Nestle (Philippines) Harvard Case Solution & Analysis

In early 1996, Mr. Mascenon, vice president of instant drinks Nestle (Philippines), was to decide how to respond to significant changes in the environment Nestle. Until January 1996, imports of coffee in any form - green beans, roasted, or ground and processed - were banned. As of January 1996, however, over a coffee in the quota can be imported more than 30% of the fare. Nestle was the only foreign coffee producer in the Philippines, and was more than 60% market share, down from 52% seven years ago. During the same period, the total amount of coffee consumption in the Philippines doubled. Nestle launched its coffee from the Philippine-grown Robusta beans, as the Philippine Arabica beans were of poor quality. Outside the Philippines, however, a mixture of Arabica and Robusta beans are usually used. There were rumors that as Procter & Gamble (Folgers) and Kraft General Foods (Maxwell House) were planning to enter the Philippine market, initially through imports, but maybe in the future production. "Hide
by Donald J. Lecraw Source: Richard Ivey School of Business Foundation 9 pages. Publication Date: October 14, 1997. Prod. #: 97G012-PDF-ENG

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