December 16, 2010

Sara Lee May Sell Nespresso Compatible Capsules in the US under the Douwe Egberts Name


SaraLeeCapsulesforNespressoMaker.jpg

Bloomberg has reported that Sara Lee, one of the major coffee makers in Europe may start selling their Nespresso compatible capsules in the US through a mail order system as they look for ways to expand their distribution of this coffee format.

While Nespresso/Nestle feels that their capsule and machines are well protected through a layered patent process, Sara Lee believes that they have successfully circumvented the patent protection and have been offering their L'Or capsules in France online and at retailers since April, and in the Netherlands just this month. They have reportedly sold 90 million capsules to date.

The costs are slightly lower for the Sara Lee version than the Nespresso capsules; 0.29 Euro versus 0.33 Euro each. The slightly lower cost can add up if you are drinking a couple of these a day, amounting to about $30 annually at a two a day rate. They overall savings isn't so amazing, but the big news here is that Nestle could lose the power behind what's been one of their best growth engines over the last decade. Sara Lee currently has four varieties in France, versus the sixteen+ versions that Nespresso offers.

Douwe Egberts L'OR EspressO comes in four varieties: Delizioso, Decaffeinato, Splendente and Forza. All Sara Lee varieties are made with exclusively 100 percent Arabica coffee grown and harvested in a socially and environmentally sustainable way, following the UTZ CERTIFIED(R) program.

While I have not had these varieties, I have over the years had a fair amount of Douwe Egberts, and they are a serious coffee brand with quality that would come in at the high end of mass market roasted coffee here in the US.

Stay tuned.

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Posted by Scott Martin at December 16, 2010 8:06 PM
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