The NESCAF Plan

Building a global plan for

Creating Shared Value in
Coffee
Romn Irurre Wolfisberg
Ratkaisun Paikka
Helsinki/ May 13th, 2014

Roadmap to Success

NESCAF in the world

Why are we doing this?
What are we doing?
How are we doing?
What should you take away?

NESCAF: worlds leading coffee beverage

Founded in 1938 as a CSV initiative in Brazil

Part of total BEVERAGES, the biggest, fastest growing and most

profitable Nestl business
NESCAF is sold in 180+ countries global brand

More than 475 million cups consumed per day; 5,500 per sec.
Revenues of CHF 10 billion in 2012
Largest R&D network of any coffee beverage company with 7
research, development and technology facilities worldwide
27 factories; more than half in developing countries, most of those in
rural areas

The NESCAF Plan is key to

secure good quantity & quality of green coffee
From Compliance to Creating Shared Value through:
Direct Procurement (secure quantity, improve quality)
Community Engagement & Rural Development
Reduce Environmental Impact

Rural
Development

Sustainaibility

Compliance

Commitments

Farmers training, technical assistance and sustainable stream of revenue

Production: major savings on energy & water utilization
Consumers/ Customers education and engagement

NESCAF to lead the Sustainability agenda

Consumer choice
Sustainability becoming a
core driver in brand choice

Green coffee supply

challenge

Leadership comes with

responsibility

Global demand for Green

Coffee to exceed Supply
from XXXX onwards

No. 01 coffee brand

75 years

Dramatically worse
scenario for sustainable
coffee demand

475mill. cups per day

More than 1mill. farmers and

farm workers

27 factories

More than 200 agronomists

no coffee, no
NESCAF!

Coffee farming under intensive pressure

from competitive crops with higher return
10,000

8,000

Net Farmer Income US$/Ha

China

6,000

4,000

Brazil
Brazil

Vietnam

2,000
India

Philip Mexico pines

Mexico

Indo nesia Ivory

Coast

Thail and

Low risk for Coffee

n Arabica coffee

n Robusta coffee

High risk for Coffee

n Tea

n Black Pepper

n Rubber

n Palm Oil

n Cocoa

Pillars 1, 2, 3 on track overall

Key
areas

Responsible
farming

Farmers trainings &

assistance
Direct procurement
Plantlets
Partner:

Responsible production
& supply

Soluble, systems (NDG),

NP
Develop socio-economic
impact

Responsible
consumption

Promote consumption
Educate consumer on
situation coffee is facing
Help consumers to
reduce footprint

Video/ animatic PLANTLET PROPAGATION

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Creating Shared Value in Colombia

Creating Shared Value in the Philippines

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CSV adressing challenges in a different way

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FOODSECURITY PROGRAMME
KENYA & ETHIOPIA (FOSEK)
Quick Facts
Scope: 120,000 small-scale coffee farmers

20% women
Establishing 25 nurseries and storage facilities
Reaching food and coffee productivitiy increase with 40%
Consortium of 9 partners (Nestle, Solidaridad, CMS, SMS,
Dorman, CRF, SCFCU, OCFCU and YCFCU)

Budget 9.2 million for 7 years (47,5% contribution from Dutch

Ministry)
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The Sustainable Coffee Program

focus countries

Tropic of Cancer
Vietnam

Columbia
Ethiopia

Indonesia
Peru

Uganda
Brazil

Tropic of Capricorn

Production volume*
>10m bags
4-10m bags
1-4m bags

Phase 1
* Measure in 60kg bags of green coffee beans,
countries producing less than 0.5m bags are excluded
Source: USDA

Phase 2

NESCAF agricultural empowerment approach key for

differentiating (Farmer Connect + R&D Tours)
NESCAF Plan represents a unique proposition, built on 5 differentiating elements:
1

Presence
along the
whole value
chain
from training
partnership with
Rainforest
Alliance (RA) to
the agronomists
(201 in 14
countries),
factories etc.

Investing in
future
supply,
beyond
existing
challenges

eg. plantlet
propagation &
distribution (more
than 44mill. since
launch of plan
(ytd Dec. 2013).

Focus on
farming and
agricultural
empowerm
ent
keeping coffee
farming a viable
business for the
next generation
means
transferring
farming and
business skills
improving yields
and optimising
production costs.

Breadth &
depth of
engagement
with farmers
from training in
sustainable
farming to
ongoing practical
support (and
potentially microfinancing).

Committed
to local
production
optimized supply
chain & more
revenue for the
local community
and producer
countries (i. e.
Nestl the only
MNC w. coffee
factories in Ivory
Coast &
Colombia).

Only NESCAFs R&D Tours and Farmer Connect looks at the mainstream challenge,
(training, agro-services, plantlet propagation & distribution, local production and direct procurement at a
wider scale), making a difference through Agricultural Empowerment
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THE
NESCAFE
PLAN IS
BUILT ON
TANGIBLE
FACTS
15

THE
NESCAFE
PLAN IS
TOLD
WITH
EMOTION
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Employee Engagement at NESCAF in Spain

17

From our People, for Our People

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 Community Engagement in the Ivory Coast

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Many activities developed across the value chain,

Next step is to bring them organically together

Pillar 1
Farmer Connect
Pillar 2
Factories

Pillar 3
Active12-13

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KEY TAKE AWAYS:

STRATEGY:
Secure good quality & quantity of green coffee

OBJECTIVE:
Creating Shared Value

ENABLER:
NESCAF Plan

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THANK YOU!

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The NESCAF Plan

Building a global plan for
Creating Shared Value in
Coffee
Romn Irurre Wolfisberg
Ratkaisun Paikka
Helsinki/ May 13th, 2014

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