The folks that help Macdonalds beat Starbucks is going after Nespresso!!
by Chee Leng
In my previous article, I told you that Macdonalds Uk is selling more coffee than Starbucks, and the folks that supported them (sell them the coffee is United coffee).
Not many people outside of Europe would have heard of this coffee company, but they are the largest private label coffee in Europe.
How big are they? Well, they purchased 1% of the world's coffee output -a relatively large amount for a company without much retail exposure to be purchasing (they do sell to Carrefour, but are not on the retail shelves such as Nestle or Maxwell house).
Anyway, United coffee is after working with Macdonald's to defeat Starbucks, is going after another Giant, the biggest in the coffee world -Nespresso, which is in the same family as Nescafe, still the world's largest roaster.
Their CEO Per Harkjaer announced that in 6 months time, they would releasing a single serve machine
and capsules that would be able to make coffee, tea, and hot cocoa.
Why did I say that they are going for nespresso market? He specifically stated that the machines and capsules would be priced at nespresso price tier.
In addition, he even remarked that there is some interest to make the capsules compatible with Nespresso machines.
As the story unfolds, more and more are at stake hinging on the suites that Nespresso is bring on Ethical Coffee Company and Sara Lee, the two companies that have designed compatible coffee pods that can be used for nespresso.
If Nespresso win the case, they might be able to fend off competitors for a while, if they would to lose the case, the flood gate would be open, and I can see many more companies coming in to make nespresso compatible capsules.
With millions of Nespresso machines in the market, this is a group of ready buyers for capsules for companies making them.
In any case, Nespresso success has attracted competitors in many forms, companies that "clone" its capsules and now United Coffee that is coming out with a coffee system just to compete with it.