A court in St Gallen has decided that discount retailer Denner must remove generic coffee capsules that fit Nestlé’s Nespresso machines from its shelves.
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The decision is being seen as a success for the Swiss food multinational against cheaper competition.
Denner, which is a subsidiary of retailer Migros, had since mid-December been offering the generic capsules at a price of SFr0.25 ($0.26) per capsule. Customers pay almost double for a Nespresso capsule.
The St Gallen commercial court has provisionally ruled that Denner may not offer, sell or advertise four kinds of coffee in the new capsules.
Denner may no longer use the slogan: “Denner – what else?”, which mimics George Clooney’s catchphrase in the television advertisements for the product: “Nespresso – what else?” It must also refrain from claiming that its capsules are “compatible” with Nespresso machines.
Denner now has ten days to give its opinion in writing to the court. Despite growing competition in the coffee capsule sector, Nespresso remains the clear market leader.
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