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Nespresso is the brand name of Nestlé Nespresso S.A., an operating unit of the Nestlé Group, based in Lausanne, Switzerland. Nespresso machines brew espresso from coffee capsules, a type of pre-apportioned single-use container of ground coffee and flavorings. The company sells its system of machines and capsules worldwide, as well as the VertuoLine system in North America. In 1976, Eric Favre, an employee of Nestlé, invented, patented and introduced the Nespresso system to the business market in Switzerland without significant success. In 1988, due to the efforts of Jean-Paul Gaillard — a business man, the inventor of «Le Club» community — the product became a market success. In 1990, the firm signed a contract with Turmix, which started to sell Nespresso machines in Switzerland. Thereafter, other contracts were signed with Krups, Magimix, Alessi, Philips, Siemens and De'Longhi. The first patent application for Nespresso's process of brewing espresso from capsules containing ground coffee was filed in 1996. The Nespresso Company manufactures both machines and the capsules they use, and makes most of its money from the capsules. Nespresso machines and their capsules can be purchased in Nespresso stores, by mail-order, or many other consumer appliance stores. The company fights off producers of cheaper compatible capsules in court.
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