Single Serve Espresso Coffee Systems by Nespresso

A Chronology of Nestlé Nespresso SA Corporate History

From 1970 to 1985, 15 years of research

• In 1970, Nestlé’s Research and Development department invents the capsule containing freshly ground coffee and its pressurized coffee extraction process.
• In 1976, Nestec, the Nestlé Group’s development centre, files the first patent application for the process.

1986, the launch of the system

• In 1986, the Nespresso SA company, wholly owned by the Nestlé Group, is founded in Vevey. In partnership with Swiss manufacturer, Turmix, it launches the Nespresso system in the office coffee sectors of Switzerland and Italy. Capsule production is centralized at Nestlé’s factory in Orbe, Switzerland.

From 1987 to 2004, continued expansion

• In 1987, Nespresso is launched in the Japanese household market.
• In 1989, the Swiss household market is opened with machine partner Turmix and the Nespresso Club concept is introduced.
• In 1991, Krups becomes the machine partner for international operations. The system is launched in France and the U.S.A.
• In 1992, the Belgian, German and Dutch markets follow. Matsushita Electric Industrial becomes a new commercial partner for Japan.
• In 1993, Nespresso is launched in the Middle East. Koenig and Philips are appointed machine partners for Switzerland and Japan respectively.
• In 1995, the system is introduced in Australia, Spain and Austria.
• In 1996, Nestlé Nespresso SA celebrates ten years of success with 3,500 points of sale and 180,000 affiliated Club members. The system is also launched in Great Britain, Malaysia, Singapore, Taiwan and Hong Kong.
  Launch of the Nespresso Professional system to provide convenient machine solutions and premium-portioned coffee to small or medium sized businesses, to the premium hotel and restaurant sector and to many airline companies.
• In 1997, new machine partnerships include Jura for Switzerland and Magimix for France and the Benelux.
  The system is introduced in Greece.
• In 1998, the company widens its range: in partnership with Alessi it launches a machine of distinctively avant-garde design. Marking a strategically important evolution, it introduces its first major advertising campaign in the European press and expands its horizons with a newly redesigned Internet site: www.nespresso.com.
• In 1999, market penetration is extended in Italy, in Poland and in the Middle East. Nestlé Nespresso develops an intensive program of renovation and innovation for its machine range, points of sale and Club customer services.
• In 2000, the company renews the design of its espresso machines, including a range of colour machines. The first Nespresso TV advertising campaign is aired across Europe and a growing number of orders are placed on-line. A new “shop-in-the-shop” merchandising concept is launched in more than fifty European outlets. At the end of 2000, Nestlé Nespresso SA moves into new corporate headquarters in Paudex, Switzerland.
• 2001 saw impressive growth. The ease-of-use and striking ergonomic design offered by the Nespresso “Concept Machine” launch led to record machine sales. Nestlé Nespresso SA begins construction of a new production centre for coffee capsules in Orbe, Switzerland.
• In 2002, construction of the new production facility in Orbe is complete and capsule production capacity is expanded 400 per cent to meet future growth requirements. Expanding its machine offer, a uniquely convenient “automate” version of the system is introduced. The introduction of Nespresso Boutiques provides an additional presence for the brand in major cities, while on-line orders increase 94 per cent during the year. E-business now accounts for 30 per cent of the company’s turnover.
• In 2003, Nestlé Nespresso SA inaugurates its new worldwide Production Centre in Orbe. After 12 months of construction and preparation, the Production Centre is now fully operational with 123 full-time staff and is responsible for the worldwide production of Nespresso’s unique coffee capsules for the household and out-of-home markets.
  Nespresso is launched in Norway, Portugal and Moscow.
  The new Automatic Nespresso Machine is launched, marking a significant breakthrough in cappuccino preparation technology after five years of research and development.
  At the Sintercafé Convention in Costa Rica, Nestlé Nespresso SA announces the launch of its “AAA Quality Coffee” programme designed to promote production and supply of sustainable, highest quality coffee.
  Nespresso announces its co-sponsorship of Team Alinghi, the Defender of the 32nd America’s Cup, the sailing world’s most prestigious competition and the oldest trophy in sport.
• In 2004, Nespresso is launched in Sweden.
  New machines are introduced including the Nespresso Essenza system as a new range of Compact Line machines, the Nespresso Siemens SN 50 Concept Flow Stop, a new interpretation of the classic concept machine and the high-end Nespresso Siemens SN 70 Romeo.
  The Nespresso Magazine, a biannual coffee lifestyle guide tailor-made for Club members, is launched with a circulation of 750.000.
  Nestlé Nespresso SA signs an event Supporter agreement with AC Management, making Nespresso the Official Coffee of the 32nd America’s Cup and providing excellent brand exposure over a four year program of prestigious sailing competitions culminating in 2007 in Valencia.
  The 2004 GfM Marketing Prize in Switzerland was awarded to Nestlé Nespresso for their outstanding results achieved through innovative marketing strategies and effective marketing measures.

Nestlé Nespresso SA in 2004 Key Facts

• 25 % annual growth since its market introduction in 1988
• CHF 600 million in turnover (€ 389 million) plus 34% compared to 2003
• More than 1’000 employees
• With 18.5% Europeans market leader in espresso machines (Source: GFK)
• Present in more than 35 countries
• 17 subsidiaries
• More than 70 independent agents representing Nespresso Professional
• 16’000 points of sale
• 33 Boutiques
• 1,6 million active affiliated Nespresso Club members
• 200’000 Out-of-Home customers
• 9 machine partners
• 19 different machine models (In-Home)
• 5 different machine models (Out-of-Home)
   
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• © 2006 Nestlé Nespresso S.A.