Ulrik Rasmussen, MD, Grower’s Cup, was speaking at the EuroPack Summit in Lisbon, Portugal, about the difficulties of launching the business and marketing his Coffee Brewer and Gourmet tea.
Demand for single-serve coffee
The product is a single-serve hot drink that allows consumers to brew real filtered coffee without the need for a coffee machine or filter.
“More than 820 billion cups of coffee are consumed every day but how many people really get engaged in the taste and the quality of their coffee similar to opening a bottle of wine,” said Rasmussen.
“We wanted to do with coffee what wine lovers expect when drinking a glass of wine, to appreciate the flavor and find out where it has come from by reading the story on the back of the label, tracing its DNA.
“I wanted to bring something totally new to the market. We know there is a demand for single-serve coffee because we lead a life where we want things conveniently, in a fast moving environment.
“We made every mistake in the book during the start-up process. We learnt the hard way and realized people do not read instructions, that product was not a good start butwe have succeeded in getting round to a consumer friendly product.”
Grower’s Cup was originally launched in 2003 but it was relaunched this year after realizing its initial design with a pull out string was unsuccessful so it redesigned the packaging with a filter in a spout.
It has won a deal to sell its products in Casino supermarket at the end of the month, Carrefour in January and has a trial with five star hotel, One Aldwych, in London, to use in its hotel rooms for guests.
It plans to launch an additional feature of a transparent window on the back of Coffee Brewer so consumers can see how much water to pour into the packaging with an indicator to show how strong or weak they want their drink.
Nescafe, Nespresso, Keurig
“Traditional coffee packaging in the supermarket is known for two things; how it can preserve the aroma, and on keeping prices low. Supermarkets fight on coffee prices so the cheaper the better and that is pushed back right through the supply chain,” said Rasmussen.
“We wanted to differentiate ourselves from Nescafe, Nespresso, Keurig and Lavazza and take on the coffee machine manufacturers. Bar the machine we have something real.
“We differentiate ourselves by focusing on thesingle-serve revolution, targeting young people aged 20-30, because they don’t want to have a coffee machine.
“Most people don’t have a decent coffee machine in the office at work so they will go to a coffee shop down the road instead. This gives them an alternative.
“The idea is simple; combining the benefits of a coffee machine with filtered coffee. Open pour in hot water and serve, no hassle with cleaning or maintaining a machine,” he added.
15 varieties
There are 15 varieties of coffee from 1euro 50cents to 2euros.
The product was originally sold in speciality stores such as Whole Foods and camping shops in a three-pack, but after pilot tests in Denmark, where the firm’s HQ is based, it saw a trend in single-serve and since its relaunch, it sells over 1,200 packs per week.
Rasmussen added the firm spent close to 1m euros on the developing the IPR (Intellectual Property Rights) and relevant patents and hired a US law firm to do an IP audit.
It now has a life extension of another 10 years until 2032 and has developed its own technology to manufacture the product on its third generation machine working with different suppliers including Alcan Packaging, Mondi and Amcor.
“We are trying to put together a marketing plan to meet consumers in larger numbers, up to now its been a development project where it has undergone a lot of tests but now we are stepping into the real market,” he said.