Nestlé is investing CHF563 million in a new Nescafé production and distribution facility in Thailand, expanding capacity in one of its most important coffee markets.
The site will be built in Samut Prakan province and is scheduled to begin operations in the second half of 2028. It will produce soluble coffee, coffee mixes and ready-to-drink coffee products for the Thai market and for export across Southeast Asia.
The investment increases Nestlé’s exposure to a coffee market it values at about CHF1 billion. Coffee is also the company’s largest global business, making the project a significant capital allocation decision within a core category.
The facility will include an on-site distribution centre designed to reduce delivery times, improve inventory control and increase supply chain flexibility. Producing closer to end markets should help Nestlé respond more quickly to changes in demand and reduce dependence on longer distribution routes.
Nestlé will use automation, robotics and artificial intelligence across production, packaging, transport and inventory management. The factory will also include coffee extraction and aroma recovery technology intended to improve product consistency and preserve flavour during processing.
These systems are expected to support higher efficiency and tighter quality control. They may also reduce waste and improve visibility across the production process. The main risk is execution, as the project will require several years of construction, technology integration and operational preparation before it begins contributing at full scale.
The facility is expected to produce up to 170,000 metric tonnes a year. It will also create more than 500 jobs, including technical and engineering roles.
Nestlé plans to source more than CHF100 million of ingredients and raw materials from local suppliers each year. This should strengthen its links with Thailand’s agricultural and manufacturing base while supporting a more localised supply chain.
Nestlé represented 2.0% of Global Opportunities Trust’s net assets at 30 June 2026. The Thailand project shows how the company is deploying capital to strengthen a major product category, increase regional capacity and improve operating efficiency.
Global Opportunities Trust plc (LON:GOT) invests globally in undervalued asset classes without reference to the composition of any stock market index.
