The Nespresso Revolution.

Topics: CoffeeMarketing

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. ‘ A profitability ” close to levels registered(recorded) in the industry of the luxury The Nespresso story began in the 1970’s when Nestle, the world leader in food, anticipated the growing gourmet coffee market and decided to take espresso inventor Luiggi Bezzera’s original concept a step farther.

The totally integrated Nespresso System, developed after long years of research and many patents, revolutionized the portioned coffee market and started a new era of encapsulated coffee.

Historical Highlights 1986 The company, Nespresso SA, is set up in Vevey, Switzerland with a staff of five including one secretary. Nespresso is launched in Switzerland and Italy with the C100 and C1100 machine models manufactured by Turmix and targeted to the office coffee service (OCS) sector. Capsule production begins in Orbe, Switzerland, and coffee varieties include Bolero, Capriccio, Cosi and Decaffeinato.

987 Nespresso is launched on the Italian and Japanese household markets. A “Service” department is set up to follow-up with customers in Switzerland. Technical assistance is provided by two employees called “Baristas”. 1988 Both the machine’s technical performance and the capsule technology are perfected. Operations are still focused on the OCS business. 1989 Nespresso launches on the Swiss household market and the Nespresso Club makes its debut. The company moves offices to Pully, Switzerland and comprises a staff of 15 people. 1990 Market tests begin in the USA.

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Nestle Bolero Coffee

The Veneto (now Volluto) coffee variety is introduced as a replacement for Bolero. “Special Club”, blended from exceptional and rare annual harvests, is launched as an exclusive coffee variety limited to year-end sales. 1991 World leader Eugster Frismag AG becomes the exclusive producer of Nespresso machines and Krups is appointed as Nespresso’s machine partner for international operations. Nespresso is launched in France and the USA with the Krups 995 (C200 Plus) machine. The Roma coffee variety is launched in Switzerland and the USA, bringing the range of Nespresso coffee blends to five. 992 Matsushita Electric Industrial (MEI) is appointed as Nespresso’s machine partner for Japan and sells the System under its “National” brand name. Nespresso is launched in Germany, Belgium and the Netherlands with the Krups 995 (C200 Plus) machine. Nespresso Club opens its second Swiss office in Zurich. 1996 Nespresso is launched in the United Kingdom, Singapore, Malaysia and Taiwan. The renowned Italian company, Alessi, is appointed as a new partner in the table arts sector and for an exclusively designed new machine. Other new machine partners are appointed including Jura and Magimix.

Both the C125 and C250 Nespresso Systems win “Design Innovation” awards at the Essen trade show. British Airways and Cathay Pacific, among others, introduce the Nespresso Aviation System on board their First Class services. Nespresso is now served in over 60 top restaurants and hotels, particularly in France and Belgium. 1999 The entire Nespresso machine range receives a facelift and several new machine models are introduced. Nespresso is launched in the Italian household market with Krups and new machine partner Saeco, which is also appointed to distribute Nespresso machines in Spain.

Other new machine partners include Jura in Germany and Magimix in Great Britain. NESPRESSO PROFESSIONAL continues to make strong gains in all of the nine European countries in which it has now been launched. Nespresso’s autumn advertising campaign wins acclaim in France, where it receives the Marie Claire SCORISSIMO award and in Belgium, where Onye Tijd / Notre Temps judges it to be the best overall ad for the month of December. 2000 Nespresso’s e-business gathers momentum with an average of over 50 percent of nespresso. om visitors placing orders on-line. Decaffeinato Intenso becomes Nespresso’s ninth coffee variety providing genuine, full-bodied espresso taste without caffeine. NESPRESSO PROFESSIONAL opens its own subsidiary operations in the Netherlands, Belgium and Austria and surpasses its competition with its revolutionary after sales service. Currently present in more than 30 countries with 12 subsidiaries and 300 employees, Nestle Nespresso now has 11 machine partners, 18 agents, 6,500 points of sale and over 420,000 affiliated Club members.

Worldwide pioneer and market reference in highestquality portioned coffee. An average annual growth of 30% since 2000 and oneof the fastest growing businesses in the Nestle Group. Overall global sales: more than CHF 2. 77 billion in 2009. Sales of more than 20. 4 billion coffee capsules and12 million coffee machines since 1986. Employees: more than 4’500 worldwide, 70% ofwhom are in direct contact with consumers. An autonomous, globally managed business inthe Nestle Group. Present in more than 50 countries.

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The Nespresso Revolution.
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