Nestle's Nespresso capsule coffee brand achieved sales of more than 3.5B Swiss francs in 2011, up 20% increase from 2010 amid growing consumer demand

Nevin Barich

LAUSANNE, Switzerland , March 5, 2012 (press release) – Growing consumer demand in 2011 fuelled the momentum for Nespresso as the engine of the dynamic portioned coffee segment. Nestlé Nespresso SA achieved sales above CHF 3.5 billion and organic growth of around 20%. "Last year, consumers seeking moments of pleasure continued to choose Nespresso despite the turbulent times in many markets and despite a profusion of consumer options in the portioned coffee sector," said Richard Girardot, CEO of Nestlé Nespresso SA.

To drive consumer demand, Nespresso will reinforce its focus on consumer-relevant benefits that shape their experience of our brand: quality, innovation and design, as well as personalised services. "In 2012, Nespresso, with its heritage of offering personalised services and enabling consumers to create the perfect coffee, will again be inviting consumers to join it for moments of pleasure and indulgence," said Mr Girardot.

Consumers trying Naora, the new Nespresso Limited Edition late harvest coffee, can savour the full taste and aroma profiles of coffee hand selected at peak ripeness. In response to consumer feedback, Nespresso brings back Kazaar, its highly popular Limited Edition coffee and make it available online for Club Members only.

In 2012, two new Nespresso machines will launch from the company's innovation pipeline. With Maestria, its latest machine range, Nespresso is inviting consumers to bring home the art of making coffees like baristas. The latest Nespresso machine innovation takes the complexity out of making the perfect espresso, so that consumers can enjoy creating their own perfect coffee - and their own moments of pleasure. The new machine features a design tailored to satisfy the taste of the most discerning consumers.

In the coming year, Nespresso will grow its retail network to more than 300 boutiques - in addition to its online boutique. Nespresso will open more than 40 new boutiques, including a new flagship boutique in London's Regent Street and San Francisco.

"I believe that Nespresso is well positioned to meet the growing consumer demand that will continue to fuel our momentum in 2012 and beyond. On the one hand, consumers will turn more towards entertaining at home, whether for a chat or for a meal," said Mr Girardot. "On the other hand, as premium hotels, restaurants and even retailers work to create their own unique experiences, they are increasingly turning to Nespresso to help them provide their clients with the right finish to a meal or a moment of indulgence in their stay."

To meet the growing consumer demand in the years ahead, Nespresso is strengthening its capabilities and capacity. Nespresso will increase the number of coffee specialists and production experts - including its team of coffee roasting and coffee blending 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 on schedule by the end of the first half of 2012, bringing total investments in this community to CHF 500 million.

About Nestlé Nespresso SA

Nestlé Nespresso SA is the pioneer and reference for highest-quality portioned premium coffee. Headquartered in Lausanne, Switzerland, Nespresso operates in more than 50 countries and has more than 7 000 employees. In 2011, it operated a global retail network of 270 exclusive boutiques. Nespresso achieved sales above CHF 3.5 billion and organic growth of around 20%.

For more information, visit the new Nestlé Nespresso corporate website: http://www.nestle-nespresso.com

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