Costa partners with Kraft for ‘At Home’ range
Costa has confirmed it is partnering with Kraft to launch a range of ‘At Home’ coffee products, as first revealed by Marketing Week earlier this month.
A range of three Costa branded coffee pods for use in Kraft’s Tassimo coffee machines will launch in national retailers and in Costa stores this September.
A “roast and ground” product for use in cafetieres and filter machines will also be introduced.
Jim Slater, Costa Enterprise managing director, told Marketing Week: “Every day, our customers ask us why they cannot buy Costa coffee to drink at home. We felt it was about time we solved this problem.
“The Kraft collaboration is a natural step for Costa. We aim to grow Costa beyond the coffee shop, and this is a significant strategic move in our mission.”
Peter Seymour, coffee category director for Kraft, adds: “This is a combination of the unique simplicity of Tassimo technology and the Costa brand to bring the nation’s favourite coffee shop drinks in home.”
A “significant” marketing campaign, due to be created by Karmarama to support the co-branded launch, will also run towards autumn.
Seymour says: “Backing a unique new idea like this deserves exceptional communication efforts. Therefore both companies will be significantly stepping up their investments in this area. There will be a robust package of in-store, promotional and advertising support.”
The UK coffee market is worth around £900m and is currently growing at 11% annually.
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Readers' comments (2)
I think it is key to get the proposition right. The home coffee market is a very competitive place to be with strong brands that have long-standing personal relationships with their customers. Despite being the UK leader in the street, brand alone cannot be relied on given this in-home context. In order to succeed there needs to be a proposition with a clear benefit that is strong enough to drive trial and switching. So is this about brining a popular street brand in home only, or is it about trying to recreate the coffee shop experience in home, or something else?
If it is about bringing the Cost Coffee in-shop experience to the home then the Tassimo machine will add some credibility as well as making the story of the freshly made in-store experience more transferable. Similarly this could also protect the quality image and pricing; positioning itself well away from the mainstream. Although there is the Senseo issue to consider.
Ultimately with a strong brand, and presumably big marketing spend, there is certainly potential for Costa should they get the proposition nailed …
I have yet to try the new Home Range, but I am disappointed with Costa for removing the tins of coffee beans from its range. I prefer to grind my own beans, so without the option to purchase them from Costa I have no alternative but to purchase an alternative brand of coffee beans. One customer lost already.