December 17, 2010

Sarah Lee to Sell Nespresso Compatible Capsules in US

The L'OR Brand of Nespresso compatible capsules sold under the Douwe Egberts brand name.

Single Serve Espresso and Bloomberg have 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.

What are the savings? About 4 cents a capsule from Sarah Lee making their capsules .29 a pop and Nespresso's .33. Doesn't sound like a lot but it adds up. 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.

Full read at Single Serve Espresso

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Posted by Jay Brewer at December 17, 2010 8:13 AM
Recent Comments

They will have to do more than undercut by $1 or $2 per sleeve, for me. I get my Nespresso capsules overnight (I order two-day shipping, but apparently they now have a shipping warehouse in Tukwila, WA, near Seattle, so I always get my orders the next day now since I'm in Seattle), so the only improvement that could be made is to be able to get same day service. If Sara Lee can get me the beans faster or undercut the price more, then I might have an incentive to buy them.

I wish Nespresso would just go ahead and open a Seattle shop.

Posted by: litlnemo at December 20, 2010 2:33 PM

So you tried the L'Or Espresso capsules? What did you think of them relative to Nespresso?

Posted by: jbviau at December 20, 2010 12:45 AM

I think the price comparison is euro cents since regular capsules cost US$.55 in the US. When I bought capsules in Paris this Fall, I saved about $1/sleeve. I think Sara Lee will have to undercut Nespresso in the US by at least $.50 to make inroads.

Posted by: GeoffreyM at December 19, 2010 7:59 PM
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