Nespresso capsules sold in third-party outlets to counter flagging sales
Zurich/Frankfurt — Nestlé has begun selling Nespresso capsules outside its own retail outlets as it seeks to restart flagging growth of the coffee-making system amid a battle with cheaper knock-offs. Germany’s Saturn, MediaMarkt and Galeria Kaufhof chains are installing "N-Point" terminals in their stores, where shoppers can buy the pods that spit out coffee portions when slotted into Nespresso machines. While Nestlé is retaining control over pricing, it’s the first time the company has made the capsules available through third-party retailers, it said in an e-mailed response to questions. "Such a project is to be seen positively, as a way for Nespresso to find new consumers," said Jean-Philippe Bertschy, an analyst at Bank Vontobel, who estimated the brand’s sales of coffee and machines at 5-billion Swiss francs ($5.2bn) in 2016. "It’s fully in line with one of Nestlé’s strategic pillars: sell the product whenever, wherever and however." New Nestlé CEO, Mark Schneider, has laid out...
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