Tagged 'Nestle'

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

Nescau, Sports Authority show how they help get kids off the couch

As more people “rage against the machine”—that is, come to resent and fear technology, one of our 10 Trends for 2014—they’re increasingly concerned that their kids are spending too much time with tech devices and games and not enough time in the real world. They worry that physical activity is limited to thumb movements. Brands are speaking to this anxiety by showing how they can get kids moving.

A spot by JWT Brazil for Nestlé’s Nescau drink shows that each time a mother leaves the house, her son sits on the couch playing video games until he appears to meld with the furniture. Alarmed, the mother makes him a Nescau drink, which helps to boost energy: The kid runs outside, breaking free of the couch, and joins friends playing soccer.

With a similar sentiment, a U.S. ad for the Sports Authority retail chain encourages people to “give the gift of sport” this holiday season. We see people (mostly youngsters) playing baseball, soccer, volleyball and other sports as the voiceover says: “This does not require an operating system or a username and password. There are no hashtags, no emoticons, and chances are there will not be better versions of these games coming out next year.” Sports Authority tells parents and others to “give something meaningful.”

Over the past few years we’ve seen a range of ads that tap into the ongoing trend to temporarily De-Tech, as we’ve termed it. Watch for more brands to tie this in with an embrace of physical activity, a clear counterbalance to digital-induced inertia.