Nestle Thai Ltd, the distributor of Nescafe coffee, is set to shake up Thailand's 20-billion-baht premium coffee market with the launch of new Nescafe formulas for young coffee lovers in an attempt to boost premium coffee consumption.
Vladislav Andreev, business executive manager for coffee and creamer business at Nestle Thai, said the company has invested 100 million baht to produce Nescafe Gold, a cafe-style premium coffee.
Another 200 million baht will be allocated to promote it this year.
Nescafe Gold in Cappuccino, Latte Macchiato and White Espresso variants have been created specifically for the Thai market, having recently been launched to attract younger coffee lovers.
Audrey Liow, chairwoman and chief executive of Nestle Indochina, said Nescafe Gold was launched first in Thailand because the country is an important market for Nescafe coffee.
"The Thai coffee market is evolving at a rapid pace, with younger people who are discerning coffee drinkers seeking quality lives filled with special moments. Coffee is also entering its third wave, offering an immersive sensory experience, with its presentation evolving into an art form," she said.
"We see an increasing trend towards premium coffee globally."
"Coffee drinkers in Europe and Asia enjoy cafe-style hot coffee more than Thais."
The cafe-style coffee mix market is worth 7.12 billion baht in Germany, 3.88 billion in Britain, 2.59 billion in France and 609 million in South Korea.
In Thailand, the total premium coffee market is immense at over 20 billion baht.
The premium coffee mix market, by contrast, is considerably smaller at 418 million, although it saw a major increase of 15% last year.
"Out-of-home consumption of premium coffee, especially the number of cafes that serve premium coffee, has greatly increased over the past few years," Mrs Liow said. "We wondered why should you only enjoy premium coffee at a cafe?"
The company has also hired actor and singer, Saharat "Kong" Sangkhapreecha, as the brand ambassador for Nescafe Gold.