Growing consumer demand fuels Nespresso momentum worldwide in 2011

“Last year, consumers continued to choose Nespresso despite the tough economic times. They also chose our brand in the face of a more competitive portioned coffee segment. Market trends suggest that the portioned coffee segment will continue to grow. Last year, consumers had more than 50 different options on the market, up by 25% since 2010,” said Richard Girardot, CEO of Nestlé Nespresso SA.

In 2011, Nespresso achieved sales above CHF 3.5 billion and organic growth of around 20% – with strong performance on all fronts. Last year, for the first time, Nespresso generated over 15% of sales outside of Europe, a twofold increase from 2009.

Quality, innovation and design, and a long-term, complete relationship anchored by the offerings of the Nespresso Club – all of that shapes our consumers’ brand experience. “More than a capsule, Nespresso is about pleasure. Our focus for the months and years ahead will be on the benefits that are relevant to our Club Members,” said Mr Girardot.

Unique asset: in-house team of coffee experts

With its unique business model, Nespresso has developed a track record of mastering sustainable quality from farmers to consumers. That expertise has made it possible for Nespresso to innovate in coffee year on year. Only Nespresso has its own team of more than 200 agronomists working with farmers in the field. Nespresso also has a team of coffee experts working with coffee sommeliers in its sensory labs and production centres.

In 2012, Nespresso is tapping into the knowledge and experience of its in-house experts to push the limits of coffee expertise. Naora, the latest Nespresso Limited Edition, is made from late harvest coffee hand selected at peak ripeness to express the full tastes and aromas of the coffee. Another example is Kazaar, originally launched in 2010, that Nespresso is bringing back in 2012 in response to popular consumer demand. Such tangible results show how Nespresso uses its coffee expertise to innovate continuously in coffee, while maintaining the quality and experience that its consumers expect.

Simplicity by design

Another reason why consumers trust Nespresso is the consistency of the in-cup quality of their coffee. The key is the Nespresso system, today the reference in the portioned coffee segment. Constant innovation by the in-house R&D team guarantees the superior performance of the system – the interaction between the original Nespresso capsule and the authentic Nespresso machine – in extracting the full tastes and aromas of each Grand Cru blend crafted by Nespresso coffee experts.

In 2011, Nespresso launched four new machines. The first-year sales performance of the PIXIE machine outstripped that of the successful CitiZ range. This year, Nespresso is set to launch two new machines from its innovation pipeline. The first launch of the year is the new Maestria range – consisting of both Maestria and Gran Maestria. This new machine innovation is the flagship of the Nespresso machine range, enabling the brand to compete in the fully automatic coffee machine segment.

Staying in touch with Nespresso Club Members

Beyond its products, the enduring one-on-one relationship with its Club Members makes Nespresso unique in the portioned coffee segment. That long-lasting relationship enables the company to personalise its services to suit its Club Members – and to surprise them with new tastes and experiences year after year.

Today, more than 4 000 dedicated Nespresso coffee specialists – or roughly 70% of all Nespresso employees in the markets – are on hand available to engage with Club Members. They advise and guide Club Members and consumers in selecting their coffees, machines or accessories. Consumers can engage with them through the Nespresso online boutique, in its retail network of 270 boutiques and its Customer Relationship Centres (CRCs). At the end of 2011, Nespresso France – for the fourth year in a row – won the Best Customer Service Award 2012 for its services.

Creating opportunities today and in the future

“Looking ahead, I believe that Nespresso is well positioned to meet the growing consumer demand that will continue to fuel our momentum in 2012 and beyond. In the coming year, Nespresso will expand its retail network, opening new boutiques in major cities, such as London and San Francisco,” said Mr Girardot.

At the same time, Nespresso is well positioned to work with premium hotels, restaurants and even retailers to provide the right finish to a meal or create their own ultimate coffee moments for their clients.

To meet the growing consumer demand in the years ahead, Nespresso will increase the number of coffee specialists at all consumer touch points and production experts at its production facilities. Nespresso confirms that it is on track with the extension of its Production and Distribution Centre in Avenches, Switzerland. Work will be completed by the end of the first half of 2012, bringing total investments at this location to CHF 500 million.