NestlÉ wants to help you kick your Starbucks habit. The Swiss food giant is mounting a major push into the U.S. with its Nespresso coffee system, which lets users make cafÉ-style espresso at home. The company has opened six Nespresso boutiques in major U.S. cities—including three since January—in upscale locales such as New York's Madison Avenue and Boston's Newbury Street. More openings, in New York and Miami, are coming shortly.
With the economy mired in recession, it seems an odd time to urge consumers to spend $200 to $800 for an espresso machine that can only be used with prepackaged capsules that cost 55¢ a serving. But NestlÉ (NESR.F) is betting that coffee lovers will do the math: Just one cup a day from a local coffee bar can add up to more than $1,000 a year, vs. less than $200 annually for Nespresso capsules, plus the cost of a machine. "People still want little daily luxuries, but there's a return to consumption at home," says Nespresso Chief Executive Richard Girardot.
