International coffee makers thrive in Greek crisis

Coffee machines

Greeks love their coffee. In fact, they are one of the highest coffee-consuming nations in the world, with an average per capita consumption of 5.5 kilograms vs. a global average of 1.3. Before the crisis, most people’s daily fix was provided by coffee shops—many of them corporate chains like Starbucks and Flocafé—which charged premium prices. With the advent of the crisis, however, the often twice or more daily fix became a pricy habit—leaving many Greeks priced out.

Coffee producers Nestlé and Kraft capitalized on this by promoting homemade coffee machines that work with capsules. These sleek and modern machines sit comfortably on a countertop and allow consumers to easily create a variety of high-quality, barista-style coffees at home for a fraction of the cost charged by the shops. Often, the machines are sold with a hefty promotional rebate to help consumers get started since the companies make money by selling the coffee capsules. In Greece, this model was originally pioneered by Nespresso, who sells capsules from dedicated boutiques or via online delivery.

Nespresso’s huge success was emulated by Kraft with its Tassimo machines. Such is the demand that Nestlé even introduced a less premium-positioned range called Dolce Gusto to compete with Tassimo—both the latter brands sell capsules directly from the supermarket. In an economy where almost all categories have seen single- or double-digit declines, the capsule coffee market and its machines have increased by 45 percent over the last two years alone. These brands recognized the importance of coffee to the average Greek citizen, and provided a more cost-effective solution for them to fulfill their needs.

Photo Credits: Nespresso, Kraft, Nestlé

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