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· Posted on
February 21, 2024

Nestle is investing $1 billion to protect your morning cup of coffee... cos' nobody wants to see you de-caffeinated

Nestle wants to protect your morning cup of coffee... so it's making a $1 billion investment to plant climate-change-resistant coffee trees.

What's the key learning?

  • Nestle is best known for its Nescafe coffee with 5,500 cups of Nescafe being sipped worldwide every second.
  • Nestle is investing $1 billion to replace traditional coffee trees with climate-change-resistant trees, since coffee crops are mainly grown near the equator which is prone to drought and hurricanes.
  • Rising temperature could reduce coffee-growing land area by as much as half by 2050 so Nestle knows if it doesn’t take action now, there may not be coffee farms in 20 or 30 years.

👉 Background: Nestle is the 155 year old company founded by Henri Nestle in Switzerland. It’s grown a little since then. Today, it has more than 2,000 brands and is stocked in 186 countries.

👉 What happened: Nestle owns a whole heap of brands - but is arguably best known for its Nescafe coffee. In fact, 5,500 cups of Nescafé are sipped worldwide every second. And to get these cups of caffeinated-goodness into our hands, Nestle partners with over 500,000 farmers.

👉 What else: Here's the thing: Coffee crops are mainly grown near the equator, which is very prone to drought and hurricanes. So now, Nestle is investing $1 billion to replace traditional coffee trees with climate-change-resistant trees.

What's the key learning?

💡Climate change is a potential threat to the coffee industry and your morning cup of coffee. As temperatures rise and the higher risk of draughts, coffee beans will become harder to grow and more expensive to buy.

💡Companies like Nestle have needed to step in to help farmers grow their crops.. and help Nestle maintain their booming coffee business. Instead of just purchasing the beans, companies like Nestle are starting to work with small farms.

💡And it makes sense. Rising temperature could reduce coffee-growing land area by as much as half by 2050. So Nestle knows if it doesn’t take action now, there may not be coffee farms in 20 or 30 years.

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