Nespresso opens in Shanghai its 200th boutique worldwide

On-going expansion of its Boutique network in major international cities

a major factor in continuing double-digit growth at Nespresso

Shanghai, CHINA (ots) - Nestlé Nespresso today officially opened in the dynamic city of Shanghai its 200th boutique worldwide. It joins new boutique locations opened this year in the international cities of Miami, Cape Town, and a new flagship boutique in Brussels as Nespresso continues to grow its global retail network to more than 220 boutiques this year. Melbourne, New York (Soho) and a new flagship in Munich are also scheduled for 2010.

"Shanghai is China's gateway to the world and the world's gateway to China. As a dynamic and cultured metropolis, Shanghai provides the perfect location to establish our third boutique in China and our 200th boutique worldwide. It marks a significant milestone in growing our global brand community," said Richard Girardot, CEO of Nestlé Nespresso SA.

Today, Nestlé SA announced strong first six months for Nespresso, with organic growth above 25%. Despite a changing competitive environment, Nespresso continues its expansion into new markets and persists with double-digit growth rates in its more established markets, such as Switzerland and France. Nespresso continues to grow capacity to meet rising demand. As planned, the extension started in Avenches will double capacity by 2012 and bring total investment here to more than CHF 400 million.

"Nespresso is firmly on track to surpass CHF 3 billion in annual global sales," Mr Girardot told journalists attending the boutique opening in Shanghai. "The Nespresso global boutique network plays an important role in our company's continuing growth, generating around 30% of our sales."

The Nespresso schedule of boutique openings in 2010 underlines its commitment to grow outside Europe. New flagship boutiques in Brussels and Munich, and steady expansion in France, emphasise the Nespresso commitment to sustained category leadership in European markets. Nespresso is also on track with its plans to roll out a new customer service model in the second half of this year.

Nespresso opened its first boutique in Paris in 2000. Today, Nespresso Boutiques can be found from Hong Kong to New York. "Our boutiques are embassies for our brand. They enable consumers new to Nespresso to meet the brand and explore its deep coffee expertise - which is so important as Nespresso builds its presence in new markets," said Mr Girardot.

About Nestlé Nespresso SA

Nestlé Nespresso SA is the pioneer and market leader in highest-quality portioned premium coffee. Headquartered in Lausanne, Switzerland, Nespresso has a presence in more than 50 countries and more than 4500 employees. In 2009, it operated a global retail network of more than 190 exclusive boutiques. Nespresso achieved global 2009 sales of CHF 2.77 billion, maintaining an average annual growth rate of 30 percent since 2000. For more information, visit www.nespresso.com.

CONTACT

Julian Liew

Corporate PR & Public Affairs Manager

Nestlé Nespresso SA

E-Mail: julian.liew@nespresso.com

Tel: +41/21/796'97'42