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Nestlé Nespresso Announces Plans to Open a New Production-Distribution Centre in Switzerland in 2008


PAUDEX, Switzerland, September 11, 2006

Premium Coffee Brand Remains Dedicated to Swiss-Made Products, Quality

Nestlé Nespresso, the worldwide pioneer in premium portioned coffee, announced that the Company will open a new coffee Production-Distribution Centre in Avenches, Switzerland in 2008. By 2010, the facility will employ more than 230 full-time staff. Nestlé will invest more than 150 million CHF in the new operation.

At a press briefing today at the Company’s headquarters in Paudex/Lausanne, Gerhard Berssenbrügge, CEO, Nestlé Nespresso, said that further expansion was necessary to keep up with increased consumer demand for its premium coffee products. Nespresso has experienced more than 30 percent compound annual growth for the last five consecutive years. The new Centre will help Nespresso achieve its goal to become a one billion CHF Company by the end of 2006, and a two billion CHF Company by the end of 2010.

“While we conducted a European study to assess the best location for our new Centre, in the end, we decided that the ideal location was in Switzerland,” said Berssenbrügge. “It was important to preserve the quality that Nespresso has become known for around the world, and we intend to build on this reputation.”

“Nestlé is deeply committed to the future growth of Nestlé Nespresso, which is one of the fastest growing Nestlé business units worldwide,” said Lars Olofsson, Executive Vice President, Strategic Business Units and Marketing, Nestlé. “Research and development has been one of the key drivers behind this growth. In fact, Nestlé pioneered the portioned coffee market more than 20 years ago, and now with Nespresso, the market has gone through a dramatic revolution.”

Ground breaking for the Production-Distribution Centre is planned to take place during the first half of 2007. The opening date is expected in 2008.

The new Production Centre will be approximately 9,000 square metres, and the Distribution Centre will be 8,000 square metres. The Production Centre will also include a Showcase area where coffee connoisseurs can tour the facility and learn more about the coffee-making process.

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