Nespresso: Growth Engine for Portioned Coffee Segment in 2011

LAUSANNE, Switzerland, August 17, 2011 -

Nespresso Continues to Build on its Success as Category Leader

Nestlé Nespresso in the first half of 2011 achieved double-digit growth with more than 15% of its sales generated outside of Europe. Nespresso continued to drive momentum and innovation in the dynamic portioned coffee segment. The category, which accounted for 8% of the total coffee market in 2010, continued to show strong growth in terms of both volume and value.

     (Photo: www.newscom.com/cgi-bin/prnh/20110817/474383 )

“As the locomotive driving the category through coffee quality, machine innovation and consumer engagement, we stand to benefit from continued consumer appreciation of premium portioned coffee and to continue our growth in the segment,” said Richard Girardot, CEO of Nestlé Nespresso SA. “We have seen an overall strengthening of consumer awareness, which is driving growth in the category.”

In the first six months of the year, consumers continued to choose Nespresso in both its established European markets and in its developing markets, despite the arrival of new competition. “To maintain our leadership in a dynamic and growing segment, we continued our already significant investments into innovation, service and quality - all of which shape the consumer experience,” said Mr Girardot.

Nespresso launched a number of new products and initiatives which continue to reinforce the vitality of the brand. The company released Onirio, its new Limited Edition coffee. With PIXIE, its first-ever global machine launch, Nespresso achieved its most popular machine introduction to date.  And in the business-to-business area, Nespresso launched two revolutionary machines, Aguila and Zenius, to better service its professional customers.

Two years after launching Ecolaboration™, Nespresso reported concrete, measurable progress towards its sustainability commitments. “We are well on our way to achieving our 2013 commitments and we will continue to ensure that sustainability is one of the key drivers of our company moving forward,” said Mr Girardot.

In the second half of the year, the company will continue to shape the coffee culture it pioneered 25 years ago as it continues its selective geographic expansion. Nespresso is on track to extend its retail network beyond 250 boutiques this year, with new openings scheduled for Geneva, Berlin, Paris and Auckland in the months ahead. The company will launch its first Limited Edition coffee to be sourced entirely from the Nespresso AAA Sustainable Quality™ Program. In 2011, for the first time, Nespresso is launching four machines in the same year, with a new machine to be launched in the second half that offers enhanced options for connoisseurs of milk-based coffee recipes.

About Nestlé Nespresso SA
Nestlé Nespresso SA is the pioneer and market leader in highest-quality portioned premium coffee. Headquartered in Lausanne, Switzerland, Nespresso has a presence in more than 50 countries and 5500 employees. In 2010, it operated a global retail network of 215 exclusive boutiques. Nespresso achieved global 2010 sales of CHF 3 billion, maintaining an average annual growth rate of 20 percent since 2000. For more information, visit: www.nespresso.com/mediacenter.

Contacts: Hans-Joachim Richter, Corporate Communications Director, Tel +41-21-796-9620, Fax +41-21-796-9797, Julian Liew, Corporate PR & Public Affairs Manager, Tel: +41-21-796-9742, Fax: +41-21-796-9797