Coffee Supply Chain

Our commitment: Continuously improve our green coffee supply chain

 

By 2020 – Nescafé will improve the quality, quantity and sustainability of its coffee supply chain by distributing 220 million coffee plantlets.

By 2020 – Source 100% of the coffee for Nespresso’s permanent range through its AAA Sustainable Quality™ Program on coffee sourcing and improve farmer social welfare.

Our Progress

Improving the quality, quantity, and sustainability of our coffee supply chain has been an ongoing initiative at Nestlé. Worldwide coffee supplies have been impacted by aging or diseased trees, declining yields, price volatility, and climate change, threatening the livelihoods of small farmers and sustainability in the coffee sector. Our response has been to actively engage with and support farmers through plantlet distribution, technical assistance, and sourcing via community-based cooperative programs such as Farmer Connect.

In 2016, we are proud that 100% of our NESCAFÉ® lines achieved 4C1 certification for the entirety of 2016. We continue our active and diligent work in coffee-producing countries to ensure farmer equity and a healthy supply chain while delivering quality coffee to our consumers in the United States.

The Nespresso® AAA Sustainable Quality™ Program, developed with the Rainforest Alliance, is a unique approach to securing the highest-quality green coffee while improving sustainable farming practices and enhancing farmer welfare. The sustainability components of the program are based on internationally recognized standards from the Sustainable Agriculture Network.

Working with partners, Nespresso provides farmers with support, training, financing, and technical assistance to improve sustainability and productivity while also improving or maintaining the highest levels of quality. AAA farms are also paid premiums of around 30% to 40% above the standard New York market price for coffee, and 10% to 15% above the price of coffees of similar quality. Currently, more than 80% of Nespresso coffee comes from more than 70,000 farmers who are part of the program.

In 2016, Nespresso launched the Nespresso Sustainability Innovation Fund to facilitate investment by Nespresso in sustainability initiatives. The Fund allows Nespresso to expand our potential impact by inviting collaboration with external partners in the form of investment, expertise, and experience. Such collaboration allows Nespresso to increase the scale of its work and ultimately become an incubation hub for projects that will drive positive impact. In 2016, Nespresso announced a partnership with the IFC, a member of the World Bank Group, with support from the BioCarbon Fund Initiative for Sustainable Forest Landscapes. The partnership will help coffee farmers in Ethiopia and Kenya get needed financing and improve agricultural practices to boost productivity and quality in a sustainable, climate-smart way.