headline press information

Date 30th August 2010 / www.procarton.com

Black Gold in a Folded Carton


Since 2000 Nespresso has become both a world brand and the market leader in portioned coffee - with an average growth rate of 30 per cent per annum. None of Nestlé's other business segments could match this performance.

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According to AC Nielsen the segment "portioned coffee" presently represents just 5 per cent of the market volume on European and north American markets and thus equates to 10 per cent of total coffee consumption worldwide. Nespresso expects these numbers to increase to 12 per cent by 2015 and 25 per cent in terms of value. Excellent prospects indeed.

Nespresso was established in 1986, but the business only really started to boom in the new century. Even in the economically difficult year of 2009 and in spite of more than 20 competitors, turnover still increased by 22 per cent to 1.87 billion Euros.
Over half of capsule sales are via the Internet, the most important sales channel, a further third is sold via own shops, and he rest via a number of smaller channels. At present Nespresso runs 191 own boutiques in over 50 countries and has 7.8 million registered "club members". That is 1.8 million more than the year before. Another 38 branches will be added this year.

A new sales channel is to be added, an app for Apple's iPhone. Medium-term Nespresso expects to generate 10 to 20 per cent of sales with this channel. In spite of numerous competitors the brand appears invincible at present, the power of the brand is based on three pillars:


1. Quality
Nespresso select their green coffee from so-called special and gourmet coffees which only represent 10 per cent of worldwide coffee production. Own experts conduct tests and monitoring during each phase of the production process - from the country of origin to processing in Europe - to ensure the quality standard.
Every year Nespresso complements its range by unknown, local "discoveries". These harvests come in small volumes from specially selected growers and are processed to Grand Crus which are only available in limited quantities twice a year: the "Special Club" and the "Limited Edition".
Everything to do with Nespresso is shrouded in exclusivity: the capsules are presented in elegant folded cartons and only on sale in stylish Nespresso boutiques or to members of the "Nespresso Club" via the Internet.


2. Environmental protection
Since 2003 Nespresso has backed sustainability and thus improved quality of life fort he coffee growers. The AAA Sustainable Quality Programme was introduced together with the Rainforest Alliance. This ensures that growers supplying the coffee are well remunerated in line with the quality supplied.
With a specially established platform for sustainable growth ("Ecolaboration") Nespresso hs set itself the target of obtaining 80 per cent of coffee via a Rainforest certified programme by 2013 and to reduce coffee production CO2 output by 20 per cent. Recycling of cartonboard is straightforward, the collection network for recycling the capsules is to expand substantially by 2013. Not only will aluminium be recycled, but also the coffee grounds - for example as natural fertiliser for agriculture or as source of energy.


3. Presentation
A touch of exclusivity is part of everything to do with Nespresso: the capsules are not widely available, only at special locations, and Hollywood star George Clooney acts as figurehead. Brewing the coffee drink no longer presents any difficulties. The days when entire generations struggled with making more or less bitter-tasting brown liquids are over. Capsules and specially designed coffee machines ensure perfect coffee, cup after cup.
The packaging material cartonboard is a mainstay fort he design - also a key element in shop design. The appetising presentation of the stacked "capsules" in the specially designed Nespresso folded carton and its dark attractive appeal increase the pleasure of consuming coffee, as well as giving a rewarding experience when offering others a choice of coffee from the carton. Pleasure guaranteed!





Richard Dalgleish +44 777 613 8510 dalgleish@procarton.com
Suzanne McEwen +43 1 218 6918 mcewen@procarton.com
Background Pro Carton is the European Association of Carton and Cartonboard manufacturers. Its main purpose is to promote the use of cartons and cartonboard to brand owners, the trade as well as designers, the media and politicians as an economically and ecologically balanced packaging medium.