Nespresso further expands in the Middle East
Nespresso, the premium coffee brand of Swiss food giant Nestlé makes up eight percent of total worldwide coffee sales, a figure that Richard Girardot, CEO of Nespresso, believes could double in the next few years. “We believe that portion coffee has many drivers, the percentage of portion coffee will double,” he tells CEO Middle East. “Nespresso is on the same [growth] trend [as 2011]; it will be 15 percent,” he adds.
Nespresso, which currently has 15 mono-brand locations across the region, says the Middle East is becoming an increasingly important market for the firm. “[The Middle East]; it’s the future. Nespresso is still a Western European [company] because of the coffee culture in Italy and France, but clearly the brand has the potential to be worldwide. This region is one of the key [markets] for the future; we believe there is huge potential for this region,” says Girardot.
“Our strategy is [to expand in] cities where there are two habits; the habit to appreciate the coffee and the habit of shopping. Clearly this region has a habit of shopping, so here we have to develop,” he adds.
In addition to expanding its boutiques in the region — a figure Girardot declines to give — the Swiss-based firm will also introduce a website that will initially offer delivery services within the UAE before branching out to the wider GCC, says Jean Marc Dragoli, market director for Nespresso, Middle East, Africa and Caribbean.
Today, Nespresso is a $3.3bn brand with over 250 retail outlets worldwide, and is Nestlé’s fastest-growing major brand. The firm outsells rival Lavazza in Italy, sells more servings of coffee every year than Starbucks and is now the global market leader with 35 percent of the market. The firm’s factory in Orbe makes 4.1 billion capsules annually and said it plans to double capacity to 8.8 billion capsules by 2012.