Instant coffee is a staple in the home, with 73% of UK consumers drinking it every day. Nestlé's Nescaffe dominates the market with a 43% market share and the majority of volume sold. Looking for new ways to expand coffee consumption at home, Nestlé developed Nespresso. Nespresso is just as affordable as Nescaffe, but uses freshly ground coffee individually packaged in pods to make a consistent single-serve espresso. To use the pods you need a special Nespresso coffee machine. By purchasing a machine the consumer becomes part of the Nespresso club. The pods are then sold to club members through high-end Nespresso boutiques or online. This premiumisation of convenient coffee is a growing market, in fact between 2010 and 2012 it was the fastest growing segment in the UK coffee market with growth of over 50% in both value and volume. Nespresso has always been a leader in the pod market in Europe, starting to develop its system as early as the 1970s and continuing to innovate today. However, with the patents on their unique system expiring last year, so does their monopoly in this niche market. The company is already feeling competition from newcomers like CafePod that make their pods compatible with Nespresso machines. The following discussion will explore how trust, entrepreneurial spirit and constant innovation have shaped Nespresso, and what this means for the company's future. As previously mentioned, Nespresso was first developed in the 1970s, but it wasn't until 1986 that a 100% Nestlé subsidiary, Nespresso SA, was actually established. The idea behind the product is simple: a two-part system, with machine and capsule made for ease and convenience. The aluminum capsule contains 5 g... half the paper... subject to approval." His attitude, combined with a strong commitment to the brand that ensured he was acting in the best interests of the company, helped Nespresso to innovate Interestingly, although the principal (Nestlé's upper management) had asymmetric information about the agent's (Gaillard) activity, the results were beneficial. Sebastian Raisch talks about Nespresso in his article “Balanced structures: designing organizations for profitable growth,” explaining: “The entrepreneurial culture helped it move faster and promote innovative ideas such as the 'club concept,' which represented Nestlé's first direct marketing experiment and played a key role in the success of Nespresso.” Therefore, it can be argued that the principal's lack of knowledge helped foster an entrepreneurial work environment where innovation could thrive.