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This is talked about in the article. The Nespresso didn't quite catch on in the US like it did in europe. Americans generally prefer to drink larger quantities
by TheSoftwareGuy 6y ago
This is talked about in the article. The Nespresso didn't quite catch on in the US like it did in europe. Americans generally prefer to drink larger quantities of coffee, often in the car. This does not lend itself well to espresso. As such, K-cups got much more traction
- AgloeDreams 6y agoYup, plus the K-Cup machine is higher profit and lower cost to build than a Nespresso machine. The BoM for Keurig is incredibly low for the selling price, something like $12 on a $130 machine. They flipped the razor and blades model and managed to make massive profit on both the razor and blades. I'm starting to see evidence that Keurig is struggling now however, They have launched much cheaper models and are all over the place looking for hits including ground coffee. I think they realized that they are known for 'meh' coffee and know that that brand wont get them to where they want to be next.