Nespresso Boosts European Production To Meet U.S. Demand

Nespresso is expanding its Switzerland-based manufacturing capabilities as U.S. demand for its coffee products continues to grow.

Bloomberg Business reported that the company, owned by Nestle SA, is investing more than $300 million to build a new factory in Romont, Switzerland, that will make single-serve capsules for the U.S. market. Company officials told Bloomberg that sales in the United States are growing at “high double-digit” rates, outpacing single-digit growth in Europe.

The sales growth follows the company’s introduction of its VertuoLine coffeemaker to the U.S. single-serve coffee marketplace. That debut of the home espresso maker is said to have boosted U.S. sales as it can produce larger individual cups of coffee.

“The U.S. expansion is going very well,” Patrice Bula, Nespresso’s chairman, told Bloomberg. “We have the growth we planned to have in Europe. Of course you have much more competition, and of course it’s a more mature market.”