Continued leadership in the portioned coffee segment
In a tough economic environment, Nespresso delivered double-digit organic growth of around 20%. The company continued its leadership in the portioned coffee segment in the first nine months of 2011. Despite the arrival of generic capsules in a handful of European countries, consumers continued to choose Nespresso. In addition, for the first time, Nespresso generated more than 15% of total company sales outside Europe. A two-fold rise in just two years.
The company’s consistent performance in the face of a new economic context and competitive landscape is the result of its focus on quality, innovation and service.
Outstanding brand innovation
Nespresso introduced new products and initiatives continuing to reinforce the vitality of the brand. Four new machines were launched this year to benefit both consumers and businesses.
With PIXIE, the first-ever global machine launch, Nespresso achieved its most popular machine introduction to date. Since its launch, Lattissima+ has been delighting consumers with its enhanced features for creating milk-based recipes. This machine enables Nespresso to tap into the significant coffee-and-milk market.
In the business-to-business area, Nespresso launched two revolutionary machines – Aguila and Zenius – to better service its professional customers.
Committed to continually surprising consumers with rare and extraordinary experiences, Nespresso launched two Limited Edition coffees: Onirio and Dhjana. With Dhjana, Nespresso created the first Limited Edition coffee sourced entirely from the Nespresso AAA Sustainable QualityTM Program.
The Paris-Madeleine Nespresso boutique brings innovative services to Club Members as part of a new retail concept
Nespresso confirms that it is on track to extend its retail network to more than 250 boutiques this year in response to growing consumer demand. The brand opened its sixth boutique in Paris and its first ever in New Zealand.
After Munich in 2010, Nespresso introduced its new retail concept in Spain and France. This concept brings freedom of choice and personalisation to new heights, offering consumers a unique brand experience. Dedicated areas enable consumers to shop, learn, explore or enjoy a cup of Nespresso Grand Cru coffee at their own pace.
On track with sustainability targets
In the first half of the year, Nespresso also reported concrete progress towards its sustainability commitments made within the Ecolaboration™ framework. By the end of 2010, the company was sourcing more than 60% of its green coffee through its unique AAA Sustainable Quality™ Program (versus a target of 80% by 2013). Nespresso increased to 60% its capacity to recycle used capsules by putting in place collection systems (compared with a commitment to reach 75% by 2013). Furthermore, Nespresso reduced the carbon footprint per cup of coffee by 11% (in relation to its target of 20% reduction by 2013).
Outlook
Nespresso will sustain its momentum in shaping the global coffee culture for the foreseeable future. The company is committed to pursuing its strategy of selective geographic expansion. It is on track to meet ever-growing global consumer demand with new boutiques opening up in locations as far apart as Johannesburg and Osaka.
