NestlÃÆ'  © Nespresso S.A. , trading as Nespresso , is a NestlÃÆ'  © Group operating unit, based in Lausanne, Switzerland. Nespresso machine brewing espresso and coffee from coffee capsules, or pods on machines for home or professional use, a kind of disposable pre-distribution ground coffee seeds, sometimes with added flavorings. Once inserted into the machine, the capsule is pierced and processed, the water is then forced against the heating element at high pressure which means only the quantity for one warmed cup. Nespresso is a premium coffee price, and in 2011 had annual sales of more than 3 billion Swiss francs. Nespresso words are portmanteau NestlÃÆ' © and Espresso , common mechanics used throughout other NestlÃÆ'  © brand names (Nescafà ©  ©, BabyNes, Nesquik).
All Nespresso coffee is roasted, ground and packed in one of three Swiss factories (Avenches, Orbe & Romont), but the company sells its engine and capsule systems around the world, as well as VertuoLine systems in North America and certain other countries.
Video Nespresso
Histori
In 1976, Eric Favre, a NestlÃÆ' © n employee, discovered, patented and introduced the Nespresso system to the business market in Switzerland, initially without any significant success. She was inspired as she watched the crowd of locals waiting outside a certain coffee bar in Rome and closely monitored Barista's methods. Nespresso first tested its new concept in Japan in 1986, and launched it to consumers in Switzerland, France, Italy and Japan in the same year. A decade later, partly because of the efforts of Jean-Paul Gaillard who introduced the  «Le Club» community, his products became more successful. In 1990, NestlÃÆ'  © signed a contract with Turmix, which began selling Nespresso machines in Switzerland. After that, another contract was signed with Krups, Magimix, Alessi, Philips, Siemens and De'Longhi. Started as an e-commerce business, Nespresso only opened their first boutique in Paris in 2000 as a concept store. Currently, Nespresso has a global network of more than 700 boutiques in 67 countries.
The first patent application for the espresso brewing Nespresso process from a capsule containing ground coffee was filed in 1996.
Maps Nespresso
Nespresso System
Machine
Nespresso sells or licenses a number of different machines that are mostly made in Europe. The machines carry the names of famous kitchen equipment manufacturers such as Krups, Breville, and DeLonghi, but most are produced by Eugster/Frismag, a Swiss company that is one of the largest coffee machine manufacturers in the world. DeLonghi produces the exclusive model of Lattissima in Italy exclusively. Eugster/Frismag is an original equipment manufacturer (OEM) and is not sold under its own brand. In 2000 Nespresso began distributing machines under the brand name "Nespresso". There are many diverse models in complexity and price, from Inissia entry levels, U and Pixie ranges.
Capsule
The Nespresso capsule is sold exclusively by Nespresso and is significantly more expensive than the amount equivalent to "loose" ground coffee. Due to the sealed capsule, the aroma of coffee does not decrease with time like coffee in packs that have been opened. Nespresso currently sells 24 different arabica capsules and Robusta Original Line. The Limited Edition is released on a seasonal basis.
Each capsule contains 5-7 grams of ground coffee and makes one serving of coffee. Depending on the length of the cast, the capsule can produce 40 ml espresso shots, or 110 ml lungo (long) castings. Capsule bodies and hollow tops are both made of aluminum. To reduce concerns about potential health effects of aluminum, most of the interior capsules are coated with food grade lacquer.
For the business market, different Nespresso pod systems exist. This pad-shaped capsule can not be exchanged for consumer capsules.
Process
Nespresso sealed capsule made of aluminum. Depending on the Nespresso system used, the flat top or pointed end of the capsule is penetrated when inserted into the engine and the compartment lever is lowered. Some machines make one big hole, and the other makes 3 smaller holes. When the engine is activated, the hot water pump under high pressure into the injector hole pokes into the narrow end of the capsule during insertion. This causes the flat bottom of the capsule to break, since it is made of thinner foil than other capsule parts. The base of the capsule holder (where the capsule sits) has a number of high squares that cause the foil to break at these points. The coffee is sucked out of the capsule through this burst opening and flows through the channel nozzle into the coffee cup. As with the pressure cooker, the pressure relief valve in the brewing chamber prevents explosion if the normal coffee exhaust path becomes blocked.
VertuoLine System
To attract demand by North America for a larger portion of coffee than the original Nespresso machine produced, in February 2014 Nespresso launched a new Vertuoline engine and capsule system in the United States and Canada. This system produces 40ml coffee, 150ml coffee, 230ml coffee, and 414ml coffee which features authentic espresso and Nespresso coffee. Nespresso simultaneously uses more than 20 mixtures in a specially designed VertuoLine capsule. The VertuoLine capsule can not be used in the original line of Nespresso machines (now branded "OriginalLine" in North America). Nespresso continues to sell OriginalLine and VertuoLine engines and capsules in the United States and Canada, targeting different market segments with both systems.
The VertuoLine system uses two technologies not found in OriginalLine. First, the system uses a "centrifuge" (a term coined by Nespresso, which is a centrifugal and infusion portmanteau), where it spins capsules inside the engine up to 7,000 rpm for mixing ground coffee and hot water. Second, each capsule has an embedded barcode at the edge, and the barcode laser scanning system reads 5 different parameters: cup size (coffee or espresso), temperature, rotational speed, flow rate and water time in contact with ground coffee. Some critics claim that VertuoLine technology, especially the use of bar codes, is NestlÃÆ'Â © Â © effort to create a new exclusive Nespresso system that does not include compatible capsules from other companies.
The VertuoLine system is intended to expand the Nespresso product line to offer coffee closer to the American style of filtered coffee, and thus expand Nespresso's market share in North America. In the United States, Nespresso only has a 3% single-serve coffee market share in the year prior to the introduction of VertuoLine (compared to 72% for the Green Mountain Keurig system), while in Canada Nespresso has 4 to 5% of serving single market by 2013 (compared to with about 53% for Keurig and 40% for Tassimo). By comparison, NestlÃÆ' Â © has 70% of the single service market in Europe in 2013.
At the introduction of the VertuoLine system in 2014, there are no plans to launch systems in markets outside of Canada and the United States. However, the sale of the VertuoLine system expanded beyond North America in 2016, first with the launch of the system in France in 2016 under the name Vertuo (with original "Original" branded lines), and then rolled out in other countries such as the UK and Australia.
Business model
In 2010, the concept (engine, capsule, service) is still subject to 1,700 patents that protect Nespresso's ownership of the concept until it runs out. This is different from some pre-packed coffee preparation system. This led to a comparison of Nespresso with printer manufacturers who tried to block the sale of generic ink cartridges, to achieve vendor key effects. Nespresso patents are due to expire in 2012, gradually allowing competitors to offer capsules and machines compatible with the Nespresso system. In 2010, NestlÃÆ'Â © is working on ways to prevent competitors from doing this. The Nespresso - Nespresso Club business services section and Nespresso store and cafes - aim to be long-term defense for brands, elevated imagery and premium pricing. Beyond the attentive customer service and being the only place where most customers can fill their 'pod', this brand has been able to link the image of exclusivity and hospitality to the ship through these-personal and brand-touch points. Actor George Clooney appeared in Nespresso ads, with company representatives insisting that he has been chosen by members of the Club to become brand ambassadors (vs. brand 'buy sponsors'), in the form of celebrity ads that emphasize brand status beyond that of the supporting star.
Market
The espresso coffee packaging, such as those from Nespresso, has become one of the fastest growing coffee market segments, contributing 20 to 40 percent of the value of coffee powder sales in the European coffee market for a total of USD 17 billion. In August 2010, it was reported that Nespresso sales had grown an average of 30 percent per year over the previous 10 years and more than 20 billion capsules had been sold since 2000 with the current selling price equivalent to about USD 0.43 to USD 0.62 per capsule.
Nespresso reported annual sales of CHF 3 billion in 2011, growing by 20% over the fiscal year.
Cost
Nespresso gets most of its coffee through the Nespresso AAA Sustainable Quality Program. By 2017, the company reports that 82% of the beans are sourced through the scheme. In the US, the price of capsules in 2014 ranges from US $ 0.65 to US $ 0.70 each. In Europe, the price is around EUR0.35/capsule in the Netherlands. There is a minimum order quantity of 50 capsules, and the standard delivery for 50 capsules is US $ 6.95, increasing the total cost per capsule to US $ 0.79 to US $ 1.10. Free shipping for orders of 200 capsules or more.
Ecological impact
Unless the capsule is recycled, every Nespresso coffee cup produces aluminum waste, the main ingredient of the capsule. There is 1g of aluminum in one capsule (including cover) compared to about 13g for soft drinks. Aluminum recycling uses up to 5% of the energy required to produce aluminum from ores. To begin with, NestlÃÆ' Â © does not implement recycling programs outside some parts of Switzerland. This led to the generation of large per-cup waste, which was criticized by some user groups. Currently, Nespresso recycling programs are available in 36 countries. France and Switzerland are some of the biggest buyers of Nespresso so that recycling facilities are more accessible in these countries.
A small portion of the capsule is recycled: 24.6% of Nespresso capsules are recycled globally, but the company claims that it has the capacity to recycle 100% of its capsules through a recycling program. The proportion of recycled aluminum in the capsule is not known for certain, but is expected to be greater than 80% capsules produced (per year) by 2015. The company has launched a program called "collaboration ÃÆ'Â Â" to try to fix the problem. Programs defined with specific "roadmap" around recycling and sustainability - program targets are met by 2014, and new sustainability programs are launched: "The Positive Cup".
In addition to the recycling program, the Positive Cup strategy includes goals and roadmaps on sustainable coffee sources under the AAA Nespresso (TM) Sustainable Quality Program. The AAA program, developed jointly by the Rainforest Alliance and launched in 2003, is focused on helping farmers who grow and supply Nespresso coffee. Nespresso claims that this is done by teaching the best business growers and emerging practices. The company claims the participating farmers are not required to sell to Nespresso, although the company says many choose as Nespresso claims to offer a fair price for coffee and help in all aspects of the farmers business. Nespresso offers up to 40% premium for bean prices, and about 75,000 farmers from 12 countries participate in the AAA Program.
Nespresso Pro Capsules, OriginalLine and VertuoLine can be recycled at one of the Nespresso recycling facilities.
Marketing campaign
George Clooney is considered a "face of the Nespresso" and has starred in the Nespresso ad campaign since 2006, first in European and international campaigns and since 2015 in the US market as well. In this campaign Clooney has paired with actors like John Malkovich, Danny DeVito and Matt Damon, who reportedly received $ 3 million for his participation.
Competitors and litigation
Machine
In August 2011, the Australian company Kogan announced the development of "Ez-press", a coffee machine compatible with Nespresso capsules.
Capsules
Dutch company Douwe Egberts has launched a coffee capsule that is compatible with Nespresso machines in Europe and the United States. Unlike Nespresso capsules, L'OR EspressO capsules are made of plastic and have been hollowed before, and, to maintain freshness even this, are packaged individually in airtight bags. However, in May 2017, Douwe Egberts launched a new aluminum capsule, after Nespresso lost their exclusivity.
In mid-July 2010, Sara Lee, who in France made coffee under the brand "Maison de Cafà © à ©, launched L'OR EspressO using plastic capsules that matched with Sara Lee's own espresso machine and system Nespresso. In August 2010, according to Sara Lee, more than 30 million capsules of L'Or have been sold. NestlÃÆ' © has sued Sara Lee, accusing the latter of infringing her patents. In December 2010, Sara Lee announced that they would start selling their capsules in the US under the name Douwe Egberts, and since mid 2011, Sara Lee has expanded its capsule sales to other countries, such as Spain where they are sold under the "Marcilla" Brand.
In 2011, Jean-Paul Gaillard, former CEO at Nespresso, started a competing company, Ethical Coffee Company SA (ECC), to make compatible biodegradable capsules for Nespresso machines.
The Italian company CaffÃÆ'¨ Vergnano also launched a capsule that is compatible with a Nespresso machine, called ÃÆ'Ë †spresso . NestlÃÆ' Â © Nespresso has been accused of miscalculating the use of competing capsule products in its machines. The capsule of Vergnano, unlike Nespresso, can be found in supermarkets and small shops.
Other competitors include the Swiss start-up, Nexpod, which offers Nespresso-compatible blank capsules that can be filled with coffee (or tea) by buyers, CapsuleCup from Hong Kong that provides large-scale compatible capsules and South African companies based in Cape Town which sells capsules that are compatible with Nespresso under the trademark of CafÃÆ'Â © -Caps . Cafe Caps specializes in private label production. CaffÃÆ'¨ Negrini is sold at over 800 stores in Austria. In the UK, Dualit and Cafepod have launched generic products. In the United States HiLine Coffee Company launched a website on July 4th that sells Nespresso capsules that are compatible with the Independence theme of Nespresso.
The Berlin-based Gourmesso start-up also offers Nespresso-compatible capsules, launching websites in Germany in early 2013 and expanding to other European countries by the end of the year. Gourmesso USA was launched early in 2014. Since its launch, Gourmesso has received Fairtrade International certification for nearly all 20 coffee blends. They also offer a number of EU certified Organic and USDA products. In early 2016 Gourmesso also launched a line of Tea Capsules for use in Nespresso OriginalLine machines.
In October 2014, Artizan Coffee Company, a specialty Coffee Roaster in Miami, received full USDA Organic Certification status for its Nespresso Coffee Capsule line, making Artizan Coffee Company the first and only compatible coffee capsule manufacturer with Nespresso machines to bring the USDA Organic Seals. In 2014, the Australian company, Tripod Coffee, launched their own capsule series, bringing to Australia's first closed 'hermetic capsule' capsule market. In early 2015, the US-based Rosso CaffÃÆ'® launched, also produces Nespresso-compatible capsules that sell independent mixtures for use in Nespresso machines.
In March 2014, Indulge Beverages Pvt. Ltd. also launched a compatible Nespresso capsule for the Indian market under the brand name Bonhomia. They introduced a new limit by launching tea capsules that are compatible with Nespresso machines. Bonhomia is focused on coffee and tea with Indian origin. Also in 2014 the Australian brand PODiSTA launched the world's first multi-beverage Nespresso series including coffee, five chocolate flavors and three sugar-free children's products (chocolate, strawberries and beehive)
In March 2016, Starbucks announced it would sell capsules compatible with Nespresso in Europe. It is launched with four core pods including three single origin pods, and is compatible with all Nespresso consumer machines. However, they are not compatible with built-in units such as those in Miele's integrated units or Nespresso machine business solutions.
In early 2017, Scandinavian-based Nespresso's main rival, Real Coffee, introduced a recyclable and recyclable recycled chocolate capsule compatible with Nespresso engines to Europe, increasing machine versatility. The brand, currently present in Denmark, Sweden, Norway and the UK, is known for its focus on coffee pods of ethical nuance. This includes the use of certified organic coffee and Fairtrade as standard, and recyclable capsules.
Additional competitors for Nespresso, offering compatible capsules, including brands such as Jones Brothers, Bestpresso, Carter Phillip, Roasters Coffee UK and Coffee Lab.
Litigation
In March 2011, Swiss discount supermarket, Denner, won a court battle with NestlÃÆ' Â © over the sale of Nespresso compatible capsules. The plastic capsule is approximately half the retail price of the Nespresso capsule.
In 2014, Nespresso has engaged in further legal disputes about pods with competitors in Britain, Germany, France, Belgium and the Netherlands, and as summarized in a media report, "NestlÃÆ'Â © has lost almost all such conflicts." In France - the largest Nespresso market that made up a quarter of its global sales at the time - the antitrust watchdog AutoritÃÆ'Â © de la concurrence stated that "it seems that Nespresso may have abused its dominant position by binding the purchase of its capsule with its coffee machine, without fair justification, de facto expelling capsule makers competitor ". The Company agrees to no longer limit warranties on a single serving machine by enforcing the condition that the customer only uses his own Nespresso pod, and to remove warnings against the use of third-party pods.
See also
- Dolce Gusto
- Delta CafÃÆ'Â © s
- Lavazza
- Flavia Drink System
- Handpresso
- Espresso
- Keurig
- Senseo
- Tassimo
- Caffitaly
- Saeco
References
External links
- Official website
Source of the article : Wikipedia
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