Nestle opening coffee shops, entering into the coffee shop market.

by Chee Leng
(Singapore)

This is interesting, Starbucks that operates coffee shops, goes into production of instant coffee -Via. Now Nestle that is the biggest producer of instant coffee is opening coffee shop!

If I do not know better, it seems like a tic for tat sort of tactics. "Hey, now that you are into my territory, I would caused some disturbances in yours too."

This time round, Nestle is opening two coffee shops in Burcharest and Craiova, what surprises me is that they are opening in the same location after giving out just three years ago.

Nestle opens in 3 locations in Burcharest but close down three years ago.

The partners for these outlets have been in F&B for a while. One of them is Greek Based Dyonissos Group that used to operate Nestle coffee shop two and half years ago.

Perhaps, they have found stronger partners this time round, the other partner is Biologistics a distributor that has been doing Nestle vending business since 2004.

Nestle has been ill fated when it comes to outlets opening, 5 years ago, they have to close down a few outlets in Singapore despite brisk business because of Corporate strategic alignment.

Hope this time round, they would be able to expand successfully.

Anyway, it would be to the consumers' benefit if Nestle successfully branch out into this area. Competitions usually meant better pricing for us -consumers.

Would be keeping track of this development and of course Starbucks phemonenal growth of its Via. Looks like the game these days is to enter New territory!