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


Belgian FNG Group wants speedy flotation in Brussels

13/06/2018

Belgian fashion group FNG hopes it can enter the Brussels stock exchange as early as next month, in order to secure a lot of new investments for the further expansion of its Brantano chain.

Zalando lets your smartphone choose your gift

06/06/2018

Starting from October, you can literally ask your smart phone which gift it wants to pick for you. Zalando and Google are collaborating on a gift-picking chat bot for the virtual Google Assistant, which is present on all Android phones.

Brantano wants to become "as big as Zalando"

06/06/2018

While Zalando is a strong multinational player, there has to be room in Belgium for a strong local fashion web shop. Dieter Penninckx, FNG Group's CEO, thinks that his brand Brantano can claim that place.

Web boutique CarréCouture relaunches after bankruptcy

28/05/2018

Belgian luxury web shop CarréCouture has gone bankrupt after a mere year. The Van Gansewinkel family, known from the waste company and co-owner of this formula, will try to relaunch anyway.

Isabel Marant opens first Dutch store

24/05/2018

Fashion brand Isabel Marant opened its very first Dutch boutique in Amsterdam. It is located in the P.C. Hooftstraat, in a former McGregor store.

Zara opens new flagship store with holograms and robots

18/05/2018

Zara’s remodeled flagship store in Stratford (London) welcomes customers with holograms, robot arms and iPad-powered employees. The store wants to unite the best of both the online and offline shopping world.