Strong growth and increasing brand awareness
Nespresso strongly performed in 2012, delivering solid, double-digit growth, carried by coffee lovers’ growing demand worldwide.
“The exceptional Nespresso experience, combining highest quality coffees, innovative machines and personalised relationships with consumers, continues to stir widespread enthusiasm around the globe. Our growth remains strong and the brand awareness of Nespresso is increasing as the overall portioned coffee category demonstrates a positive trend,” said Richard Girardot, CEO of Nestlé Nespresso SA.
The company cemented its position in Western European markets and expanded its presence in the Asia Pacific and Americas regions. The company’s non-European sales from tripled over the last five years.
Ensuring highest quality coffees through dedicated teams of experts
Nespresso coffee experts traveled the world to find rare coffees to bring Club Members exceptional sensory experiences. 2012 was highlighted by the launch of five new Limited Edition Grand Cru coffees, including Hawaii Kona Special Reserve, an exclusive Grand Cru created from some of the rarest coffee beans in the world, Crealto, a long-roast coffee inspired by gastronomy and Naora, a Grand Cru pioneering a late harvest technique drawn from the science of winemaking. Quality, roasting and production experts skillfully transformed highest quality green coffee beans into the Nespresso Grands Crus that consumers love.
Nespresso rigorously manages quality from farmers to consumers through dedicated teams of experts. The company works with a network of over 200 agronomists in producing countries to support coffee farmers in implementing sustainable farming practices and improving coffee quality and farm productivity through technical assistance and tailor-made trainings. Through the close long-term relationships built with farmers, Nespresso ensures the highest quality and specific aroma profiles required for its Grand Cru coffees year after year.
Driving cutting-edge innovation for best in-cup result
2012 also saw the launch of the two new coffee machines, Maestria, inspired by the meticulous ritual of professional coffee preparation, and the modular U, designed to fit into contemporary living spaces. Both combine design, simplicity and cutting-edge technology to guarantee consumers the best in-cup quality when used with Nespresso capsules.
The Nespresso system – the interaction between the original Nespresso capsule and the authentic Nespresso machine – allows a perfect extraction of all the aromas of each Grand Cru blend crafted by Nespresso coffee experts, ensuring the most delightful coffee tasting moments for consumers.
Nurturing direct relationships with Club Members
The exceptional levels of service and customer relationships that have become synonymous with Nespresso continued to define the brand. Through the Nespresso Club, Nespresso coffee specialists develop a direct dialogue with Club Members and ensure personalised services.
The Nespresso boutique in Seoul, South Korea
“Besides our ability to manage quality from cherry to cup, and surprise and delight consumers with exceptional tasting experiences, one of the key drivers of our continued success is the privileged, direct relationships that we build with our Club Members,” said Richard Girardot.
The Nespresso direct-to-consumer route to market allowed for an increased number of tailor-made services to consumers, resulting in greater convenience. The boutique Pick-Up zones enabled convenient and fast order pick-ups. While Recycling@Home initiatives were rolled out in additional markets, allowing doorstep collection of used capsules for recycling in six European markets.
Nespresso Club Members who are already familiar with the brand can now also shop at their own pace and convenience and complete their purchase within a few minutes in the self-selection “Exclusive Rooms” of six additional boutiques, including the first ever standalone self-selection boutique in Lyon, France. The Exclusive Room is now available in 11 boutiques worldwide.
Nespresso opened 52 new boutiques in high-visibility locations in 2013, including new flagships in London, Düsseldorf and Seoul. The opening of a Boutique Bar in San Francisco marked the Nespresso expansion to the US West Coast.
Contributing actively to sustainability
One of the key drivers of our continued success is the privileged, direct relationships that we build with our Club Members.
CEO, Nestlé Nespresso SA
2012 marked a defining moment for the Nespresso sustainability approach. As part of its Ecolaboration™ commitment to sustainability and value creation, Nespresso achieved its 75% capsule recycling capacity objective one year ahead of plan, even surpassing it to reach 76.4%. More than 20,000 collection points for capsules had been put in place across 21 countries, in complement to the Green Dot scheme in Germany, Sweden and Finland.
It was also a year in which Nespresso took an industry leadership position, co-founding the Aluminium Stewardship Initiative (ASI) in partnership with the International Union for Conservation of Nature (IUCN), amongst others. Within the ASI framework, Nespresso is working with the IUCN, civil society organizations and aluminium industry leaders to create a standard for aluminium sustainability by 2014.
Building strong foundation for future success
Nespresso also signaled its confidence in the future through major investment to increase its capacity to meet growing consumer demand for its highest quality coffees. The extension of the Avenches Production & Distribution Centre was completed during the second half of 2012. The company also announced the construction of a third production centre in Romont, Switzerland, set to start in the coming weeks.
The company also announced the construction of a third
production centre in Romont, Switzerland.
Building on its product innovation pipeline, Nespresso will introduce in 2013 new Grands Crus to further shape the portioned coffee category and provide new sensory experiences to Club Members and consumers. The company will release an unprecedented number of innovative Grands Crus designed for specific coffee consumption moments, bringing consumers unique coffee tasting moments.
“Nespresso is strongly positioned to build on its in-house expertise, product offering and privileged relationships with consumers to deliver strong growth into the future,” concluded Richard Girardot.
Nespresso is well positioned to continue driving the portioned coffee category