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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 Berssenbrügge, CEO Nestlé Nespresso Honoree Rainforest Alliance Gala Dinner New York, 16 May 2007
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
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
Our Vision • To be preferred and respected as the leading quality coffee company for portioned coffee and become the icon of perfect coffee worldwide
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
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
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
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
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
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
Thank you… • …to Rainforest Alliance for accompanying us on our journey towards sustainable quality…