The Business Legend of Nestle Coffee and Beverage Machine the price of a bottle of Nestl é coffee bottle is somewhat mysterious.

Professional coffee knowledge exchange More coffee bean information Please pay attention to coffee workshop (Weixin Official Accounts cafe_style)

Who would have thought that a capsule for less than $1 could revolutionize a century-old brand of cheap coffee?

Nestlé rewrites the way coffee is drunk globally with two new coffee brands, Nespresso and Dolce Gusto, creating a new $10 billion market and burnishing Nestlé's century-old brand.

Since its launch, Nestle has sold nearly 30 billion capsules worldwide. Nestle has not only established a brand-new coffee empire, but also attracted a large number of peers to follow suit, including Starbucks, Japan's largest coffee supplier, and Illy, an established espresso brand.

In fact, as early as 1976, Nescafe has invented the world's first capsule coffee machine, why is it so popular recently?

The key is to treat coffee like red wine.

Nestle, which started out as a three-in-one instant coffee, initially didn't know how to sell the product. The advantage of the capsule is that it has both a quick and convenient feature and the aroma and taste of freshly brewed coffee. But expensive machines are generally not affordable for families. Nestle started from professional coffee shops and wanted to replace the traditional manual brewing method, but unexpectedly triggered a backlash from practitioners, who regarded capsules as the invasion and threat of evil empires.

Nescafe had to turn to rich families, but at that time the price of a capsule coffee machine was almost the difference between Ferrari sports cars and domestic cars compared with other household appliances, and general retail stores were reluctant to purchase easily. By 1987, half of capsule coffee machines were out of stock.

It wasn't until 1989 that Nestle switched to a completely new strategy: treating coffee machine users as premium club members! Consumers can get a membership card just by buying the machine. You out of your capsules? A phone call was immediately sent to your residence. It worked, and membership began to grow steadily, turning losses into profits in 1995 and reaching 300,000 by 1997, bringing Nestlé about $140 million in revenue.

This has boosted the morale of the Nespresso team. Next, they teamed up with Swissair to deliver capsule coffee to first class. For these wealthy Europeans, it is not unusual to be able to drink high-end red wine on the plane, but it is amazing to suddenly drink authentic Italian coffee at 30,000 feet. In just five years, 20 airlines have introduced coffee to first class, with its aroma permeating the air. This allowed Nespresso to officially move towards a boutique group.

In addition to five-star hotels and first-class aircraft, as of 2014, more than 750 Michelin star restaurants around the world have served Nespresso, and "Chef Dinner" has become one of the most star-studded chef communities in the world.

Taiwan's first French-starred restaurant, headed by legendary French chef Joël Robuchon, hosted a high-class dinner. The dinner was jointly created by Paolo Basso, the world's most outstanding sommelier, and Olivier Jean, the executive chef. The wine poured in the goblet that night was not the red wine of the five major wineries, but the capsule coffee that cost less than 1 US dollar.

Although Nespresso is part of the Nestle Group, it does not publish official financial statements because it is an independent company. The Wall Street Journal estimates that its revenue exceeds $3 billion a year. This tiny capsule created a new business legend.