How a massive coffee surplus and a global crash created a household name
Nescafé was not born from a quest for the perfect cup, but from a desperate need to solve a financial crisis. When the 1929 Wall Street Crash left Brazil with mountains of unsold coffee beans, Nestlé stepped in to turn that surplus into a global, instant phenomenon.
The story of Nescafé began in 1932, when a French-Italian bank, Sudameris, approached Nestlé to find a way to utilize a massive stockpile of coffee beans. Max Morgenthaler led the development team, which utilized spray-drying technology to transform liquid coffee into a shelf-stable, soluble powder. The product officially launched in Switzerland on April 1, 1938, and quickly became a staple for American soldiers during the Second World War, when the entire output of the US plant was reserved for military use.
Over the decades, the brand evolved into an umbrella for various products, including freeze-dried options like Gold Blend and Blend 37. Its marketing history is equally complex, ranging from the iconic 'Gold Blend couple' television campaign in the UK to legal battles over unauthorized image usage and music licensing. In 2003, the band Muse successfully sued the company for using their song 'Feeling Good' in an advertisement without permission, donating the £500,000 settlement to Oxfam.
The brand has also navigated regional identity and diversification. In North America, Nescafé was supplanted for years by the higher-priced Taster's Choice, only to be reintroduced in 2003 as Nescafé Taster's Choice. Meanwhile, the company expanded into hardware with the 2006 launch of the Dolce Gusto system, which uses roasted and ground beans rather than instant coffee. Today, the brand maintains a presence in over 60 countries, spanning everything from music shows in Pakistan to theater restoration in Chile.
Source: Nescafé