Nestle faces new coffee rival as Vietnam targets instant market

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.Nestle faces new coffee rival as Vietnam targets instant market

"Asia is the world's fastest-growing coffee-consuming region, where many consumers are still starting to build up a coffee-drinking habit," said Jose Sette, head of the International Coffee Organization in London.

Ho Chi Minh City-based Intimex, which was a state-owned company before being sold to private investors in 2006, aims to overtake Nestle as Vietnam's biggest pure instant-coffee supplier in the next five years by expanding annual capacity fivefold to 20,000 tons.

The plan includes increasing the volume of green beans used in the intensive coffee-processing sector to 30 per cent-to-40 per cent of the country's total output from the current 10 per cent, leaving a smaller quantity available for export as unroasted, green beans. Domestic roasters and soluble plants are slated to use more than 500,000 tons of green beans annually in the next three years, 40 per cent more than what's currently consumed, said Le Tien Hung, CEO of the second-largest exporter Simexco Dak Lak.Vietnam has the capacity to make as much as 58,500 tons of instant coffee a year from nine plants, according to data compiled by Bloomberg News.

 

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