What are Nestle's core competencies

Nespresso delivers strong growth in 2009 despite the economic downturn

29.03.2010 – 12:54

Nestlé Nespresso SA

Paudex, Switzerland (ots)

With sales of CHF 2.77 billion and a sales increase of more than 22 percent, Nestlé Nespresso S.A. its strong corporate result for 2009 and has been able to maintain its average growth of 30 percent since 2000. Last year, Nespresso launched a new machine series with CitiZ, expanded its boutique network to over 190 boutiques and the number of Nespresso Club members worldwide exceeded the seven million mark for the first time.

"In the context of the economic downturn, Nespresso's trademarks, top quality and constant innovation, have once again proven to be the engine of growth, even in an extremely difficult year," said Richard Girardot, CEO of Nestlé Nespresso S.A.

Unique Nespresso business model and core competencies

"Our unique business model allows us to continue investing in growth and quality and to plan for the long term," says Girardot. "Nespresso sets the highest quality standards in every step of the value chain - and even improves them continuously. With our extensive coffee know-how, acquired over more than 20 years, as well as our constant innovations, we are at the forefront of an increasingly competitive market for portioned coffee Nespresso continues to be delighted with the popularity of the growing fan base in over 50 countries around the world, "explains Girardot.

In 2009, Nespresso presented Ecolaboration (TM), its platform for sustainable innovation in all business areas. As part of Ecolaboration (TM), the company is committed to securing the growth of Nespresso while at the same time protecting the environment and thus ensuring the security of natural resources for future generations.

Outlook for 2010: The continuation of the successful model

In 2010, Nespresso is well on the way to achieving double-digit growth and exceeding the sales milestone of CHF 3 billion. In order to further promote this growth, Nespresso will concentrate on its core competencies. In 2010 Nespresso expanded its global boutique network with the opening of new boutiques in over 30 cities, including new flagship boutiques e.g. in Brussels, Munich, Miami and New York (Soho). Nespresso will also focus on new locations such as Shanghai as well as Cape Town and Johannesburg (South Africa).

"This year Nespresso will be introducing a new service model, initially creating new sensory and branding experiences in our boutiques," explains Girardot. "We will then transfer this passionate boutique concept to our customer service centers and adapt them to a dynamic new e-commerce platform. All three Nespresso sales channels and customer contact points will be modernized and adapted to the current needs of our customers.

About Nestlé Nespresso S.A.

Nestlé Nespresso SA, the global pioneer and market leader in high-quality portioned coffees, has launched Grand Cru coffees of the highest quality on the market, which consumers can enjoy both in the comfort of their own home and away from home, such as in upscale restaurants, cafes, Hotels and offices. Nespresso focuses on its core competencies, which enable the company to produce coffees of the highest quality, maintain lasting customer relationships and ensure sustainable business success. This is how the unique Nespresso trilogy developed - an extraordinary combination of the best Grand Cru coffees in the world, intelligent, elegant machines and incomparable customer service. The perfect interaction of these three elements became known as the "perfect Nespresso coffee experience". Nestlé Nespresso S.A. is headquartered in Paudex, Switzerland, employs 4,500 people, sells its products directly to customers in over 50 countries and operates more than 190 renowned boutiques in major cities around the world (as of end of 2009). For the fourth time in a row, Nestlé Nespresso is one of the fastest growing business areas within the Nestlé Group and has the coveted title of Nestlé "billionaire brand". The company has recorded an average growth rate of 30 percent since 2000 and achieved annual sales of 2.77 billion Swiss francs in 2009.

More information is available at: www.nespresso.com

ots Original text: Nestlé Nespresso SA
Internet: www.presseportal.ch

H.-Joachim Richter Director
Corporate Communications Nestlé Nespresso SA
Tel .: + 41/21 / 796'96'20
Email: [email protected]