Nestlé says Nescafé gains support North American coffee momentum

Nestlé reported first-quarter 2026 gains in coffee and improving performance in Food and Snacks, with North America contributing to growth even as foreign exchange weighed on reported sales.

The company said total group organic growth for the quarter was 3.5%, driven by real internal growth of 1.2% and pricing of 2.3%. Reported sales fell 5.7% to CHF 21.3 billion, which Nestlé attributed largely to foreign exchange movements. Nestlé CEO Philipp Navratil said results were “particularly” strong in coffee and in food and snacks.

In Zone Americas, Nestlé posted organic growth of 3.8%. Within that zone, North America organic growth was 1.5%, including 0.2% real internal growth and 1.3% pricing, the company said. Nestlé added that the U.S. contributed with pricing-led growth in coffee, while petcare volumes were pressured by the reversal of customer order timing that benefited the prior quarter.

Coffee was a key driver across the broader business, and Nestlé said coffee organic growth was 9.3% for the quarter, supported by positive real internal growth. In the Americas, Nestlé said Nescafé soluble coffee performed strongly, and Starbucks also delivered real internal growth that offset weaker results for Coffee mate.

Nestlé also pointed to better momentum in Food and Snacks in the Americas, calling it a clear improvement after two years of weaker growth. The company said the category benefited from confectionery and cited strength in Toll House baking products in the U.S., while noting frozen foods remained under pressure.

In beverages, Nestlé said growth at Nestlé Waters and Premium Beverages was driven by North America and demand for international premium brands. The company highlighted strong growth for Maison Perrier and Sanpellegrino, while noting that Perrier continued to face supply constraints.

For portioned coffee, Nespresso reported organic growth of 5.1% and said results were led by North America, supported by pricing carryover and limited-edition varieties. Nespresso also cited continued gains in out-of-home channels, led by hotels, restaurants and cafés.

As part of its portfolio actions, Nestlé said it agreed to sell Blue Bottle Coffee to Centurium Capital, with the transaction expected to close in the first half of 2026, subject to customary conditions.

Why this matters for refreshment services operators

• Coffee remains a primary growth engine for Nestlé, reinforcing why operators track portion coffee, soluble coffee and branded offerings closely.
• For Nestlé, Food and Snacks improvement signals potential stabilization in key everyday categories, even as frozen remains soft.
• Premium water and premium beverage demand continues to build in North America.