This segment has been growing steadily since 2008 with the successful launch ofEthical Coffee Company and especially after the ruling of the French Competition Authority in September 2014 where Nespresso lost its exclusivity.
It is now worth €175M with a growth of 25% per year! The shelf space has grown by 40% in 12 months.
Since then, various brands have entered this important market (17.3% of French households are equipped with a machine) =
- Gold in 2010
- Black Card in 2013
- Then Café Royal, Legal, Segrafredo, AlterEgo, ...
The arrival of the capsules Aldi and Lidl announces a price war (with an indicative price of 1.89€ per box) even if some brands keep the premium positioning (like Carte Noire). Promotional investments are being stepped up!
If at the beginning, the purchase of pods in hypermarkets was mainly for emergency purposes (3/4 of Nespresso consumers have already bought in supermarkets), the challenge is now to to increase the quantities purchased and the buy-back rate.
A newcomer to the category since Sept 2015 = of tea capsules Lipton compatible. 8 references are launched = Three black teas (Earl Grey, Red Fruits, Vanilla Caramel), two green teas (Marrakech mint, Citrus), two herbal teas (Verbena mint, Orange honey) and a discovery box. The cup of tea is ready in 30 seconds! Price per cup = 34 cents.
Coffee, tea, infusion, .... When will soups be available?
