Nespresso: King Charles and David Beckham help coffee giant brew success
The UK arm of Nespresso signed up David Beckham and used King Charles’ coronation to help boost its sales and profit during its latest financial year.
The division, which is owned by Nestle, has reported a growth in its pre-tax profit for the 11th year in a row while its turnover has continued its run of increasing every year that records are available on Companies House.
The York-based arm has reported a pre-tax profit of £14m for 2023, up from the £13.3m it posted in 2022.
Its turnover has also risen from £329.9m to £338.6m, according to newly-filed accounts.
Nespresso’s UK sales increased from £299.6m to £306.1m in the year while its turnover in the rest of Europe also rose from £30.2m to £32.5m.
‘Ongoing success’ of Vertuo boosts Nespresso
A statement signed off by the board said: “In 2023 the company saw a three per cent increase in sales driven by the ongoing success of the Vertuo line in its business-to-consumer division coupled with very strong growth in its business-to-business activities.
“Coffee officially overtook tea in this year as the UK’s beverage of choice and Nespresso UK immersed itself in British culture by creating a ‘High Coffee’ moment for the coronation and announcing David Beckham as our newest brand partner.
“We launched several new coffee varieties including No20, Watermelon, Ginseng and Starbucks Reserve to highlight the incredible choice and quality coffee we offer to suit individual taste and flavours.
“We continued to showcase our work as a force for good for communities, people and [the] planet through a donation and volunteering partnership with Action Founder as well as joining forces with Royal Mail to improve our recycling set vices by collecting capsules from people’s homes.”
During the year the average number of people employed by Nespresso UK increased from 692 to 716.
On its future, the company added: “The external environment is extremely challenging.
“Higher commodity prices and other costs will continue to put significant pressure on the company.
“The company prides itself on providing high quality good value products to the consumer.”
The wider Nespresso group reported sales of CHF6.37bn (£5.72bn) in 2023, down from CHF6.44bn (£5.79bn).