé) are investing ap- proximately $100 million in new capsule factories in Brazil. With local production, capsules are more sustainable (avoiding trips abroad with the green coffee and re- turning the final product). Development of the local manufacturing also benefits the local economy and employment. Coincidently (or not), both compa- nies chose the same city to start the build their first facilities: Montes Claros located in the north region of Minas Gerais state. According to Três Corações executive manager, Jefferson Deywis, $21 million (R$85 million) was invested to meet the high demand for their multi beverage machine TRES. While under construc- tion the company teamed with an Italian manufacturer, Cafittaly, to produce three single-serve machines for the home and a foodservice model. The 3 Corações Group began the first phase of construction in 2015 with capsules available during the second quarter of 2016. The 100,000 sq. ft. (9,750 m 2 ) Dolce Gusto factory also located in Montes Carlos is scheduled to open in December 2015. The company invested $74 million (R$200 million) in construction and will hire 90 workers to operate the plant with an additional thousand indirect jobs. Ac- cording to Nestlé's executives, supplying the domestic market is the main goal, but capsules will be exported to other Latin American countries such as Argentina, Uruguay, and Paraguay. Brazil is one of the fastest growing markets for capsules due in part to the convenience of instant coffee. "Capsule growth is not limited to de- veloped markets,"observes Ross Colbert, managing director and global strategist for beverages at Rabobank. "It is not a great leap from decent quality instant to convert to pods or capsules. The com- mon driver is convenience which bodes well for future growth of pods and cap- sules in developing markets," he said. Innovation in brewing systems will continue to attract consumers, he said. Colbert cited a joint Brazilian venture between Whirlpool Corp. and AmBev who teamed up to introduce the Bras- temp B-Blend, a capsule machine capable of producing 24 different beverages.

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