Corporate

backgrounder
Nestl Nespresso SA, Corporate Communications, March 2013

Coffee is at the heart

of all we do. Yet consumer
pleasure is why we do it.
AT A GLANCE
Coffee is at the heart of all we do. Yet consumer pleasure is why
we do it. The Nespresso story began with a simple but revolutionary idea: enable anyone to create the perfect cup of coffee just
like a skilled barista. From its beginning in 1986, the Nespresso
brand concept has redefined and revolutionised the way millions of
people enjoy their coffee today, and it has shaped the global coffee
culture. Nespresso is not just a coffee. It is a genuine experience
that combines perfection and pleasure, simplicity and aesthetics.
Nespresso has evolved from being the pioneer and trendsetter into
the reference in the portioned coffee category through a singular
focus on delivering the ultimate coffee experience to our consumers
cup after cup. This is the cornerstone upon which the company was
founded, and it is the foundation that has fostered the incredible
growth we have enjoyed over the last 27 years.
Our success is built on creating the highest quality Grand Cru coffees,
long-lasting consumer relationships and sustainable business success.
These will continue to be the Key Growth Drivers of our business
moving forward, as we compete in the dynamic and growing portioned
coffee category.
Nestl Nespresso is a company without boundaries, with both a direct
business-to-consumer and business-to-business approach. Our Unique
Business Model provides a competitive advantage and a strong platform for continued, sustainable growth as we continue to innovate
to deliver moments of pleasure and indulgence in everyday life. The
strength of our brand, the quality of our coffees and our unique service
offering also provide Nestl Nespresso with enormous growth opportunities in the professional sector as well as unique client engagement
and service opportunities for business partners.
An autonomous globally managed business of the Nestl Group,
Nestl Nespresso is present in almost 60 countries worldwide and
is headquartered in Lausanne, Switzerland. Over 8,300 employees
around the world are focused on continuing to provide the best coffee
and exclusive services to consumers around the world.

Performance
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.

over

2000

330 employees

2013
over 8,300 employees

Unsurpassed Coffee Quality

and Deep Coffee Expertise
NespressoGrand Cru coffees are produced from an exclusive selection
of the finest green coffee grown in the world. Our choice of exceptional
blends and pure, single origin coffees is specially developed to suit
every taste preference and offer variety to discerning coffee lovers.
Only an estimated 1-2% of the coffee grown
globally meets our specific taste and
Gourmet
aroma profiles and our high standards
coffee
10-20%
of quality and sustainability.
nespresso

1-2%

Commercial
grades

10%

of the world's
green coffee crop

The Nespresso coffee experts at our state-of-the-art production

centres in Switzerland orchestrate the subtle interplay of each coffees
complex properties, including acidity and body, to compose a range
of Grand Cru coffees with unique flavour and aroma profiles and a
tantalising crema.

A global network
of over 300 boutiques

For more information on Nespresso, please visit:

www.nestle-nespresso.com

Unstoppable Drive for Innovation, Distinctive

Design and In-House R&D Expertise
Continuous innovation and our passion for perfection have been
key drivers in our quest to consistently deliver the highest quality
coffee to consumers worldwide for enjoyment at home and away
from home. The Nespresso system the interaction between the
original Nespresso capsule and the genuine Nespresso machine is
designed to work as one to deliver the perfect cup of coffee time
after time by controlling every variable. It is a technology unique to
Nespresso, refined over 27 years by our in-house R&D experts.

Nespresso is a brand focused on creating perfect experiences and

moments of pleasure. The brand welcomes coffee lovers and invites
them into an exclusive relationship. The Nespresso Club has grown
organically into a global community of some of the most discerning
coffee connoisseurs, and it has played a part in evolving the global
coffee culture. These Club Members stand as the true representation
of our brand and a lifestyle that is selective, yet inviting; accomplished,
yet inspiring; simple, yet refined.

Unique Business Model and Route to Market

Our unrelenting focus on innovation and R&D led to the invention of
unique technology that delivers a balance between the right water
temperature, quantity and speed, along with 19 bars of pressure,
creating the perfect cup every time. Today, Nespresso machines
range from the compact Essenza model to the Pixie and U models to
the specifically designed business-to-business machines.

Aspirational, Global Brand and Passionate Global

Brand Community
Over 27 years, Nespresso has grown into one of the most wellrecognised brands in the world of coffee, trusted by millions of consumers the world over as a mark of passion, authenticity and service.
The combination of the brands entrepreneurial roots and the modern,
forward-looking approach to innovation continues to keep Nespresso
relevant in the minds of consumers. It has also allowed it to transcend
the product category to become a truly global symbol of understated
elegance. Our global network of boutiques offers an insight into the
brand, providing consumers with a unique opportunity to experience
Nespresso with all their senses. With the opening of over 50 boutiques in 2012, including new flagships in London, San Francisco and
Seoul, the global Nespresso boutique network grew to more than
300 boutiques worldwide.

We are responsible for every stage of the sourcing, production

and sale of our coffees. Our Unique Business Model enables us to
guarantee quality at every stage of the value chain and to maintain
a direct dialogue with our consumers and Club Members. Our unique
route to market encompassing our e-commerce platform, our exclusive boutiques and our dedicated Customer Relationship Centres (call
centres), along with our partner model for machine distribution provides us with a unique competitive advantage versus our competitors.
Business-to-business sales provide an exciting area of growth. We
continue to innovate in our business-to-business offerings, providing
solutions designed to meet the needs of some of the most discerning
hosts in the business and hospitality industry.

Unique Expertise and a Holistic Approach

to Sustainable Quality Development
We recognise our obligations as the reference in portioned coffee
worldwide, and we are committed to ensuring sustainability throughout our operations. It is an important component of what our Club
Members and partners expect from us, and it is a core value of our
company.
The Nespresso EcolaborationTM program provides a framework for
partnership and innovation to drive ongoing, sustainable development. The program examines all aspects of coffee sourcing, the
production, use and disposal of our capsules, and optimisation of
our environmental performance.

over

300 boutiques
worldwide

By 2013, we have committed to:

Source 80% of our coffee through our unique AAA Sustainable
QualityTM Program, including Rainforest Alliance certification.
Put systems in place to increase our capacity to recycle used
capsules to 75%.
Reduce the overall carbon footprint required to produce a cup of
Nespresso coffee by 20%.
Nespresso has surpassed its recycling capacity commitment one
year ahead of plan, reaching 76.4% at the end of June 2012.