Pods pursue upscale image

Senseo, one of the world's leading single-serve coffee brand has formed a "sweet" new partnership with Godiva Chocolatier, bringing two new luxurious flavors to coffee lovers nationwide. While today's tough economy has caused many consumers to cut down on frequent visits to specialty coffeehouses, pod manufacturers and single serve equipment manufacturers are hoping consumers will see that these new coffee pod flavors are an affordable way to enjoy a gourmet cup of coffee at the touch of a button.

Senseo, Sara Lee Corporation's gourmet coffee brand, will launch this indulgent line of gourmet flavored coffees to be distributed through national mass market retailers, supermarkets and online retailers. The new line of Godiva Single Serve Coffee Pods combines the bold taste of expertly blended and roasted Senseo coffee with rich, luxurious Godiva flavors.

Senseo uses pre-measured pods to conveniently brew a delicious cup of gourmet coffee in under a minute, without the mess and hassle of handling coffee grounds. The new Godiva Single Serve Coffee Pods offer the same convenience and superior taste in the flavors Creme Brulee and Chocolate Creme.

"The blends of Senseo coffee paired with Godiva's rich taste is sure to create a new coffee sensation, hitting all of the senses with its unique taste and aroma," said John Risley, director, marketing, Senseo. "Both bold and sweet, the new line will turn the average coffee break into a tempting luxury experience. This partnership brings together the best of both worlds--the excellence and finest quality of ingredients from Godiva Chocolatier and the ultimate convenience and smooth blends of Senseo."

"Senseo is a natural partner for Godiva, offering a premium product in America's leading single serve coffee format," said June M. Archer, senior vice president, global business development and licensing, Godiva Chocolatier. "We are proud of the close collaboration with Senseo and our new, indulgent coffee blends which are a great addition to our licensed products portfolio."

Growth in this single serve segment has been also propelled by the Keurig System and Nespresso. According to Dan Cox of Coffee Enterprises, Vermont, "The Keurig brewer, which uses capsules, is a beverage system, not a coffee maker, with the ability to brew a wide variety of coffees, teas, cocoa and soon chai and others. This is being well received in office and now mainstream consumers--lots of growth opportunities. Nespresso, a leader in the single cup field with $2.2 billion in sales just has espresso but has around 10 types.

The coffees are very good with great crema. These are popular overseas and are being introduced via their own retail stores in U.S. as well as high-end advertising."

Brian Norton, Distant Lands' director--national new business development, works closely with Java One pods. His company is finding that budget hotel chains are stepping up their coffee products. The company is presently developing a high quality coffee pod that is Rainforest Alliance certified. Pod sales have been growing at a 25% rate for the past two to three years, they told us.

Keith Enscoe of Grindmaster sees good growth in the single serve market, particularly the pods. More roasters are producing better and consistent quality pods and Grindmaster has partnered with several good roasters. Consumers are showing more interest in sustainability and the firm is seeking biodegradable materials versus plastic.

With Starbucks availing their blends in pods some years back, several other roasters are producing branded pods. More and more brands and varieties are being offered in hotels, introducing consumers to a higher brand that they perhaps would not have purchased. At a recent Hilton stay, Lavazza coffee pods were offerred in the hotel room.

According to Lavazza, "The traditional roasted and packed coffee purchased in retail shops will remain fresh in a sealed package for up to a year, but once opened will go stale in less than a week. Each Lavazza capsule is individually sealed and will remain fresh until you're ready to use it." Lavazza currently offers Lavazza Blue coffee capsules in many espresso varieties as well as tea capsules.

Single servings of espresso, coffee and tea have been in high demand in recent years. The advantages of using a single serving, or a pod, are many. Pre-measured pods are quick and easy to use, convenient, require little clean up and are consistent in coffee or tea composition. Not to mention they can be used anywhere: at home, at the office, pods are used increasingly by catering services and at hotels and restaurants.

The convenience and cost effectiveness of pods versus a pot of coffee attracts consumers. While the pods may seem expensive, consumers feel they are not wasting product or money but they will be on the lookout for any discounted deals.