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Nestlé opens major Nespresso production site in Avenches

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Vevey, Switzerland

Nestlé today inaugurated its second Nestlé Nespresso Production and Distribution Centre in Avenches (Switzerland) in the presence of Swiss Economic Affairs Minister Doris Leuthard and Jean-Claude Mermoud, Minister of Economic Affairs of the Canton de Vaud. Petraea Heynike, Executive Vice President of Nestlé S.A. and Chairman of Nestlé Nespresso, and Richard Girardot, CEO of Nestlé Nespresso, also attended.

Nestlé Nespresso is the world leader in top-quality, premium portioned coffee. There are currently 7 million Nespresso Club members in 50 countries and the business has enjoyed high double-digit growth rates for nearly a decade, with sales now exceeding CHF 2 billion. The new 400,000m3, state-of-the-art facility in Avenches will fuel the company's future growth, producing and distributing as many as 4.8 billion Nespresso capsules per year, a capacity which may double over the next three years.

The new Nespresso site in Avenches is a CHF 300 million investment in one of Nestlé's four key strategic growth platforms: nutrition, health and wellness; popularly positioned products (PPPs); out-of-home; and premium and luxury products. Along with Nespresso, Nestlé's other premium and luxury products include Mövenpick of Switzerland ice cream, S.Pellegrino and Perrier waters, as well as Cailler, Perugina, Baci and Nestlé Noir chocolate. The overall premium food and beverage market is due to grow by over 13% per annum through to 2020.

Nestlé's investment in Avenches is another demonstration of Creating Shared Value, the company's way of doing business. Clearly Nestlé is benefiting from this project, as is the local community: over 65 local companies participated in the construction of the site. The new Nestlé Nespresso Production and Distribution Centre will employ 340 people by the end of 2009, a number set to increase further to 600 by the end of 2012, making Nestlé Nespresso the region's largest employer. By 2012, an additional 1,400 people will benefit indirectly from the company's activities in the area. Among many benefits Nestlé has brought to Avenches are the cofinancing of the town's first child daycare centre, and the factory supplying hot water to 520 local households in summer.


Contacts:
Media: Robin Tickle Tel.: +41 (0)21 924 22 00
Investors: Roddy Child-Villiers Tel.: +41 (0)21 924 36 22