Starbucks’ Plan: Better Foam & More DIY Options
The coffee wars are in full effect. McDonald’s is undercutting everyone with the $1 promo and Starbucks revealed last month plans for its own single cup brewer. What’s interesting here is 1) that Starbucks is competing with Green Mountain, which owns Keurig and has a deal with Starbucks for coffee pod distribution, and 2) the Starbucks machine will make coffee and espresso. One stop shopping?
According to their release, publicly traded Starbucks Coffee Company (SBUX) will put its first at-home single cup machine on the market in time for the 2012 holiday shopping season. Dubbed the Verismo, the machine will make espresso drinks and regular drip coffee. The machine was made thanks to a partnership with Germany-based Krueger GmbH & Co. KG. Like Tassimo, Starbucks will sell both coffee and milk pods, come fall 2012.
“The premium single-cup segment is the fastest-growing business within the global coffee industry,” said Starbucks Chairman, President and CEO Howard Schultz. ”We have long believed that the biggest prize within the segment is a high-pressure system that would give us the opportunity to deliver Starbucks-quality espresso beverages at home and at work for customers who desire the Starbucks espresso experience outside of our stores.”
In addition to Tassimo and Keurig, Starbucks will also be competing Nestle‘s Nespresso. It’s not surprising then Starbucks came out with a new milk steaming pitcher for baristas last month. According to a release, the new pitcher has a dome-shaped bottom that allows for better steaming and better bubbles for froth. By year’s end, all Starbucks locations will be using the new pitcher.
Time will tell who will win the coffee wars, now that we are looking at five major players, four of which are now publicly traded companies: Dunkin’ Donuts, Starbucks, McDonald’s, Green Mountain Coffee and Nestle (Nespresso).