Nespresso Enters West Coast With Shop Opening in San Francisco

Nestle SA (NESN) is opening a Nespresso boutique in San Francisco, expanding the premium coffee brand into the West Coast to boost sales as competition increases.

The San Francisco boutique, the fifth Nespresso shop in the U.S., will be followed by one in Los Angeles later this year, Vevey, Switzerland-based Nestle said on its website today.

Nespresso, which has more than 300 stores worldwide, has been one of the company’s fastest-growing businesses over the past decade and had revenue of 3.5 billion Swiss francs ($3.8 billion) in 2011, or about 4 percent of Nestle’s sales. The unit faces increased competition from companies including D.E Master Blenders 1753 NV that sell single-serve capsules that are compatible with its machines.

To contact the reporter on this story: Thomas Mulier in Geneva at tmulier@bloomberg.net

To contact the editor responsible for this story: Celeste Perri at cperri@bloomberg.net

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