Home / Business / Nestlé stops production of Cameroonian coffee-based Nescafé, over insufficient profitability

Nestlé stops production of Cameroonian coffee-based Nescafé, over insufficient profitability

Business in Cameroon | Since January 2017, Nestlé Cameroon stopped production of its local coffee-based beverage Nescafé, whose commercialization was launched in January 2015.

According to internal sources at the company that revealed the news, the measure is in response to the lack of profitability for this product packaged in 2-gram bags. They say, the coffee purchased on the local market is shipped to Nestlé Côte d’Ivoire where it is first processed. The semi-finished product is then reshipped to Cameroon for a second processing before being packaged and marketed.

All along this long haul, the company has to pay for customs duties and though fees were reduced thanks to the “outward processing scheme” provided for by the Cameroonian Customs Code, the Nescafé “made in Cameroon” was not competitive on the local market ; a situation that ended the dream of many local coffee growers to benefit from a partnership with Nestlé Cameroon.

Back in 2015, when they were launching the marketing of this beverage, Nestlé Cameroon’s managers announced they were planning to terminate partnership with Singaporean Olam to start sourcing from local coffee growers, through cooperatives.

This collaboration with producers was part of a global movement to enable the Swiss food giant to be in direct contact with more than 340,000 coffee growers. The move is already adopted in Côte d’Ivoire and Ghana, but will emerge in Cameroon, to the great displeasure of local producers and the entire coffee sector, which is seeking a helping hand.

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11 comments

  1. Business in Cameroon:
    Is it so difficult to give an explanation of the circuitous processing path from Cameroon to Ivory Coast and back? Surely such Bafia dance will increase costs.
    And what exactly is this MOVE that is already possible in Ivory Coast and Ghana but must await Emergence (2035?) in Cameroon?
    What is a better way of speeding up things than embracing the consumption of our own product? Can alcohol ease off a bit and make room for coffee?

  2. I wonder how much lf the Ambazonia crisis is to blame for this?
    its greatlynimpacted CDC so why not Nescafe?
    The article doesn’t mention..

  3. The self denigrating thing is that Cameroonian s keep drinking that awful product call nescafé.

  4. A country that ha been on economic recesstion since the dictator took power. worst is coming for cameroon,s economy. Amba crises, embezzelments, boko haram etc.

  5. Even the raw materials from the farms are expensive too. An average bunch of plantains cost 3500cfa so who are mots cost 2600frs. Where do consumers get the money from? How many Cameroonian drink coffee? High cost. Renting an apartment is another he’ll. Beef consumption, fish,poultry ect are not left apart.
    Thank nestle for raising an eyebrow. The duties of workers in government sectors is not to sit inside offices and sign papers but to also go out on impromptu control and to correct these wrongs.too too many

  6. ZERO VIVRE ENSEMBLE

    The so-called “one and indivisible” LRC is a Country Where Nothing Works:

    1. Camair-Co is operating only with 1(ONE ) plane( the Chinese flying coffin)
    2. ZERO AFCON19
    3. Dictator Biya’s promise to neutralise the “secessionists” was just wishful thinking
    4. etc

    However, apologists of the evil junta continue to believe that the country will emerge by 2035.

    Believe me or not, it is easier for a camel to go through the eye of a needle than for LRC to emerge under the watch of Dictator Biya.

  7. But the gov`t, had continued to encourage the locals to not stop producing coffee,
    since it concerns France. Those who could listen or understand this devilish idea,
    started replacing it with cocoa etc. Yours trully, was one of those cleaver ones.
    No new wine, can fix old wine to taste new and convince even Bamendayboy etc.
    The over believing in the failed CPDM / Biya regime, has done more harm to the
    entire country and humanity than malaria. It is damn horrible.
    Any thing, that has a French touch in it, should be viewed with suspicion and second
    thought. See, how Biya is busy killing his own, only to please the French folks.
    Something, that they can not do to their own folks.

  8. “All collaborators and enablers of genocide in Ambazonia shall be made to pay. In doing this, we must increase the cost of occupation for the occupiers until the last one of them is kicked off our land….” Dr Cho Ayaba

  9. Augustine Enow Agbor

    The market for coffee is in Cameroon is underdeveloped like in most of sub saharan Africa. Who’s preventing the company from building a processing facility in Cameroon? They should look for export markets or introduce coffee-based products that consumers may want.

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