More than cold coffee - How Nestlé is building a global coffee powerhouse from Orbe

Orbe as a coffee command center

Orbe is not just any location. It is the epicenter of Nestlé's coffee expertise - and at the same time a symbol of a systematic, long-term brand strategy. Here, it becomes clear how research, technology and business intelligence combine to create a global lead. Nescafé was invented in Orbe, Nespresso was developed and the entire machine-based system thinking was cultivated. The location is not only historical, but also strategic - not least due to its proximity to Lausanne and the EPFL.

From the lab to the cup

Stefan Palzer, CTO of Nestlé, emphasizes how deeply rooted innovation is in coffee. Every year, 400 to 500 patents are created here, many of them directly related to coffee and beverage systems. The R&D organization comprises 22 locations worldwide, 4,000 employees, a Deep Tech Center and a clear structure: basic research, category-specific development and regional innovation centers.

Two of the Group's six "big bets" relate to coffee - including the Nescafé Espresso Concentrate and the NEO system. They are examples of how Nestlé thinks innovation is scalable: both projects are expected to generate over CHF 100 million in additional sales in the fourth year after launch. AI is increasingly supporting all R&D processes - from recipe development to packaging.

Three stations, one promise

The guided tour through Orbe led to three stations: "Coffee at Home", "Coffee Out-of-Home" and "Coffee through Systems". Each module showed how Nestlé takes a differentiated approach to the topic - from variety breeding to the digital customer experience. The system concept runs throughout: Nestlé thinks in terms of ecosystems in which the machine, capsule and packaging are developed as a unit - such as the NEO system with its compostable pods and app-controlled personalization.

Cold coffee is traded hot

Products such as Ice Roast or the Espresso Concentrate serve the trend towards ready-to-drink and ready-to-prepare formats. "Cold is the new hot" - this phrase has been used more than once. The global cold coffee market is growing rapidly, already accounting for 14 % of the total volume and growing at double-digit rates in many regions. Nestlé is part of it - whether with soluble powder, liquid concentrate or RTD offerings.

Don Howat, Vice President and Global Lead for Nescafé, puts it in a nutshell: "We want to enable young consumers to hack their iced coffee at home - just like they know it from TikTok."

A central element of this strategy is the collaboration with the well-known YouTuber and illusionist Zach King. For the market launch of Nescafé Espresso Concentrate, King staged a global campaign in which he used digital magic to conjure up creative coffee recipes out of thin air. The message: with the concentrate, everyone can become a barista - fast, cool, individual. For Nestlé, this is more than just product advertising. It is a new way for brands and consumers to interact as equals in the creator economy. The branding combines product, lifestyle and community.

Brand power in a triad

Nescafé, Nespresso and Starbucks at Home are the three crown jewels in the Nestlé portfolio. All three are among the 100 most valuable brands in the world (Interbrand) - no other coffee group can match this. Together they cover the entire price spectrum, from the cents cup to the premium experience. Portion coffee accounts for 36 % of sales, instant for 32 % and creamers for 13 %. Regionally, Nestlé generates 41 % of its coffee sales in the Americas, 34 % in Europe and 25 % in Africa, Asia and Australia. Nestlé is the global market leader with these brands in all zones.

Research meets mechanical engineering

Systems such as NEO or the Fusion vending machines for hotels, offices and convenience stores represent a new level of complexity. Product, machine and packaging merge into a single unit. Julia Lauricella, Head of Global R&D Systems, talks about perfect interaction. Compostable pods, Wi-Fi-enabled machines, digital loyalty programs - all this is part of the new logic. The NEO system processes extra-large black cups, recognizes the beverage by code and controls the pressure, temperature and extraction sequence. The system also sets standards in terms of sustainability: The pods are home-compostable, the machines are repairable and recyclable.

Nespresso: The future is green, cold and functional

Nespresso, on the other hand, is focusing on growth platforms: Cold drinks, flavor editions and functional coffee (e.g. with ginseng or B12). Samra Origins, a collaboration with The Weeknd, is aimed specifically at Gen Z. And: 15 % of annual growth comes from flavored capsules.

Leonardo Aizpuru, CMO of Nespresso, sees this as more than just product diversification: "Young target groups today not only shape their own coffee consumption - they also influence the behavior of all other generations through social media. Our strategy: innovation with attitude and style."

Branding is also being rethought at Nespresso. The viral impact of the iconic Nespresso tumbler on TikTok or the strategic collaborations with brands such as Oatly and Vital Proteins show that coffee culture today goes far beyond taste. Lifestyle, health and attitude are merging - and Nespresso is actively shaping this new cultural identity. With accessories such as the Nanofoamer (cold milk foam), Nespresso is creating new experiences and touchpoints.

Out-of-Home: Coffee as a service promise

Nestlé is also expanding in the B2B segment. The Fusion systems and the "We Proudly Serve Starbucks" program demonstrate the differentiated approach to the requirements of hotels, hospitals and educational institutions. Telemetry, sustainability metrics and individual user interfaces have long been standard there. The entire service is digitalized: The machines proactively report maintenance requirements, analyse consumption and help to minimize waste.

Strategic depth instead of just caffeine

CEO Laurent Freixe speaks of "fewer, bigger, better innovations". Coffee is more than just a category for Nestlé - it is a strategic front. The goal: superior technology, convincing taste experiences, new consumption occasions. All supported by deeply integrated research and global market power. As one local manager put it: "I'm responsible for a scale here that I wouldn't find at any other company in the world."

Conclusion: Coffee is a top priority at Nestlé

The message from Orbe is clear: for Nestlé, coffee is not just a sales driver, but a strategic vehicle for brand management, product innovation and consumer loyalty. The entire coffee organization is designed not only to adapt to market changes, but to lead them - whether through R&D, branding, digitalization or sustainability. And while outside the temperatures climbed above 30 degrees, inside it was clear that cold coffee can be damn hot.