Nespresso invests CHF 117 million in the expansion of its Avenches production center to meet growing consumer demand

LAUSANNE,Switzerland,March 18,2021 -- Nespresso invests CHF 117 million to expand its Avenches production center in Switzerland to meet increasing consumer demand for its high-quality premium coffees and support international development,creating 50 new jobs by the end of 2022.

Nespresso invests CHF 117 million in the expansion of its Avenches production center to meet growing consumer demand

The investment supports the increase of production capacity,by including three new production lines,and the expansion of its distribution center,augmenting the current logistics capacity. The Avenches production center acts as Nespresso's global distribution center,shipping capsules to over 80 countries around the world,and is dedicated to the production of Nespresso Original and Professional coffees as well as Starbucks by Nespresso.

"This investment speaks of our long-term sustainable business approach," said Guillaume Le Cunff,CEO of Nespresso. "All Nespresso coffees sold worldwide are produced in Switzerland. Over the past eight months we have announced a total of CHF 270 million investment in both our Romont and Avenches production centers. We are very proud to be able to continue to invest in Switzerland and support our economy,even more so in challenging times such as these."

"In the current context,I consider Nespresso's announcement as very good news. This very important investment demonstrates the attractiveness of this region,including in the industrial sector. By creating several dozen additional jobs,Nespresso is expanding its Avenches site and strengthens the positioning of the Swiss Food Nutrition Valley,an initiative launched by Nestlé and the Canton of Vaud to promote Switzerland as an innovation hub in the field of food and nutrition," emphasized Philippe Leuba,Director of the Department of Economy,Innovation and Sport of the Canton of Vaud.

Growing consumer demand has led to the need to expand Nespresso's logistics operations in Avenches,ensuring higher turnover in order processing and dispatching,as well as increased production capacity.

The expansion of the distribution center is set to start in July 2021 and expected to be fully operational by September 2022. The three new production lines are planned to be operational by March 2022.

Nespressoopened its production center in Avenches in 2008,with an initial investment of CHF 300 million,later complemented with CHF 200 million invested in its infrastructure and operations in Avenches,a total of CHF 500 million since 2009.

This announcement today joins the CHF 160 million investment communicated July last year for the expansion of the brand's Romont production facility,which will result in the creation of up to 300 new jobs in the next 10 years.

A positive impact on the local economy

Over the past 10 years,in addition to ongoing investment in its business,Nespresso has invested CHF 700 million in its three Swiss-based production centers in the cantons of Vaud and Fribourg.

Sustainably grown coffee beans are transformed into the highest quality coffees through the know-how and passion of more than 1,000 skilled factory employees.

In 2020,and despite the pandemic situation,Nespresso recruited over 150 new employees for its three production centers in Switzerland.

"As the Mayor of Avenches,I welcome the expansion project and I am delighted with the 50 additional jobs that will boost and sustain the attractiveness of our local economy," said Roxanne Meyer Keller,Mayor of the Avenches town.

Over the past 10 years,Nestlé has invested,on average,CHF 300 million every year in its infrastructures and operations in Switzerland. Strongly rooted in its home country,Nestlé has 11 production centers and 4 Research & Development sites located in Switzerland.

Sustainable operations

While investing in supporting its operations,Nespresso is also committed to its sustainability ambition,that every cup ofNespressocoffee has a positive impact on the world. All three Nespresso production centers are 'zero waste to landfill' and production processes have been optimized to ensure heat and water are recovered and reused whenever possible. 100% of the green coffee is delivered by rail to our production centres.

In the Avenches production facility,the energy generated during the production processes is used to heat the factory,saving,per year,the equivalent of the electricity consumed in 700 households in Switzerland. The green coffee pre-heating system in place allows to save a total of 357,000 m3of natural gas per year.

Facts and figures about the Nespresso Production Center in Avenches

Second Nespresso production center in Switzerland (2008),after Orbe (2002). Romont (2015) – worldwide production in Switzerland

Total investment in infrastructures and operations (since creation): CHF 560 million

Total investment in production facilities in Switzerland since 2010: CHF 700 million

Total site area: 16,587 m2

Total site area after expansion: 21,310 m2

Current number of employees on the site: 730

Production of Nespresso Original,Professional coffees and Starbucks by Nespresso

About Nestlé Nespresso

Nestlé Nespresso S.A. is the pioneer and reference for highest-quality portioned coffee.The company works with more than 110,000 farmers in 15 countries through its AAA Sustainable Quality™ Program to embed sustainability practices on farms and the surrounding landscapes.Launched in 2003 in collaboration with the NGO The Rainforest Alliance,the program helps to improve the yield and quality of harvests,while protecting the environment and improving livelihoods of farmers and their communities.Headquartered in Lausanne,Nespresso operates in 82 countries and has 13,900 employees. In 2020,it operated a global retail network of 816 boutiques. The brand currently has more than 100,000 points to collect its used capsules globally,enabling 91% of its consumers to recycle. For more information,visit the Nespresso corporate website www.nestle-nespresso.com.

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