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Gerard Berssenbr ügge, CEO Nestl é Nespresso Honoree Rainforest Alliance Gala Dinner

Gerard Berssenbr ügge, CEO Nestl é Nespresso Honoree Rainforest Alliance Gala Dinner. New York, 16 May 2007. An Introduction to Nestl é Nespresso. Nestlé Nespresso is a globally managed business Number 1 premium portioned coffee CHF 1 billion sales in 2006 (Ø annual growth rate 30%)

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Gerard Berssenbr ügge, CEO Nestl é Nespresso Honoree Rainforest Alliance Gala Dinner

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  1. Gerard Berssenbrügge, CEO Nestlé Nespresso Honoree Rainforest Alliance Gala Dinner New York, 16 May 2007

  2. An Introduction to Nestlé Nespresso • Nestlé Nespresso is a globally managed business • Number 1 premium portioned coffee • CHF 1 billion sales in 2006 (Ø annual growth rate 30%) • B2B and B2C business with 3.1 Million Club Members • Represented in more than 50 countries around the world • Over 80 boutiques in major cities • 50% of sales via www.nespresso.com

  3. The Unique Nespresso Trilogy • Founded on our unique trilogy: • Perfectly portioned Smart and easy Personalised service • highest quality to use machines 24/7 for our Club • Grand Cru coffees Members

  4. Our Vision • To be preferred and respected as the leading quality coffee company for portioned coffee and become the icon of perfect coffee worldwide

  5. Four factors led to the creation of our AAA Program • 1. The potential shortfall in the availability of highest quality coffee • Competition with other roasters for these coffees • The need to build loyalty in farming communities • 2. Building on and developing Nestlé’s corporate sustainability commitment • The Nestlé Shared Value approach to corporate responsibility • Ensuring the value created by Nespresso is shared across the value chain • Embedded within our vision and mission statements • Continuous improvement of our business in all aspects 4. It’s the right thing to do

  6. What Have We Done? • Engaged multiple stakeholders • Formed a partnership with Rainforest Alliance to verify our program • Developed and tested the Tool for the Assessment of Sustainable Quality (TASQ™) • Involved 14 000 farmers in 9 regions in 5 countries • Currently 30% of all our coffee sourced through the • AAA Program • Target 50% by 2010

  7. A unique sustainable quality assessment tool tailored to our business model • Co-developed with the Sustainable Agriculture • Network • Flexible for the varying needs of individual regions • Based on Rainforest Alliance sustainability indicators and Nespresso quality indicators

  8. AAA creates economic value for farmers and their communities • Improved farmer income • Traceability • Increasing farmer percentage of export value • Price premium • Improved crop quality and yield • Lower rejection rates • Loyalty and long term relationships • Investment in training and projects to develop region’s quality coffee cultivation • Specific skill transfers e.g our partnership with TechnoServe • Financing the costs of assessment and verification • Co-financing with multilaterals

  9. The Benefits: For Nestlé Nespresso • Builds on and develops our quality commitment • Safeguards the long-term supply of highest quality coffee • Drives operating efficiencies • The first step to creating direct relationships with farmers leading to loyalty • Inspires and motivates our club members, customers and employees

  10. The Benefits: For Our Club Members • Further substantiation of our premium and reason to believe • A proactive position as ethicality becomes a higher expectation • Direct contribution to the sustainable development of farming communities • Connects the consumer with the producer and reveals the human story

  11. Nespresso Communication to Club Members

  12. Nespresso AAA Summer Campus 2007

  13. The Nespresso AAA Program Micro Website

  14. Bid for the future!

  15. Thank you… • …to Rainforest Alliance for accompanying us on our journey towards sustainable quality…

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