Overall growth for Nespresso globally 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, tripling the share of sales coming from outside 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.
In MEAC, Nespresso opened two new boutiques in 2012, with a further three launched in the first two months of 2013, taking the total number of boutiques to 24 across 20 markets. These include Jeddah and Khobar in KSA, Doha in Qatar, Manama in Bahrain and Rabat in Morocco.
"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."
Pierre Debayle, Regional Manager of Nespresso Middle East, Africa and Caribbean, is positive about the perspective in the region as well:
"Nespresso MEAC delivered a solid performance in 2012, continuing the consistent work on the brand with an efficient conversion into machines and Grand Crus sales.
2013 shall prove our capacity to accelerate our growth in the region by increasing our investments and strengthening the brand with our communication and innovations
The presence of Nespresso is more and more visible, and the ambition is to rapidly become a key player in this increasingly important market."
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.
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. In MEAC, Nespresso launched its Aguila machine which was well received by B2B customers including restaurants, hotels and caterers in 2012.
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 Programme, more than two thirds of its green coffee is sourced from over 52'000 farmers taking part in the programme.
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. Nespresso MEAC is also currently working on a recycling solution for the region, with further details to be announced.
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. In MEAC, key growth drivers in 2013 are expected to come from new machines such as the recently launched Maestria, along with the launch of the E-commerce platform of Nespresso already live in Cyprus, Qatar, KSA and Mauritius.
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 CHF300m 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.