Premium coffee brand, Nespresso is shifting its business strategy and operational focus to better highlight and accelerate its fundamental belief that carefully crafted, high-quality coffee can create positive change for consumers, suppliers, and the environment.
Alfonso Gonzalez Loeschen has marked his one year anniversary as Nespresso North America’s CEO and expressed that taking the helm at the start of the global pandemic came with unique challenges. It also offered significant opportunities to grow, however, and the potential for the business to be a force for good.
“It has been a hectic year,” expressed Loeschen.
Nespresso sales reached a six-year high in fiscal 2020 with organic growth accelerating seven percent, a jump attributed in part to increased at home demand for high-quality coffee, as well as innovations like limited-edition products and the launch of the brands first organic coffee.
Loeschen noted that to maintain that growth in 2021, Nespresso is doubling down on innovation and will better communicate through a new digital campaign the positive social and environmental benefits of each cup of its coffee.
He explained that the company’s latest and upcoming innovations address modern consumer challenges, helping the brand maintain relevance even as coffee shops reopen.
“When looking at how to maintain that growth, one is to build and innovate on some of the must-haves from our consumer perspective. So, you have people who will continue to be worried a little bit about their health, so we’ve created our just-launched Momento range, which is a full coffee and milk solution for offices and out-of-home venues.”
Nespresso will also continue to expand its Reviving Origins range, which features specialty beans that the company helped farmers grow in troubled regions.
“We go into troubled coffee regions where coffee was thriving at a certain point in time and now it’s not, either for political reasons, economic reasons, war, or natural disaster,” explained Loeschen.
“We go with our different NGO partners, we rebuild the coffee industry, we work with farmers and help them rebuild their economic viability. And it’s a win-win situation because we are able to bring product that consumers can continue to enjoy, like a rare coffee or bring back coffees that potentially were from certain areas but disappeared.”
The Reviving Origins line is only one example of how Nespresso is supporting farmers and the environment, among other projects, the company is working to become carbon neutral by 2022.
By continuing to innovate and sharing these efforts with their consumers, Loeschen hopes to show consumers how every cup of Nespresso “is a positive cup”.
