Starbucks challenges Nespresso with coffee machine

Starbucks: prepares to launch home espresso maker
Starbucks: prepares to launch home espresso maker

Coffee giant Starbucks is making a bid for the luxury home coffee-machine market with a device it has branded Verismo, to compete with Nescafe's Nespresso and other kitchen espresso makers.

The Verismo will produce single cup coffee at home and is due to launch in the US this autumn. The price and a UK launch date have not been revealed.

The device has been developed with Krueger, a German-based company that sells in the US under the Keurig brand name.

It will use the Krueger K-Cup system, which uses small disposable coffee "pods" for each brew, just as the Nestle Nespresso system does.

The brand is not available in the UK but in the US, Keurig K-Cup devices sell for between $99-$250 (£62-£158).

Howard Schultz, Starbucks chairman, president and chief executive, said: "The premium single-cup segment is the fastest-growing business within the global coffee industry.

"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."

Under the deal, Starbucks will market and sell the Verismo-branded device online, at some coffee shops and retail outlets in the US, Canada and "select international markets", alongside its K-Cup coffee pods.

Starbucks introduced freeze-dried coffee in 2009 with Via, and moved into K-Cup packs last year. It claims to have sold more than 100 million K-Cup packs in the first eight weeks.

Jeff Hansberry, president of channel development for Starbucks, said: "We now have the opportunity to reach millions of customers who have been looking and waiting for a uniquely Starbucks solution in the fast-growing premium single cup coffee market with a coffee quality, taste, roast variety and design sensibility that is consistent with Starbucks brand and reputation."

Starbucks will kick off a multi-million pound campaign for stronger lattes in the UK later this month.

Other recent expansions at the coffee chain include the acquisition of juice brand Evolution Fresh in November last year, and the launch of 200 drive-through shops.


Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Brand Republic Jobs

subscribe now


John Lewis walks consumers through its history to celebrate 150 years of business
Waitrose boosts content strategy with 'Weekend Kitchen with Waitrose' C4 tie-up
Hottest virals: Cute puppies star in Pedigree ad, plus Idris Elba and Fruyo
Amnesty International burns candles to illuminate new hope
Toyota achieves the impossible by calming angry Roman drivers
Tom of Finland's 'homoerotic' drawings made into stamps
YouTube reveals user habits to appeal to 'older' marketers
Ex-M&S marketing chief Steven Sharp consulting at WPP
Wolff Olins reveals new CEO after Apple poaches Karl Heiselman
Glasgow offers £30,000 prize to best digital idea for 2014 Commonwealth Games
Google's revenues surge but shares drop as it grapples with transition to mobile
Facebook beats Twitter to most 'marketing friendly' social media site crown, says DMA
Fableists believe children like Finn should be outdoors enjoying life
Homebase, Baileys and Camelot join the line-up at Media360
MasterCard renews Rugby World Cup sponsorship to push cashless message
Lynx unleashes £9m 'Peace invasion' campaign
Social Brands 100 Youth: Pizza Hut most social youth brand in UK
Cheryl Cole is wild and arresting in new L'Oreal work
Morrisons told not to show alcohol ads during YouTube nursery rhymes
O2 head of brand Shadi Halliwell departs after 23 years at company in restructure
Tesco hit by further sales decline as it turns to digital Clubcard and social network
Branding guru Wally Olins dies aged 83
Duracell short film captures epic Transatlantic voyage
Ash runs Tinder experiment to show smokers are less desirable to opposite sex
British Airways teams up with Gerry Cottle Jnr for summer of rooftop film screenings
Arklu says 'girls can be superheroes too' with doll design competition
Coke enters squash market with Oasis Mighty Drops
Virgin Galactic signs up Land Rover as space flight sponsor
Motorola marketer Andrew Morley departs as Google gears up for sale to Lenovo
US Airways apologises after tweeting obscene image at a customer