Gerard Berssenbrügge, CEO Nestlé Nespresso

Honoree Rainforest Alliance Gala Dinner

New York, 16 May 2007

An Introduction to Nestlé Nespresso

Nestlé Nespresso is a globally managed business

Number 1 premium portioned coffee

CHF 1 billion sales in 2006 (Ø annual growth rate 30%)

B2B and B2C business with 3.1 Million Club Members

Represented in more than 50 countries around the world

Over 80 boutiques in major cities

50% of sales via www.nespresso.com

Founded on our unique trilogy:

Perfectly portioned Smart and easy Personalised service highest quality to use machines 24/7 for our Club Grand Cru coffees Members

The Unique Nespresso Trilogy

Our Vision

To be preferred and respected as the leading quality coffee company for portioned coffee and become the icon of perfect coffee worldwide

Four factors led to the creation of our AAA Program

1. The potential shortfall in the availability of highest quality coffee

Competition with other roasters for these coffeesThe need to build loyalty in farming communities

2. Building on and developing Nestlé’s corporate sustainability commitment

The Nestlé Shared Value approach to corporate responsibilityEnsuring the value created by Nespresso is shared across the value chain

3. Embedded within our vision and mission statements

Continuous improvement of our business in all aspects

4. It’s the right thing to do

What Have We Done?

Engaged multiple stakeholders

Formed a partnership with Rainforest Alliance to verify our program

Developed and tested the Tool for the Assessment of Sustainable Quality (TASQ™)

Involved 14 000 farmers in 9 regions in 5 countries

Currently 30% of all our coffee sourced through the AAA Program

Target 50% by 2010

A unique sustainable quality assessment tool tailored to our business model

Co-developed with the Sustainable AgricultureNetwork

Flexible for the varying needs of individual regions

Based on Rainforest Alliance sustainability indicators and Nespresso quality indicators

AAA creates economic value for farmers and their communities

Improved farmer income

TraceabilityIncreasing farmer percentage of export valuePrice premium

Improved crop quality and yield

Lower rejection rates

Loyalty and long term relationships

Investment in training and projects to develop region’s quality coffee cultivation

Specific skill transfers e.g our partnership with TechnoServe

Financing the costs of assessment and verification

Co-financing with multilaterals

The Benefits: For Nestlé Nespresso

Builds on and develops our quality commitment

Safeguards the long-term supply of highest quality coffee

Drives operating efficiencies

The first step to creating direct relationships with farmers leading to loyalty

Inspires and motivates our club members, customers and employees

The Benefits: For Our Club Members

Further substantiation of our premium and reason to believe

A proactive position as ethicality becomes a higher expectation

Direct contribution to the sustainable development of farming communities

Connects the consumer with the producer and reveals the human story

Nespresso Communication to Club Members

Nespresso AAA Summer Campus 2007

The Nespresso AAA Program Micro Website

Bid for the future!

Thank you…

…to Rainforest Alliance for accompanying us on our journey towards sustainable quality…