Nestlé strengthens Nespresso with CHF 300 million investment in Switzerland

Nestlé is strengthening its premium portioned coffee brand Nespresso by investing CHF 300 million to meet growing consumer demand worldwide.

The company is to build a new factory in Romont in the Swiss canton of Fribourg to increase coffee capsule production.

Nespresso’s third production site will boost employment in the region, creating 400 new direct jobs in the long term.

It is the latest multi-million Swiss Franc investment that Nestlé has made in Nespresso in the last three years.

CHF 300 million was invested to build Nespresso’s second production and distribution centre in Avenches, Switzerland, in 2009.

“Long term development”

“For Nespresso, today marks a strategic investment in its long-term business development,” said Patrice Bula, Executive Vice President for Nestlé, responsible for the Strategic Business Units, Marketing, Sales and Nespresso.

“Some 25 years after creating the portioned coffee segment, the third Nespresso production centre will provide the capacity needed to sustain growth in Europe and develop our brand globally,” he added.

Further expansion

Construction of the factory is due to begin before the end of the year. It will be operational by 2015.

The factory will be one of three Nespresso production sites in Switzerland.

In addition to Avenches, Nestlé opened its first Nespresso production centre in Orbe.

Strengthening capabilities

Nespresso has continued to grow since it was launched by Nestlé over a quarter of a century ago.

Last year, Nespresso achieved sales of more than CHF 3 billion and growth of about 20%.

Strengthening its capabilities in emerging and developed markets, it has recently opened boutiques in Doha in the state of Qatar, Seoul in South Korea and Innsbruck in Austria.

There will be over 300 Nespresso boutiques worldwide by the end of 2012.

Renewable energy

As part of Nestlé’s continued effort to construct more environmentally friendly buildings worldwide, the new factory in Romont will use renewable energy produced by its coffee roasting technology to heat the building.

This is one example of how the company is using its unique sustainable platform Nespresso Ecolaboration to reduce its environmental impact.

The initiative was launched in 2009 with a commitment to source high quality sustainable coffee, increase capsule collection recycling capacity and reduce its carbon footprint.

“Quality and innovation”

“Nespresso is a Swiss company. We have a reputation for quality and innovation in our home market and worldwide,” said Daniel Lagger, Director of Operations for Nestlé Nespresso S.A.

“Our new investment reinforces this.”

Investing in Switzerland

Other parts of the Nestlé group are investing in Swiss facilities.

Cereal Partners Worldwide, a joint venture between Nestlé and General Mills, invested CHF 50 million in 2009 in a new innovation centre in Orbe dedicated to develop nutritious breakfast cereals.

In the same year Nestlé invested CHF 25 million in a new Chocolate Centre of Excellence in Broc.

In 2008 the company invested CHF 180 million over three years in its Nestlé Nutrition production site in Konolfingen.

“In the last ten years, Nestlé has invested over CHF 3.3 billion and created more than 3,000 jobs in Switzerland,” said Eugenio Simioni, Market Head for Nestlé Switzerland S.A.

“We have four new inaugurations already scheduled in Switzerland by the end of 2012,” he added.