nespresso capsules


Even though there has been a slight relief to the recent high prices for Arabica beans, the costs have still increased for companies like Nespresso, which has yet to increase its capsule prices. The coffee division is choosing to monitor this rising pattern instead, evaluating these newly increased prices’ sustainability in the long run.

The Chief Executive of Nespresso North America, Alfonso Gonzales Loeschen, stated during an interview last Wednesday that it all depends on the length of duration these new prices can hold up. The company is holding back on increasing its prices until they are clear where the entire market is heading. 

Just like other premium coffee processors, Nespresso pays a large premium cost to ensure their supply of the best coffees. Yet, despite that, the company refuses to have the customers absorbing the costs. 

The lockdowns in 2020 caused by the global pandemic actually boosted, rather than hindered, the company’s direct-to-customer sales by 20%, shifting the focus to online sales and logistics. Despite the physical boutique stores being open for business again now, the sales for offices are far from what they used to be pre-pandemic and is not expected to reach the same heights until 2022. 

The cause might be because workers are still either working from home or working in a hybrid system, and only 20% of workers are back in the office. However, companies are still providing their employees with Nespresso packages, making it an ideal alternative sales point for Nespresso.

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