Migros wants to strengthen its position in the very competitive coffee pod market. The orange giant unveiled a new coffee machine on Tuesday, which works like a capsule machine but does without any plastic or aluminum casing.
Presented with great fanfare in Zurich, the new machine uses a fully compostable coffee ball. Composed of compressed coffee coated with a thin envelope made from seaweed, the used ball can be thrown in the compost or even in the garden.
“With CoffeeB, Migros combines what was not possible until now: a complete taste experience, convenience of use and zero waste”, rejoices Fabrice Zumbrunnen, President of the Federation of Migros Cooperatives. .
Each year, the amount of waste produced by coffee capsules, worldwide, amounts to 100,000 tonnes, specifies the press release from Migros, drawing data from the Euromonitor Passport 2021. “Although partially recyclable, the capsules are mostly thrown in the trash”.
The innovation is the result of five years of research carried out by the industrial group Delica, owned by Migros. The orange giant has invested a double-digit million in production capacity in Birsfelden, where the coffee balls are produced, while the machine is made in China.
Immediate launch in Switzerland and France
CoffeeB is available in Migros, M-Electronics and Digitec Galaxus supermarkets. It was simultaneously launched in France, with major distributors such as Auchan, Carrefour and Boulanger. It will be in Germany in the spring of 2023, specifies Migros again. These three markets were not chosen by chance, being the most important for Delica and where the group already has a solid network of commercial partners.
“Our ambitions are high, but we’re taking it step by step and we know that adoption can take years,” says Zumbrunnen. About 60% of households have a pod machine in Switzerland and on average the machine is changed every four to five years. Mr. Zumbrunnen, however, refused to provide numerical forecasts.
“Technological innovation is promising, but it remains to be seen how it will be received by consumers, insofar as, among other things, it is necessary to buy or receive a new machine”, underlines Jean-Philippe Bertschy, analyst at Vontobel . “A technological innovation does not necessarily translate into commercial success, especially for a rather conservative Swiss clientele,” he believes.
A few years ago, Ethical Coffee Company and its biodegradable capsules compatible with Nespresso machines failed to gain a foothold in the market, despite promising a lower ecological footprint compared to their aluminum counterparts.
“In the short term, this is not what will redistribute the cards in a very competitive market largely dominated by Nestlé and its three brands, Nespresso, Nescafé and Starbucks, which represent nearly 20 billion francs worldwide”, continues Mr. Bertschy. . The analyst insists on the strike force of the Veveysan giant: “Launched in 2019, Starbucks capsules, compatible with Nespresso machines, have already taken around 20% of the market share”.
The analyst nevertheless emphasizes the “excellent work” provided by Delica and the potential for innovation in international markets.
/ATS