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Quality, Innovation and Service Drive Strong Nespresso Performance in 2012

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LAUSANNE, Switzerland, February 27, 2013 /PRNewswire/ --

Nespresso performed strongly in 2012, delivering solid, double-digit growth. The company cemented its position in its mature European markets and expanded its presence in the strategic Asia Pacific and Americas regions.

Overall growth was driven by a continued focus on coffee quality and personalised customer service offerings and a strong innovation pipeline. 2012 was highlighted by the launch of five new Limited Edition Grand Cru coffees and two new cutting-edge machines, as well as the further roll out of new services designed to enhance Club Members' experience.

"The exceptional Nespresso experience, combining highest quality coffees, innovative machines and personalised relationships with consumers, continues to stir widespread enthusiasm from coffee lovers throughout the world," said Richard Girardot, CEO of Nestlé Nespresso SA. "Our ability to manage quality from cherry to cup, surprise and delight consumers with exceptional tasting moments and nurture privileged dialogue with our Club Members is a key driver of our continued success."

Strategic geographic expansion complementing strength in historic markets

The company's strategy of selective geographic expansion continues to pay dividends, with a tripling of the share of sales coming from outside of historic European markets over the past five years. Entry into the Finnish and Taiwanese markets expanded the availability of Nespresso products to almost 60 countries worldwide. 52 new boutique openings in 2012 contributed to reinforcing the company's direct-to-consumer model. Today, the global Nespresso retail network counts over 300 locations in 199 cities in 48 countries, with 31 boutiques located in Zone AMS and 68 in Zone AOA. The Nespresso boutique network will expand in 2013 at a pace consistent with previous years, introducing new, innovative service offerings to our Club Members.

"Our growth remains strong and the brand awareness of Nespresso is increasing as the overall portioned coffee category demonstrates a positive trend. The potential in the segment remains substantial and we are well positioned to capitalize on this," said Mr. Girardot. "Mature and developing markets present different types of opportunities and we believe that we have the right product offering and strategic approach to deliver strong growth into the future."

Quality, innovation and service driving consumer loyalty

In 2012, Nespresso coffee experts scoured the world for the most exclusive coffees and created original blends for consumers and Club Members. The company's unique business model continued to guarantee rigorous quality management of the coffee from farmers to consumers, allowing Nespresso to manage innovation while delivering the highest quality coffee that is the company's hallmark.

New Grands Crus included Naora, a Limited Edition using a pioneering "late harvest" know-how inspired by oenology; Crealto, a long-roast coffee, inspired by high gastronomy; and Hawaii Kona Special Reserve, a highly exclusive Grand Cru composed of one of the most precious and rare coffees in the world.

The company further complemented its machine range offering, launching two new machines - Maestria and U - that combine cutting-edge technology, design and simplicity to guarantee consumers the best in-cup quality when used with authentic Nespresso capsules.

In 2012, an increased number of tailor-made services to consumers, including designated Pick-up zones in boutiques and Recycling@Home initiatives, were rolled out in various markets to support greater Club Member convenience and strengthen our direct consumer relationships.

The business-to-business sector also continued to grow in 2012, with innovations, customer service advances and strategic partnerships with high-end restaurants and hospitality establishments driving a double-digit growth in sales.

Meeting sustainability commitments

As part of its Ecolaboration™ commitment to sustainability and value creation, Nespresso strengthened its sustainability initiatives across its business. As the company prepares for the 10th anniversary of its AAA Sustainable Quality™ Program, more than two thirds of its green coffee is sourced from over 52'000 farmers taking part in the program.

Nespresso surpassed its 75% capsule recycling capacity commitment one year ahead of plan, with a global recycling capacity of over 76%. At the end of the year, over 20'000 collection points for used capsules were in place in 21 countries worldwide, in complement to the Green Dot system in Germany, Sweden and Finland.

Strong foundation for future success

2013 will mark a year of renewed innovation across the Nespresso coffee range, with new Grands Crus introductions to further shape the category and provide new sensory experiences for Club Members and consumers.

As part of a focus on long-term business development and to meet growing global consumer demand for its highest quality coffee in the years ahead, the company announced that it will build a third production centre in Romont, Switzerland. This CHF 300 million investment follows the completion of the extension of the Avenches Production & Distribution Centre during the second half of 2012.

In November 2012, the company announced that Jean-Marc Duvoisin, currently Deputy Executive Vice President Human Resources at Nestlé SA, would succeed Richard Girardot as the CEO of Nestlé Nespresso SA, effective March 1, 2013, ensuring strategic continuity for the business. Richard Girardot will leave to take on responsibility for the Nestlé business in France after having guided the company through a period of unprecedented growth. Mr. Duvoisin's deep knowledge of the company, his international experience and recognised leadership make him the right candidate to lead the company expansion, innovation and internationalisation in an increasingly challenging competitive environment.

For more information, visit the Nestlé Nespresso corporate website: http://www.nestle-nespresso.com.

An interview with Richard Girardot, CEO of Nestlé Nespresso SA, can be found here: http://www.nestle-nespresso.com/newsandfeatures/coffee-and-conversation-with-richard-girardot-2013

Picture material available here: http://www.nestle-nespresso.com/media/library/pictures

About Nestlé Nespresso SA

Nestlé Nespresso SA is the pioneer and reference for highest-quality portioned premium coffee. Headquartered in Lausanne, Switzerland, Nespresso operates in almost 60 countries and has more than 8 000 employees. In 2012, it operated a global retail network of over 300 exclusive boutiques.

Media contact

Diane Duperret - Associate Corporate PR Manager - T: +41-21-796-92-89

SOURCE Nestle Nespresso SA



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