History of Saeco Products and the Company

This history isn’t simply about a business, but about a Swiss engineer who had a vision. In 1976, Sergio Zappella established GSL, a firm producing espresso coffee machines for home use chiefly created for third parties.

Five decades later, Sergio and Arthur Schmed, a Swiss scientist, created Saeco S.r.l. with its registered office in Gaggio Montano in the province of Bologna. They committed time and resources and chose to run their business under a new name that was proprietary. The result was the creation of this first fully-automatic espresso coffee machine in 1985. This invention quickly became a significant market success due to its broad consequences for filling a void in consumer demand. The next year, Sergio Zappella and Giovanni Zaccanti established Cosmec S.p.A.; S.p.Aexactly thesame as Inc.;to the specific purpose of producing coffee machine components and finally prompted the Group to deliver all manufacturing in-house.

In 1986, improvements were made to the control and management of the sales network for global expansion. From 1989-1993, Cosmec inaugurated creation of various espresso coffee and automatic vending machines.

In 1995 and 1996, Saeco started marketing its “climate” and “steam” products. In October of 1999, for international reorganization, Cosmec changed its title to the Saeco International Group and assumed the function of the holding company. In December 1999, the Group acquired the management of Gaggia S.p.A. at U.S.The acquisition of Gaggia, a historic brand in the professional coffee machines industry, allowed Saeco to fortify its position within this market segment and additional increase its earnings capacity.

In 2009, Saeco was the European leader in automatic espresso coffee machines production using a 30 percent market share. Saeco as a business designed, manufactured and distributed automatic, manual and capsule espresso coffee machines for professional and home use, both under its own brands, Saeco and Gaggia, or on behalf of third party manufacturers, OEMs and Lavazza. Saeco also manufactured drink and snack vending machines. Saeco, headquartered in Gaggio Montano, Bologna, Italy, had approximately 1,400 workers. In March, they shut their doors with estimated earnings of 318 million Euros.

On May 25, 2009, Royal Philips Electronics of the Netherlands, recorded on four stock exchanges, announced that it has reached a binding agreement to acquire Saeco International Group S.p.A., the Italian-based top espresso machine manufacturer, which is controlled by PAI partners that have in-depth understanding of its target markets.

Nowadays, Sergio Zappella is Chairman, Giovanni Zaccanti is Vice Chairman and Arthur Schmed are Directors on the Executive Committee of Saeco International Group, which is part of Philips Saeco. Now, Philips Saeco continues to advertise the high quality Saeco espresso machines, coffee manufacturers and accessory products.