Nespresso – An International Company

The Nestlé Nespresso SA company is one of the fastest growing operating units of the Nestlé Group, the world’s leading food, beverage, nutrition and wellness company. While benefiting from Nestlé’s expertise, it is a strategic business in its own right with overall responsibility for its own research and development, the supply of its raw materials as well as the production and the marketing of its coffee products.

The company operates in two market segments: the “In-Home” sector with the Nespresso Classic system for households, and the “Out-of-Home” sector, with Nespresso Professional for the workplace, Nespresso Gastronomy in top restaurants and Nespresso Aviation for airlines.

Nestlé Nespresso SA has sustained more than 25% annual growth since its market introduction in 1988. Turnover in 2004 totalled CHF 600 million (€ 389 million).

Headquartered in Paudex, Switzerland, Nestlé Nespresso SA currently employs more than 1’000 people. Its products are sold in more than 35 countries through 17 subsidiaries located in Switzerland, France, Belgium, the Netherlands, Germany, Spain, Great Britain, Austria, Italy, Portugal, Norway/Sweden, Poland, Russia, Japan, Hong Kong, Australia and the U.S.A./Canada, as well as through a network of independent agents, spread throughout several countries in Europe, Asia, Africa, the Caribbean and the Middle East.

In the In-Home sector, Nestlé Nespresso SA has developed close relations since its beginning with carefully selected, renowned household appliance manufacturers. Each machine partner is responsible for the distribution and marketing of its own-branded machines, machine stocking by retail stores and after-sales service. Today, the company has 9 household machine partners, offering different Nespresso machine models.

The principal machine distributors per country are:

Nespresso household machines are currently sold in more than 16,000 points of sale, predominantly large department stores. Thus, Nespresso machines can be found in such prestigious retailers as Globus in Switzerland, Harrods in Great Britain, Les Galleries Lafayette in France, Kaufhof in Germany, De Bijenkorf in the Netherlands, Krëfel in Belgium, La Rinascente in Italy, Bloomingdale’s in the U.S.A, and Ginza in Japan, among others.

Nespresso household machines and capsules are also available to customers through a growing number of Nespresso Boutiques in major European cities. In addition, customers can use Nespresso’s dedicated Web site, www.nespresso.com where on-line orders increased by 46% in 2004 vs. 2003. In 2004, Nespresso’s Web site managed more than 1.93 million on-line orders.

In the Out-of-Home sector, Nespresso Professional machines and capsules are offered through a dedicated Web site, www.nespressopro.com, as well as through a distribution network comprised of independent Sales and Service Partners, Nestlé Nespresso SA owned subsidiaries and Nestlé local operations. Today, its Out-of-Home business represents 17% of Nestlé Nespresso’s portioned coffee sales turnover.