How Nespresso is revamping its stores to market itself as a premium coffee brand

Nespresso's U.S. marketing strategy is about going beyond the coffee machine.

"We, first and foremost, are a coffee brand," said Jessica Padula, Nespresso's vp of marketing. She joined the Modern Retail Podcast and spoke about the brand's growth plans in the U.S.

Nespresso has had retail locations for years. But the brand -- best known for its pod-based coffee brewing system -- has always tinkered with the model, testing out new markets and concepts while sunsetting others. According to Padula, the focus of Nespresso's new retail projects is to showcase the brand's coffee prowess.

"You want to go a level deeper," she said.

For example, some locations have begun offering master classes to teach customers about the origin of some coffees. The hope is to make the coffee and its quality top of mind, according to Padula. "Sometimes, since the machine is what you lead with, that often gets in the way," she said.

With this, Nespresso is testing out new types of retail concepts and looking into new locations. This includes updates to major markets.

"Newness in New York is definitely coming," Padula said.