Analyst Insight by Dana LaMendola - Beverages Analyst
At the 2014 International Home + Housewares Show that took place on March 15-18th in Chicago, three new coffee pod machines stood out from the crowd: the VertuoLine, by Nespresso, the Keurig 2.0 by Keurig Green Mountain Coffee Roasters, and the iCup by Remington. The VertuoLine is already available for retail, while the launches by Keurig and Remington are expected for later in 2014. With each coffee pod machine claiming to represent a new frontier in pod coffee, the question arises of just how much room and demand there is for further coffee pod innovation?
The VertuoLine: Bigger Cups of Nespresso-Quality
Launched in February, 2014, Nespresso’s VertuoLine is a wholly new pod system, available exclusively in Canada and the US. Unlike previous Nespresso machines, which only brewed small portions of espresso-style coffee, the VertuoLine is able to brew larger eight ounce cups in addition to smaller espresso portions. Nestlé’s motivation behind the new system is to capture more of the increasingly lucrative North American coffee pod market, which reached US$ 3.4 billion in sales in 2013. Although Nestlé dominates the pod market in all other regions of the world, it has been unable to gain significant traction in North America, accounting for just 4% of the market in 2013. Nestlé hopes that a larger cup size option will attract North American consumers, who, unlike the company’s main European consumer base, tend to prefer larger cups of ‘drip-style,’ or ‘filtered coffee’ over espresso.
Courtesy of Nespresso