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Nescafé, which was founded in the 1930s, still continues to grow sales today–quite a feat given the recessionary conditions and pressure from private label store brands in this very mature category. That said, Nescafé generates most value from its high margins, not necessarily growth. The brand has approached the challenging market as an opportunity, increasing ad spend by six percent to consolidate the customer relationship when media was cheap. Additionally, Nestlé is dedicating resources to a new campaign for its fl agship brand addressing price, taste, and bean quality. Recently, it has even made aggressive moves to target a new competitor in instant coff ee, Starbucks VIA.

11 August 2010


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