Met at the beginning of May on the occasion of the St. Gallen Symposium, Emanuel Probst looks back on a journey which strikingly coincides with what some now call the “Glorious Thirties of globalization”.
Le Temps: We are witnessing a major debate on the role of the State in the economy. What is your position?
Emanuel Probst: If I look at our company and its development over the last thirty years, I can only say that we have never asked for subsidies or support from the State. And yet, we have become one of the world leaders in automatic coffee machines and the financial success is also there.
The Jura company is an interesting case because its development has been massive over the last thirty years. How to explain it?
I always say that we are a product of globalization. I took over the company 33 years ago, in the early 1990s, the starting point of globalization and the progressive international division of value chains. This has led to the rise of companies like Apple, which owns the market while Foxconn [sous-traitant chinois d’Apple, ndlr] takes care of production.
We developed using the same approach. We have invested in our product and markets in around fifty countries, while working with our production partner, who has also contributed greatly to our development.
Where are your machines produced?
Our manufacturer, the company Eugster/Frismag, has production sites in Romanshorn (TH), Eschenbach (LU) and in Portugal for our machines. We also have a skills center for electronics in Malaysia, in what can be called the Asian “Silicon Valley”. This partner produces high-tech parts of the best quality exclusively for us.
And it’s important to emphasize this because as the economist Peter Tucker has described very well, outsourcing has nothing to do with cost reduction but with quality. We have been able to develop a value chain that offers the best quality and that is what reduces costs. Not the opposite. And without globalization, such development would not have been possible. In thirty years, we have multiplied our size tenfold.
The geopolitical situation has now fundamentally changed.
Globalization has led to an increase in the standard of living of many people and a reduction in mortality. This is why I am an advocate of globalization. The most open economies are the most successful. At the beginning of the 20th century, the world also experienced a phase of globalization which was subsequently stopped. This led to impoverishment for several decades. We should remember this and I also expect politicians to ensure that Switzerland maintains its openness and a good, clearly defined relationship with Europe. It is our main trading partner and our largest market.
Is this your main market?
Absolutely. Europe represents 60 to 65% of our turnover. We are very present in Germany, the Netherlands, Poland and even Austria. But not in Italy because it’s a completely different market with a different coffee culture that is drunk in a bar.
Concretely, do current geopolitical tensions have an impact on your activities?
So far, our supply chains are working but we are aware of the risks. It must be emphasized that the war in Ukraine is a problem but that a crisis between Taiwan and China would be yet another matter from an economic point of view. Russia delivers raw materials and that’s it. Taiwan, China and Japan, it’s technology. If the situation were to deteriorate in this region, the consequences would be enormous. It would somehow be a return to the old telephone with buttons. We see that Vietnam is taking up a certain place but it will take time.
Is the Asian market, which does not have a coffee culture, important to your business?
We are present in Asia, in Singapore, Malaysia and even South Korea, which represents a big market for us. But also in Taiwan, China and Hong Kong. In Oceania, Australia is also an important market, as is New Zealand. India not yet. For now, the market is tiny. I am convinced that things could be completely different in ten years. This is why we are taking our first steps there, in major cities.
Will the free trade agreement signed with India help you?
Not necessarily. This can be positive but customs duties do not have a big influence on our business because our main competitors also have them.
Beyond globalization, how do you explain the incredible development of the Jura company over the last thirty years?
Focus and passion. Passion leads to interest, deepening and more innovation. From morning to evening, I don’t have to worry about anything other than fully automatic coffee machines. But in this area, there are no excuses: we must be the pioneers and the most innovative. At Jura in Niederbuchsiten, we have 55 engineers who only work on the development of our product. If I add our partners, we have around 100 engineers exclusively dedicated to our company. They focus on one thing, freshly ground coffee, not capsules. Few other players have such focus, such “strike force” [en français dans l’entretien réalisé en allemand, ndlr].
In the 1990s, there was the arrival of Nespresso which completely changed the coffee market.
Nespresso helped us a lot. Of course, it’s a competitor and you may have a Nespresso at home. Or maybe a Jura machine. Usually it’s one or the other. But when a market is being built, when it comes to raising awareness of a new product category, it’s extremely important to have other powerful players on your side.
From our archives: The great successes of Swiss industry. A little Swiss black called Nespresso
Did this push you to surpass yourself?
Also. Of course, as a seller, you prefer to be alone. But competition helps to grow the market and find a real place in it. Put bluntly, it’s better to have a small piece of a big, tasty cake than a shabby, dry little cake.
Do you drink Nespresso coffee? Here at the St. Gallen Symposium, that’s what’s served.
I must survive well (laugh). More seriously, when it comes to capsule coffee, Nespresso really does a good job. But it’s a capsule and it’s a whole different philosophy. We also focus a lot on the lifespan of our devices. This is very, very important. 3 or 4 years ago, a study in the Netherlands carried out by a consumer association showed that the lifespan of a coffee machine was on average six years while that of ours was nine years, This is exactly what we want, the longest possible lifespan. It is common sense to be economical with raw materials and this is why we are for coffee without capsules: fresh coffee coupled with machines that have a long lifespan.
Unlike many companies, service and repair are at the heart of your model, which goes against the practices of recent decades.
This is our philosophy and it has its origins in the period after the Second World War, when raw materials were limited. This approach has led us to invest heavily in the service. From the 1990s, in fact, there was a change and companies began to make a lot of disposable products. But we stuck to our model. We are also in the process of building two large factories for this purpose, in Germany and in Pennsylvania, just for maintenance and repair. We are investing a total of 60 million for these two centers which are in addition to the one we have in Niederbuchsiten. In total, we have around 35 hospitality centers around the world. They allow our customers to have their machines repaired.
The last twenty years have also been marked by your partnership with Roger Federer. How much has this contributed to your success?
It was decisive because trust plays a key role when purchasing a product and that is exactly what Roger inspires. About ten years ago, a study was carried out in 25 countries to find out which personalities inspired the most trust. Nelson Mandela came first ahead of Roger Federer who preceded the Queen of England, the Pope and Barack Obama.
The funny thing, I can tell you today, is how our partnership came about in 2006. It was an idea from our marketing manager at the time, an Englishman who was very good at building brands. When we approached Roger Federer, he was open because he had bought one of our machines two weeks earlier. For what? Because he thought it was the most beautiful. It’s very design oriented, still very stylish when you see it. That’s why he’s the perfect ambassador for us. She is a remarkable person who has an exceptional ability to focus on others. As soon as he talks with you, you feel like you’re the center of the world. Whoever you are and with great authenticity.
He withdrew from the competition, could you change ambassadors?
Never. It’s him and no one else.
Organic express
1957 Born in Oberbuchsiten (SO).
nineteen eighty one Bachelor’s degree from the University of St. Gallen.
1991 Becomes executive director of Jura Elektroapparate AG.
2022 Opening of the Jura Campus, a center for innovation, technology and quality.
