The NEO system has reached 100 active consumers in Portugal, according to Miguel Abreu, Portion Coffee Marketing Manager at Nestlé. In an interview with... Grande ConsumoThe spokesperson explains how the launch of NEO Latte reinforces the company's commitment to milk-based drinks and the personalization of the at-home coffee experience, in an expansion strategy that combines new recipes, connectivity, and a more accessible entry price.
What is your assessment of the implementation of the NEO system in Portugal? What results can you share regarding machines sold, consumer adoption, and the evolution of capsule sales?
The NEO system represents the long-term future and strategic direction of NESCAFÉ Dolce Gusto. Since its launch in 2024, the system has been very positively received by consumers seeking a high-quality, more sustainable, and more technologically advanced coffee experience.
We don't publicly disclose specific machine sales figures or capsule growth, but we can share that this month we reached the historic milestone of 100.000 active NEO consumers. This recent launch of the new NEO Latte reflects precisely Nestlé's confidence in this ecosystem and its commitment to continue investing in its expansion.
What changes in the habits of Portuguese consumers support the launch of NEO Latte? What potential do they see in milk-based drinks and in recreating the coffee shop experience at home?
Portuguese consumers are changing. While the traditional espresso remains a cultural element in the country, we are experiencing a very interesting generational transition. These new consumers are increasingly seeking to replicate the experience and versatility of a coffee shop in their own homes, without sacrificing convenience. Generation Y and Z consume twice as many coffee-with-milk drinks compared to other generations. NEO Latte thus responds to this growing demand for milk-based specialties, as well as the trend of beverage personalization, allowing the ritual of coffee at home to be elevated to a new dimension. This translates into a new approach to preparing drinks at home, responding to modern consumption habits through a more personalized, connected, and sustainable experience.
"Generations Y and Z consume twice as many coffee-with-milk drinks compared to other generations. NEO Latte thus responds to this growing demand for milk-based specialties, as well as the trend towards beverage customization."
What is the main target audience for this new product? Are they primarily aiming to attract new customers, encourage migration from the traditional Dolce Gusto system, or get current NEO users to purchase the new machine?
NESCAFÉ Dolce Gusto has always been the most democratic and universally appealing coffee system, thanks to its simplicity and accessibility, combined with a wide range of multi-beverage options. This has allowed it to appeal to everyone from the most innovative to the most traditional, from the most experienced to the youngest, for almost 20 years. In turn, NESCAFÉ Dolce Gusto NEO has further elevated the experience, quality, and convenience we deliver to our demanding target audience. Those seeking a high-quality, versatile coffee, an uncomplicated and intuitive experience, all in a sustainable way, have found their solution in NEO.
The first NEO machine, the Caffè, remains the ideal choice for lovers of traditional espresso, Americano, and Slow Brew coffee, while the new NEO Latte machine was designed for those who prefer a multi-beverage system, adding milk-based and chocolate-based varieties to the traditional espresso offerings.
Nestlé positions NEO Latte as the natural choice – a true upgrade – for when consumers want to replace their current system or acquire a new one. It offers a "4-in-1" concept with Espressos, Americanos, Slow Brew, and milk/chocolate specialties, with superior quality foam thanks to the new exclusive AirFoam™ technology, all in one machine. This takes consumers on a sensory journey to a new dimension of coffee, and all this sustainably, through compostable capsules made from paper (used across the entire NEO system).
In a market with various solutions for preparing coffee and milk-based drinks at home, where does NEO Latte's main differentiation lie? What concrete benefits do AirFoam™ technology and customization through the app offer?
The main difference of NEO Latte is that it's a smart "4-in-1" system that combines cutting-edge technology with the sustainability of paper-based capsules. The great additional benefit is the exclusive AirFoam™ technology, which creates a smooth, dense, and creamy foam directly in the cup, replicating the texture of a real coffee shop. Furthermore, customization is total: the machine recognizes the capsule and adjusts the extraction parameters, but the consumer, through the NEO App (via Wi-Fi/Bluetooth), can adjust the temperature, volume, and intensity exactly to their liking.
How does the preparation of milk-based drinks and hot chocolate work in practice? What consumables are needed, and to what extent are the new recipes compatible with the first NEO machine?
Preparing drinks is simple and intelligent, thanks to the machine's automatic capsule recognition. With the touch of a button, the extraction pressure, time, and temperature are adjusted according to the capsule/drink in question. With the launch of the new NEO Latte machine, new recipes were also released: Cappuccino, Café au Lait, and Hot Chocolate, exclusively for use with this new machine.
“At a time of greater financial constraint for families, a recommended retail price of €89,90 for a smart “4-in-1” machine aims to offer an affordable, durable and versatile solution for the whole family, effectively lowering the barrier to entry for a premium experience.”
Does the recommended price of €89,90 aim to lower the barrier to entry into the system? What will be the cost per cup of the new recipes, and how does it compare to alternatives in the Dolce Gusto portfolio?
In a time of greater financial constraint for families, a recommended retail price of €89,90 for a smart "4-in-1" machine aims to offer an accessible, durable, and versatile solution for the whole family, effectively lowering the barrier to entry for a premium experience. Until now, to have an experience equivalent to NEO Latte, four devices were needed. We expect the average cost per cup to be around €0.32, which is quite competitive compared to the current Nescafé Dolce Gusto solution and even more so compared to other capsule solutions available in Portugal. But for the comparison to be fair, we would have to compare it to the price per coffee in a 4th generation coffee shop, where a cup of espresso is often above €1, and a drink requiring more preparation, such as a cappuccino, is often above €2.
How will the distribution of the machine and the new recipes be ensured in Portugal? What role will large retailers, appliance specialists, and online direct sales play in the system's expansion?
NEO Latte and its capsules are available through a multi-channel strategy to ensure maximum convenience. They can be purchased at the official NESCAFÉ® Dolce Gusto online store ( www.dolce-gusto.pt ) and at usual points of sale. Accessibility has been a differentiating factor for NESCAFÉ® Dolce Gusto for almost 20 years, and we will maintain it as a strategic priority in the future.
“Connectivity and personalization are central trends in the NEO ecosystem. The ability to adjust temperature, volume, and intensity via the app is one of the most valued factors by consumers looking for a drink tailored to their needs.”
What investment in communication and activation accompanies this launch? Are there plans for demonstrations, product trials, or other initiatives with retailers to explain the offering and encourage experimentation?
This is a launch of enormous importance for the brand, marked by an event under the concept "Intergalactic," symbolizing the entry into a new dimension of coffee at home, which was attended by press, influencers, and partners. We have a multi-channel communication strategy because we want the Portuguese to get to know NEO as soon as possible through our friendly aliens: Probably the best coffee in the Galaxy.
What level of engagement have you seen with the connected features of the NEO system? Do consumers regularly use the app to personalize their drinks, and what lessons have been incorporated into NEO Latte?
Connectivity and personalization are central trends in the NEO ecosystem. The ability to adjust temperature, volume, and intensity via the app is one of the most valued factors by consumers looking for a drink tailored to their needs. The NEO Latte is the natural evolution of this ecosystem, now incorporating the dimensions of milk, chocolate, and AirFoam™ technology. Proof of this is the high adoption rate of NEO consumers' connected machines. We are the European country with the highest connectivity rate!
What components and which of the new recipes are included in the advertised compostability? Is this for home or industrial composting, and what specific disposal method should Portuguese consumers use for each consumable item after use?
Compostability covers all coffee capsules in the NEO system, which are certified for home and industrial composting by TÜV Austria*.
For those who don't have the option of composting at home, the process is quite simple: just place the used capsules in the same spot where you put fruit peels and food scraps.
For those already composting at home, simply add the used NEO capsules to your usual composting process. This home composting process takes about six months under optimal management conditions, when done correctly, although the time may vary depending on factors such as humidity, temperature, aeration, the material added, and knowledge about composting.
But while NEO coffee capsules are compostable in both home and industrial composting, the new milk and chocolate sachets serve a different purpose. They protect ingredients sensitive to oxygen and moisture and withstand the pressure and temperature of preparation. Today, the solution that guarantees product safety and quality is multi-layered packaging. This complex packaging, due to its multi-layered nature, should be disposed of in the general waste container.
What data allows us to quantify the environmental benefits of the NEO system compared to the traditional Dolce Gusto system? Does the comparison consider the entire life cycle, including the machine, consumables, and waste treatment?
NESCAFÉ Dolce Gusto NEO, being a high-precision coffee extraction system, optimizes the coffee bean used to extract a consistently perfect cup of coffee. Because the main environmental impact (approximately 60%) in the coffee lifecycle (from cultivation to the waste resulting from the extraction of a cup of coffee) lies at its origin, capsule coffee systems are the most sustainable among roasted coffee extraction technologies (far surpassing automatic machines, for example). With NESCAFÉ Dolce Gusto NEO, we have taken a step forward in sustainability, as the resulting coffee capsules now have simplified treatment; being compostable, they can be easily disposed of along with other organic waste. Therefore, we confidently say that it is the most sustainable capsule system on the market. From the machine to the capsule, every aspect has been developed with the reduction of environmental impact in mind. The NEO system packaging uses less plastic, and the capsules themselves are made from compostable paper, significantly reducing the environmental footprint compared to the current system. It even incorporates recycled plastic and aluminum in its components. Furthermore, it was designed for easy repair, with a 15-year repairability guarantee.
What objectives have you set for NEO Latte in Portugal over the next 12 months? What contribution do you expect this launch to make to the growth of Nestlé's coffee business and to the evolution of the NEO portfolio?
The main objective is to consolidate Nestlé's leadership in the Portuguese coffee market, a position it has held for over 40 years, supported by a presence in all segments and strong, continuous investment in innovation. Knowing that the coffee business represents 39% of Nestlé's turnover in Portugal, innovations such as the NEO ecosystem and now specifically with NEO Latte are crucial for the company's growth. This launch is expected to boost the category, directly responding to new consumer demands for convenience, sustainability, and premium at-home experiences, establishing the NEO ecosystem as the future benchmark in the market.
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