Zurich — The Nespresso coffee-capsule system has been derided as an expensive and environmentally unsound device that clutters up the kitchen counter. Nestlé says you should get a second one. The Swiss food giant is pushing a machine into Europe that uses the same principle as the original espresso maker touted by George Clooney, but with some notable differences: the pods are bigger to brew a larger cup, meaning they’re incompatible with existing Nespresso machines. But they’re also patent protected for many years, letting Nestlé lock in a market that has slipped from its control on the smaller pods competing with knock-off models. Nestlé has to make some bold steps if it wants to preserve its lead in the tumultuous coffee market, which is undergoing a dramatic transformation as new players like Coca-Cola muscle in and JAB Holding Co’s years-long takeover spree of java brands continues unabated. Nestlé has responded with some strategic moves of its own, buying the majority in Blue ...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, Morningstar financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00.