Coffee's Circular Revolution

In an industry where luxury and sustainability often seem at odds, Nespresso Canada is charting a bold new course. Under Carlos Oyanguren's leadership as President, the company recently launched RELOVE - a pioneering refurbishment program that's redefining what premium brands can achieve in the circular economy. I sat down with Oyanguren to discuss how Nespresso is bridging the gap between luxury coffee experiences and environmental responsibility, and why he believes the future of premium brands lies in embracing the secondhand revolution.

1. How do you define innovation in the context of sustainable consumption and the circular economy?

At Nespresso Canada, we believe innovation in sustainable consumption and the circular economy requires a holistic approach, from bean to cup and beyond. It’s in our DNA to push the boundaries of what a unique coffee experience can be. Our approach centers on minimizing waste and maximizing resource efficiency. Our system, designed to deliver the perfect cup with the precise amount of coffee and water, inherently reduces waste. This precision, coupled with our commitment to aluminum, an infinitely recyclable material, forms the foundation of our sustainable innovation. Furthermore, our long-standing commitment to aluminum capsule recycling through our recycling solutions, like Nespresso’s Green Bag, reinforces our dedication to closing the loop. We continuously
strive to push the boundaries of sustainability, ensuring that every cup of Nespresso is enjoyed responsibly, both now and for generations to come. Consumers not only expect more from their cup, but they also expect more from brands, seeking out the ones whose values align with theirs. We are one of those brands.

2. The RELOVE program represents a significant shift for a premium brand. How did Nespresso develop and refine this concept internally?

The RELOVE program represents a significant milestone for Nespresso, embodying our commitment to innovation and a circular economy. We are happy to be leaders in our category while joining premium brands that have launched refurbishment programs, such as Apple and Dyson. By leveraging cross-functional collaboration within the organization, we have developed a program that not only aligns with our values as a company but also addresses the evolving needs of our customers. This initiative underscores our dedication to delivering high-quality products while making a positive impact on the environment.

3. What insights from your recent survey of Ontarians' secondhand purchasing habits have most significantly influenced your strategy?

The insightful results from our recent survey certainly reassured us that we had made the right decision when we decided to refurbish our coffee machines through the RELOVE program. Consumers are ready to take the secondhand turn and they sincerely like the idea of buying secondhand items directly from the producer.

4. Consumer behavior around sustainable consumption is evolving rapidly. How does your team identify and respond to these emerging trends?

Our approach to sustainability is based on continuous improvement, creating shared value and innovation. For over 30 years, we have been seeking to embed sustainability into our everyday business. Since 2013, this has been called: “The Positive Cup” – a strategy that remains at the heart of our business and that reinforces our conviction that coffee must be a force for good. The Positive Cup Strategy towards 2030 introduces a new framework built upon our strategic priorities and convictions: values-based, fundamental beliefs that we hold as a company and that shape the way we act. Each conviction leads us to an ambition, with associated measurable goals and time-bound milestones. We also report performance against core KPIs related to each strategic priority. We are committed to establishing a sustainable coffee economy, through innovative programs and partnerships.

5. What unique challenges have you encountered in implementing a refurbishment program within a luxury brand context? How have you addressed consumer perceptions?

We are still in the introductory phase of this new program in Canada, but the positive reception from consumers is promising. Many are showing genuine curiosity about this new option, which allows them to give a second life to their eligible Nespresso coffee machines. One important thing that we didn’t want to compromise in any way was our coffee’s taste. We made sure that the RELOVE machines would offer the same quality coffee that people have always appreciated from Nespresso. We are confident that the RELOVE program will interest more and more customers, given the growing popularity of the secondhand market.

6. Has Nespresso drawn inspiration from other industries' circular economy initiatives? How have you adapted those learnings for the premium coffee sector?

At Nespresso, we pride ourselves on our innovative sustainability programs, which are tailored to meet the unique demands of Nespresso Club Members. We continue to be pioneers and leaders in sustainability since 1991. While we have developed cutting-edge approaches, we draw inspiration from the craftmanship of luxury brands. Focusing on a circular approach means considering every step of the product journey – from its creation to its end-of-life. This meticulous attention to detail ensures that we maintain the highest standards of quality and sustainability.

7. How do you foster a culture of sustainability innovation within Nespresso while maintaining your premium brand positioning?

At Nespresso Canada, we believe that sustainability & innovation go hand in hand. That is what helps us maintain our high-quality products and services standards. Furthermore, sustainability is needed to maintain our high quality coffee and the wellness of our planet. In this light, Nespresso is deeply committed to support the coffee farms we collaborate with in their transition to regenerative agriculture, which includes agricultural practices aimed at protecting and restoring natural resources, primarily soil, but also water and biodiversity. This approach not only improves soil health and fertility, but also promotes carbon capture in soils and plant biomass. As our recent survey highlights, Canadians seek more sustainable options from businesses. With RELOVE, we are offering a new alternative for Canadians to enjoy Nespresso coffee, without compromising on quality or experience. In addition to offering a more conscious option, coffee machines that are part of the RELOVE program meet the same quality standards as any other Nespresso products and feature the same warranties as our brand-new machines. Beyond offering consumers a way to align their love of exceptional coffee with their values, this innovative program is part of Nespresso's long-term commitment to sustainability and a circular economy. Certified B Corp, Nespresso is committed to being part of the solution when it comes to social and environmental responsibility, especially with regard to circularity, climate and communities.

8. Looking ahead, how do you envision the relationship between luxury brands and the secondhand market evolving? How is Nespresso positioning itself to lead in this space?

According to our new survey, three in four (76%) Canadians believe organizations need to embrace the secondhand movement and do more to repair and refurbish their products. Over half (55%) are more likely to support or purchase from organizations that repair and refurbish their products. In light of these results, we can only invite other companies to offer responsible programs that meet the needs and desires of customers. Nespresso is proud to lead the way in the space, with the recent launch of its RELOVE program in Canada, which enables coffee lovers across the country to give a second life to selected Nespresso coffee machines and to purchase refurbished machines without having to compromise on quality. In addition to offering a more conscious option, coffee machines that are part of the RELOVE program meet the same quality standards as any other Nespresso products and feature the same warranties as our brand-new machines.