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Nestlé Nespresso S.A.
Trade name
Nespresso
Société anonyme
Founded 1986; 39 years ago (1986)
Headquarters Vevey, Switzerland
Number of locations
700+ (2020)
Areas served
Worldwide
Key people
Guillaume Le Cunff (CEO)
Products Coffee capsules/pods, coffee machines
Number of employees
13,500 (2017)
Parent Nestlé S.A.

Nespresso is a company that makes coffee machines and special coffee capsules. It is part of the Nestlé Group and is based in Vevey, Switzerland.

Nespresso machines brew coffee from small, sealed containers called coffee capsules or "pods." These pods hold ground coffee beans, sometimes with added flavors. When you put a capsule into the machine, it gets pierced. Hot water is then pushed through the capsule at high pressure to make a single cup of coffee.

The name "Nespresso" is a mix of "Nestlé" and "Espresso." This is a common way Nestlé names its products, like Nescafé or Nesquik. All Nespresso coffee is roasted, ground, and put into capsules in Switzerland. The company sells its machines and capsules all over the world.

How Nespresso Started

In 1975, a Nestlé employee named Eric Favre noticed something interesting in Rome, Italy. A coffee bar near the Pantheon had many more customers than other coffee shops. He found that the baristas (coffee makers) at this popular shop pumped their espresso machines many times. Other shops only pumped once.

This repeated pumping pushed water and air into the coffee. This made the coffee taste better and created a foamy layer on top, called crema.

Favre used this idea to invent the Nespresso system. He created a sealed pod that kept the coffee fresh. When used, the pod allowed more air to mix with the coffee, just like the pumping he had seen. A sharp spout on the machine pierces the capsule and injects hot, pressurized water. This forces the foil at the bottom of the capsule to burst, letting the coffee flow out.

Nespresso capsule holder
The base of a first-generation Nespresso machine capsule holder. You can see the raised squares that help the capsule burst, and the holes where the coffee comes out.

Nestlé patented this system in 1976. The first machines were complex and took a decade to be ready for sale. Nespresso first tested its idea in Japan in 1986. That same year, it launched the system for people to use at home in Switzerland, France, Italy, and Japan.

About ten years later, the product became much more successful. This was partly thanks to Jean-Paul Gaillard. He started the Le Club community, which helped Nestlé understand what customers liked. He also made the machines cheaper but increased the price of the capsules. This helped change Nespresso from an office machine into a luxury brand for homes.

In 1990, Nestlé started working with other companies like Turmix [de], Krups, Magimix [fr], Alessi, Philips, Siemens, and De'Longhi to sell Nespresso machines. Nespresso started as an online business. Their first physical store, called a "boutique," opened in Paris in 2000. Today, Nespresso has over 700 boutiques in 68 countries.

In 2022, Nespresso became a certified B Corporation. This means they meet high standards for social and environmental performance.

How the Nespresso System Works

Machines

Nespressso Machine
A Nespresso machine that uses professional-grade Nespresso pods. These are different from the ones for home use.

Nespresso sells many different coffee machines. Most are made in Europe by companies like Krups, Breville, and DeLonghi. However, many are actually made by Eugster/Frismag, a Swiss company that makes a lot of coffee machines for other brands. DeLonghi makes some special models called Lattissima in Italy.

Since 2000, Nespresso has also sold machines with its own "Nespresso" brand name. There are many models with different features and prices, from simple ones like the Inissia to more advanced ones.

Capsules

(Left): Different Nespresso OriginalLine capsules. Each color shows a different coffee flavor. (Right): The bottom of a used Nespresso capsule. You can see the holes where the coffee came out.

Nespresso capsules used to be sold only by Nespresso. They were more expensive than regular ground coffee. However, because the capsules are sealed, the coffee stays fresh for a long time. Nespresso sells many different types of capsules for its Original Line machines. They also release special "Limited Edition" flavors throughout the year.

Now that Nespresso's original patents have ended, other companies can make capsules that work with Nespresso machines. You can find these third-party capsules and even refillable ones in some stores.

Each capsule holds about 5–7 grams of ground coffee. It makes one serving of coffee. You can make a small 40 ml Espresso shot or a larger 110 ml Lungo (long) pour. Nespresso capsules are made of aluminium. Most of the inside of Nespresso capsules is lined with a food-safe material. This helps with any worries about aluminium.

There is also a different system of Nespresso pods for professional use, like in offices. These pods are shaped differently and do not work with the home machines.

Brewing Process

Nespresso capsules are made of aluminum and are sealed tightly to keep the coffee fresh. When you put a capsule into the machine and close the lever, the capsule is pierced. Some machines make one big hole, while others make three smaller ones.

When you start the machine, it pumps hot water under high pressure into the capsule. This pressure causes the flat bottom of the capsule to burst open. The bottom of the capsule holder has raised squares that help the foil break at these points. The brewed coffee then flows out through these holes and into your cup.

This process creates a layer of crema on top of the coffee. Crema is made of tiny air bubbles mixed with the coffee's natural oils. It looks like a tan-colored foam floating on top of your coffee.

VertuoLine System

A new coffee system from Nespresso
A VertuoLine machine and capsules.

In 2014, Nespresso launched a new system called "VertuoLine" in North America. This system was made for people who wanted larger cups of coffee than the original Nespresso machines made.

The VertuoLine system can make different cup sizes: Espresso (40ml), Double Espresso (80ml), Gran Lungo (150ml), Mug/Coffee (230ml), and Alto/Alto XL (414ml). Nespresso uses over 25 special blends for VertuoLine capsules. These capsules do not work in the original Nespresso machines (now called "OriginalLine"). Nespresso sells both OriginalLine and VertuoLine machines and capsules.

Vertuo Pods Pair
A pair of VertuoLine style pods.

The VertuoLine system uses two special technologies:

  • Centrifusion: This is a mix of "centrifugal force" and "infusion." The machine spins the capsule very fast (up to 7,000 rotations per minute) to mix the ground coffee and hot water.
  • Barcode Scanning: Each VertuoLine capsule has a barcode on its rim. The machine scans this barcode to read five different settings. These settings include how fast to spin, the water temperature, how long to infuse the coffee, and the amount and flow of water. This helps the machine make the perfect cup for each type of capsule.

Some people think that the barcode technology is Nespresso's way of making sure only their capsules can be used in VertuoLine machines.

The VertuoLine system was created to offer coffee similar to the filtered coffee popular in North America. This helped Nespresso get a bigger share of the coffee market there. While Nespresso had a large share of the single-serve coffee market in Europe, it was smaller in North America compared to other brands like Keurig.

Even though it started in North America, the VertuoLine system has expanded to other countries. In 2016, it launched in France (called "Vertuo"), and later in the United Kingdom, Germany, Switzerland, Australia, and the Middle East.

Nespresso's Business Approach

Patents and Brand Image

Nespresso store in Lugano Switzerland
A Nespresso store in Lugano, Switzerland.

For a long time, Nespresso had many patents that protected its system. This meant that only Nespresso could make and sell capsules that worked with their machines. This is similar to how some printer companies make sure you can only use their ink cartridges.

Nespresso's patents started to expire in 2012. This allowed other companies to start making compatible capsules and machines. To stay ahead, Nespresso focused on its brand image and customer service. They created the Nespresso Club and opened Nespresso stores. These stores offer excellent customer service and are often the only places where customers can buy more capsules. This helped Nespresso keep its image as a special and high-quality brand.

Famous actor George Clooney has been in Nespresso ads since 2006. The company says he was chosen by their club members to be the brand's ambassador. This kind of advertising helps make the brand seem even more exclusive and stylish.

Market and Cost

Coffee in pre-packaged portions, like Nespresso capsules, has become very popular. It is one of the fastest-growing parts of the coffee market. In 2010, Nespresso sales had been growing by about 30% each year for ten years. More than 20 billion capsules had been sold since 2000.

Nespresso gets most of its coffee through a program called the Nespresso AAA Sustainable Quality Program. In 2017, the company said that 82% of its coffee beans came from this program.

Caring for the Environment

Nespresso capsules are made of aluminum. If they are not recycled, they create aluminum waste. Recycling aluminum uses much less energy (only about 5%) than making new aluminum from raw materials.

Nespresso has set up systems to collect used capsules in 36 countries. France and Switzerland, where Nespresso is very popular, have easy access to recycling facilities.

Nespresso says it has the ability to recycle 100% of its capsules through its program. The company has launched programs like "écolaboration" and "The Positive Cup" to improve recycling and sustainability. These programs also focus on getting coffee from sustainable sources through the Nespresso AAA Sustainable Quality Program, which works with the Rainforest Alliance. Nespresso claims to pay farmers up to 40% more for their beans and teaches them good farming practices. About 75,000 farmers from 12 countries are part of this program.

In 2019, Nespresso worked with a Swedish company called Vélosophy to make bicycles from recycled Nespresso pods. They also worked with Caran d'Ache to create pens from recycled coffee pods.

All Nespresso capsules (Professional, OriginalLine, and VertuoLine) can be recycled at Nespresso's recycling facilities.

In 2023, Nespresso started selling paper-based coffee pods in France and Switzerland. These can be recycled with biodegradable waste.

Recycling Bags

Nespresso provides free recycling bags to customers. You can get them in stores or with online orders. A sealed recycling bag can hold up to 100 VertuoLine capsules or 200 OriginalLine capsules. You don't need to rinse or empty the capsules before putting them in the bag.

In the United States and United Kingdom, customers can give their full recycling bags to the postman who delivers their Nespresso order. You can also drop them off at UPS stores, Nespresso stores, and other partner locations. In Canada, customers can mail their full recycling bags for free through Canada Post in most provinces. In British Columbia and Quebec, you can put your full bags in your regular recycling bin for curbside pickup.

Marketing Campaigns

George Clooney is well-known as the "face of Nespresso." He has been in Nespresso's advertisements since 2006. He has appeared with other actors like John Malkovich, Danny DeVito, and Matt Damon in these campaigns.

In the summer of 2020, during the COVID-19 pandemic, Nespresso released an online ad focusing on how they are working to be more sustainable.

Competitors and Legal Issues

Machines and Capsules

After Nespresso's patents started to expire, other companies began to make machines and capsules that work with the Nespresso system. For example, in 2011, an Australian company called Kogan announced a machine called the "Ez-press" that works with Nespresso pods.

In 2008, Jean-Paul Gaillard, a former CEO of Nespresso, started a company called Ethical Coffee Company SA (ECC). This company made biodegradable capsules that were compatible with Nespresso machines. However, ECC stopped making these capsules in 2017.

In 2016, Starbucks announced that it would sell Nespresso-compatible capsules in Europe. These capsules work with most home Nespresso machines. Later, Nestlé bought the rights to sell Starbucks coffee products in stores. Then, Starbucks and Nestlé launched official Starbucks Nespresso capsules in 2019.

Legal Disputes

Nespresso has been involved in some legal disputes with other companies that make compatible pods. For example, in 2011, a Swiss supermarket called Denner won a court case against Nestlé. Denner was selling plastic Nespresso-compatible capsules for about half the price of Nespresso's own capsules.

By 2014, Nespresso had faced legal challenges in several countries, including the UK, Germany, France, Belgium, and the Netherlands. News reports said that Nestlé had lost most of these cases. In France, which is Nespresso's biggest market, authorities said that Nespresso might have been unfairly linking the sale of its machines to the use of only its own capsules. Nespresso agreed to stop making machine warranties depend on using only Nespresso pods. They also agreed to remove warnings against using other companies' pods.

See also

Kids robot.svg In Spanish: Nespresso para niños

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