Issue link: https://read.dmtmag.com/i/491356
56 STiR tea & coffee industry international he Atlantic Ocean has long separated espresso drinkers from their brewed cof- fee cousins. Europeans favor a 40 ml (1.35 ounce) shot while North Americans drink six times that volume in their morning coffee mugs. At its inception Nespresso envisioned a single-serve solution for Europeans. Pro- pelled by the marketing genius of Jean-Paul Gaillard, sales growth topped 30% an- nually beginning in 1988. The espresso brewers and small metal capsules have since earned billions of Euros for the Chesterton, U.K. based division of Nestlé SA. Nestlé's decision to focus on Europe left the ingenious Americans to develop their own 8 to 16 oz. single-serve brewers. Beginning in offices and evolving over a decade into home brewers Keurig machines can now be found in 16 million U.S. homes. Its brewers are the top selling brand in North America with 72% market share in the U.S. and half the Canadian market. Keurig Green Mountain licenses its K-Cup technology to 38 partners offering 272 different beverages. It is the sales leader in grocery and mass market outlets with 20% share followed by Starbucks (13%) and Folgers (12%), according to IRI. Nespresso and Keurig Green Mountain have each grown into $4.4 billion coffee behemoths and are now eyeing the other's domain. Last September president and c.e.o. Brian P. Kelley announced that Keurig would begin selling its brewers in Europe's established single-serve markets this spring. Tar- gets include U.K., the 8th largest coffee market in the world, Poland and Sweden, which ranks 21st. Convincing only 2% of households in 10 targeted countries will add 8 million brewers to the installed base by 2020, Kelley told investors, adding that by that time the expansion will represent 10% to 15% of company revenue. In February Kelley demonstrated the Keurig 2.0, a newly designed home brewer that accepts the standard sized K-Cup to make a single cup and the new enlarged 2.0 pod that delivers 28 ounces of coffee in a special urn called the K-Carafe™. Nespresso and Nespresso VertuoLine Brewer Nespresso introduces a patented extraction process that in- jects heated water into a spinning capsule. The Centrifusion™ process occurs within newly designed capsules. The large-cup version is more than twice as deep as the espresso capsule. The intelligent extraction system "provides an extremely high level of precision as the machine recognizes, through bar code technology, each blend and adjusts the extraction param- eters." The system reads five different parameters: cup size, temperature, rotational speed, flow rate and the time the water is in contact with the coffee. Specifications On Sale: Now List price: $299 Operation: single button Pre-heat time: 15 - 20 seconds Brew time: 35 - 52 seconds espresso; 90 - 104 seconds for large cup coffee Cup sizes: 7.77 oz. (230 mL); 1.35 oz. (40 mL) Milk frother: optional $50 Capsule container: 13 - 20 capsules Power: 120 v. Weight: 10.85 lbs. (4.92 kg) Dimensions (inches): 8.32 (w) x 11.91 (d) x 11.93 (h) (centimeters): 21.13 (w) x 30.25 (d) x 30.30 (h) By Dan Bolton T