British coffee capsules brand CaféPod has secured a listing with 650 Tesco stores in a deal that is projected to be worth £1.5million in retail sales in the next 12 months.
Offered as a premium coffee pod option in Tesco, the partnership will enable CaféPod to grow its customer base, expand revenues and drive the brand forward as a leader in the emerging coffee capsules market.
2013-2014 was a strong year for CaféPod, as the brand secured listings with Waitrose, Amazon and Ocado. 2014-2015 is set to see the business flourish further, with Tesco playing an important part in the growth of the company; CaféPod’s turnover is forecast to increase by in excess of 400% year-on-year.
Despite Britain’s reputation as a nation of tea drinkers, coffee has been the driver of the hot beverage category. Over the last year alone, the total value of the hot beverage market has risen 2.93% to £1.93billion, with total coffee up 2.38% to £1billion1.
Consumers are influenced by the café experience to recreate great quality coffee at home, with the Roast and Ground category growing 13.7% in 2013, accounting for 19.9% of coffee bought in British grocers2. Within the category, pod coffee sales rose by a massive 51.9% last year making it a major new UK market2.
Combining well-crafted coffee with clever technology allows users the luxury of a perfect cup every time, prepared with ease at home. CaféPod capsules are compatible with all home-use machines produced by Nespresso, including Citiz, Pixie, Essenza and Lattissima.
CaféPod offers an full range of coffees, all blended by Master Blender John Thompson, in accessible varieties and graded by strength to suit every palate.
This diversity and quality of the CaféPod range is reflected across the SKUs Tesco have taken on board, with the supermarket listing five products, the CaféPod Ristretto Espresso, CaféPod Intense Espresso, CaféPod Smooth Espresso, CaféPod Arabica Lungo Espresso and the CaféPod Decaffeinated Espresso.
Peter Grainger, Founder of CaféPod, says: “We’re excited about the new Tesco listing as it will allow people across the country to buy our high quality coffee as part of the weekly shop, and we’re confident that the £1.5million in retail sales generated in the next 12 months from this deal will allow our business to grow and expand throughout the year.”
Looking to the future, CaféPod has its eye on expansion into Europe and beyond, with current exports to Scandinavia and Ireland as well as the UAE, Hong Kong and Thailand. The brand is also hoping to launch 3 further SKUs at the end of 2014, offering both choice and accessibility to its customers.
Along with Tesco, CaféPod is also stocked at Waitrose, Amazon, Ocado and good independent stores.