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Nestlé is investing CHF 563 million (approx. $696 million) into building a new Nescafé production facility in Thailand.

The facility will also house an advanced, on-site distribution centre, set to enable shorter delivery times, improved inventory management and greater agility.

Located in Thailand’s Samut Prakan province, the factory will manufacture a full range of products under the Nescafé brand, including soluble coffee, coffee mixes and ready-to-drink coffee beverages.

It will be equipped with advanced automation technology and AI-enabled systems to boost efficiency, sustainability and product quality. This includes Nestlé’s latest next-generation coffee extraction and aroma recovery technology, which preserves the aromas released from roasted coffee and helps to deliver a fresher drinking experience.

Automated systems and robotics will also be used to streamline packing, transport and inventory management at the site.

The investment highlights the company’s commitment to Thailand’s coffee market, worth roughly $1.2 billion. Remy Ejel, executive vice president and CEO of Nestlé’s Zone Asia, Oceania and Africa, said: “Coffee is Nestlé's largest business globally, and Thailand is one of our biggest coffee markets.”

“By investing in Nescafé, one of our most iconic global brands, we are strengthening our ability to meet growing consumer demand and ensuring local brand relevance to deliver consistent, volume-led growth.”

Expected to begin operations in the second half of 2028, the facility will employ more than 500 people. Nestlé will work with Thai farmers and suppliers through use of local ingredients and raw materials, supporting the local economy and surrounding communities.

The project has secured backing from Thailand’s Board of Investment due to its alignment with the country’s ambitions to promote a Bio-Circular Green economy.

Nestlé has been present in Thailand for more than 130 years and is a major buyer of locally grown robusta coffee. The new factory builds on more than 40 years of support for Thai coffee farmers through the supply of coffee plantlets and programmes that promote regenerative agriculture and climate resilience.