My Nesquik brings all the boys to the yard... Nestlé is the world's largest packaged food company, known for treats like Kit Kats, Hot Pockets, and basically anything that begins with "Nes." A year ago, Nestle reported its strongest quarterly sales growth since 2015, thanks to pandemic snacking and pet-mania (it owns Purina). Last quarter was even sweeter:
Does the Nespresso store do samples?... Nestlé's killer growth was fueled by the at-home coffee boom. Instead of hitting Starbs for a pre-office latte, you were firing up Nespresso pods or Nescafé in your jammies. Nespresso sales jumped a whopping 17% last quarter, as Nestlé won new customers in North America.
One habit is worth a lifetime... of customers. You buy Nestle's Kit Kats and Toll House cookie dough occasionally. But your daily coffee isn't just a product for Nestlé — it's the habit that keeps on giving. You splurge $200 for a Nespresso machine, then spend $30/month to refill pods. That's why Nestlé is making investments to own the coffee habit: it's expanding production centers in Switzerland, and intro'ing new flavors and products (think: touchless machines). TBD if the momentum will continue as coffee shops and offices reopen.