Nespresso may have invented the single-serve capsule coffee machine in 1986, but obviously it's gotten plenlty of company in that arena since then. While the Nestle-owned brand sees lots of growth potential around the world, executives have selected two particular targets for—the United States and China—that won't yield new sales as easily as Nespresso got them in building its original business in Europe.

Two aspects of its business make Nespresso stand out from other competitors such as Green Mountain, the US-based purveyor of K-Cups that has been allying with Starbucks lately. First, Nespresso's business model is direct-to-consumer, not making its pods available on grocery-store shelves, and second, Nespresso leadership actually sees huge remaining growth opportunities in Europe despite the continent's struggle with recession.

"The potential is big" in the UK, Italy, Germany and Russia, where household penetration by Nespresso machines is only about one-fifth of that in coffee-slaking France, Nespresso CEO Jean-Marc Duvoisin told the Wall Street Journal.Continue reading...

It just got more difficult to find a cup of coffee (and many other beverages) without Starbucks' imprint on it. The company vastly expanded its arrangement with an extension of its agreement with Green Mountain Coffee Roasters, tripling the number of branded items made for Keurig single-serve coffee machines.

Starbucks saved analysts and journalists the trouble of evaluating the deal by calling it a "global single-serve coffee industry game changer" and a "win-win-win agreement for both companies and for premium coffee consumers around the world" in its press release.

Specifically, Starbucks will add new single-serve cup cartridges for Keurig machines under the Seattle's Best Coffee, Torrefazione Italia coffee, Teavana Teas and Starbucks Cocoa brands in addition to Starbucks branded coffees. Sales of Starbucks coffee K-Cup packs rose more than 75 percent in March compared with the prior year.Continue reading...

Black Friday is mere days away and America’s (make that North America's) most-devoted consumers are busy doing their stretches, dressing themselves in layers, and plotting their battle plan for early Friday morning.

Retailers, of course, would like to help them in any way possible in order to maximize the amount of money flowing into their cash registers throughout the punishing annual bricks-and-mortar portion of the shopathon. More of that activity, of course, is moving online and mobile — but for those committed to the physical act of shopping, they'll need help — and brand marketers are anticipating their needs.

For these seeking retail rejuvenation on Friday, a host of caffeinated beverages and coffee retailers are throwing incentives their way to get them to suck down as much as possible to refuel while on the run.

For those who tweet #dunkindonuts on Friday morning between 6 a.m. and noon Eastern, they’ll get put in the running to win one of six Keurig brewers and two boxes of Dunkin’s Hot Cocoa K-Cup packs. Meanwhile, 7-Eleven is handing out a free hot beverage for folks who come in on Friday and buy a Red Bull energy drink. Sonic Drive-Thru is opening early nationwide and offering its breakfast burrito at half price all day. What else could a crazed Black Friday consumer want? Continue reading...

Starbucks is facing increasing competition from all quarters, including Dunkin' Donuts and McDonald's, so the giant of the coffee biz is hoping to increase its market share with innovative new products and brand extensions, with a major focus on mobile going forward.

On the brand extension front, the java giant just started selling its single-serve coffee and espresso maker Verismo online. The caffeinated masses are apparently into it. Cliff Burrows, president of the Americas for Starbucks, says that sales of the machine have “exceeded expectations.” Starbucks is now rolling the product out to 4,300 stores and should finish having them in place in the next few weeks.

“Innovation is so important to us,” Burrows told the Houston Chronicle. “In 2009 we introduced ready-brew instant coffee. This summer we introduced Refreshers, energy drinks made from green coffee extract. We make them hand-crafted, sell them in cans and as instant beverages. Our innovation is ongoing.”Continue reading...

Green Mountain Coffee is in a pot of trouble. And that's even before Starbucks introduces Verismo, its own single-serve brewing system for consumers that's rolling out in October (and already available on Verismo.com), to challenge the iconic K-Cup system by Green Mountain that features its Keurig pods. 

The brand has been a darling of consumers for several years, on a continued growth tear as K-Cups led a revolution in how Americans consume much of their coffee by making the single-serve system de rigeur in homes and offices. The company fed strong double-digit sales growth by continuing to proliferate the types of pods, to include "iced" drinks and juices as well as coffees and teas.

Green Mountain also had been a darling of investors seeking to cash in on a boom that, for the six years after the Vermont-based company acquired Keurig, managed to thrive without attracting the competitive interest of Starbucks.Continue reading...

Nokia faces key test under new CEO, launches mobile streaming music in US and expanded app library as part of today's reveal of Windows Phone 8 Lumia devices. HTC's Windows Phone series will also be branded under 8 series following Samsung's mobile rebranding move.

Audi to build plant in Mexico as automaker markets S series with NFL tie-in.

Method sold to European green-cleaning rival Ecover.

3M drops planned acquisition of Avery Dennison under U.S. antitrust threat.

Amazon adds movies to streaming service in new challenge to Netflix.

American Airlines can reject pacts with pilots, judge says.

Apple is embarrassed by data leak ahead of iPhone 5 reveal on Sept. 12.

AT&T and Texas to test text-to-911 safety initiative.

Best Buy's new CEO hits the store floor in first week.

BP dinged as U.S. reiterates gross negligence charge in oil spill.Continue reading...

K-Cups are everywhere in the news now that Starbucks is rolling them out from coast to coast. Yet in the grocery aisle, those little "K-Cups" designed for single serving Keurig brewing machines are highlighting the battle between store brands (private labels) with name brand consumer packaged goods for shelf space.

Both Kroger and Safeway, two major U.S. grocery chains, are launching private label "coffee pods" for the Keurig machine. Safeway announced it will bring to market five types of Keurig-compatible filtered coffee pods. The chain already makes three store brand instant products for the machine.

The move by Safeway and Kroger caused shares of Green Mountain, the company that sells K-Cups along with Keurig brewing machines, to plummet. Since September, in fact, its stock has dropped 82 percent, according to Reuters. Two of the patents that cover the K-Cup design will expire in September 2012, which means other companies, not just Green Mountain, could manufacture Keurig-compatible cups.Continue reading...

First Coinstar counted your coins. Then it changed rental-video distribution with its Redbox vending machines. And now, Coinstar — working with Seattle's Best Coffee — wants to change the way Americans pick up their daily cup of coffee.

Coinstar and the Starbucks-owned brand are partnering to sell coffee in thousands of kiosks across the United States beginning this summer. The two companies expect the kiosks — placed in grocery, drug and mass-merchandise stores — to sell thousands of cups of coffee each year and maybe revolutionize coffee dispensing just as Coinstar expertise has caused big changes in the other two businesses.

Prices will start at $1 for a brewed cup of coffee up to $1.50 for fancier concoctions including espresso and mocha and vanilla latte. While there's nothing new about vendor-dispensed coffee, this stuff will be brewed to order from beans ground just for you.

"The quality of the beverages are going to be the quality you'd find more closely aligned with that of a hand-crafted beverage created for you," Jenny McCabe, Seattle's Best director of communications, told brandchannel. "It's just that no person hands you the cup." The machines will be called Rubi, which McCabe said was a moniker coined by Coinstar.Continue reading...