Nestlé Nespresso S.A., trading as Nespresso, is an operating unit of the Nestlé Group, based in Vevey, Switzerland.Our Presence. Retrieved 5 December 2025 Nespresso machines brew espresso and coffee from coffee capsules (or pods in machines for home or professional useCommercial Coffee Capsule Range (Nespresso Pro Spain)), a type of pre-apportioned single-use container, or reusable capsules (pods), of ground coffee beans, sometimes with added flavorings. Once inserted into a machine, the capsules are pierced and processed. Water is then forced against a heating element at high pressure meaning that only the quantity for a single cup is warmed. By 2011 Nespresso had annual sales in excess of 3 billion Swiss francs. The word Nespresso is a portmanteau of "Nestlé" and "Espresso", a naming technique used by other Nestlé brands such as (Nescafé, BabyNes, Nesquik).
All Nespresso coffee is roasted, ground and encapsulated in one of three factories in Switzerland (Avenches, Orbe, and Romont), but the company sells its system of machines and capsules worldwide, as well as the VertuoLine system in North America and certain other countries.
History In 1975, Eric Favre, an employee of Nestlé, noticed that a coffee bar near the Pantheon in Rome had a disproportionately large number of customers. He found that the only difference between that bar and the many others using the same machines was that operators pumped the piston many times before releasing the coffee, while others did so only once. Oxidization occurs as the pumping action pushes water and air into the ground coffee. This increases the flavor in the coffee and creates the foam seen on top, called crema.
Favre invented the Nespresso system. The pod containing coffee was sealed, keeping it fresh. In use, it ensured greater aeration, like the repeated pumping that Favre had noticed. In operation, a sharp-pointed spout pierces the capsule and injects pressurised hot water, forcing the foil against a spiked plate, which bursts it inwards, letting the espresso flow out of the spout.
The system was patented by Nestlé in 1976. Early prototypes were complicated machines with large tanks, pumps and tubes – the machine remained unfit to market for a decade. It was first introduced to the Swiss market, looking like large traditional commercial espresso machines, but it initially met with limited success. Nespresso first tested its new concept in Japan in 1986, and rolled it out to consumers in Switzerland, France, Italy and Japan the same year. A decade later, the product became far more successful, largely due to Jean-Paul Gaillard's efforts. He introduced the Le Club community, which gave Nestlé a large database of customers and their preferences; lowered machine prices while increasing capsule prices; repositioned the machine from an office appliance into a luxury consumer brand; and licensed production to other companies. In 1990s, Nestlé signed a contract with , which started to sell Nespresso machines in Switzerland. Thereafter, other contracts were signed with Krups, , Alessi, Philips, Siemens and De'Longhi. Starting out as an e-commerce business, Nespresso only opened their first boutique in Paris in 2000 as a concept store. Today, Nespresso has a global network of more than 802 boutiques in 515 cities.
In later years there was friction between Favre—who devised the concept and developed the first machines—and Gaillard, who made the machine a commercial success. Favre resigned in 1990 after personality clashes, and the two men were critical of each other. Gaillard left Nestlé in 1997 after falling out with CEO Peter Brabeck-Letmathe. He claimed that the original idea for Nespresso was bought by Nestlé in 1973, and did not come from Favre, though Nespresso denies this. In 2008, Gaillard launched a company that sold biodegradable capsules for Nespresso machines, competing with Nespresso.
In 2022, Nespresso became a certified B Corporation.
Nespresso system Machines
Nespresso sells or licenses a number of different machines mostly made in Europe. The machines carry well-known kitchen-equipment manufacturers' names such as Krups, Breville, and DeLonghi but are mostly manufactured by Eugster/Frismag, a Swiss company that ranks among the world's largest coffee-machine producers. DeLonghi manufactures the Lattissima models in Italy exclusively. Eugster/Frismag is a strict original equipment manufacturer (OEM) and does not sell under its own brand. In 2000, Nespresso began distributing machines bearing the "Nespresso" brand. There are numerous models that range in complexity and price, from the entry level Inissia, U and Pixie ranges.
Capsules
Nespresso capsules were sold exclusively by Nespresso while the machines were under patent, and are significantly more expensive than an equivalent quantity of "loose" ground coffee. Because the capsule is hermetically sealed, the coffee's aroma remains intact over time, unlike coffee stored in a pack. Nespresso currently sells 28 different Original Line arabica and robusta capsules with Limited Edition are released seasonally. As the system is no longer under patent, more and more third-party and refillable capsules can now be purchased in some grocery stores and shops.
Each capsule contains 5–7 grams of ground coffee, which makes one serving of coffee. Depending on the length of the pour, the capsule can produce a 40 ml Espresso shot, or a 110 ml Lungo (long) pour. Nespresso-supplied capsule bodies and perforated tops are both made of aluminium, while third-party capsules are made from a variety of materials, including plastic and aluminium. To assuage some concerns on potential aluminium health effects, most of the capsule interior of Nespresso capsules is lined with food-grade lacquer.
For the professional market, a different system of Nespresso pods exists. These pad-shaped capsules are not interchangeable with the consumer capsules.
Process
Nespresso's hermetically sealed capsules are made of aluminum. Depending on the Nespresso system being used, the flat top or the pointed end of the capsule is pierced when inserted into the machine and the compartment lever is lowered. Some machines make a single large hole, and others make three smaller holes. When the machine is activated it pumps hot water under high pressure into injector holes poked into the narrow end of the capsule upon insertion. This causes the flat bottom of the capsule to rupture, as it is made of thinner foil than the rest of the capsule. The base of the capsule holder (on which the capsule sits) has several raised squares which cause the foil to rupture at these points. The brewed coffee exits the capsule through these rupture holes and flows through a funnel nozzle into the coffee cup. As in pressure cookers, a safety pressure release valve inside the brewing chamber prevents an explosion from occurring if the normal coffee exhaust path becomes blocked. This process produces a crema which is micro air bubbles that are mixed with the coffee's natural soluble oils. The crema resembles a tan colored froth that floats at the top of the coffee.
VertuoLine system
To appeal to the demand by North Americans for larger servings of coffee than the original Nespresso machine produces, in February 2014 Nespresso launched a new "VertuoLine" system of machines and capsules in the United States and Canada. The system produces Espresso (40ml/1.35oz), Double Espresso (80ml/2.7oz), Gran Lungo (150ml/5oz), Mug/Coffee (230ml/8oz) and Alto/Alto XL (414ml/14oz) cup sizes that characterises espresso coffees and the original line of Nespresso coffees. Nespresso simultaneously uses over 25 blends in specially designed VertuoLine capsules. The VertuoLine capsules cannot be used in the original line of Nespresso machines (now branded "OriginalLine" in North America). Nespresso continues to sell both OriginalLine and VertuoLine machines and capsules in the United States and Canada, targeting different market segments with the two systems.
The VertuoLine system uses two technologies not found in the OriginalLine. First, the system uses "Centrifusion" (a term created by Nespresso, being a portmanteau of centrifugal force and infusion), whereby it spins the capsule around in the machine at up to 7,000 rpm to blend the ground coffee and hot water. Second, each capsule has a barcode embedded on the rim, and the barcode laser scanning system reads 5 different parameters: rotational speed, temperature, infusion time, volume and flow of water. Some critics claim that the VertuoLine technology, particularly the use of bar codes, is an attempt by Nestlé to create a new proprietary Nespresso system which excludes compatible capsules from other companies.
The VertuoLine system was intended to expand Nespresso's product line to offer coffee closer to the American style of filtered coffee, and thus expand Nespresso's market share in North America. In the United States, Nespresso had only a 3% share of the single-serve coffee market in the year before the introduction of VertuoLine (compared with 72% for Green Mountain's Keurig system), while in Canada Nespresso had 4 to 5% of the single-serve market in 2013 (compared to approximately 53% for Keurig and 40% for Tassimo). In comparison, Nestlé had 70% of the single-serve market in Europe in 2013.
At the time of the introduction of the VertuoLine system in 2014, there were no plans to launch the system in markets outside Canada and the United States. However, sales of the VertuoLine system were expanded beyond North America in 2016, first with the launch of the system in France in 2016 under the name "Vertuo" (with the original line branded "Original"), and with later roll outs in other countries such as the United Kingdom, Germany, Switzerland and Australia. As of 2018, Nespresso aimed to introduce the Vertuoline system in eight additional European markets by the end of the year.Corinne Gretler, "Nespresso's Larger Coffee Pods Won't Work With Your Machine", Bloomberg, 5 October 2018 In September 2019, the VertuoLine system launched in the Middle East in Kuwait, UAE, and KSA under the name "Vertuo".
Business model Patent expiry and focus on image
In 2010 the concept (machine, capsule, service) was still subject to 1,700 patents which protected Nespresso's ownership of the concept until their expiry, leading to comparisons of Nespresso with printer manufacturers that block the sale of generic ink cartridges to achieve a vendor lock-in effect. That contrasts with some other prepackaged coffee preparation systems.
Nespresso's patents began to expire in 2012, gradually allowing competitors to offer capsules and machines compatible with the Nespresso system. By 2010, Nestlé was working on ways to prevent competitors from doing this. The service part of Nespresso's business model—the Nespresso Club and Nespresso stores and cafes—was aimed to be a long-term defense for the brand, its elevated image and premium pricing. Beyond attentive customer service and being the only places where most customers can replenish their 'pods', the brand has been able to maintain images of exclusivity and suave connoisseur-ship.Schaefer, Wolf and Kuehlwein, JP. 2015. Rethinking Prestige Branding - Secrets of the Ueber-Brands. Kogan Page. pp.165ff. Actor George Clooney appeared in ads for Nespresso, with company representatives insisting that he had been elected by Club members to become the brand's ambassador (vs the brand 'buying his sponsorship'), in a form of celebrity advertising that emphasizes the status of the brand over that of the endorsing star.Kuehlwein, JP. How Ueber-Brands turn Celebrity Endorsements on their Head, www.ueberbrands.com 11/2015
Market