Nestle faces increased competition in coffee capsules

Once you start losing patent protection of your Nespresso system, in the mid 90, Nestlé began to face a lot of companies that are seeking to conquer part of your market. In Brazil, for example, almost 100 of these companies have sprung up in less than five years.
Nestlé made arrangements or closed cases against a lot of manufacturers of coffee capsules after losing its main patent, in 2013. Now, their machines are compatible with the capsules of more than 200 competitors in the world.
Even so, the manufacturer Ethical Coffee Co. (ECC) and continues in a process with Nestlé. For years, the ECC came stating that the Nespresso machines had been modified by the competitor to make them incompatible with their capsules. But in a twist, the ECC States now hold the patent technology that claims to be used by Nestlé to prevent use of their capsules.
The ECC has won a great victory in January when the main patent authority of Europe rejected an open dispute by Nestle on the franchise. In the process, the competitor is demanding compensation of damages for his patent has been infringed in various locations in Europe and is also trying to block sales of Nestlé ''s machines. The giant Switzerland, in turn, claims that their machines use a technology that was patented earlier and plans to appeal the decision.
The Nespresso brand has lost market share globally. She answered by 13% of the segment in 2011 and, in 2015, this piece was 13%, according to data from Euromonitor consulting.
In Brazil, the brand''s revenue grows. Spent $ 112.5 million in 2013 to $ 179.8 million last year. This value corresponds to 7.5% of world sales of Nespresso, also according to Euromonitor.
Isabel Masagão, marketing manager of Nespresso Brazil, States that the Brazilian market is more an opportunity than a challenge. "We have space to grow is huge," she says. According to research from Gfk, sales of machinery grew 27% last year in the country.