STiR coffee and tea magazine

Volume 3, Number 2

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Page 49 of 83

50 STiR tea & coffee industry international N estlé, the world's largest food company and inventor of the single-serve cap- sule machine, shifted its sales focus from Europe last year to step up direct-to- customer merchandising of its $4.4 billion Nespresso brand in the U.S. and Asia. New boutiques in the U.S. and Canada and a national television campaign, titled "Nespresso - What Else" featuring Penélope Cruz conveys the luxurious convenience of single-serve lattes and cappuccinos as delicious as those made by a coffee shop barista. In Europe they are paying Matt Damon $3 million to appear in ads with George Cloo- ney who has earned $40 million since 2006 as Nespresso's brand ambassador. Another sign of Nespresso's serious intentions in the U.S. is its hiring of a new agency to handle its American social media account. Last May Nespresso named New York-based Deep Focus its social media agency in the U.S. The brand spent about $750,000 on digital ads in the U.S. last year, triple the 2011 level, according to AdWeek. While most Nespresso sales are to club members online or by phone, the company has begun selling its brewers in home stores and currently operates 320 showrooms worldwide with 30 in Asia. It is adding new locations in the U.S. where it has boutiques in New York, Miami, Boston, San Francisco and Beverly Hills. In Canada Nespresso is building larger showplaces, the latest in Toronto with additional stores in Montreal, Quebec City, Vancouver and soon Calgary. Nespresso launched in 2009 with a small shop in Montreal but its new two-story Toronto store in up-scale Yorkville has 14,000 sq. ft. of retail space and the Beverly Hills boutique accommodates 90 guests. Less visibly, Nespresso is seeking to convince America's top chefs that a one-touch Nespresso from its ProfessionalLine is the right choice for fine-dining establishments The Nespresso Exception Are Nespresso-compatible capsules the long-sought gateway into fine dining for America's premium espresso roasters? Every major coffee roaster is battling for eye-level shelf space in the grocery and department store trenches of North America except global leader Nespresso By Dan Bolton

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