Issue link: https://read.dmtmag.com/i/491350
STiR tea & coffee industry international 51 Europeans are content with filter pods and single-serve capsules for several rea- sons, the most important of which is their investment in coffee machines. The market for home coffee brewers in Western Europe "is double that of North America. In the old continent consumers spend an average of $144 on a standard coffee machine, in North America it's just $42," according to Euromonitor. The majority of American homes still use drip brewers but are trading up to single- serve brewers and a small percentage have purchased espresso machines for home use. The National Coffee Association reported that as of January 2013 12% of U.S. homes had purchased a single-serve machine up 2% compared to the previous year. NCA predicts 40% of households will adopt single-cup coffee systems. Ascaso In- nova, BUNN, Cafeco, Cuisinart, Delonghi, Dualit, Illy, Krups, Nuova Simonelli and SunCana all make popular pod machines for home use. Prices are comparable to a Keurig. The SunCana pod brewer sells for $130 and BUNN's MyCafé sells for $160 the same as the Keurig B60 Elite capsule machine. Nespresso capsule machines start at $199. The Illy Iperespresso lists for $295. The Nespresso Gran Maestria is a home espresso brewer that sells for $799 and the Jura ENA3 retails for $999. At these prices household penetration is tiny. Since 2009 Nespresso's share in North America has declined from 5% to 3%, according to Eu- romonitor. Home espresso brewers like the Tassimo and Starbucks Verismo and the Keurig Vue that can be used to brew Americanos are making slow inroads into households. These machines list for $200 or more but are frequently discounted to $150 at depart- ment stores such as Target and Bed Bath and Beyond which offer large selections of coffee. Euromonitor predicts that capsule machines, including Nespresso and Tassimo but predominately K-Cups, will become the preferred North American format in 2014, overtaking drip filter coffee machines. Retail volume of fresh ground pods grew 523% in the five years ending 2011 in the U.S. and sales were up 105% in 2012, a pace that has continued in 2013. There is a bright future for filter pods, said Martin. "Soft pods will have their day in the U.S. once the end-users realize there is a higher quality single cup option that is more environmentally friendly and costs less. This soft pod value story is now being told in the office break rooms and is being well received as a better alternative," said Martin. "Sooner or later, there will be a greater demand for the soft pods at home," he observes, "Educating consumers in office break rooms is the exact same process that Keurig started using 15 years ago." K L O T H & K Ö H N K E N T E E H A N D E L G M B H K O N S U L - S M I D T - S T R A S S E 8 j SPEICHER 1 - D -282 17 BREMEN FON + 4 9 - 4 2 1 - 3 4 8 5 2 6 4 FAX + 4 9 - 4 2 1 - 3 4 7 7 7 2 0 W W W . K K T E E . D E M A I L @ K K T E E . D E IT SUITS ALL MERCHANTS TO TRADE FAIR AND QUALI-TEA ! Ground coffee is losing ground to single serve in filter pods and capsules. Mar- ket share has fallen from 67% to 52% since 2011, according to Mintel Intl.