Pods on a relentless rise?

admin · December 2012

Does this blurb for an expensive] corporate-type market report, gives a clue as to the future of home machines?

Global Coffee Corporate Strategy: A Dynamic Market Packed with Pod Potential
$ 1 995 - October 2012 - by Euromonitor International - 42

"Major companies performed well over the recessionary period, underpinned by strong demand for premium coffee. While Nestl

FreshCoffee2 · December 2012

Well, yes probably. Large companies like nesslls (old time ozspeak pronunciation before anybody said we needed to call it nest lay) have given pods a massive hit advertising wise to secure their own market and have created the impression amongst consumers that pods respresent "premium coffee". So far as I am concerned the whole thing in retail is about the convenience factor because premium coffee is otherwise seen (by people that are not in the know....ie the majority) as being fiddly and messy, so the pod phenomenon is about convenient premium coffee.....its a retail market winner. Coffee & equipment suppliers either jump on the bandwagon while they still can, or there is a serious possibility they will get left behind. Get used to it people, the pod sector is here to stay and you can add it to the other already established legitimate forms of making espresso, being: stove top pot lever machine conventional pump machine automatic machine and now pod machine. The quality of what they do is not relevant to the market as a whole, and in any case quality is controlled by the operator, his choice of beans / pods, & his modus operandi/level of expertise etc. No one says the quality of pods has to be bad just because they are pods, and its the operators choice what quality of pod he/she buys. As the market grows, there will be a better choice of pods. Better input of beans/grinds, and larger portion to cater for our market OR....you have to retrain the market to drink their "coffee" in standard size cups instead of milk shake containers. Whether larger portion size happens, is dependent on the size of the market because it would presumably require some retooling, and it would certainly be easier for coffee fashionistas to simply drink the bloody stuff out of a standard cup (european style, instead of american style). Just my opinion.

UNM · December 2012

on 1355262986:

Well, yes probably. Large companies like nesslls (old time ozspeak pronunciation before anybody said we needed to call it nest lay)

The pronunciation you suggest is the common american one. Call it newspeak if you like As nestl

Seeya Latte · December 2012

Nothing wrong with pods.... but then again I grind fresh directly into the pod then lock and load 8) What's all the fuss about?

FreshCoffee2 · December 2012

on 1355266268:

..... Nowadays I care slightly less as I have found plenty other things to be grumpy about. I see pod machines as the coffee equivalent of inkjet printers

yes there is no shortage in life (of things to be grumpy about)

I notice we are now getting a "new" (to me anyway) "grumpy" series on the box. First it was "grumpy old women", then "grumpy old men" (or vice versa), and now there is a show called "The Grumpy Guide to...." Bring it on! I like the inkjet analogy.

conikal · December 2012

on 1355262986:

Get used to it people, the pod sector is here to stay and you can add it to the other already established legitimate forms of making espresso, being: stove top pot lever machine conventional pump machine automatic machine and now pod machine.

very true...but also the majority of consumers still dont differentiate between "Espresso" and any other form of coffee...French press, siphon, drip, filter ,instant, ..etc ..and as the other poster mentioned, the overriding advantage driving Pod sales is the "Convenience" factor. Its very difficult for any other coffee making process to beat the pod on that front ( Instant possibly.. but you still need a kettle, jar, spoon etc etc !) The main obstacle currently for pods , is the cost, but if they continue to come down.... and the quality improves significantly ( both will happen),.... then it will take a major development to stop the "Rise of the Pods" !

Intense Coffee · December 2012

on 1355280646:

"Rise of the Pods" !

Horror movie coming to a screen near you soon "The Rise of the Pods"

admin · December 2012

this could get interesting... http://wheresthesausage.typepad.com/my_weblog/2012/12/espresso-wars-starbucks-takes-on-nespresso-.html 'battle of the [retail] titan' - type stuff :o

Kelsey · December 2012

The milk pod bit is interesting. As with pods in general, consumers are being told they're getting fresh coffee (not you, the drink) while we know that's just marketing speak that ignores the nuance of taste we're after. They do believe they're getting a premium coffee experience. I suspect the milk pod will be the same story. In itself a foul little capsule of UHT, in the hands of Starbucks marketing it's the perfect recipe for a latte.

Brett H · December 2012

on 1356228784:

The milk pod bit is interesting. As with pods in general, consumers are being told they're getting fresh coffee (not you, the drink) while we know that's just marketing speak that ignores the nuance of taste we're after. They do believe they're getting a premium coffee experience. I suspect the milk pod will be the same story. In itself a foul little capsule of UHT, in the hands of Starbucks marketing it's the perfect recipe for a latte.

But it's not UHT... It's powdered! Sickly sweet floury powder. Premium product my podhole!

Kelsey · December 2012

Doesn't matter - they'll still pitch it as a premium marvel of technology that allows Charbucks quality instantly in the home. And consumers will believe it, even to the disagreement of their senses.

mycuppa · December 2012

Perhaps in other parts of the world, but I doubt here. It has been well reported in the press over many years now that SB's have been essentially unsuccessful in the Australian market, compared to their other country investments. In other words, the model does not seem to work here the same as it does in the US and emerging Asian markets. Witness the de-investments over the last 24 months. One of my customers picked up a 4-group Linea that was specially mod'd for SB - he got it for a song in the close-down sale. I've watched it closely over the years and it's fair to say their brand value in Oz is marginal at best and it's basically only tourists and the mildly curious impressionable teens emulating their US idols that seem to be the primary support of their local Oz business.

askthecoffeeguy · December 2012

I had a pod espresso at a big name brand store yesterday and it was a perfectly acceptable coffee - stopped the pour short myself and if anything it was slightly sour but not bitter and for share convenience factor I was happy to slam it down and then continue on my merry way - still had to drive across town so the late afternoon caffeine hit certainly came at a good time Was it as good as I can make or of the calibre that I'm used to? No, definitely not Was it quite serviceable and better than a lot of espresso coffees that I've tried at various Cafes? Definitely yes!

zane · December 2012

I used to work with a guy who graded for the FNC & he assured me that the quality of coffee that goes into a big name pod maker's product is really pretty good, though it is pre-ground and at $0.55 for a 4 gram ($137.50/Kg!) serve may not represent best value for the consumer. (though one wonders how 21grams a serve represents value at the other end of the scale, except in machismo and preference, though it would probably be freshly ground & of a known roast date at least) however if used in an environment where no one is capable of producing a passable shot or inclined to clean a machine (read -cares about coffee) , and ease + convenience is at a premium over the taste of the caffeinated beverage, pods seem to be a viable option, more so if the coffee that goes into the pod is, (at least was), actually decent. I shudder to admit, the local preschool recently proposed getting a pod machine & I had to agree that (for them) it was probably the most hassle free, non instant, way to provide beverages for their staff and maintain a clean quiet environment (seeing no-one would actually use a drip, aeropress, plunger or the like)

UNM · December 2012

on 1356247460:

I used to work with a guy who graded for the FNC & he assured me that the quality of coffee that goes into a big name pod maker's product is really pretty good, though it is pre-ground and at $0.55 for a 4 gram ($137.50/Kg!) serve may not represent best value for the consumer.

I am pretty certain we have a sponsor that roasts for coffee pods. Honestly, cost is not a huge issue especially for staff whose employer picks up the bill. that being said, at $15 for 250 gram of decent coffee (not an unreasonable amount) and 20 gram per shot allowing some wastage, that is $1.20 per coffee. Even if only 10 grams per shot, we are still talking $0.60 per hit. How long before that espresso machine pays for itself against pods? Ah yes - never! I still reckon most pod machines will be rarely (if ever) used. Like most unnecessary appliances they will quickly be relegated to the cupboard only to turn up at garage sales in ten years time. Money better saved or spent in other ways. If we don't learn from our mistakes (anyone want a fondue set, waffle maker, automatic egg boiler, slow cooker,...?) we are cursed to repeat them.

Dry_bean. · December 2012

FWIW, this in the Advertiser this morning http://www.adelaidenow.com.au/news/south-australia/free-taste-test-of-pod-coffee-on-offer-around-adelaide-glenelg-and-norwood/story-e6frea83-1226542742682 have never tried pod coffee so cant comment. Those of you who have may care to.

mycuppa · December 2012

As I have noted previously, it is unfair and incorrect to compare per serve costs between bulk espresso beans and portion control. Of course, consumers are wired to think this way. Despite all the theories about global conglomerates making obscene profits on pods, people fail to understand the cost of conversion exceeds the bean costs, so when added they are obviously more expensive, but the portion control format has the benefits of convenience built into the price. Compare a 10kilo bag of mulch from the garden supplies to a few cubic meters dumped on your front nature strip.

zane · December 2012

Mycuppa's coffee cost less than half of your estimate UNM, including delivery, so the ten gram shot would be less than 30c for a non equivalent product, & that's what I mean, to some, a serve is a serve, but some prefer a fresher product, better taste, perceived quality, what have you... ... clearly a great many people just want a serve of caffeine that is above their personal threshold for qualitative discrimination, and so pods will continue to do well. I'd have loved to recommend nice fresh roasted coffee for the local preschool, but they have other things to think about (a good thing) & so in the value spectrum, for them, pod coffee is not at all unreasonable. I realise that there are other costs that go into a pod other than the raw material & that convenience makes up for a lot in the equation and so "it is unfair and incorrect to compare per serve costs between bulk espresso beans and portion control", however, it still seems a lot to pay for (potentially) stale pre-ground, convenience to me (even if gas flushed & individually packaged). besides some of us like the noisy messy aromatic ritual

mycuppa · December 2012

This is not directed at individuals but as a whole. Information, commentary and opinions on pods are largely only ever partially correct ( or partially wrong) as most treat the pod market as a single entity or structure Alas, you cannot address pods as simply as calling every single serve portion control a "pod". There are numerous formats and varying standards being open or proprietary. Some are capsules and others are pods. Word semantics at play. What I wish for Xmas is for people to SEPERATE the issues of proprietary formats from open formats as they are materially different. You see, those of us using our very best high grade coffees in our open standard fresh roasted ESE pods tend to get tarred with the same brush as the global evil empires creating lockin strategies maximizing margins on single serve portion control with unknown freshness attributes. Pod discussions, like everrything else deserve context.

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