Eversys announces another factory expansion


Eversys announces another factory expansion and explains the core drivers of its growth, including the success of its product line, the launch of Légacy, and a new strategic partnership.

It was just three years ago when Eversys opened its new production facility in Sierre, Switzerland. It was an achievement long in the making since the machine manufacturer’s inception in 2009 in Switzerland’s canton of Valais. It was recognition of Eversys’ market growth and ambition for future growth. What it never expected, however, was to outgrow this facility in such a short timeframe.

“When we were designing our first factory, it was important for us to have the possibility for an extension, a reserve, an option for additional land in the neighbourhood right next to us – that’s why we chose the place in Sierre where we are now. But we did not imagine our growth would happen so quickly,” says Eversys CEO, Martin Strehl.

Now that it has, Eversys will be expanding its production and office space, and organising the company’s logistics in a more efficient way.

“This will ease our production flow significantly. It’s more than what we already have: more production space, more warehouse space, and significantly more space for stock,” Strehl says.

Eversys’ existing 7500-square-metre facility will be extended by two-and-a-half times, to about 18,000 square metres. The land required for the expansion was made available thanks to the municipality of Sierre.

Strehl says the company received “very good support” from local political authorities in order to move production forward quickly.

The project represents an investment of around US$25 million, with the aim of completion by the end of 2023.

“Eversys has promising prospects. We feel comfortable in Sierre and well supported by the cantonal and municipal authorities. Provided that the global environment does not have a significant negative impact on the economy, we should be able to double turnover in the coming years, and grow our global team to around 500 people,” says Strehl.

Eversys has already created around 60 new jobs in Sierre in 2022, bringing its current total number of Sierre-based workers to 220, and is constantly looking for more staff in multiple functions.

With sustainability one of Eversys’ core company pillars, Strehl says it is important that the new factory embraces the same sustainable standards and practices already in place at its existing facility.

“Sustainability is the DNA of the company. We must ensure sustainable aspects are taken care of and respected to the degree to which they are possible,” he says.

“We will install a big number of solar panels and produce part of our electricity ourselves. Sierre is called ‘the city of the sun’. It is one of the best positions in Switzerland to produce solar energy.”

Strehl says there are three core drivers of Eversys’ growth that have led to the decision to expand its production facility.

The first is due to the strong growth of Eversys’ fully automatic espresso machines, namely the Engima and Cameo product lines, which have already almost reached capacity limits at the Sierre factory.

“We have huge growth and momentum for these machines coming out of COVID and the industry recovering from lockdowns, which gives us some strong tailwinds,” Strehl says. “But it’s also the products and markets we have developed, the work our team has done with key accounts and partners over the last couple of years, which are showing positive results.

Strehl adds that the support of the De’Longhi Group, who took over the company in 2021 and allows Eversys to operate as a strategically independent unit, is helping to push the company forward. “Their support allows us to grow, and to continue our ambition to become and to remain leaders in the industry, which is not always a given [with acquisitions],” Strehl says.

The second core driver of growth is the launch of Légacy, a new product Eversys introduced to the market this year, and is in “ramp-up phase” of production. Strehl says this product will target a wider market at a lower price point, an area Eversys believes will be a main driver for volume in the future.

The third driver of growth is thanks to Eversys’ strategic collaboration with one of the world’s leading international coffee chains.

The project involves supplying the US-based coffee house with a custom-designed, fully automatic coffee machine for cold brew products, which make up a big and growing portion of the chain’s current consumed beverages. Both companies are in the planning and preparation phase for the production of these cold brew machines, and expect large quantities of the product to be built in Sierre and delivered to the US from the beginning of 2024.

“It will add a significant number of sales to our company with a one-to-one business relationship with that partner,” Strehl says.

Strehl says that while these three drivers of growth are a great feeling and accomplishment for the company, the next phase of Eversys will be its ability to deliver on all projects, and work through its current challenges of material procurement and resulting long wait times.

Strehl says production is growing month-by-month, and that it’s important to communicate that Eversys is doing everything within its control to speed up production, create necessary jobs, and make investments to satisfy customer needs.

Like the entire gastronomy-related industry, Eversys has felt the effects of the pandemic. At the beginning of the pandemic in 2020, the company grew by 15 per cent, but had to digest a drop in sales of 10 per cent in 2021. Since late 2021 however, orders have picked up in significantly. Eversys expects year-on-year growth of more than 50 per cent for 2022, and is likely to break the US$100 million turnover mark for the first time.

“I think everyone in the market is really very proud to see the success and interest in Eversys – for our brand and our products. From the outside, people would think we just have a nice building, but on the inside, it’s all about the team. We have a really great team in all departments who are very motivated, and who love their job,” Strehl says. “There’s also a lot of opportunity for young people to help shape their company. Eversys is not made in granite stone, it’s fluid, and everyone can contribute.”

Since the passing of Eversys’ Co-founder Jean-Paul In-Albon in 2021, Strehl says he and the team constantly wonder what In-Albon would make of the company’s growth and forward planning. He believes In-Albon would be proud to see how things have continued, particularly of partnering with one of the world’s largest international coffee chains.

“When we first had De’Longhi visit the new building in 2020, Jean-Paul and I showed them the new factory and spoke about the need for an extension. They told us: ‘Guys, just wait a bit, there’s COVID and other things happening, just wait,’” Strehl says. “Jean-Paul was disappointed and I said, ‘don’t be, that’s a natural reaction, let’s first fill this building up and then we will take the next steps.’ Now I’m sure if he could see us, he would be very proud.” GCR

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This article was first published in the November/December 2022 edition of Global Coffee Report. Read more HERE.

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