What’s Cooking at home and in the coffee market?
If, with respect to coffee, you appreciate comfort, but do not like the instant, the coffee capsules you can be a happy medium attractive sea. In this article, we look at the burgeoning market of coffee in capsules and: We studied the sector, weigh the price and comfort against the ecological costs and tried the taste of five brands of coffee capsules.
Today, coffee culture is booming. Consumers increasingly buy more coffees made by professionals and visiting cafes more often. Looking for an original and “artisan” experience, coffee lovers are increasingly interested in the origin and type of coffee beans consuming , besides being concerned about issues such as fair trade and organic products.
At home, coffee drinkers are also increasingly demanding and away from instant coffee. In line with this trend, if we talk of fresh coffee, the coffee capsule system Nespresso has been the one who has experienced faster growth and has experienced tremendous growth worldwide .
These small and shiny aluminum capsules plus fever unleash the crafts with coffee capsules have attracted more than seven million people Nespresso Club and, in 2011, its global sales amounted to 3.2 billion dollars. However, with at least 50 competitors on their heels, can Nespresso maintain its privileged position among the coffee capsules ?
Launch of coffee capsules
The coffee capsules Nespresso , made by Swiss giant Nestle was born in 1986 and was originally marketed in the coffee sector office in Switzerland, Japan and Italy.In 2000 the first store in Paris opened and in 2006 the brand experienced its commercial explosion worldwide through the marketing campaign that George Clooney wore palm hearts, that explosion involved annual sales of more than $ 1.8 trillion . In 2012 already they had 300 stores in 48 countries.
Very prophetically, from the beginning, Nestle recorded the formidable figure of 1,700 patents to cover their capsules and Nespresso coffee capsules.
But since 2010, its competitors have begun to compete for a place in the lucrative coffee market, exploiting gaps in Nespresso patents.And no wonder – the Nespresso products have a profit margin of 20 to 30% and analysts have estimated market growth of this type of coffee 47%, reaching sales of $ 8 billion in 2014.
A competitive market
The main objective in the attack on the market share of Nespresso is convenience and
price. Nespresso capsules to buy online a client must be a member of the Nespresso Club ; otherwise, they must buy them in any of the physical stores that the company has worldwide. The minimum online order is 50 capsules for about 46 cents each, unless more than 200 capsules are requested, in that case you should pay a delivery fee of about 4 € for 50 capsules.
Instead, capsules compatible with Nespresso as the Piazza D’Oro L’Or sold in the supermarket for 50 cents each and can be found other capsules compatible with Nespresso cheaper online .
In addition, a capsule coffee maker DeLonghi Citiz Nespresso basic level can cost about 250 € and can be found other machines not compatible with Nespresso offer for less than € 100 .
Nestle has contratacado this front lower priced competition with the launch of Nescafé Dolce Gusto , a system of coffee capsules with a similar price to non -compatible machines Nespresso. In addition to coffee, it makes chai tea, hot chocolate and iced coffee. It is available in supermarkets and appliance stores, the cheapest machine range is priced around 100 € and cheaper capsules cost about 12 cents less than Nespresso.
Apparently, Nespresso is optimistic about his imitators: “Competition is nothing new to Nespresso” says Renaud Tinel, general manager of Nespresso Australia and Oceania.”Today, Nespresso is competing against more than 50 competitors. While competition is an important driver of innovation and growth, it must be fair and players must abide bythe rules . ”
As expected, Nestle has been busy testing the rules on patents and has launched a series of lawsuits against rival manufacturers of compatible capsules Nespresso, for example, the Ethical Coffee Company and Sara Lee. Nestle, meanwhile, has been sued by the Ethical Coffee Company, who says the Nespresso brand has engaged in unfair competitive practices and has made a campaign of “systematic smear” against them.
In an interesting twist, the CEO of Ethical Coffee Company , Jean-Paul Gaillard, worked as CEO of Nespresso between 1988-1998.
The results of all these legal problems have been complicated for Nestle, and some industry observers feel that the company is fighting a losing battle. They note, however, that the cost of litigation pales in comparison to the benefits gained by holding on to its competitors at bay for a couple of years.
While Nespresso faces competition from these cheaper products, it has an important advantage. Marketers call it “Premiumisation” – the creation of a strong brand, high-end and exclusive that inspires the loyalty of customers who value both the shopping experience, as the product itself and are willing to pay premium prices high. Only time will tell if loyalty trumps price wars coffee capsules.
Comfort vs waste
The price of comfort
The lure of cheap coffee capsules is the simplicity and consistency of the taste of your coffee. In addition, it certainly costs less than a coffee cafe – while the former is between 25 and 46 cents, the second can cost a couple of euros.
However, it is much cheaper to buy a kilo of coffee beans or ground and make coffee at home with an Italian or traditional coffee.
The cost to the environment
If we talk about the containers of coffee capsules, the original boxes are recyclable – no surprises, since they are made of paper. The capsules, however, leave a much larger ecological footprint . For starters, aluminum is one of the most energy -intensive materials, their manufacture requires nine times more energy than steel.Nespresso capsules should be taken to recycling points but how many people actually do? How many capsules are being properly recycled?
But while it may have the ability to recycle 75% of the capsules, it has not been revealed, if that amount of capsules have actually been recycled . Nespresso has sold an estimated 28 billion worldwide capsules – which corresponds to about 28 million kilos of aluminum, many
of which can be deposited in a landfill.
Nespresso capsules and other brands – which are mostly plastic instead of aluminum – can not be thrown into domestic recycling containers .
They are too small for machines recycling plants that can not separate from other waste and simply drop them through the screens in the general trash. Producing a greener coffee capsule is possible . The Ethical Coffee Company has created a biodegradable coffee capsule based on vegetable that is compatible with Nespresso and can be thrown directly into the organic waste container. These capsules can be purchased from the eBay platform.
With the rapid market growth, there has been a proliferation of these machines and coffee capsules providers, both in supermarkets and online . They are taking strong debates in forums that show that consumers just do not have clear which capsules are compatible with their machines. For example, it may be that a coffee brand X accepts capsules marks Y and Z but the capsules of the brand X not fit in coffee and Z.
Mix and match different brands of capsules into a machine can be problematic, since each has a slightly different design, which may affect the process of brewing and therefore his taste .
If you do not like coffee in a cafe you can go elsewhere, but once you’ve bought a coffee capsules are forced to use the flavors available for that machine. If possible,please try the coffee flavors in the store before buying .
Capsules compatible with Nespresso unofficial are slightly different from the original, presumably to avoid patents. If you have saved a few hundred euros to buy your coffee capsules you should keep in mind that, according to nespresso compatible pods singapore, if supported capsule unofficially causes damage to your Nespresso machine, ensuring it will not cover them .