Starbucks takes on Nespresso

Staff Writers
news.com.au
March 06

COFFEE wars are set to take off with Starbucks expected to launch its capsule range within a month.
As more and more coffee drinkers take brewing to their homes, analysts expect the global coffee giant to make an announcement on a Europe launch of capsules as soon as this month, reports The Financial Times.

Nespresso is one of the biggest players in the popular coffee capsule market with more than 270 boutiques worldwide and eight here in Australia.

Boosted by a campaign fronted by George Clooney, sales of Nespresso rose more than 20 per cent in 2011, making it Nestle’s fastest-growing major brand.

Nespresso’s huge success has tempted rivals to follow suit.

Starbucks Australia said that although the capsule market is an area it will be exploring, at this stage there are no immediate or short term plans to launch in Australia.

“The capsule market has been a strong growth platform in recent years internationally,” a Starbucks spokesperson said.

“It is an important platform that customers are increasingly becoming aware of and one that is important to Starbucks to continue exploring.”

Starbucks’ launch of their capsule coffee has had huge success in the US market selling more than 100m of its K-Cup packs within two months of launching on November 1 last year.

But the coffee capsule market it not an easy one to enter with Nestle building a formidable barrier of patents around its capsules and the machines using them.

In Europe alone, Nestlé has launched legal action against rival capsule developers in France, Belgium, the Netherlands and Switzerland.

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