I am of the same opinion, dear Reader. I also think that, unlike some analyses one reads here and there, the arrival of these pods will only reinforce Nespresso. I see several reasons for this:
- It's been several years since the pods were introduced in supermarkets with other systems competing with the Nespresso system (such as Senseo, Tassimo, or Dolce Gusto from Nescafé) at substantially lower prices: Dolce Gusto costs 0.30 € / Tassimo is € 0.27 / Senseo € 0.15, while a Nespresso pod costs € 0.35. The price competition was already a fact: it enabled the creation of a new market and it has not dampened the growth of Nespresso.
- L’Or Espresso is priced at 0.29 € the pod and Casino’s private label at € 0.25. So we see a price difference of about 20% to 25% compared to Nespresso. Will that be enough to draw Nespresso consumers? I do not think this is likely because Nespresso is a cult brand – a luxury coffee brand, and on the other hand we have a mass-market brand and a private label. The symbolic and experiential dimension is definitely pro Nespresso: Buying its pods in a boutique will always be a more rewarding experience than buying them off the shelf / having them delivered by porter after a purchase on the Internet cannot compare to the supermarket delivery boy / the status symbol conveyed in the kitchen by the "display" of Nespresso pods will not disappear merely because of the price factor...
- The taste test favours Nespresso. Le Temps conducted a blind taste test: “The verdict of our specialist? Derived from the most ordinary of Arabicas, C2 (Forza, de L'Or - 42 centimes bought in neighbouring France) ‘not well balanced’. While C1 (Arpeggio from Nespresso, 50 centimes) is ‘full-bodied, lingers on the tongue and well balanced’”. In short, "a supercafé which is well worth the difference in price!"
- However, the main question still remains: that of the machine. One has to buy a Nespresso machine (on which Nespresso earns royalties) for all these new pods: Since I do not see many current users of Nespresso capsules abandoning the brand, we will see new customers from supermarkets going to buy their machines, for some of them at least, from Nespresso. I am certain that, like my reader, that, "the curiosity of consumers will undoubtedly lead them to "compare" and therefore go to Nespresso to buy the coffee too”.
In case you do not have the information, here is Nespresso’s sales growth chart: Impressive!