If you’ve been adding Coffee-Mate creamer to your coffee after brewing a cup with your Keurig machine, you may be in for a treat. Nestle and Green Mountain announced plans to bring French-Vanilla flavoured creamer to the K-Cup line. Nestle also owns Nespresso, whose line of single-serve coffee line (Nespresso and Dolce Gusto) haven’t seen the same kind of growth as the K-Cups.
The move can be seen as a disappointment to consumers who’ve invested in the Dolce Gusto machines, which don’t have nearly the variety as the Keurig line. With only 6-8 real options being found in retail stores, consumers haven’t responded well and are likely to be upset that Nestle is diversify into other single-serve makers instead of bolstering its own offering.
Loss for Eight OClock Coffee
Eight Oclock coffee has been one of the top suppliers for the kind of creamy flavours that Nestle and Green Mountain will offer under the partnership. Shares of Tata Global Beverages (owns Eight Oclock coffee) dropped on the news. With an estimated 25% of coffee drinkers currently using Coffee-Mate flavouring, a slowing in growth or even decrease in sales for Eight Oclock coffee is expected.
A Taste of Things to Come
There has been some high-level consolidating and partnerships being put in place recently, with Coca-Cola investing in Green Mountain to create a soda line and many large coffee roasters also signing onto the Green Mountain growth-train. In Europe, D.E. Master Blenders 1753 BV is combining coffee assets with Mondelez International Inc. – now a large European competitor to Nestle.