Nestle’s capsule coffee consumption rises

Actor George Clooney’s choice of so-called capsule coffee over a beautiful woman in a recent TV commercial was meant to underscore the freshness and flavor in the cup of espresso he’s holding, according to Ross Gatta, head of Nespresso Korea.

Nespresso Korea, the local affiliate of Swiss-based Nespresso Nestle, launched its capsule coffee brand and related coffee maker here in 2007, revolutionizing the way people enjoy their java. The coffee comes in sealed aluminum capsules that are used in the machine, which pierces them to produce freshly brewed coffee like espresso, cappuccino and lattes.

Gatta, an Australian, says Korea has huge potential as a coffee market since Koreans tend to quickly adopt Western trends and coffee appreciation in the country is becoming increasingly more sophisticated.

He says the uniqueness of coffee culture in Korea, where powdered coffee mixes represent a large portion of the market, is not an obstacle but an opportunity because this means that Korean consumers prefer convenience when making coffee.

Since the company introduced the Nespresso brand capsule, the market for capsule coffee has grown rapidly. Now, 14 five-star hotels in Seoul serve Nespresso capsule coffee and there are 11 Nespresso cafes at major department stores and office buildings in the city. Nespresso Korea is run separately from Nestle Korea and has its own management.

Nespresso Korea did not disclose specific information about its sales and the number of its employees, but Gatta said its business has had double digit growth in annual sales since 2007.

Q. How is capsule coffee different from regular espresso coffee?

A. Nespresso has developed a system where the perfect amount of coffee is packaged into an aluminum capsule. This capsule is then hermetically sealed to lock in the freshness and flavors. The capsule also locks out unwanted elements such as light, moisture, air and contamination, which could undermine the quality of the coffee. As a result, consumers can experience the highest quality of coffee at the point of consumption consistently and conveniently.

What are the advantages of the Nespresso brand coffee and coffee machine?

There are many competitors but we believe that what makes Nespresso unique and special is that our coffee has premium quality and it is sourced from the top 1 percent of production in the global market today.

And we offer a full range of 16 “Grand Cru” varieties, each a unique blend coffee, and each a perfect combination of body and taste. All of the 16 blends have different intensity levels and taste and that’s why we refer to our coffee as Grand Cru.

Is it very common in Western countries to drink capsule coffee?

Nespresso began with a very simple dream but a very revolutionary idea to enable anybody to produce a perfect coffee just like a barista in Milan or Paris. Nespresso took the idea and launched capsule coffee in Switzerland in 1997. Since then the business has grown rapidly, especially in Western countries, and it is the fastest-growing brand within Nestle.

Why did Nestle establish a subsidiary in Korea?

There are two fundamental reasons why we launched Nespresso Korea. Coffee is the biggest selling beverage in the country. Korea is the No. 2 market for Nespresso in Asia, after Japan, among the eight Asian countries where we are present.

Coffee has higher sales than rice in supermarkets in the country. Korea is quite significant in terms of its size and Korean consumers are very discerning when it comes to coffee.

It was a key driver behind the launch of the Nespresso brand in the country. Since the launch, we have been amazed by the fast growth.

Is Korea’s premium coffee market big enough? Or does it have considerable growth potential?

Korea has a sizable coffee market with 2 trillion won ($1.8 billion) in coffee products sales. So the market is definitely is big enough. And it is changing and evolving quite rapidly.

First, there is an increasing demand for high quality products. Coffee is no exception. Secondly, consumers want more convenience. Third, coffee consumption is increasingly more sophisticated.

What are the characteristics of Korea’s coffee market? It’s been only a little more than 100 years since coffee was introduced to Korea.

Every market is different. I think what makes Korea different from other Asian markets is that there is strong coffee culture.

In other markets in Asia, the coffee culture is not very strong.They are mostly tea-based. And Korean consumers really appreciate high-quality coffee.

How are you approaching the Korean market?

We have been only for three years. Just like other market, our initial focus will be on enhancing customer experience and build brand awareness.

Coffee mix makes up a large portion of the coffee market here. Is it a difficulty or opportunity?

It is an opportunity because coffee mix is a huge part of the market, with nearly a 50 percent market share in Korea.

I see it as an opportunity because this means that Korean consumers want high levels of convenience and consistency. Korean consumers already understand the need for product convenience. As sophistication increases, the popularity of Nespresso will increase.

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Coffee is making you dumber

According to a study from the Journal of Applied Social Psychology, that cup of coffee you’re drinking in the morning isn’t helping you wake up, it’s actually diminishing your brain power- if you’re a male.

The study examined the effects of coffee when the body is under stress, and found that men’s performance on memory tests was “greatly impaired”, and on average took 20 seconds longer to complete puzzles than those who had consumed decaffeinated coffee. Oddly enough, caffeine had the opposite effect on women, who completed the puzzles 100 seconds faster after consuming caffeine.

The 64 men and women were put in same-sex pairs while completing puzzles, memory challenges, and carrying out negotiations. They were told that afterwards, they would have to give a public presentation about the tasks.

Similarly, a study published in Behavioural Pharmacology a little over a year ago suggested that adolescent boys “may be more susceptible to the reinforcing effects of caffeine,” with females possibly being less sensitive to the effects of caffeine.

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Coffee prices up amid rising global demand

Coffee prices rose to new highs last week, cranking up returns for marketers and cushioning farmers against a drop in supply. The average price of various grades at the coffee auction rose five per cent compared to the previous week to stand at $411, from $393.50 per bag, at the Nairobi Coffee Exchange.

Coffee marketers are optimistic of good earnings this year due to sustained strong performance of the commodity’s price in key markets around the world since last year.“We are trading at the highest prices ever; both here and around the world,” said the Nairobi Coffee Exchange managing director, Mr Daniel Mbithi.

The value of AA grade during the week rose 19 per cent to $19.6 million while that of grade AB rose 41 per cent to $36.9 million. The good returns at the coffee auction reflect good performance in the industry globally based on supply concerns caused by poor weather in key producing countries like Brazil and Colombia.

Brokers said that coffee is also benefiting from a global commodity boom that has been fuelled by increased investments in the futures market by fund managers in the developed markets.

The good run in coffee prices that has been witnessed in the last six years has touched record highs beginning this month. The high prices recorded last week triggering high earnings among coffee brokers and farmers.

Among the major brokers in the country are Dormans, Ibero Africa, Diamond Coffee, Java among others. Data released by the Nairobi Coffee Exchange showed that prices of various coffee varieties rose in January culminating in the highest level last week. On the international market, last year returned the highest average yearly prices according to the International Coffee Organisation (ICO) records.

“The current supply/demand structure has reinforced the continued firmness in prices. Current developments in market fundamentals suggest that prices will remain firm in most of 2011,” the organisation said. The tight supply of coffee to world markets is attributed to adverse weather that has disrupted harvesting and transportation in many exporting countries.

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IMF tilts right in coffee-cup conspiracy?

The International Monetary Fund's leader, Dominique Strauss-Kahn, may come out of a socialist party background, but the IMF's underlying trend became apparent at a morning reception where right-leaning coffee cups made it near impossible for the left-handed to drink without making a mess.

A commentary on what left-wing economics have done to Europe, where the IMF is pushing to cut health and retirement benefits? Hmmm...The swirly-shaped cups debuted at a seminar on international monetary reform. No word yet on whether we will be returning to the gold standard or replacing the dollar with a hybrid, IMF-managed currency. But if the dining-ware has any significance centrism is a thing of the past.

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A new spin on a coffee cup

Mornings can be treacherous things to navigate, and most of us have developed some kind of ritual to help us get through those choppy waters. Coffee and tea have always been popular day-starters, and how we get it varies as much as how we like to enjoy it. Some of us rush about, grabbing our beverage of choice so quickly that the sloshing in the cup threatens to spill onto the floor. And others like to sit back, relax, and let the early morning stares take over. For those who belong to the latter group, here's something you might not have seen before.

Boasting the odd name of A Little Round-Round-Land Cup, this porcelain drinking vessel offers a new way to view the start of the day. The cup and saucer set features whimsical graphics (two designs are available: Merry Go Round and Adventures in Wonderland) that definitely stand out. But it's more than just creative imagery that sets these cups apart.

The saucer section features a two-layer design in which the top section can be spun in place. The neat part about that is the graphics printed along the inside of the saucer are reflected by the mirrorlike designs that adorn the sides of the cup. The effect is something like a zoetrope, giving frenetic action to the images; just sit back, enjoy your drink, and zone out on the effect. They might not change how you view the morning, but these innovative cups with their fun moving parts are certainly worth a smile.

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Coffee ups women's performance, hurts men

Caffeinated coffee at work boosts the performance of women in stressful situations but hurts the performance of men, British psychologists say. Lindsay St. Claire and Peter J. Rogers, both of the University of Bristol in England, tested whether increased caffeine consumption exacerbates stress and disrupts team performance.

The researchers gave 64 men and women in same-sex pairs a range of tasks to complete, including carrying out negotiations, completing puzzles, memory tasks and high-pressure meetings. To add to the stress, each was told to deliver a public presentation.

The researchers gave decaffeinated coffees, half of which contained added caffeine, to the coffee drinkers. The researchers measured individual cognitive appraisals, emotional feelings, bodily symptoms, coping, performance, memory, psychomotor performance, and negotiation skills under higher or lower stress conditions.

The study, published in the Journal of Applied Social Psychology, found women performed better and faster under stress, provided caffeine had been consumed, but the men were greatly impaired if they consumed the caffeinated coffee.

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Coffee beans roasted till dark brown produces valued antioxidants

A study by food scientists has found that when coffee is roasted to a dark brown it produces very valuable antioxidants. Researchers at the University of British Columbia have been able to trace the complex chemistry behind coffee's much touted antioxidant benefits, and they found it all depends on the roasting process.

Lead author Yazheng Liu and co-author Prof. David Kitts found that the prevailing antioxidants present in dark roasted coffee brew extracts result from the green beans being browned under high temperatures.

Liu and Kitts analysed the complex mixture of chemical compounds produced during the bean's browning process, called the "Maillard reaction".

The term refers to the work by French chemist Louis-Camille Maillard who in the 1900s looked at how heat affects the carbohydrates, sugars and proteins in food, such as when grilling steaks or toasting bread.

Antioxidants aid in removing free radicals, the end products of metabolism which have been linked to the aging process.

"Previous studies suggested that antioxidants in coffee could be traced to caffeine or the chlorogenic acid found in green coffee beans, but our results clearly show that the Maillard reaction is the main source of antioxidants," Liu, an MSc student in the Faculty of Land and Food Systems (LFS) said.

"We found, for example, that coffee beans lose 90 percent of their chlorogenic acid during the roasting process," Kitts, LFS food science professor and director of the Food, Nutrition and Health program, added. The UBC study sheds light on an area of research that has yielded largely inconsistent findings.

While some scientists report increased antioxidant activity in coffee made from dark roasted beans, others found a decrease. Yet other theories insist that medium roast coffees yield the highest level of antioxidant activity. Their findings will appear in a forthcoming issue of Food Research International.

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