Here’s how to save $800 a year on coffee

Alison Stephenson & Charlotte Willis
November 06, 2012
news.com.au

Cafe-quality that won’t break the bank? Nespresso’s new U capsule-based coffee machine range. Picture: Supplied Source: Supplied

Coffee capsules like these ones for the Nespresso U create cafe quality coffee at the touch of a button. Picture: Supplied Source: news.com.au

AUSSIES are getting more cup for their buck, saving up to $800 a year on cafe-quality coffees with the rise in popularity of affordable at-home machines.
Research shows there has been a 91 per cent growth in “coffee pod” machines in the 12 months to May this year, with over 473,000 units sold in Australia last year alone.

And supermarkets such as Woolworths and Aldi have been quick to recognise the huge growth in the market, introducing capsule-based machines as cheap as $79 into their stores.

Teaming up with coffee giant Gloria Jeans, Woolies’ new product, the Caffitaly System S14, promises a brew that’s as good as you’ll find at your local café for a fraction of the price.

“A flat white made in the Caffitaly system with a Woolworths Select espresso capsule costs just 47 cents a cup, while an espresso is even less at just 37 cents for a shot,” said Woolworths Head of Own Label, Matt Cole. “Compare this to $3.50 or more in a coffee shop.”

“If you buy five takeaway coffees a week switching to Woolworths compact capsule system could save you $793 over an entire year.”

Woolworths estimates that based on this figure, the machine has the potential to save Aussies $8.7 billion in coffee costs per annum.

Even Nespresso, long considered the market leader in capsule-based coffee machines have lowered their entry price by $100 due to the rise in demand for quality at-home coffee.

The George Clooney fronted company introduced their new and cheapest machine – the Nespresso U – in August which makes a cafe-quality espresso for 68 cents a cup.

Nicole Parker, Marketing & Communication Manager, Nespresso Australia & Oceania says Aussies appreciation for high-quality coffee continues has grown the market for at-home portioned coffee machines exponentially.

“In Australia, the portioned coffee machine market is now the fastest growing part of the coffee machine market,” Parker told news.com.au.

“The popularity of the coffee machine as a must-have at home appliance has grown as more consumers recognise they don’t need to leave the house to enjoy a high quality coffee experience.”

Sister brand, Nescafe also recognised the potential to capitalise on the Aussie love of cafe culture and took things one step further, releasing the first capsule-based machine to make hot and cold beverages.

Priced from $149, the Nescafe Dolce Gusto goes beyond the simple cuppa, producing one-touch drinks such as hot chocolates, chai tea lattes and NESTEA iced peach tea.
Kais Marzouki, Nestlé Australia’s Business Executive Manager – Beverages, says the machine sets “a new standard in coffee machines.”

According to Aztec data, five years ago pod systems barely existed, but within the next year over a million Australian households are expected to purchase a machine.
Savvy marketing and word-of-mouth feedback has meant they are now the number one gift on the Christmas lists of Aussie adults this year.

But with more and more people pushing aside the kettle and embracing the capsule, will the rise of the at-home cafe cuppa hurt independent cafes and coffee suppliers?

“You will always get those people who will walk five blocks to get their favourite coffee”, says Dion Cohen, owner of Sydney-based boutique coffee roaster Single Origin, “but the household user is maturing with how they drink coffee which is certainly driving growth in the at-home coffee sector.

“Consumers want an ease of use, cheap, no fuss, no mess sort of system, so it’s an easy entry point for people to get these nice, cute, little machines.”

Cohen, who has been in the business for more than a decade says a few years ago his industry colleagues would have laughed at the idea of people making lattes at home from a capsule.

But with the recent exponential rise in the popularity and technology of the machines, there is a certain amount of concern amongst the industry.

“I think there will be a turn over the next couple of years – people will start putting better quality coffee in the capsules that we can buy ourselves.”

HOW THEY COMPARE:

WOOLWORTHS:
Caffitaly S14
$79 for everyday reward members, $99 for non-members + milk frother $29
Coffee capsules: $5.99 for 16
Price per cup (excluding milk) 37 cents
Woolworths

Woolies is the latest to jump on the single-serve coffee machine bandwagon with the Caffitaly S14. Picture: Supplied Source: news.com.au

ALDI
:
Espressi Machine
$89 + $25 milk frother
Coffee capsules: $5.99 for 16
Price per cup (excluding milk) 37 cents
expressi

The Aldi Expressi machine retails for $89, and is pictured here with two boxes of capsules. Picture: Supplied Source: news.com.au

NESPRESSO
:
Nespresso U machine
$299 (includes milk frother)
Coffee capsules: $6.80 – $7.30 for 10
Price per cup (excluding milk) 68 cents
nespresso

The Nespresso U’s ease of use, sophisticated design and range of colours has been a strong selling point. Picture: Supplied Source: news.com.au

NESCAFE:
Nescafe Dolce Gusto (for hot and cold beverages)
$149 – $349 (no milk frother required)
Coffee capsules: $7.95 for 16 espresso, $7.95 for 8 milk-based or specialty drinks
Price per cup: 50 cents (excluding milk) for coffee, $1.00 for milk-based drinks requiring two capsules
dolce gusto

Prices for the Nescafe Dolce Gusto range from $149 to $349. Picture: Supplied Source: news.com.au

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