ECC launching its capsules in Switzerland soon.

by chee Leng (on coffee makers)
(Singapore)

Ethical Coffee Company (ECC) that makes Nespresso capsules is planning to sell its capsules in Switzerland in the next few months!

Hmm...what is so important about this?

Switzerland is the hometown of Nestle, the parent of Nespresso. And Nespresso has always complained that what ECC is doing is legally wrong (although many people think otherwise).

The courts in Switzerland for one does not think that selling compatible capsules meant for Nespresso is wrong.

Well, they just unblock plans for Denner to sell compatible capsules for Nespresso.

But, it is important because with the case against Denner almost settled (ruled in favor of Denner), ECC entry into Switzerland meant another regular stream of sales for compatible Nespresso capsules that Nestle or Nespresso cannot do much to stop.

My $0.02

On this move into Switzerland

Personally, I think the move into Switzerland is because of Denner's success. If in the event that the legal suit in France would to be unfavorable towards ECC, then at least they are selling in Switzerland.

After the verdict is passed on Denner allowing compatible Nespresso capsules, it do not seem likely that it would be over ruled -thus, sales would be steady in Switzerland.

But, a case in France is critical for ECC. My geography is not good, but I think France being part of EU, if ECC won the case in France, it should meant that they would be able to sell everywhere in EU (Folks that are reading this, correct me if I am wrong by leaving comments).

A win in France might also see ECC moving its capsules to other places such as Asia, where Nespresso commands a strong presence especially Japan and Korea.

On whether it is "right" for compatible capsules

Personally, I think there is nothing wrong with companies making OEM capsules for the Nespresso machine. A good analogy would be iPhone, why it is so popular?

Basically, it is because of the apps that are created by different developers! People buy the iphone for its functionality, its apps!

A closer analogy would be Keurig, its growth and strong presence in US is due to its variety and its many partners.

With Starbucks joining in, Keurig gained a strong brand name and a huge distribution network.

No doubt, Nespresso under Nestle is also big, but perhaps working with instead of against companies such as ECC, Denner, Sara Lee might be more beneficial.

Nespresso immediately without doing anything gained new brands, new varieties, new channels and new demographics of customers.

Isn't it good that companies are paying listing fees, marketing funds to supermarkets on your behalf so that your machines, your customers get more variety?

well, anyway that is just my $0.02 but I look forward to seeing ECC in Asia!