Nestle Japan Ltd. has been recycling unsold instant coffee to make new products for more than three decades, sources said Sunday.

The All-Japan Coffee Fair Trade Conference, an industry group made up of sellers of coffee products, is questioning the company, group sources said.

Nestle Japan is the country's largest instant coffee producer and belongs to the Swiss-based food giant Nestle S.A. In the late 1960s, it started what it calls "re-work" on unsold stockpiles and products collected from store shelves, according to the sources.

Instant coffee that had not been sold within three years of production was recycled. The coffee was mixed with hot water and coffee bean extract and then dried to make new coffee powder.