Hotter Nespresso Espresso
Is Nespresso espresso, or is it some erstwhile life style statement, which makes its owner Nestle billions of dollars revenue and profit?
A subject for debate – But one thing is certain, a real bun fight is now emerging following the failed legal injunctions against alleged patent infringements, supposedly made by L’or and Ethical Coffee Co back in 2010 and 2011
Today, a rash of Private Label ‘pretenders’ are appearing – supplied by manufacturers from across the globe ( Europe/ South Africa/ US and China) who are all ready and willing to jump on the single most profitable phenomena that the coffee trade has ever witnessed
Just last week two more manufacturers ‘woke up and smelt the coffee’ with Starbucks ( via Krueger) and now Dualit announcing their efforts to grab a slice of the lock n key system action, in a rapidly growing market place, now estimated to be worth a cool $6 B and forecast to be valued at a gigantic $8.5 B by 2017
Dualit describe the base of the problem which Nestle has with its closed system like it saying to its clients ’you can only put our bread in a Dualit toaster’…fair comment…but equally, Nestle can point to many millions in investment and associated resource which invented and marketed this unique package…other similar lock n key attempts, notably by Kraft, have been a boring damp squib which no one has yet bothered to copy…
I am not sure though that Nestle will today be thinking that such ‘plagiarism’ is the finest form of flattery – there are some suggestions that the top date amazing growth trajectory may be about to ‘flat’ line, as annual rates dip below 20% – Still a figure wildly beyond the dreams of any other major coffee player in any coffee category!
The real magic for Nestle has been how they could, in the first place have created such a fabulous and immensely profitable package, by which less coffee was sold per cup through a completely lock and key system…I am sure the magic and money printing machine will return!