World War I significantly boosted demand for Nestlé products, primarily through government contracts. To meet this surge, Nestlé acquired several existing factories across the United States, expanding its production capacity. By 1936, Nestlé had also organized Unilac, Inc., incorporated in Panama, to oversee its activities in Latin America. As the war in Europe intensified, Unilac opened an executive office in Stamford, Connecticut, from which Nestlé's top leadership managed the international business.
In 1939, Nestlé introduced Nescafe, its first non-milk product, to the U.S. market. The following year, it launched an aggressive sales campaign to promote the instant coffee. Nescafe quickly became popular, particularly among American servicemen who acquired a taste for it while stationed in Europe and Asia during World War II. By the 1960s, soluble coffee, like Nescafe, accounted for about one-third of home-prepared coffee in the United States.
Despite its early presence in the U.S. market, Nestlé did not formally establish Nestlé USA as a subsidiary until 1990. This move solidified its commitment to the U.S. market and allowed for more focused management of its American operations. Today, Nestlé USA plays a pivotal role in the company's global strategy, contributing significantly to its position as a leading player in the food and beverage industry. The company's history of innovation, strategic expansion, and adaptation to market demands has cemented its status as a household name worldwide.
Nestlé: From Merger to American Market Leader
