Nestlé is ramping up its commitment to Brazil with plans to invest an additional 500 million reais (approximately $88.7 million) into its Nescafé operations by 2028. This new round of funding builds on a previous 1 billion-real investment announced last year, bringing the company’s total investment in Brazil to 1.5 billion reais.

The announcement was made during a presentation to journalists on Thursday, where the company underscored Brazil’s growing importance in its global strategy. Brazil, the second-largest consumer of coffee in the world, also holds historical significance for Nestlé; Nescafé was originally developed in the country to market instant coffee and has since grown into a diverse product range.

The fresh investment will go toward expanding Nestlé’s manufacturing capabilities, particularly at its Montes Claros facility in the state of Minas Gerais. In addition, the company is looking to widen the presence of its “Nestlé Professional” coffee machines across the country.

Valeria Pardal, Business Executive Officer for Coffee Beverages at Nestlé, noted strong momentum in the capsule segment, which Nescafé refers to as “portion coffee.”

“In the last five years, Nestlé’s ‘portion coffee’ category has grown around 20%, so we are estimating this level of growth going forward,” Pardal said.

Nestlé’s continued investment reflects its confidence in Brazil’s role as both a key market and production hub for its global coffee business.