EconomyFinancialCapsule coffee?: Nespresso is preparing to open more boutiques...

Capsule coffee?: Nespresso is preparing to open more boutiques to boost its business in Mexico

Nespresso wants to strengthen its concept of encapsulated coffee in Mexico and as part of the strategy to add more customers, it will open more stores, in which buyers can not only try the machines and their accessories, but also get the capsules, cups and thermoses that complement the experience designed by the brand.

The most recent opening was in the new Mítika shopping center, south of Mexico City, which required an investment of 19 million pesos, and the firm is already preparing to open two more boutiques of this type for next year.

Carlos Oyanguren, business executive officer for Nespresso, said in an interview with Expansión that the company’s expectation is to open between one and two new boutiques per year, which will complement the other sales channels.

“We only have a presence in five cities with boutiques and the opportunity is still very big. We are testing in some cities to see the potential of setting up a store where today we only serve with e-commerce, such as Querétaro. Other places that we are testing is León where we have a kiosk and it seems that there is potential”, he comments.

The brand, which has been in Mexico for 13 years, closed 2021 with a market share of 22.5%, below Nescafé Dolce Gusto, which has 66.9%. In third place are the Punta del Cielo coffee capsules, with 9.4% of the market, according to data from Euromonitor International.

Hotels, a growing market for capsule coffee

The pandemic brought with it new habits that remain in the new normal, such as drinking coffee at home. And with the reopening of hotels and other economic activities, Nespresso has seen increased demand for capsules from hotels and restaurants.

“There was a lot of migration within the home during the pandemic, that helped us get people who were at home to consume more of our coffee, they will try it and stay with it. And our hotel and restaurant customers are recovering and the same is the case with us”, he declares. “We don’t want to be perceived as a brand that can only be consumed at home, but at other times outside.”

“The boutiques are a channel to present Nespresso but there are the online channels that are more practical. It is understanding the role of each channel for our consumer and growing in all of them”, he adds.

Today, restaurants represent Nespresso’s largest sales channel, with 36% of the total, followed by sales in boutiques (34%) and e-commerce (30%). The rest is divided between telephone sales and offices.

One of the “disadvantages” that have been pointed out with respect to coffee in capsules is waste. And to answer this call, Nespresso has some centers to collect empty capsules in boutiques and also in some points of sale within department chains.

The manager declares that they now collect three out of every 10 capsules they sell, and they hope that it will rise hand in hand with the growth of physical stores and online sales, a channel where consumers have the option of returning empty capsules.

“Many of our customers do not know that there is the option to return their capsules when buying online. Our capsules are made of aluminum and if we receive capsules from a competitor that is made of aluminum, we recycle it the same way. When we receive it in another material, we cannot because it is not recyclable and we separate it. It is an occupational hazard and it is part of our responsibility to create that awareness,” concluded Oyanguren.

They associate drinking coffee with living longer and better

Drinking two to three cups of coffee a day is associated with a longer life and a lower risk of cardiovascular disease compared to not ingesting a drop

This is the consumption and production of coffee in Mexico and in the world

In Mexico, 84% of households consume soluble coffee, however, in recent years roasted and ground coffee has gained prominence, which grew 20.8% with the entry of the pandemic.

Even waking up is already more expensive: Coffee in Mexico raises its price 12%...

Inflation affects everyone and fans of this drink resent the increase in coffee prices, whose price rose 23% between June 2019 and the same month in 2022

Nestlé invests 340 million dollars in its new plant in Veracruz. It is the...

In this plant, the company will process 40,000 tons of green coffee for the production of Nescafé brands.

Inflation also reaches the 'loin': croquettes go up and bulk sales skyrocket

Dog and cat owners are looking for options to keep their pet's bowls full without breaking the bank.