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NESTLE

Nespresso opens 300- million-franc coffee plant

Nespresso on Thursday inaugurated its third Swiss coffee capsule plant, a 300-million-franc ($309-million) facility in Romont, a municipality in the canton of Fribourg.

Nespresso opens 300- million-franc coffee plant
Photo: Nespresso

The company, a subsidiary of Swiss-based Nestlé, said the 21,000-square-metre plant will serve as the primary production site for its new VertuoLine coffee products aimed for the North American market, in addition to its regular Nespresso capsules.

VertuoLine products, geared to the North American preference for “large-cup” coffee, were launched in the US and Canada last year, where the coffee capsule market is estimated to be worth more than $5 billion a year.

In addition to places for coffee testing, blending, grinding and roasting, the production centre includes capsule production lines, storage silos for green and roasted coffee, and packaging and logistics areas.

Nespresso’s other production centres are in Avenches and Orbe in the canton of Vaud and like them the Romont facility is a “centre of coffee innovation excellence and expertise,” the company said in a press release.

“Our production centres play a key role in our value chain,” Jean-Marc Duvoisin, CEO of Nestlé Nespresso said in a statement.

“This is where top quality green coffee, carefully selected from the world’s best coffee regions, is transformed by our highly skilled coffee experts into Nespresso Grands Crus.”

Nespresso said the Romont plant, currently employing 125 people, is setting new standards for sustainable operations.

The company said the complex received LEED (Leadership in Energy and Environmental Design) Gold certification for its green design, which includes energy efficiency and water saving features.

The plant was built with 20 percent recycled materials.

Nestlé CEO Paul Bulcke said the investment showed Nespresso’s ongoing commitment to Switzerland, where it has invested more than 1.1 billion francs in its facilities.

With headquarters in Lausanne, Nespresso employs 2,300 people in Switzerland and 10,500 globally.

Thirty years after their introduction, Nespresso capsules have become “emblems of Switzerland” around the world, Bulcke told media at the opening, the ATS news agency reported.

“Moreover, Switzerland exports by value more coffee than chocolate and cheese combined.”

Federal Economy Minister Johann Schnedier-Ammann, who attended the opening ceremony, praised Nespresso for investing in Switzerland at a time when the country is facing a “growing erosion” of industrial jobs.

The strong Swiss franc is curbing investments in the country.

But the municipality of Romont and the canton of Fribourg worked hard to attract Nespresso, ATS said.

It is not clear what incentives were provided to attract the investment.

Work on the plant, which began two years ago, involved 25 companies from the region, employing a total of 3,200 people. 

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NESTLE

‘Unlimited resources’: Switzerland’s Nestle goes vegan

Swiss food giant Nestle, which has made billions with dairy products, said Monday it will host start-ups that want to develop vegetarian alternatives.

'Unlimited resources': Switzerland's Nestle goes vegan
Photo: SEBASTIEN BOZON / AFP

Nestle could thus find itself at the forefront of a sector that has strong growth potential, an analyst commented.

It plans to open its research and development (R&D) centre in Konolfingen, Switzerland to “start-ups, students and scientists” a statement said.

In addition to testing sustainable dairy products, the group plans to encourage work on plant-based dairy alternatives, it added.

Chief executive Mark Schneider was quoted as saying that “innovation in milk products and plant-based dairy alternatives is core to Nestle's portfolio strategy.”

The group unveiled a vegetable-based milk that had already been developed with the process, and technical director Stefan Palzer told AFP it planned to focus on 100-200 such projects a year.

Jon Cox, an analyst at Kepler Cheuvreux, noted that while Nestle had missed some consumer trends in the past, it has now “taken something of a lead in the plant-based alternative market for food”.

And “given its pretty much unlimited resources, Nestle is going to come out one of the winners in the space,” Cox forecast in an e-mail.

Nestle said that “internal, external and mixed teams” would work at the R&D centre over six-month periods.

Nestle would provide “expertise and key equipment such as small to medium-scale production equipment to facilitate the rapid upscaling of products for a test launch in a retail environment,” it added.

The Swiss food giant has long been known for its dairy products, but faced a boycott in the 1970s for allegedly discouraging mothers in developing countries from breastfeeding even though it was cheaper and more nutritious than powdered formula.

On Monday, the group's statement also underscored that the research initiative was part of its commitment to help fight global warming.

“As a company, we have set ambitious climate goals. This is part of our promise to develop products that are good for you and good for the planet,” it said.

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