A PASSIONATE ENDEAVOUR IN PURSUIT OF EXCELLENCE NESPRESSO – At a Glance A simple idea – continuously reinvented and perfected The Nespresso story began with a simple, but revolutionary idea: enable anyone to create a perfect cup of espresso coffee – with exquisite crema, tantalizing aroma and full-bodied taste – just like skilled baristas. Nestlé Nespresso S.A. took this idea and pioneered the concept of portioned premium coffee with the aim to offer the perfect cup of espresso coffee with maximum convenience to consumers around the globe. Today the company has a twin focus that endeavours to continually surpass consumer expectations at home and (B-2-C) and in leisure and work venues (B-2-B). Having perfected the concept over many years, Nespresso is now the reference for premium portioned coffee worldwide, and its success reflects its vision of excellence. At the heart of the concept is the unique Nespresso Trilogy, an unparalleled combination of three pillars of excellence: perfectly portioned Grand Cru coffees to suit every taste sourced from the world’s top
1% of the world’s green coffee production, specially roasted and offered as a full range of espresso and lungo blends and single-origin coffees in hermetically-sealed capsules to ensure perfect freshness;
a full range of smart and stylish, easy-to-use coffee machines with a patented extraction and brewing system that manages the interplay of all factors necessary to produce consistently highest-quality coffee; and
exclusive and personalised customer services, available 24/7 through the Nespresso Club.
Blended together, these pillars deliver Nespresso Ultimate Coffee Experiences, moments of genuine pleasure and pure indulgence designed to continually delight coffee connoisseurs wherever, whenever, and however. In the last 24 years, Nespresso has built a passionate global brand community. It consists of coffee lovers who identify with the iconic Nespresso brand and what it stands for: coffee expertise, highest quality, continuous innovation and distinctive design. A winning entrepreneurial team and formula of excellence Established in 1986 and headquartered in Switzerland, the Nestlé Nespresso S.A. company has become an autonomous, globally managed business within the Nestlé Group, the world's foremost nutrition, health and wellness company. This firm backing is allowing it to become an iconic international brand, and today, the company operates through in 50 countries. Key to the company’s success is its unique business model, which incorporates its unique Trilogy, its ability to guarantee highest quality at every stage of its value chain and its direct customer relations around the globe. Over 70 percent of its more than 4’500 employees worldwide are in direct contact with consumers, and over half of new consumers first experience the brand through existing Nespresso Club Members. If Nespresso is now the global leader in portioned premium coffee, it is due to the company’s ability to constantly reinvent itself in its quest for ultimate quality thanks to an unstoppable drive for innovation fuelled by pioneering, team spirit and a passion for perfection. This winning formula has already generated an average annual growth rate of 30% since 2000 and has led
Nespresso to become Nestlé’s fastest growing ‘billionaire’ brand. During the last two years alone, the Nestlé Nespresso turnover has more than doubled, reaching a milestone of CHF 2 billion in 2008 – two years ahead of initial projections and in 2009 the turnover was CHF 2.77 billion.
A PASSIONATE ENDEAVOUR IN PURSUIT OF EXCELLENCE NESPRESSO – An In-Depth Overview A Winning Proposition – the Nespresso Trilogy: 3 Pillars of Excellence Perfectly Portioned Highest Quality Grand Cru Coffees
Smart, Stylish Coffee Machines
Exclusive, Personalized Customer Services – The Nespresso Club The Winning Formula – Nespresso Core Competences Unsurpassed Coffee Quality & Proven Coffee Expertise
Unstoppable Drive for Innovation, Distinctive Design and In-House R&D Expertise
Global Brand Community & Dynamic, Direct Consumer Relations
Inspirational Iconic Global Brand
Exclusive Route to Market
Expertise in Sustainable Quality Development A Winning Entrepreneurial Enterprise – Firmly Committed to Sustainable Development Annexes: A. Nespresso History – Dynamic Phases of Continual Innovation & Evolution in the Pursuit of
Excellence B. The Full Range of Perfectly Portioned, Highest Quality Grand Cru Coffees C. A Long Record of and Commitment to Award-Winning Innovative Design D. Prestigious Business-to-Business Partners Worldwide E. An Exclusive Global Boutique Network – to Experience NESPRESSO with all Senses F. Nespresso Ecolaboration™ Concept
Nestlé Nespresso SA Corporate Results 2009 Media Release
A Winning Proposition – the NESPRESSO Trilogy: 3 Pillars of Excellence The Nestlé Nespresso S.A. story began with a simple, but revolutionary idea: enable anyone to create a perfect cup of espresso coffee – with exquisite crema, tantalizing aroma and full-bodied taste – just like skilled baristas. Through a passionate pursuit of excellence, driven by non-stop innovation and an unfailing commitment to highest quality, the company pioneered and perfected the concept of portioned premium coffee. Today Nespresso is well on its way to becoming an iconic global brand by consistently delivering optimum coffee enjoyment and maximum convenience to consumers around the globe, both in the comfort of their own homes and in leisure and work venues outside of the home.
Nespresso is now the reference for premium portioned coffee worldwide, and at the heart of its offer is the unique Nespresso Trilogy, an unparalleled combination of three pillars of excellence: exceptional Grand Cru coffees, smart and stylish coffee machines and personalized, exclusive services. Blended together, these deliver Nespresso Ultimate Coffee Experiences – moments of genuine pleasure and pure indulgence designed to continually delight coffee lovers wherever, whenever and however.
Trilogy Pillar 1: Perfectly Portioned Highest Quality Grand Cru Coffees Nespresso is committed to offering its consumers only the finest gourmet coffees. Only the top 1% of the world’s green coffee crop meets Nespresso specific taste and aroma profiles. Throughout the year, Nespresso green coffee experts and their green coffee supply partners ensure these highest quality standards by actively seeking out such coffees cultivated in farm communities in the world’s premium coffee-producing areas. These are often remote regions, where a delicate combination of altitude, climate and rich soil produce the distinctive flavours, aromas and complex character that make up Nespresso Grands Crus.
Once the beans are selected and transported to the state-of-the-art Nespresso Production Centres located in Avenches and Orbe, Switzerland, expert staff apply extreme care and skilful attention to precise blending, roasting, and grinding phases of the production process. Ultimately, during final packaging, the coffee is hermetically sealed in 100% recyclable aluminium Nespresso capsules to keep all air, light and moisture at bay. All of the aroma, freshness and flavour of the perfectly roasted and ground Grand Crus are absolutely preserved, awaiting release for consumers to enjoy.
The Nespresso Grand Cru coffee range offers distinct aromas and flavour notes to appeal to a wide range of preferences. Just as with fine wine, each Nespresso Grand Cru offers unique aromatic notes – from roasted to woody, cereal, buttery and fruity-winey and citrus – to meet individual preferences and tasting occasions. Just as with fine wine, each Nespresso Grand Cru offers distinct aromas and flavour notes – from roasted to woody, cereal, buttery, fruity-winey and citrus – to meet a wide range of individual preferences and tasting occasions. The full coffee range comprises:
A permanent collection of 16 premium (B2C) coffees for enjoyment at home: 7 Espresso blends (best enjoyed in a 40 ml cup), 3 Lungo blends (mild but intense coffees for enjoyment in a larger 110 ml cup), 3 Decaffeinated blends (2 Espresso, 1 Lungo) and 3 Pure Origins (three extraordinary espressos, each exclusively composed 100% of coffees sourced from a single country of origin).
A permanent collection of 7 premium (B2B) coffees for enjoyment at leisure and work: 7 premium Grands Crus specially packaged to work in Nespresso B2B coffee machines
Exceptional specialty coffees: two extraordinary and rare Nespresso Grands Crus are typically introduced for a limited period each year: the Limited Edition (spring) and Special Club (autumn) blends offered in both the B2C and B2B channels.
Exceptional specialty coffees: two extraordinary and rare Nespresso Grands Crus are typically introduced for a limited period each year: the Limited Edition (spring) and Special Club (autumn) blends offered in both the B2C and B2B channels.
For complete details, see separate annex 2: The Full Range of Perfectly Portioned, Highest Quality Nespresso Grand Cru Coffees Nespresso maintains its unparalleled level of coffee quality thanks to long-term relationships developed with farming communities where the world’s finest coffee is produced. In 2003, Nespresso established its AAA Sustainable Quality™ Program in collaboration with Rainforest Alliance, through which only the highest-quality beans are sourced and where farmers are paid a premium. In 2009, 51% of the total green coffee beans Nespresso purchased came from its AAA Sustainable Quality™ Program, and Nespresso has committed to increase this to 80% by 2013.
Trilogy Pillar 2: Smart, Stylish Coffee Machines Following expert selection, blending, roasting and grinding, the true personality and soul of an exceptional Grand Cru coffee can only be revealed thanks to the precise extraction offered by technically advanced machines that produce consistently perfect coffee.
Brilliant in their unparalleled ease-of-use and simplicity, their advanced technology and their distinctive design, Nespresso system machines have fundamentally transformed the preparation and enjoyment of espresso-based drinks. Complete with a patented extraction and brewing system, with its 19-bar pressure pump and sophisticated capsule, Nespresso system machines manage the interplay of all of the factors necessary to produce perfect coffee – with all the exquisite crema, tantalizing aroma and full-bodied taste that set Nespresso Grands Crus apart - on every occasion, time after time.
In addition to completely redefining what a coffee machine can be and do, the Nespresso system is continually reinvented for the surprise and delight of consumers. Through this continuous innovation and evolution, Nespresso machines are perfected still further, both in terms of latest technology and cutting-edge design, to meet the changing needs and expectations of demanding coffee and design connoisseurs around the world.
This constant evolution has created many firsts in the exceptional Nespresso history of developing state-of-the-art coffee machines. In the consumer (B2C) market, for example, the Concept machine was the first model to incorporate revolutionary “open jaw” technology to handle the unique Nespresso capsule. From there, the Essenza machine delighted consumers with its compact form and brewing unit and its vibrant colours. Le Cube, then set new standards with its minimalist clean lines and square shape. Lattissima in turn broadened the Nespresso appeal with its one-touch technology offering a wide choice of coffee specialty beverages created with fresh milk.
The latest Nespresso machine innovation, CitiZ, began rolling out in 2009 as the company’s first complete range of coffee machines for home use. Sporting daringly slim, urban and modular design, the range comprises three new coffee machines, all at attractive price points: Nespresso CitiZ – a single-head automatic espresso machine Nespresso CitiZ&Milk – a single-head automatic espresso machine combined with a
built-in fresh milk frother Nespresso CitiZ&Co. – the first-ever double-headed machine designed to enable
consumers to prepare two coffees simultaneously. See also separate annex C: A Long Record of and Commitment to Award-Winning Innovative Design
At the same time, the range of high performance Nespresso Gemini coffee machines enables out-of-home (B2B) establishments such as offices, gourmet restaurants, premium hotels, luxury outlets and as well as upscale airline services to specially cater their premium coffee offer to their own customers. For instance, the revolutionary Gemini introduced in 2006 includes a double-head brewing system for preparing two coffees at once, as well as a single-head brewing system targeting small-to-medium sized businesses. The range also includes an optional payment system designed especially for medium-to-large companies. For additional details, see separate annex D: Prestigious Business-to-Business Partners Worldwide Trilogy Pillar 3: Exclusive, Personalized Customer Services – The Nespresso Club Completing the unique Trilogy that sets Nespresso apart is the unparalleled dynamic customer experience that Nespresso offers. Exclusive, personalized services are tailored to the specific needs and preferences of its consumers to ensure that they may create and enjoy. Nespresso created its 24-hour information and ordering service more than 20 years ago. Today, Nespresso also offers tailored shopping experiences in exclusive boutiques and through its Internet site as well as direct access to coffee specialists via the Nespresso Club’s Customer Relationship Centres. Nespresso Ultimate Coffee Experiences wherever, whenever and however they desire. Nespresso Club – a community of coffee connoisseurs Nespresso enjoys exceptional direct contact with its consumers through the Nespresso Club. The company’s personalised customer service and information network perfectly reflects its innovative spirit and focus on highest quality. These qualities link the global community of coffee connoisseurs that make up the Nespresso Club. This unique and dynamic Club enables the company to establish privileged and direct relationships with its consumers through three interactive channels: its online e-commerce platform (www.nespresso.com), its global boutique network of more than 190 boutiques and its international network of Customer Care Centres. Through these channels, Club Members can access a wide range of information, advice and tailored services around the whole Nespresso offering, as well as a variety of other benefits and special offers. All queries are answered within one working day, and purchased products are automatically shipped to the Club Member’s preferred home or office address within 48 hours. Les Collections – exclusivities reserved for Nespresso coffee aficionados Coffee Accessories As an extension of its commitment to offer exclusive services for Nespresso Club members worldwide, Nespresso creates a wide range of luxurious coffee accessories. These enable Nespresso coffee aficionados to personalise their coffee moments in their own unique ways. Ranging from coffee preparation to coffee tasting accessories, these special lifestyle products and food items provide the perfect pairing for Nespresso Grand Crus. From elegant and refined white porcelain tasting sets to sumptuous sweets and biscuits created uniquely for Nespresso by top chefs to and to surprise and tease the palate, all are designed to delight the senses and thus contribute to creating Nespresso ultimate coffee experiences. Some tasting accessory collections are fashioned in tandem with new espresso machine introductions to highlight and complement the spirit and design of these machines. For example, the versatile CitiZ collection radiates the distinct urban vibe of the CitiZ machine range, with hand-blown coffee glasses, translucent bone china bowls and sleek trays.
Les Chocolats – a treasure-trove of new sensory experiences To extend the coffee tasting experience to new heights, Nespresso collaborated with famed Belgian chocolatier, Pierre Marcolini, and with Nestle chocolate R&D and cocoa experts to create a unique collection reflecting Nespresso chocolate excellence. The result: Les Chocolats, now available in certain countries. This collection includes 10 artisanal recipes of fresh dark, milk and white chocolates in flavour combinations that pair perfectly with Nespresso Grand Cru coffees. From filled chocolates such as Vinaigre de Framboise to pure origin chocolates from exotic and aromatic lands such as Madagascar, Nespresso Les Chocolates are designed to indulge consumers’ taste buds with exceptionally novel sensory experiences.
The Winning Formula – Nespresso Core Competences Over the past three decades, Nespresso has established itself as a leading pioneer in the global portioned premium coffee market based on its deeply rooted culture of innovation and its firm commitment to excellence in all aspects of its business. Its success is demonstrated by its global market leadership (about 20%) in sales of espresso coffee machines and by its appeal to coffee connoisseurs around the world – more than 7 million of whom are passionate Nespresso Club members. Every minute of every day, consumers around the world enjoy 10’000 cups of Nespresso Grands Crus – and this number continues to rise thanks to growing consumer enthusiasm for the dynamic Nespresso brand and its ability to continually reinvent itself: . A number of key factors currently drive the Nespresso success story and will continue to do so in the foreseeable future. These reflect well-honed competences of the brand and include: Unsurpassed product quality and proven coffee expertise Unstoppable drive for innovation and distinctive design together with in-house
Nespresso R&D expertise Inspirational, iconic global reputation of the brand Global brand community thanks to direct customer relationships Exclusive routes-to-market Expertise in Sustainable Quality development Unsurpassed product quality and proven coffee expertise Nestlé Nespresso employees and partners reflect a deep passion to collectively deliver ultimate coffee experiences that are grounded foremost in the perfect cup of coffee with exquisite crema, tantalizing aroma and full-bodied taste. An exceptional team of Nespresso green coffee experts, agronomists, and supply partners regularly criss-cross the globe in search of highest quality beans from speciality farms in the finest countries of origin. To maintain its unparalleled quality, Nespresso has developed long-term relationships with farming communities where the world’s finest coffee is produced. Today, 51% of its coffee is sourced from the Nespresso AAA Sustainable QualityTM Program. They in turn work with a variety of other Nespresso coffee specialists – coffee sensory, aroma and flavour experts – working in conjunction with state-of-the-art coffee production facilities in Orbe and Avenches, Switzerland. These are the premier coffee “sommeliers” who devote themselves to entire sensory experiences around coffee. Thanks to their efforts, a full range of Nespresso Grands Crus is offered to continually surpass the expectations of the most demanding of coffee connoisseurs.
All across the Nespresso value chain, quality reigns supreme and it is the foremost preoccupation of Nespresso experts in a variety of fields who ensure utmost quality in the premium raw materials selected, in the state-of-the-art production and distribution processes applied and in the vanguard coffee tasting and retail concepts continually developed to surprise and delight coffee aficionados around the globe. Even marketing and retail personnel stay one step ahead of latest coffee trends by continually updating their coffee knowledge through the specially developed Nespresso Science of Coffee Program, a comprehensive coffee training program developed and run internally to ensure the high level of coffee expertise of Nespresso staff. Nespresso Coffee Sommelier™ Program with the Nespresso Coffee Codex at its heart Nespresso, as the pioneer who has revolutionised the coffee experience for millions of consumers, recognises the changing role of the professionals in food and beverage services. Specifically, today’s sommeliers share in their clients’ passion and expertise for highest quality coffee. Consequently, Nespresso has developed a unique educational program exclusively designed for world renowned chefs and professional sommeliers: the Nespresso Coffee SommelierTM Program, based on the Nespresso Coffee Codex. Since the Nespresso Coffee SommelierTM Program was launched at the beginning of 2009, more than 50 sommeliers from renowned Michelin star restaurants in 15 countries have been introduced to the world of Grand Cru coffees. Today’s consumers are ever more sophisticated in their knowledge and experience with fine dining. With the growing sophistication and attention of this clientele, professionals in the world’s leading restaurants are facing ever more detailed questions about the foods and drinks they serve. The Nespresso Coffee Codex is a unique methodology developed for professionals by Nespresso coffee experts and some of the world’s leading wine experts. The aim is to help professionals in leading restaurants in the delicate task of tasting and pairing premium coffee with a variety of fine foods and beverages. This program enables sommeliers to create new gastronomic experiences for today’s consumers. Premium coffee, like fine wine, enriches a meal with sensations that leave a lasting impression well beyond exiting the restaurant door. In the world’s finest restaurants and cafes, professional sommeliers play a key role in educating their guests about fine coffee. They also play an important part in achieving harmonies of perceptions, as well as matching flavours and aromas to turn a fleeting moment into an unforgettable dining experience for the guests. For full details, see annex B: The Full Range of Perfectly Portioned, Highest Quality Grand Cru Coffees An unstoppable drive for innovation, distinctive design and R&D expertise Continuous innovation and our passion for perfection have been key drivers of highest quality and growth at Nespresso from the very beginning. Innovation takes many forms, though often we focus on the technical aspects. While the evolution of our system has been one obvious example of innovation at Nespresso, there are many other examples of innovation and highest quality. Key stages of Nespresso growth are punctuated with important innovations across our Trilogy of highest quality coffee, smart and stylish machines, as well as unmatched personal services.
The Nespresso in-house Research and Development Team combines attention to detail and cutting edge technology to drive the on-going innovation of the Nespresso System – the specific interaction of the original Nespresso capsule and machine. Genuine Nespresso capsules deliver the coffee quality our Club Members enjoy and expect. Working in close collaboration with an external design partner and a select number of machine partners, the Nespresso R&D Team has pioneered many award-winning innovations and cutting-edge designs. These breakthroughs have been granted more than 1’700 patents. For further details, see annex C: A Long Record of and Commitment to Award-Winning Innovative Design A global brand community with privileged direct customer relationships Nespresso Club Members and customers appreciate the brand not only because of the exceptional coffee it produces, but also because they value its innovative spirit and its focus on highest quality and style. These qualities also link Nespresso Club Members who are forming a global community of coffee connoisseurs who stand as the brand’s strongest ambassadors. In fact, much of the success Nespresso has enjoyed in recent years can be attributed to the privileged relationship the brand has developed with its consumers and the reciprocal enthusiasm consumers have consistently shown for the brand. Currently, more than 50% of all new Nespresso Club Members first experience the brand through existing Members. Since 2000, the number of Nespresso Club Members worldwide has jumped from 600,000 to over seven million. An inspirational, iconic global brand Behind the prestigious marquee of Nespresso lies a personality like no other. It’s selective, yet inviting; accomplished, yet still inspiring; simple and refined. It offers timeless quality and perfection with a touch of luxury – while constantly striving to shape the future. Not content to follow trends created by others, Nespresso is continually infusing itself with original ideas, flavours and innovations from around the world to define its own unique lifestyle. Its fascinating journey towards becoming an iconic brand has made it a well recognized, loved and respected reference for highest quality around the world. For information on the brand’s evolution, see annex A: NESPRESSO History: Dynamic Phases of Continual Innovation and Evolution in the Pursuit of Excellence Exclusive route-to-market The unique Nespresso business model allows the brand to maintain direct relationships with its customers. Consumers worldwide can select to interact with the brand through a choice of channels. The Nespresso e-commerce platform (www.nespresso.com) allows consumers to tap
into the world of Nespresso. It provides a 24-hour ordering system for coffees, machines and accessories in seven different languages. Consumers can also access information on coffee countries of origin, coffee varieties, recipes and exclusive opportunities for Club Members to participate in special events. This platform is the leading channel for the brand, accounting for around 50% of company sales.
A global retail boutique network allows consumers to experience the brand with all
senses. Nespresso Boutiques provide a window into the heart of the brand and also serve as a key sales outlet, generating approximately around 30% of the company’s sales. Many boutiques include an area where coffee enthusiasts can savour and learn about premium coffee quality. Nespresso Boutiques incorporate a gallery of coffee
machines so that consumers can choose the model best suited to their lifestyles. Each location showcases collections of accessories and coffee preparation ideas to enable consumers to re-create their own ultimate coffee experiences at home.
Customer Relationship Centres provide consumers another means to easily connect
with Nespresso. Their needs can be met on the phone by a friendly, knowledgeable coffee specialist who provides advice on coffees and machines and instantaneous ordering of Nespresso products. Customer Relationship Centres are important in maintaining customer loyalty and are responsible for around 20% of Nespresso sales.
Expertise and Commitment to Sustainable Development Nespresso is committed to ensuring sustainability throughout its operations. Nestlé’s unique sustainability framework “Creating Shared Value” provided the platform for the Nespresso sustainability programme. In 2003 Nespresso launched its AAA Sustainable Quality™ Coffee Program, a groundbreaking partnership with the leading environmental NGO Rainforest Alliance. Through the AAA Program, Nespresso is committed to ensuring highest quality and sustainability in its coffee supply chain, whilst helping to improve the standard of living for farmers and their families. In 2009, Nespresso took its commitment to sustainability to the next level, by announcing Ecolaboration™. This consolidates and extends all Nespresso sustainability efforts in coffee, capsules, machines and its overall operations into one concerted program which will provide a framework for partnership and innovation to drive ongoing, sustainable innovation. At Nespresso, Ecolaboration™ will deliver: a platform for partnership with business partners, stakeholders and innovators who
contribute to the continuous improvement of the sustainability of the Nespresso value chain;
a networking framework to bring together key stakeholders, thinkers, advisors, technical experts, NGOs, business partners and others to collaborate around new ideas and innovation, which will serve to improve the sustainability performance of Nespresso;
further specific Ecolaboration™ commitments and framework agreements between Nespresso and its key partners.
In launching Ecolaboration™, a platform for sustainable innovation, Nespresso is committing itself to three major targets that will significantly enhance its sustainability performance by 2013. These commitments are to: source 80% of its coffee through its unique AAA Sustainable Quality™ Program and
Rainforest Alliance Certified™ farms by 2013 put systems in place to triple its capacity to recycle used capsules to 75% by 2013 reduce the overall Carbon Footprint required to produce every cup of Nespresso by 20%
by 2013 “For some time, Nespresso has been a highly successful company and strongly active in sustainability. Today, we are announcing Ecolaboration™ and its ambitious targets, which will be our path to truly sustainable success in the future,” said Richard Girardot, CEO of Nestlé Nespresso SA.
“By introducing sustainability based innovation in sourcing our coffee, build on our track record of encouraging and facilitating our Club Members to recycle aluminium capsules, reducing the carbon foot print of our machines and our overall operations, Nespresso will continue to meet the high expectations of our Club Members and NGO partners into the future,” he said. In addition to providing a framework for Ecolaboration™ agreements, the program will foster best practice and creativity through unique collaborations under two new initiatives: The AluCycle™ initiative has the objective of promoting enhanced sustainability
performance of aluminium. In June 2009, Nespresso partnered with IUCN – the International Union for Conservation of Nature – to convene an industry roundtable on improving the sustainability performance of the aluminium used for Nespresso capsules.
The VerTech™ Network brings together Nespresso machine suppliers, engineers and sustainable technology experts to design the Nespresso machines of the future.
From mid 2009 eco timers and stand-by switches will be incorporated into all Nespresso machines to reduce energy use and lower carbon footprints. As a framework for collaboration and innovation, Ecolaboration ™ will also provide the means to work more closely with Nespresso’s key partners, international organizations and NGOs such as the International Finance Corporation, and Technoserve, as well as in-country programs like Costa Rica’s Peace with Nature. For more information, see Media Briefs 1 to 7.
A Winning Entrepreneurial Enterprise With the Strongest Commitment to Sustainable Success in the Future
Established in 1986 and headquartered in Switzerland, Nestlé Nespresso SA is an autonomous, globally managed business within the Nestlé Group, the world's leading nutrition, health and wellness company. This firm backing has enabled Nespresso to become an iconic international brand, and today, the company operates in more than 50 countries worldwide. Key to the company’s success is its unique business model, which incorporates its unique Trilogy, its ability to manage and improve quality at every stage of its value chain, and its direct customer relations with all of its more than seven million Club Members around the globe. Over 70 percent of its more than 4’500 employees worldwide are in direct contact with consumers. More than half of new Club Members first experience the brand through existing Nespresso Club Members. If Nespresso is now the global leader in perfectly portioned premium coffee, it is due to the company’s ability to constantly reinvent itself in its quest for ultimate quality thanks to an unstoppable drive for innovation fuelled by pioneering, team spirit and a passion for perfection. This winning formula has already generated an average annual growth rate of 30% since 2000 and has led Nespresso to become Nestlé’s fastest growing ‘billionaire’ brand. During the last two years alone, Nestlé Nespresso’s turnover has more than doubled, reaching a milestone of CHF 2 billion in 2008 – two years ahead of initial projections. For full details on the company’s evolution and recent dynamic growth, see annex A: NESPRESSO History: Dynamic Phases of Continual Innovation and Evolution in the Pursuit of Excellence
2010: Winning Formula Continues In 2010, Nespresso is on track to deliver double-digit growth and pass the CHF 3 billion sales milestone. To drive that growth, Nespresso will focus on its core competences: its unsurpassed coffee quality and deep coffee expertise, its constant drive for innovation and distinctive design using its in-house R&D expertise, as well as its global brand community built on direct consumer relationships and exclusive customer services. To meet the expected on-going consumer demand, Nespresso in 2010 will continue to investment in growth. Nespresso will in the course of the year begin work to expand its Production and Distribution Centre in Avenches (Switzerland), which came on line in 2009. This next phase is set to complete in 2012. This state-of-the-art, sustainable facility will nearly double its production capacity in the next three years. This expansion will bring the total Nespresso investment in Avenches to about CHF 500 million on completion. Nespresso will continue to make substantial strategic investment in our highest quality Swiss production capability to underwrite its planned future growth. The company’s core competencies enables it continue building demand for Nespresso globally. Its success enables the company to invest to meet that demand. The company will continue to aim at exceeding the expectations of its consumers and enhance their enthusiasm by offering them the highest-quality coffee combined with maximum convenience. As one example, Nespresso will combine its in-house research and development expertise with its distinctive design capabilities to offer consumers the most compact Nespresso machine yet. It will show how the Nespresso System – the unique combination of the original Nespresso aluminium capsule and the extraction and brewing unit – will keep pace with developments in state-of-the-art technology, delivering the ultimate coffee experience to consumers wherever they are. In 2010, Nespresso will expand its global retail network, adding more than 30 locations with flagship boutiques in cities such as Brussels, Munich, Miami, New York (Soho). The Nespresso will also be expanding to new geographies such as Shanghai (China), as well as Cape Town and Johannesburg (South Africa) – the first Nespresso locations in Sub-Saharan Africa. Complementing the continuing boutique expansion, during 2010 Nespresso will take its consumers to the next level of brand experience designed to deliver greater satisfaction, personalisation and delight across every Club Member interaction. In 2010, Nespresso will roll out a new customer service model, starting by renewing the sensory and brand experience in our boutiques. The company will then extend its boutique team’s passion to serve and share to its Customer Relationship Centres and match it with a dynamic new e-commerce platform. This will renovate all three Nespresso distribution channels and consumer contact points.
to Experience NESPRESSO with all Senses Nespresso Boutiques around the world are destinations where people who love the very best quality coffee can fully experience this exceptional brand. These stylish sanctuaries bring together communities of people with the same tastes, interests and passions—such as fine coffee and food, lifestyle and design trends and a shared belief in sustainability Renowned French architect Francis Krempp worked closely with Nespresso to provide the creative blueprint for many of its stylish boutiques around the world. The tangible, emotive space and refined elegance Krempp created inside the boutiques allows coffee connoisseurs to explore new sensory delights, like tasting luxurious Nespresso chocolates or learning more about the countries of origin where Nespresso sources exquisite green coffee for its Grands Crus. Typifying Nespresso growth, at the end of 2009, 191 boutiques were located around the world in contrast to a sole retail location in 2000. Along with boutiques to be unveiled in Europe this year, Nespresso is also expanding into Southeast Asia, North America and Latin America with more than 30 new locations worldwide by the end of 2010. This concerted expansion is enabling an ever-growing global community of coffee lovers to discover and share in Nespresso ultimate coffee experiences around the world. At the end of 2009, Nespresso Boutiques were present in the following countries:
Argentina Australia Austria Belgium Brazil Canada China Cyprus Czech Republic Denmark France Germany Greece Hungary Israel Italy Japan Kuwait
South Korea Luxembourg La Réunion Mexico Morocco Netherlands Poland Portugal Russia Santo Domingo Singapore Spain Sweden Switzerland Turkey UAE UK USA
For high-end restaurants, hotels, catering businesses and airlines that want to spoil their discerning customers, or for offices that wish to provide their employees and business partners with perfect coffee, Nespresso offers an exclusive range of Grand Cru coffees, machines and services. Hotels and airlines around the globe benefit from premium coffee solutions that Nespresso provides to help them differentiate their customer experience. Hotel partners include:
Club Med Hyatt Kempinski Hotels & Resorts SAS Radisson Shangri-La Hotels and Resorts Swissôtel Hotels/ Resort The Ritz-Carlton Armani Fairmont & Raffles Sofitel
Airlines partners include:
British Airways Cathay Pacific Etihad – UAE Airways Lufthansa Qantas Qatar Airways Royal Jordanian Swiss Emirates
A Long Record of and Commitment to Award-Winning Innovative Design
Nespresso machines reflect timeless designs. The initial Nespresso machine design with its sleek, angular lines resembled a mini version of professional espresso machines found in coffee bars, while the second range offered a more organic, avant-garde approach. Subsequent compact ranges of Nespresso machines that allow each machine to fit into any environment have offered continually fresh and often revolutionary design perspectives. For more than ten years, Nespresso machines have been designed by our in-house Research & Development team working in close collaboration with industrial designer Antoine Cahen and his company, Les Ateliers du Nord (ADN), based in Lausanne, Switzerland. ADN has been directly involved in the design of the entire Nespresso machine range, except for the Alessi Nespresso machine, created by German designer Richard Sapper. Through this expertise, Nespresso continues to spearhead machine innovations equipped with increasingly advanced features and functions, offering ever more convenience and ease of use for consumers. Brillant in their simplicity, Nespresso pioneered innovations and cutting-edge designs have continually reinvented the coffee machine and quite appropriately, have been recognized with successive design awards: Key Distinctions & Expositions 1995: “Design Preis Schweiz” distinction or the Nespresso C125 and participation in the
Exposition des Beaux-Arts in Solure. 1996: “Red Dot: Design Innovations” awards for the C125 and C250 Nespresso systems
at the Essen trade show
1997: “Red Dot: Design Innovations” awards for the Nespresso Professional systems at
the Essen trade show 1998: The “iF” (International Product Design Award) for the Nespresso system C220 at
the Hanover trade show 1998: “Award for High Design Quality” for the Nespresso system C280 at the Essen trade
2002: A “Red Dot: Best of the Best” prize for highest quality in international product design was awarded to the Nespresso C190 (Concept Line) by the renowned Design Zentrum Nordrhein-Westfalen in Essen, Germany
2002: The Nespresso C190 (Concept Line) received a coveted “Good Design” Award by
the Chicago Athenaeum Museum of Architecture and Design in the U.S.A. 2003: “Design Preis Schweiz” distinction or the Nespresso Concept machine. 2003: The Nespresso Concept machine becomes part of the permanent collection of the
Chicago Athenaeum Museum of Architecture and Design in the U.S.A. and is part of the exposition at the Totem Gallery in New-York.
2004: The Nespresso M200 Automatic (Concept Line) won the Small Electrical Appliance
of the Year Award at the UK’s 2004 Industry Awards in London. 2004: The Nespresso D90 (Compact Line) received a coveted “Good Design” Award by
the Chicago Athenaeum Museum of Architecture and Design in the U.S.A. 2004: The GfM Marketing Prize in Switzerland is awarded to Nestlé Nespresso for their
outstanding results achieved through innovating marketing strategies and effective marketing measures.
2005: A “Red Dot: Best of the Best” prize for highest quality in international product
design was awarded to the Nespresso C90 (Compact Line) by the renowned Design Zentrum Nordrhein-Westfalen in Essen, Germany.
2005: Exposition “Daily Signs of Design, Graphics and Mode” at the Centre Culturel
Suisse in Paris with the Nespresso Essenza machine, 2007: Design Zentrum Nordrhein-Westfalen in Essen, Germany awards another “Red
Dot: Best of the Best” prize for the Siemens Nespresso Machine by Porsche Design. 2007: The “iF” (International Product Design Award) for the Nespresso Machine “Le
Cube” at the Hanover trade show 2009: “Red Dot: Best of the Best” prizes for highest quality in international product design
are awarded to the Nespresso CitiZ and Citiz & Milk Machines by the renowned Design Zentrum Nordrhein-Westfalen in Essen, Germany
An On-Going Commitment to Inspiring Design Genius As its distinctive machines demonstrate, Nespresso is passionate about design. Driven by its commitment to quality and innovation, the company has made one of its mandates to celebrate the creative ideas of young designers. As part of its commitment to inspiring design, the company launched an international design contest for students, during which it
partners with an esteemed jury of leading international designers to judge the entrants’ work. First held in 2005 under the theme COFFEEUNPLUGGED, the contest invited students to envision how coffee rituals could evolve in the future. Three-dimensional projects from 24 student finalists were first displayed at the prestigious Milan Design Fair and subsequently toured other top design events in key European cities such as Paris, Zurich and Amsterdam. Entrants in the 2008 Nespresso Design Contest were then asked to explore the second theme, COFFEELUXURY: how luxury might be enhanced in all aspects of the coffee experience. Winners were again announced at the Milan Design Fair and finalist projects again toured major European design events as part of a Nespresso sponsored tour.
Nestlé Nespresso SA
Annex B to 2010 Corporate Backgrounder
A Full Range of Perfectly Portioned, Highest Quality Grand Cru Coffees
Nespresso offers consumers the finest gourmet coffees sourced from amongst the top 1% of the world’s highest quality green coffee crop. Expert roasting, blending and grinding turn these premium beans into Nespresso Grands Crus, a selection of exceptional blends and pure, single origin coffees to suit a wide range of tastes. All Nespresso coffees are packaged in hermetically-sealed, perfectly portioned capsules to ensure absolute freshness. B2C Coffee Range
Espresso Grand Cru Blends
Ristretto — a typical Italian espresso that is short, strong and full-bodied, with just a touch of acidity and full lingering taste.
Arpeggio — a Mediterranean blend with intense body offering a long exquisite after-taste and thick, smooth crema.
Roma — a short espresso, not overly strong, with sweet, woody notes. Decaffeinato Intenso — intense and rich, with high notes of acidity, and all
the strength of a true espresso – with no caffeine. Livanto — well balanced and beautifully rounded, with a dense, velvety
aroma. Capriccio — a full-bodied, creamy and mild espresso, with a crema so
delicate that it reflects the light. Volluto — lightly roasted, yet full bodied, with a hint of cereal and a touch of
acidity. Cosi — a classic espresso with a smooth crema and a refreshing note of
lemon acidity. Decaffeinato — light and creamy, beautifully poised between mildness and
acidity, with hazel colouring and a consistent texture.
Lungo Grands Crus
Vivalto — with pleasant roasted and floral notes and a silky-smooth crema; equally delicious when prepared with milk.
Finezzo — highly aromatic, peppered with mild notes of fragrant jasmine. Nespresso adapted the recipe for Finezzo in 2009 to create a milder blend.
Fortissio — (new in 2009) an intense blend with full body and bitterness that develops notes of dark roasted beans.
Decaffeinato lungo — consistent body with a fine texture and a delicious roasted flavour.
Rosabaya de Colombia — a delicate acidity, interspersed with notes of wine and balanced by hints of red fruit: cranberry, red current and blackcurrant.
Dulsão do Brasil — the complex sweetness of honey and maple syrup on a pedestal of malted cereal.
Indriya from India — a strong character with a whisper of cocoa and a spicy bouquet reminiscent of cloves, pepper and nutmeg.
Limited Editions and Special Clubs
In addition to its permanent collections, Nespresso typically introduces two extraordinary and rare Grands Crus for a limited period each year: the Limited Edition (spring) and Special Club (autumn) blends. These offerings broaden the scope of choices that coffee connoisseurs can sample and enjoy in both the B2C and B2B channels.
For example, the 2008 Nespresso Limited Edition Grand Cru, Goroka, originated on exclusive plantations located in the Highlands of Papua New Guinea. The 2008 Nespresso Special Club, Jinogalpa, was a precious variety handpicked on lush plantations in the highlands of Matagalpa and Jinotega in Nicaragua.
B2B Coffee Range For high-end restaurants, hotels, catering businesses and airlines that want to spoil their discerning customers, and for offices that like to provide their employees and business partners with perfect coffee, Nespresso offers seven Grand Crus. These coffees come in the form of round, flat capsules designed to work specifically with the Nespresso B2B line of coffee machines:
Espresso Grand Crus
Ristretto – a short espresso, it has a full body, an intense taste and an exceptional lingering persistency.
Espresso Forte – a round, balanced espresso with an intense body and an aromatic richness. It can sustain a touch of milk froth for sweetness.
Espresso Leggero – a light body, with a hint of bitterness and refreshing acidity accompanied by grilled notes.
Decaffeinato Intenso – Dark roasted South American Arabicas with a touch of Robusta bring out the subtle cocoa and roasted cereal notes of this full-bodied decaffeinated espresso. To be enjoyed in a small cup.
Lungo Grand Crus
Lungo-Caffè Forte – a pure-bred coffee, with a well-developed body, smooth, with grilled notes. Great richness in a large cup, with or without milk.
Lungo-Caffè Leggero – a light, thirst-quenching coffee with a flowery bouquet of jasmine and bergamot. A touch of acidity adds freshness.
Decaffeinato Lungo – this blend of naturally decaffeinated South American Arabicas and Robusta to be enjoyed in a large cup reveals flavours of red fruit balanced with sweet cereal notes.
NESPRESSO History Dynamic Phases of Continual Innovation and Evolution in the Pursuit of
Excellence Phase 1: The Pioneering Years – Trial and Error Between 1986 and 1995, Nespresso took a simple idea and reinvented it many times, enhancing quality, embracing technology and constantly refining both its system and its business model. The focus was to perfect the espresso experience. 1982 The Nespresso Capsule is conceived and developed by Nestlé R&D. 1986 COMPANY: Nespresso S.A. is founded and first test markets are established. COFFEE: Capsules are still finished by hand. MACHINES: The first machines are introduced in Switzerland and resemble mini espresso machines, complete with a hand held capsule cage to mimic the barista’s movement. 1987 COFFEE: The first Grand Cru varieties are introduced - Cosi, Capriccio, Veneto and
Décaféiné. 1989 SERVICES: The Nespresso Club is launched. 1991 COFFEE: The first Special Club is introduced.
MACHINES: reliability is improved and some automation is introduced with the C220 model, which still resembled a mini espresso machine and featured the hand held capsule cage.
1992 SYSTEM: improved to deliver enhanced coffee extraction by exchanging the filter in the capsule for an external filter – in this case a unique pyramid base plate in the manual capsule holder is used to pierce the capsule.
Phase 2: Innovation Powers the Start-Up From 1995 until 2000, Nespresso starts to gain in scale across key European markets. Innovation – and investment – drive this start-up phase, during which Nespresso achieves break-even, and year-by-year its range of Grand Cru coffees continues to expand. 1995 COMPANY: Nestlé Nespresso SA reaches breakeven point. 1996 COMPANY: Nestlé Nespresso SA celebrates 10 years of success with 3’500 points of
sale and 180,000 affiliated Club members. MACHINES: The first B2B machine, the ES100 is launched.
COFFEE: The first automated production line begins in Orbe. 1998 SERVICES: The first website is introduced to give Nespresso Club members access to
2000 COMPANY: new corporate headquarters are inaugurated in Paudex. SYSTEM: a major design breakthrough is on its way which sees the elimination of the manual capsule holder and its replacement by revolutionary “open jaw” technology for automated capsule entry and exit. This single innovation frees the machine design from restrictions of the past and enables new machine design innovations including delivery of perfect cleanliness in the new integrated system.
Phase 3: Towards Iconic Status as an International Brand From 2003 to 2006, Nespresso enjoys impressive accelerated growth and geographic expansion as the brand reinvents the coffee machine, time and time again, making the capsule the symbol of perfect premium coffee. Nespresso establishes its leadership in sustainable coffee sourcing, broadens the coffee experience beyond just espresso and starts the journey towards being recognised as an iconic global brand by launching its Boutique concept, sponsoring some of the world’s most prestigious events and appointing its first ever celebrity brand Ambassador. 2003 COFFEE: the Nespresso AAA Sustainable Quality™ Program is announced. SERVICES: First Boutique Bar in Munich is opened. 2004 COFFEE: the Nespresso Lungo launch supports expansion into long cup markets.
MACHINES: Another breakthrough design resulting from the new technology offered by a compact brewing unit, produces the revolutionary Essenza machine, featuring not only a compact form but also a range of fashion colours. Over one million units are sold. COMPANY: The Nespresso Magazine is launched and Nespresso becomes the Official coffee of the 32nd America’s Cup
2005 MACHINES: Le Cube sets more new design standards with its minimalist, clean lines and square shape.
2006 SERVICES: Nespresso Club Members vote George Clooney as their preferred brand Ambassador, and the “NESPRESSO, What Else?” campaign, the first of three highly successful campaigns, ignites brand visibility and awareness. COMPANY: Nestlé Nespresso SA reaches a milestone, exceeding CHF 1 billion in revenue for the first time.
Phase 4: Becoming a Billionaire Brand & Ensuring Sustained Development From 2007, Nespresso is focused on reinventing the coffee machine, embracing the personalised preferences of its Club Members, enhancing its commitment to sustainable quality, and all the while, continuing to enhance its coffee range, innovating to improve the technology and design of its System and machines, while constantly improving its Club Member experience. As the Nestlé Nespresso company’s impressive growth has continued, so too has its laser like focus on quality and continuous innovation. Passing the CHF 2 Billion revenue mark in 2008, the company continues firmly on its course to inspire and reward the enthusiasm of its Club Members by continually reinventing their ultimate coffee experiences. 2007 COMPANY: Nespresso receives two prestigious awards for its commitment to Sustainable
Quality™: The Corporate Green Globe Award from the Rainforest Alliance and The Leadership Medal of Merit Award from the Coffee Quality Institute for developing the Nespresso AAA Sustainable Quality™ Program. MACHINES: Lattissima is introduced to appeal to aficionados of milk based espresso beverages.
2008 SYSTEM: the Nespresso System is enhanced with Quality Seal Technology to deliver perfect water tightness over the life of the machine and thereby further improve the consistent in-cup quality.
2009 COFFEE: 5 new Grands Crus, including three unique Single Origins, are launched to satisfy the full range of Club Member taste preferences. MACHINES: CitiZ, the first full range of multiple Nespresso machines, is launched. It incorporates slim urban design and offers a range of functions to suit individual Club Member coffee preferences. COMPANY: Building on the sustainability principles of the Nestlé “Creating Shared Value” approach, Nespresso launches its Ecolaboration™ platform with the commitment to achieve three targets by 2013:
to source 80% of its coffee through the unique Nespresso AAA Sustainable Quality™ Program, including Rainforest Alliance certification of the farms
to put systems in place to triple its capacity to recycle used capsules to 75% to reduce the overall carbon footprint required to produce every cup of Nespresso
NESPRESSO Ecolaboration™ Concept At a glance Nestlé Nespresso SA has launched Ecolaboration™, a consolidation of all of its sustainability efforts in coffee, coffee capsules, machines and across its entire operation into one concerted programme. Within the Ecolaboration™ framework Nespresso is making the following three commitments by 2013: • To source 80% of coffee from the Nespresso AAA Sustainable Quality™ Coffee
Program, including Rainforest Alliance certification of the farms • To put systems in place to triple its capacity to recycle used capsules to 75% • To reduce the carbon footprint of the Nespresso operation per cup by 20% Background Nespresso has pioneered the concept of portioned coffee with the goal of providing the very highest quality coffees with maximum convenience. Nespresso has become the international reference for premium portioned coffee and aims to be the preferred and respected coffee company worldwide. In this context and in response to their commitment to Club Members Nespresso developed a unique sourcing program for sustainable quality green coffee, tailor-made for the Nespresso business model. Nespresso is committed to ensuring sustainability throughout its operations. Nestlé’s unique sustainability framework Creating Shared Value has provided a pioneering platform for the Nespresso sustainability programme. In 2003 Nespresso launched a groundbreaking partnership with the leading environmental NGO Rainforest Alliance – the Nespresso AAA Sustainable Quality™ Coffee Program – committed to ensuring highest quality and sustainability in its coffee supply chain, whilst at the same time improving the standard of living for farmers and their families.
Following a thorough strategic review and stakeholder consultation, Nespresso is extending its sustainability commitments through its Ecolaboration™ framework, a platform for partnership with the many business partners, stakeholders and innovators who contribute to the continuous improvement of the sustainability of the Nespresso value chain.
Definition Nespresso Ecolaboration™ provides a networking framework to bring together key stakeholders, thinkers, consultants, technical experts, NGOs, business partners and others to collaborate around new ideas and innovation, which will serve to improve the sustainability performance of Nespresso. The aim is to create specific Ecolaboration™ commitments and framework agreements between Nespresso and its key partners, with the articulation of measurable objectives and initiatives to be accomplished within certain timeframes.
Nespresso is consolidating all its sustainability efforts in coffee, capsules, machines and across its entire operation into one concerted strategic framework known as Ecolaboration™. Building on the principles of the Nestlé “Creating Shared Value” initiative, the Nespresso will work in partnership toward the ultimate objective of continuously improving the sustainability performance of the Nespresso business model, from cherry to the cup. Ecolaboration™ commitments – within the Ecolaboration™ framework Nespresso is making the following three commitments: • Nespresso is taking the Nespresso AAA Sustainable Quality™ Coffee Program to the
next level, through a formal Ecolaboration™ with Rainforest Alliance, committing the partners to sourcing 80% of Nespresso coffee from the AAA Sustainable Quality Program, including Rainforest Alliance certified farms by 2013
• Nespresso is launching the AluCycle™ Initiative with a twin commitment. Firstly,
Nespresso will put systems in place to triple its capacity to recycle used capsules to 75% by 2013. Realising the full potential of this capacity will need the active cooperation of Nespresso Club Members. Through a range of communications, Nespresso will continue to encourage its Club Members to recycle by returning their used capsules. Secondly, Nespresso is working with IUCN, the International Union for Conservation of Nature – the largest membership environmental organisation in the world – to co-convene an industry roundtable on improving the sustainability performance of the aluminium used for the Nespresso capsules.
• Nespresso estimates that the total CO2 emissions generated from its operations is
82 grams of CO2 equivalent per cup. This includes coffee cultivation, transportation, capsules, packaging, production centres, offices, business travel, commuting to and from work, and boutiques. By 2013 Nespresso is committed to reducing its carbon footprint per cup by 20%. A key driver behind this commitment will be the establishment of the VerTech™ Network – a sustainable technology research and development project set up by Nespresso as part of Ecolaboration™ to design greener machines for the future.
Reporting and transparency Nespresso will share these Ecolaboration™ commitments with stakeholders and report back periodically on progress. The Nespresso Ecolaboration™ platform is complemented with a website (www.nespresso.com/ecolaboration) which will include Ecolaboration™ related content, results and future ideas and initiatives in ways that will be accessible to a range of internal and external stakeholders including Nespresso Club Members. For further information please see the Fact Sheet on Ecolaboration™ by visiting www.nespresso.com/ecolaboration
Nespresso delivers strong 2009 business performance despite economic downturn Paudex, SWITZERLAND, 29 March 2010 – Nestlé Nespresso SA announced strong 2009 business results, delivering sales of CHF 2.77 billion achieving sales growth of more than 22%. In 2009, the company also grew its retail network to more than 190 boutiques and launched CitiZ, a new machine range, while for the first time Nespresso Club Members exceeded seven million. “In the context of the economic downturn, the hallmarks of the Nespresso brand, highest quality and continuous innovation, have proved again to be our growth engine, even in an extremely challenging year,” said Richard Girardot, CEO of Nestlé Nespresso SA. Maintaining in 2009 its average of 30% growth since 2000, Nespresso continues to be the fastest growing global brand in the Nestlé Group. Unique Business Model and Core Business Competencies “Our unique business model enables us to continue investing in growth and quality and take a long-term view,” said Mr Girardot. “Nespresso is able to manage – and improve – quality at every stage of the value chain. Our heritage of deep coffee expertise and constant innovation place Nespresso at the front of an ever more competitive portioned coffee market. Nespresso continues to earn the trust and respect of a growing global brand community in more than 50 countries.” In 2009, the company launched Ecolaboration™, the Nespresso platform for driving sustainability into all areas of its operations. This Nespresso’s commitment to ensure future growth while respecting the planet’s resources for future generations. Outlook for 2010: Winning Formula Continues In 2010, Nespresso is on track to deliver double-digit growth and pass the CHF 3 billion sales milestone. To drive that growth, Nespresso will focus on its core competences. The company continues to aim at exceeding consumer expectations by offering them the highest-quality coffee combined with maximum convenience. As one example, Nespresso will combine its in-house research and development expertise with its distinctive design capabilities to offer consumers the most compact Nespresso machine yet while still delivering the ultimate coffee experience wherever they are. In 2010, Nespresso will expand its global retail network, adding more than 30 locations with flagship boutiques including cities such as Brussels, Munich, Miami, New York (Soho) as well as the first Nespresso locations in Sub-Saharan Africa. Complementing the continuing boutique expansion, “Nespresso will roll out a new customer service model, starting by renewing the sensory and brand experience in our boutiques”, said Mr Girardot. “We will then extend our boutique team’s passion to serve and share to our Customer Relationship Centres and match it with a dynamic new e-commerce platform. This will renovate all three Nespresso distribution channels and consumer contact points.”
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# # # Contact info H.-Joachim Richter Director, Corporate Communications Nestlé Nespresso SA [email protected] T: +41 21 796 96 20 About Nestlé Nespresso SA Nestlé Nespresso SA, the worldwide pioneer and market leader in highest-quality premium portioned coffee, introduces consumers to the world’s finest Grand Cru coffees to be enjoyed in the comfort of their own homes and savoured outside the home, in locations such as gourmet restaurants, upscale hotels, luxury outlets and offices. As a company, Nespresso is driven by core competencies that enable it to create highest quality Grand Cru coffees, long lasting consumer relationships, and sustainable business success. The Nespresso offer focuses on its unique Trilogy, the unmatched combination of exceptional coffee, smart and stylish coffee machines and personalised customer service. Together, these three elements deliver moments of pure indulgence – the Nespresso Ultimate Coffee Experiences. Headquartered in Paudex, Switzerland, with more than 4 500 employees, Nestlé Nespresso SA sells products in more than 50 countries directly to its customers. At the end of 2009, it operated a global retail network of more than 190 exclusive boutiques in key cities around the world. For the fourth consecutive year, Nespresso is one of the fastest growing brands within the Nestlé Group and one of its "billionaire brands". In 2009, Nespresso achieved global sales of CHF 2.77 billion, maintaining an average annual growth rate of 30 percent since 2000. For more information, visit www.nespresso.com.
