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> In 2013, the most recent year it released figures, Nespresso’s revenues totalled $10.8bn. > In the summer of 2020, buffeted by Covid-19, Nespresso trundles o

> In 2013, the most recent year it released figures, Nespresso’s revenues totalled $10.8bn. > In the summer of 2020, buffeted by Covid-19, Nespresso trundles on. In a recent email, a spokesperson reported “mid single-digit growth” This article has failed to do anything other than convince me that the Nespresso is one of the most impressive products every launched, and has room to take on the US still.

gambiting 6y ago
Really, I hate how "single digit growth" is somehow a failure nowadays. Millions of companies everywhere don't even grow year or year - businesses which found their niche, which employ hundreds or thousands of people and which just operate in equilibrium state where everyone goes home paid at the end of the day and it's fine. No one considers those a failure just because their valuation isn't doubling year on year.
- asddubs 6y ago
  If you're not chasing unsustainable growth and are willing to pay any long term price for it, you're not doing capitalism correctly
- onion2k 6y ago
  If a company isn't growing by at least the equivalent of inflation then it's shrinking, and that can't happen for very long before it can't cover its costs. Even when inflation is close to zero, interest on debt means that a company that isn't growing won't be able to service it's creditors forever, and it'll fail. There are plenty of reasons why 'growth at all costs' is a stupid goal, but there does have to be some growth for a business to survive.
  - Thorentis 6y ago
    Well, a company in equilibrium has the option of increasing its prices inline with inflation. Which is the very definition of inflation. I don't think growth (in terms of more customers or more product sold) is required to stay in business. You just need to stay competitive in the market and keep meeting costs.
  - lordgrenville 6y ago
    That doesn't sound right. If I'm consistently profitable and not growing. Prices rise, my inputs cost more, but I can raise my own prices, so my business remains in equilibrium.
    - shawabawa3 6y ago
      That would show as revenue growth
  - ben509 6y ago
    No, the company just needs to have a net profit. Their market can be shrinking and, if they're able to fire people and reduce other costs, they can survive just fine. Growth is desirable for investors, but it's not at all necessary for a company to continue operating.
  - TheSoftwareGuy 6y ago
    >If a company isn't growing by at least the equivalent of inflation then it's shrinking That depends on what exactly is growing. As long as profits are growing by more than 0%, then the company is growing, regardless of inflation. If its only revenues that are growing in the low single-digits, then still the company could be growing! Inflation is the phenomenon of prices generally increasing, but no matter what anybody tells you it is not distributed equally. Just because the overall rate of inflation is 5% does not mean that your costs have increased by 5% YoY.
  - anm89 6y ago
    The fact that this is being downvited is sad. It's obviously correct.

gambiting 6y ago

Really, I hate how "single digit growth" is somehow a failure nowadays. Millions of companies everywhere don't even grow year or year - businesses which found their niche, which employ hundreds or thousands of people and which just operate in equilibrium state where everyone goes home paid at the end of the day and it's fine. No one considers those a failure just because their valuation isn't doubling year on year.

asddubs 6y ago
If you're not chasing unsustainable growth and are willing to pay any long term price for it, you're not doing capitalism correctly
onion2k 6y ago
If a company isn't growing by at least the equivalent of inflation then it's shrinking, and that can't happen for very long before it can't cover its costs. Even when inflation is close to zero, interest on debt means that a company that isn't growing won't be able to service it's creditors forever, and it'll fail. There are plenty of reasons why 'growth at all costs' is a stupid goal, but there does have to be some growth for a business to survive.
- Thorentis 6y ago
  Well, a company in equilibrium has the option of increasing its prices inline with inflation. Which is the very definition of inflation. I don't think growth (in terms of more customers or more product sold) is required to stay in business. You just need to stay competitive in the market and keep meeting costs.
- lordgrenville 6y ago
  That doesn't sound right. If I'm consistently profitable and not growing. Prices rise, my inputs cost more, but I can raise my own prices, so my business remains in equilibrium.
  - shawabawa3 6y ago
    That would show as revenue growth
- ben509 6y ago
  No, the company just needs to have a net profit. Their market can be shrinking and, if they're able to fire people and reduce other costs, they can survive just fine. Growth is desirable for investors, but it's not at all necessary for a company to continue operating.
- TheSoftwareGuy 6y ago
  >If a company isn't growing by at least the equivalent of inflation then it's shrinking That depends on what exactly is growing. As long as profits are growing by more than 0%, then the company is growing, regardless of inflation. If its only revenues that are growing in the low single-digits, then still the company could be growing! Inflation is the phenomenon of prices generally increasing, but no matter what anybody tells you it is not distributed equally. Just because the overall rate of inflation is 5% does not mean that your costs have increased by 5% YoY.
- anm89 6y ago
  The fact that this is being downvited is sad. It's obviously correct.