Coca-Cola and Nestle are developing machines that will goof-proof gourmet coffee drink creation so that talented baristas are not needed. Coca-Cola will enter the high-end hotel and restaurant market with a beverage system called Far Coast and the quick-service restaurant market with a different system called Chaqwa. Nestle is targeting theme parks, movie theaters, and fast food restaurants with its Nescafe Specialty Solutions' bag-in-a-box system.
While Coca-Cola and Nestle may not compete directly with Starbucks in head-to-head competition in company-owned coffee shops, competing indirectly by giving consumers another choice in the already fragmented coffee market could cause problems for Starbucks. Estimates are that 35-39% of customers purchase their coffee from convenience stores currently, while 38% get coffee at coffee shops or local restaurants.
Advertising Age
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