Nestlé goes to Spanish court, while net profit crashes | RetailDetail

Nestlé goes to Spanish court, while net profit crashes

Nestlé goes to Spanish court, while net profit crashes

Nespresso has started legal procedures against Spanish coffee pad producer Marcilla, already the fourth country in which Nespresso starts a patent lawsuit against one of Sara Lee's brands. Its parent company Nestlé meanwhile posted an 'encouraging' decrease in profit and turnover.

65 million 'copies' sold

Nespresso and its exclusive distributor on the Spanish market Daba accuse Marcilla of violating their coffee pad patents, as the latter's “L'arome Espresso” pads are compatible with Nespresso devices – but can be 15% cheaper. Marcilla's pads have had an enormous success so far, with 65 million capsules sold in barely six months.

 

Nestlé's famous coffee brand already went to court in December, but the move was only recently made public. The group earlier made similar moves in France, the Netherlands and Belgium, where the lawsuit was aimed at Douwe Egberts, another Sara Lee brand.

 

Despite the fierce competition from Marcilla, Spain is still the most important market for Nespresso. On top of the 35 Nespresso Boutiques, Spain also features 20 'boutiques gourmet' in El Corte Inglés stores and capsules are delivered to almost 2500 businesses and postal offices.

 

'Encouraging' sales and profit loss

(in Swiss franc) 2010 2011 %
Sales 93.015 billion 83.642 billion -10,1%
Net profit 34.233 billion   9.487 billion -72,3%

Meanwhile, Nespresso's parent company Nestlé issued a decrease in both profit and sales volume during 2011, but was still very happy with its “good performance, top and bottom line, in both emerging and developed markets in 2011”, as CEO Paul Bulcke put it.

 

Sales went down from 77,1 billion to 69,4 billion euro, which the Swiss company attributed to negative exchange rate evolutions and asset disposals. In local currencies, Nestlé grew in every region of the world, especially in Asia and Africa.

 

Net profit decreased from 28,4 billion to only 7,9 billion euro, but Nestlé maintains this is an 8% growth if the sale of its eye care division Alcon is not counted. Bulcke called 2011 “a challenging year” and does “not expect 2012 to be any easier”, but thinks his company is “well positioned in 2012 to deliver the Nestlé Model of organic growth between 5% and 6% as well as an improved margin and underlying earnings per share in constant currencies.”

Questions or comments? Please feel free to contact the editors


Are Chinese prisoners working for H&M and C&A?

20/02/2018

British former journalist Peter Humphrey has accused C&A and H&M of using forced labour. He claims to have seen how Shanghai prisoners were forced to work for Western chains, something the retailers will now investigate.

Chanel acquires stake in online retailer Farfetch

19/02/2018

French fashion label Chanel obtained a minority stake in British Farfetch. It wants to use the online retailer’s expertise to create more digital innovations for its own customers.

Monoprix wants to acquire web shop Sarenza

19/02/2018

Store chain Monoprix, part of French Groupe Casino, entered negotiations to acquire online shoe seller Sarenza, one of France’s prime online brands.

Zalando expands collaboration with German retailers

16/02/2018

Zalando has further expanded its collaboration with physical retailers in Germany. Shoe stores were already able to ship through Zalando and now clothes stores can too.

Kiabi opens largest Belgian store in Westland Shopping Center

15/02/2018

French clothing chain Kiabi will open its fifth Belgian store in the Westland Shopping Center in Anderlecht. This will become its largest Belgian store to date, spread across 1,800 sqm.

H&M warns for difficult 2018

15/02/2018

Swedish fashion group H&M warns that 2018 could be yet another difficult year for the company. It is working to improve online sales, but store turnover will most likely continue to drop.

Back to top