Nespresso has decided to expand the Avenches production centre in Switzerland with an investment of $126m (CHF117m) to meet the growing demand for high-quality premium coffees.

Avenches, which serves as Nespresso’ global distribution centre, exports capsules to more than 80 countries globally.

It is engaged in the production of Nespresso Original and Professional coffees as well as Starbucks by Nespresso.

The investment will be used for the expansion of its distribution centre and the installation of three new production lines, which are expected to become operational by next March.

The distribution centre expansion is set to begin in July this year and be fully operational by September 2022.

Nespresso CEO Guillaume Le Cunff said: “This investment speaks of our long-term sustainable business approach.

“All Nespresso coffees sold worldwide are produced in Switzerland. Over the past eight months, we have announced a total of CHF270m investment in both our Romont and Avenches production centres.

“We are very proud to be able to continue to invest in Switzerland and support our economy, even more so in challenging times such as these.”

The investment will create 50 new employment opportunities by the end of next year.

The Canton of Vaud’s Department of Economy, Innovation and Sports director Philippe Leuba said: “In the current context, I consider Nespresso’s announcement as very good news. This very important investment demonstrates the attractiveness of this region, including in the industrial sector.

“By creating several dozen additional jobs, Nespresso is expanding its Avenches site and strengthens the positioning of the Swiss food nutrition valley, an initiative launched by NestlĂ© and the Canton of Vaud to promote Switzerland as an innovation hub in the field of food and nutrition.”