By Staff writer
Nestlé Nespresso, a Swiss producer of premium portioned coffee, is planning to open a new coffee production- distribution centre in Switzerland in 2008.
Gerhard Berssenbrügge, CEO of Nestlé Nespresso, which is part of the Nestle group, said that further expansion was necessary to keep up with increased consumer demand for its premium coffee products. Nespresso has experienced compound annual growth of more than 30% for the last five years.
The new centre will help Nespresso achieve its goal to become a one billion CHF (US $ 8.09 million) company by the end of 2006, and a two billion CHF (US $1.6 billion) company by the end of 2010, by which time the facility will employ more than 230 full-time staff. Nestlé will invest more than 150 million CHF (US $1.21 million) in the new operation.
“While we conducted a European study to assess the best location for our new centre, in the end, we decided that the ideal location was in Switzerland,” said Berssenbrügge, speaking from the company’s headquarters in Lausanne, Switzerland. “It was important to preserve the quality that Nespresso has become known for around the world, and we intend to build on this reputation.”
Lars Olofsson, executive vice president of Nestlé’s strategic business units and marketing, said Nestlé is committed to the future growth of Nestlé Nespresso, which is one of the fastest growing Nestlé business units worldwide. “Research and development has been one of the key drivers behind this growth,” he said. “In fact, Nestlé pioneered the portioned coffee market more than 20 years ago, and now with Nespresso, the market has gone through a dramatic revolution.” The new production centre will be approximately 9,000 square metres, and the distribution centre will be 8,000 sq m.