UPDATE 1-Nespresso takes aim at Green Mountain's Keurig with big-cup brewer

Wed Feb 19, 2014 2:41pm EST
 
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By Martinne Geller and Lisa Baertlein

BOCA RATON, Fla. Feb 19 (Reuters) - Nespresso is launching a new single-serve coffee brewer that makes larger American-sized portions, putting its Swiss parent Nestle in direct competition with U.S. market leader Green Mountain Coffee Roasters.

Nestle, the world's largest food company, said on Wednesday its new VertuoLine system will go on sale in the United States and Canada this week. It will make larger cups of coffee as well as the smaller espressos, popular in Europe, for which the brand is already known.

The $8 billion global single-serve coffee market is one of the fastest-growing areas of an otherwise tepid packaged-food industry. Nestle has about 35 percent of the market globally, but its presence in the United States is dwarfed by Green Mountain's Keurig system, which controls more than three quarters of the market.

"We'll watch it like we watch all of them," Green Mountain Chief Executive Brian Kelley told Reuters at the Consumer Analyst Group of New York (CAGNY) conference in Boca Raton, Florida.

Other rival brewers include the MyCafe from Bunn, the Tassimo from Kraft Foods Group and Starbucks Corp's Verismo.

Green Mountain is planning new machines as well. This fall, it will launch Keurig 2.0, which uses both single-serve "K-Cups" and larger-sized "K-Carafe" packs that brew 28 ounces of coffee.

"We want a brewer on every counter and we want a beverage for every occasion of the day," said Kelley, who added that only 20 percent of people in the United States have a single-cup coffee maker.   Continued...