Nestlé drives coffee growth with £28m UK investment and confectionery tie-ins

Posted 30 June, 2026
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Ian Pipes, Dalston factory manager.

Nestlé is strengthening its position in the UK coffee market with a £28 million investment in its Dalston manufacturing site in Cumbria, unlocking new production capacity to accelerate innovation across its Nescafé portfolio — including two new confectionery‑inspired frothy coffee launches.

The investment, which expands output and improves manufacturing efficiency at the Dalston factory, is designed to support Nestlé’s long‑term growth strategy in the UK.

Factory manager Ian Pipes said the upgrades demonstrate Nestlé’s commitment to domestic manufacturing, enabling the business to respond faster to consumer demand while improving recyclability across its product range.

This enhanced capacity has paved the way for the rollout of Nescafé KitKat White Flavour Latte and Nescafé Lion Flavour Mocha, two new additions that blend the flavours of iconic Nestlé confectionery brands with Nescafé’s established frothy coffee format. Both products are now launching nationwide.

Ingrid Hayes, marketing director for Nescafé UK & Ireland, said confectionery‑inspired coffees have become some of the brand’s most successful innovations, attracting “hundreds of thousands of new shoppers into the coffee category.” She added that the latest launches build on strong momentum, tapping into rising demand for indulgent, flavour‑led coffee experiences at home.

The combination of UK manufacturing investment and cross‑category brand collaboration marks the next phase of Nestlé’s strategy to grow the coffee category through innovation, accessibility and stronger shopper engagement.

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