Nespresso sees growth on strong home coffee consumption

MANILA, Philippines — The exclusive distributor of Nespresso in the country is eyeing sales growth this year and next year as the pandemic increases consumption of coffee at home.

In an interview, Novateur Coffee Concepts Inc. managing director Patrick Pesengco said the firm expects sales to post low double-digit growth this year.

For next year, Pesengco said the firm is looking at a high single-digit to low double-digit growth in sales.“We would be growing next year because home consumption will further increase,” he said.

As the pandemic forces people to stay home, he said many individuals who used to get coffee outside are realizing they can enjoy the same quality of coffee in their homes with Nespresso.

“Before the pandemic, the perception was quality coffee is normally outside, not at home. Premium coffee, I can consume at home, but hard to do. With Nespresso, I can get premium quality coffee at home, more affordable than getting my coffee outside,” he said.

Consumers have also become more open to trying new things, including new coffee products.

Despite the pandemic, Pesengco said the company’s total sales grew. Purchases from retail stores were down, but those made online quadrupled.

Even as foot traffic and sales in retail stores declined, the firm forged ahead with the opening of the 58-square meter Nespresso Boutique at The Podium in Mandaluyong City last month.

Pesengco said the boutique was initially scheduled for opening in June, but got pushed back due to the pandemic.

“Opening the store is more than just selling our coffee. It’s also a symbol to say life has to go on,” he said.

He said the company is planning to expand further next year by opening another boutique and more pop-up stores.

Apart from The Podium, the company has a Nespresso Boutique at the Power Plant Mall and pop-up stores in Greenbelt 5, Alabang Town Center, TriNoma Mall, Shangri-La Plaza, One Bonifacio High Street and Robinsons Magnolia.

In addition to opening stores, the company wants to expand its e-commerce business and to introduce new ways to make it easier for consumers to acquire Nespresso products next year.

“Definitely, there is a big market that we haven’t tapped, the market that knows good coffee… Presently, we are in this time where we are now educating the market you can have as good coffee at home,” he said.

The company is also committed to sustainability and is implementing initiatives to upcycle and recycle used coffee capsules brought by customers to the stores.