RTD becomes Nescafé business driver – A talk with the Nescafé executive in China

Adrian Ho, senior vice president of Nescafé business in Greater China, told Foodinc that China is now the world’s largest market for Nescafé RTD (ready-to-drink). In the past, Nestlé China relied solely on instant coffee to start consumers’ “first cup of coffee”, but now RTD has become another major driver for consumers to drink coffee.

According to Adrian Ho, RTD is well suited as an entry-level product. First, many RTDs are not pure black coffee, which is more acceptable to first-time coffee drinkers; second, it’s portable; third, its price is relatively affordable, making it easier to be accepted by consumers.

Currently, instant coffee and RTD take an equivalent proportion in Nestlé China’s overall coffee business, a source said. In expanding its business, the coffee giant believes that the biggest opportunity for RTD products instantly lies in distribution, especially in strengthening its presence in China’s largest number of traditional small stores.