Can a Specialty Roaster Compete in the Instant Market?
Blue Bottle Coffee has launched an espresso instant freeze-dried coffee priced at $25 for 48 grams. CEO Karl Strovink said the company will develop its instant coffee line and plans to add instant beverages to store menus within one to two years. Blue Bottle, which is controlled by Nestlé and operates more than 100 stores in the United States and Asia, is responding to growing home coffee demand.
During the pandemic, in-store visits fell while more consumers wanted to brew a satisfying cup at home. Blue Bottle built its reputation on fresh roasting and professional service, and the instant product tests how a specialty brand balances that positioning against convenience. It joins a market where old instant coffee brands are already well established.
Blue Bottle Coffee, which established itself in the specialty coffee wave with fresh roasting and professional service, recently announced the launch of an espresso instant freeze-dried coffee, priced at $25 for 48 grams. This move has drawn attention: as the pandemic blocked in-store consumption and demand for home coffee rose, Blue Bottle chose to respond to the demand for convenience with an instant product. CEO Karl Strovink said the company will vigorously develop its instant coffee line and plans to add instant coffee beverages to store menus within one to two years. Blue Bottle is currently controlled by Nestlé and has more than 100 stores in the United States and Asia. This article examines the market logic and executive statements behind Blue Bottle's new instant product.
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In the third wave of specialty coffee, Blue Bottle Coffee is one of the most representative brands. It has long upheld the principles of fresh roasting, maintaining a high standard in every cup, and providing customers with professional service, exerting a profound influence on many specialty coffee practitioners and once being regarded by the industry as an almost "textbook-level" benchmark.
Blue Bottle Coffee began its overseas market expansion in 2015. After Nestlé acquired a 68% stake for $480 million in 2017, the brand's overseas expansion accelerated further and won the favor of coffee lovers in various places.
Blue Bottle Coffee's growth trajectory reflects the growing market demand for specialty coffee in recent years. However, the impact of the pandemic also brought considerable operating pressure to Blue Bottle. Although consumers' pursuit of high-quality coffee has only increased, due to pandemic prevention policies in various places, the number of people visiting specialty coffee stores has dropped significantly.
At the same time, more and more coffee consumers hope to make a cup of coffee they are satisfied with at home. Although Blue Bottle has continued to launch coffee beans from different regions and of different types in recent years, the specialty coffee market has become saturated, making it difficult for the brand to acquire more new users; in addition, besides caring about flavor performance, people also always have a demand for convenience and speed.
As a result, Blue Bottle Coffee seems no longer to insist only on fresh grinding. Recently, the brand announced the launch of an espresso instant coffee—freeze-dried coffee that requires no machine and no grinding and dissolves in both cold and hot water. The pricing continues Blue Bottle's consistent style: $25 for 48 grams (about 183 yuan).
Blue Bottle Coffee CEO Karl Strovink said the brand is very committed to the development of instant coffee and believes that whether instant or freshly ground, both will become reasons consumers love Blue Bottle.
He believes that as people who value specialty coffee continue to work from home and want easier-to-prepare options, this market will continue to grow, and the consumption of coffee made at home is also rising. At present, the brand is working hard to restore operations at its global stores, but due to differing pandemic prevention requirements of governments in various places, the reopening rate is less than 50%.
Ben Brewer, Blue Bottle Coffee's Global Head of Innovation and Senior Director, also stated in a public email: Blue Bottle Coffee is currently owned by Nestlé and has more than 100 branches in the United States and Asia.
Blue Bottle's research and development on instant products has lasted more than three years. Ben Brewer admitted that instant coffee certainly cannot compare with the brand's own freshly roasted and freshly ground coffee, but as long as it is handled properly, the development path of instant coffee may bring customers emotion and inspiration.
The CEO of Blue Bottle Coffee also revealed that within one to two years, products made with instant coffee will begin to be added to store menus.
"We have already tried this in Japan, and customers are not averse to such products; quite a few even said they liked them."
Image source: Internet
The above content is compiled by CoffeeHunters, a coffee news website.
