It remains unclear why the Swiss food and drink processing giant decided on the shift. However, an agency source in Tokyo has indicated that the company, which is locally headquartered in Kobe, is experiencing a difficult period in the Japan market.
The source described Nestlé as struggling against “huge competition in a market that is not very big”, pointing out that the firm’s emphasis on its Nescafé instant coffee products have worked against it. The source said Japan remained predominantly a tea-drinking society.