Nescafe Rebrands for Gen Z: Cold Coffee, Customization, and a New Social Role

Orbe, Switzerland – For nearly a century, a modest factory nestled beneath the Swiss Alps has quietly brewed some of the world’s most iconic coffee innovations for Nescafe, the globally recognized caffeine powerhouse owned by Nestlé.

From its original instant coffee launch in 1938 to freeze-dried granules and capsule machines, Nescafe has consistently evolved with changing tastes. Now, the brand is turning its focus to a new generation: Gen Z.

 New Target: Gen Z and the Rise of Cold Coffee Culture

“We need to develop solutions specifically to bring young people into the Nescafe brand,” said Don Howat, Global Category Lead for Nescafe at Nestlé, in an interview with CNBC.

The key? Cold coffee.
According to company estimates, 32% of all coffee consumed out-of-home is now iced — and for many Gen Z consumers, this is their first real introduction to coffee.

Traditionally associated with hot coffee in the morning, Nescafe is repositioning itself as an all-day beverage brand.

“We’re trying to move into the afternoon space — consumed cold, appealing to younger audiences. That’s a super exciting growth opportunity for Nescafe,” Howat added.

 Product Innovation: Nescafe Espresso Concentrate – DIY Cold Coffee at Home

Nestlé’s latest innovation, Nescafe Espresso Concentrate, was launched in Australia in late 2024 and has since expanded to the U.S., U.K., Canada, Japan, China, and Singapore, with further markets in the pipeline.

Unlike typical ready-to-drink (RTD) cold brews, this liquid coffee concentrate allows for complete consumer customization. Whether it’s adding milk, water, lemonade, or other mixers, users are encouraged to “hack” their coffee to match personal preferences.

“Most young people have grown up with cold coffee. They expect variety — flavors, textures, additions,” said Howat.

To support the rollout, Nestlé also partnered with social media star Zach King to promote the product across digital channels, targeting younger audiences with strong engagement.

 Coffee as an Alcohol Alternative? A Lifestyle Shift Among Gen Z

Nescafe’s long-term vision stretches beyond taste — it taps into changing social habits, particularly the decline in alcohol consumption among younger generations.

“When Gen Z socializes in the evening, they want to drink something adult — but not necessarily alcoholic,” Howat noted.

This shift creates an opportunity for coffee to be reimagined as a sophisticated, non-alcoholic social drink, especially with decaf and indulgent cold coffee options that feel premium and grown-up.

Multiple studies suggest Gen Z is drinking significantly less alcohol than previous generations. Though some recent surveys tie the trend to economic pressures, Nestlé sees lasting behavioral changes that align with health and wellness trends.

 Nestlé’s Strategic Reset: Coffee at the Core

Coffee is now one of Nestlé’s six global priorities for 2025, alongside categories like pet care (Purina), food (KitKat), and premium coffee systems (Nespresso).

Under new CEO Laurent Freixe, who took over in September, Nestlé is focusing on “fewer, bigger, better innovations”. Freixe criticized his predecessor’s acquisition spree for “weakening the fabric” of the business, and has vowed to refocus on breakthrough categories.

“We want innovations with impact,” Freixe emphasized — pointing to coffee as one of the most promising areas for “clear-cut wins.”

The Nescafe Espresso Concentrate was developed through a dedicated R&D accelerator and tested in U.S. Kroger stores before global rollout — a new product development model that Nestlé hopes to replicate across categories.

 Bottom Line: Nescafe Repositions for the Future

From a morning staple to an all-day customizable drink, Nescafe is evolving with changing consumer lifestyles. With cold coffee, Gen Z-focused innovation, and social experiences in mind, the brand is opening new doors — not just in Western markets, but also in tea-dominated regions like India, China, and Japan.