Who Owns Nespresso?

Nespresso's origins trace to a patent filed by Nestlé engineer Eric Favre in 1976. Favre had been inspired by a visit to a Rome espresso bar, where he observed that the barista pumped the machine handle repeatedly to create pressure, producing a richer, creamier espresso. He developed a system that used pressurized capsules to achieve consistent espresso extraction at home.

The Nespresso system was developed internally at Nestlé through the 1980s, with the first commercial machines launched in 1986. The initial target market was offices and businesses rather than home consumers, as Nestlé believed the premium price point would be more acceptable in a professional context. The early commercial launch was modest, and Nespresso struggled to gain traction in its first years.

A pivotal moment came in 1988 when Jean-Paul Gaillard took over as CEO of Nespresso. Gaillard shifted the strategy from B2B to B2C, targeting affluent home consumers who wanted café-quality espresso at home. He also developed the direct-to-consumer sales model, selling machines and capsules through a dedicated Nespresso Club rather than through traditional retail channels. This model allowed Nespresso to control the customer experience, collect customer data, and maintain premium pricing.

Nespresso's growth accelerated through the 1990s as the brand expanded across Europe. The company opened its first Nespresso boutique in Paris in 2000, creating a luxury retail experience that reinforced the brand's premium positioning. The boutique concept, with its sleek design and knowledgeable staff, was modeled on luxury goods retailers rather than traditional coffee or appliance stores.

The brand's marketing strategy evolved to emphasize sophistication and indulgence. The long-running "What Else?" advertising campaign featuring George Clooney, launched in 2006, became one of the most recognized advertising campaigns in Europe and helped establish Nespresso as a luxury lifestyle brand. Clooney's association with Nespresso continued for many years and was instrumental in building the brand's premium image.

Nespresso faced a significant competitive challenge when its core patents expired in the early 2010s, allowing competitors to produce compatible capsules. Companies like Aldi, Lidl, and numerous other brands began selling Nespresso-compatible capsules at lower prices. Nespresso responded by developing new capsule formats (Vertuo, launched in 2014) with proprietary technology that was harder to replicate, and by emphasizing the quality and sustainability of its original capsules.

The Vertuo system, which uses centrifusion technology to brew both espresso and larger coffee formats, was designed to appeal to North American consumers who preferred larger coffee servings. Vertuo has been particularly successful in the United States and Canada, where it has helped Nespresso expand beyond its traditional European base.