K-Cup Coffee Prices

Tonx co-founder Tony Konecny:

The popularity of capsule coffee systems like K-Cups and Nespresso is a marketing marvel. GMCR estimates that around 13% of all U.S. households have one of their devices. But the real money comes from not from the razors but the blades. Ounce for ounce, consumers are generally paying anywhere from $35–60 a pound for the ground coffee inside these capsules. Lock-in is lucrative.

That’s an insane price for mass-produced quality coffee. The appeal of these machines escapes me — I wouldn’t want one even if the coffee prices were roughly in line with regular market prices. But at these prices it just seems nutty. Is it because they can brew just one cup at a time?

Update: Full disclosure: Tonx has been a recurring DF sponsor, but my interest here is in what people see in these pod brewers.

β˜… Friday, 14 March 2014

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