FDBusiness.com

Nestle is strengthening its premium portioned coffee brand Nespresso by investing SFr300 million (Eur250 million) to meet growing consumer demand worldwide. The company is to build a new factory in Romont in the Swiss canton of Fribourg to increase coffee capsule production.

Nespresso’s third production site will boost employment in the region, creating 400 new direct jobs in the long term. It is the latest multi-million Swiss Franc investment that Nestle has made in Nespresso in the last three years. SFr300 million was invested to build Nespresso’s second production and distribution centre in Avenches,Switzerland, in 2009.

“Some 25 years after creating the portioned coffee segment, the third Nespresso production centre will provide the capacity needed to sustain growth in Europe and develop our brand globally,” says Patrice Bula, executive vice president for Nestle, responsible for the Strategic Business Units, Marketing, Sales and Nespresso.

Construction of the factory is due to begin before the end of the year. It will be operational by 2015. The factory will be one of three Nespresso production sites in Switzerland. In addition to Avenches, Nestle opened its first Nespresso production centre in Orbe.

Nespresso has continued to grow since it was launched by Nestle over a quarter of a century ago. Last year, Nespresso achieved sales of more than SFr3 billion and growth of about 20%. Strengthening its capabilities in emerging and developed markets, it has recently opened boutiques in Dohain the state of Qatar, Seoul in South Korea and Innsbruck in Austria. There will be over 300 Nespresso boutiques worldwide by the end of 2012.

As part of Nestle’s continued effort to construct more environmentally friendly buildings worldwide, the new factory in Romont will use renewable energy produced by its coffee roasting technology to heat the building.