Nestle’s Bulcke Says Nescafe Dolce Gusto to Break Even This Year

Nestle SA (NESN)’s Nescafe Dolce Gusto portioned coffee brand will break even this year as the world’s largest food company expands its range of beverage machines, Chief Executive Officer Paul Bulcke said.

Nestle sells the coffee makers in more than 60 countries, Bulcke told reporters at the opening of a design center for drink systems such as Nespresso and the BabyNes infant formula machine in Orbe, Switzerland. Dolce Gusto almost broke even in 2012, he also said.

Nestle has been expanding the beverage-machine concept into baby formula and tea as competition increases for its Nespresso coffee brand, whose annual sales exceed 3.5 billion Swiss francs ($3.7 billion). The largest after Nespresso is Nescafe Dolce Gusto, which was started in 2006 and makes a variety of coffee drinks such as lattes and cappuccinos. Dolce Gusto will soon reach 1 billion francs in annual sales, Nestle Chief Financial Officer Wan Ling Martello said Feb. 14.

In 2010, Nestle introduced Special.T, a machine that makes more than 25 types of tea. In 2011, the company added BabyNes, a 249-Swiss franc machine that prepares infant formula from capsules costing about 2 francs per serving.

Nestle will focus expansion of Special.T on European markets such as France, Belgium, Germany and the Netherlands, Bulcke said.

The food company may pick a third market for BabyNes at the start of next year, Mark Shepherd, a marketing director for the brand, also said. BabyNes is sold in Switzerland and France.

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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