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


H&M invests in old clothing recycling

12/10/2017

Swedish H&M acquired a minority stake in Re:newcell, which focuses on a sustainable fashion industry and targets the recycling of old clothing.

Uniqlo's profit more than doubled

12/10/2017

In the past fiscal year, Japanese Uniqlo more than doubled its profit on the back of a 4 % turnover increase. The fashion chain forecasts international sales to soon outgrow those of Japan.

Gucci also halts fur production

12/10/2017

Fashion brand Gucci will no longer use fur in its clothing and accessories, as CEO Marco Bizzarri promised during his Kering Award for sustainable fashion acceptance speech for the London College of Fashion.

Fashion platform About You launches in the Netherlands and Belgium

11/10/2017

German fashion web shop About You, the second largest online European fashion retailer, officially launched in Belgium and the Netherlands following an unofficial launch in the Netherlands some time ago.

Luxury group LVMH exceeds third quarter expectations

10/10/2017

French luxury group LVMH has surpassed turnover expectations in the first three months of its fiscal year. Louis Vuitton and Christian Dior’s parent company managed a 12 % like-for-like turnover growth, to 30.1 billion euro.

Amazon acquired 3D body scan startup

05/10/2017

Amazon acquired the Body Labs startup, which specializes in 3D body models, for about 50 to 70 million dollars (42 – 60 million euro).

Back to top