Published on January 16, 2024 at 5:06 pm
Jacques Sbag, a radio and television presenter known under the pseudonym Arthur, is also a businessman. Along with ten other investors, he is seeking 280 million Swiss francs (298 million euros) in damages from coffee pod giant Nespresso. The reason? The bankruptcy of Ethical Coffee Company (ECC), a company in which Host had invested.
The Swiss company was founded in 2008 by a former Nespresso executive with the aim of marketing cheap and compatible biodegradable capsules for his former employer’s coffee machines.
According to the daily 24 Heures, Arthur, which is the “leader” of the process launched against the Nestlé subsidiary, may have invested 8 million euros between 2009 and 2010 to increase its stake in ECC to 5%.
Marketing for “few days” only
In 2011, ECC launched its Pods in Switzerland, an electronic and home appliances chain. But the Swiss newspaper recalls that Nespresso quickly took legal action to protect its brand, but they were only marketed for “a few days”.
ECC’s lawyers obtained the ban on marketing its pods three years after it was lifted. “But during that time, other competitors entered the market,” Maitre Bess told AFP, condemning ECC’s activity.
“Battle of the Pods”
Fed up with the proliferation of legal action in what was nicknamed “The Pod War”, ECC had to cease operations in 2017 before declaring bankruptcy in 2018.
The legal disputes have been dragging on for several years, which explains why the complaint from ECC’s creditors has only been filed now.
Contacted by AFP, the Nespresso brand indicated it was aware of the case, while clarifying it would not comment on ongoing procedures.
Source AFP.
