coffee

Keurig vs. Verismo vs. Nespresso

by Mike Chalmers Mike Chalmers No Comments
Coffeemaker Contest on SwivelBlog

Which single-serve coffeemaker is right for your office? It helps first to understand the function of coffee in the workplace and then weigh the pros and cons of the major systems. While more than three options exist, today we’ll focus here on Keurig, Verismo, and Nespresso systems.

The intent of this article is less about which one of these three stands taller than the rest in a lineup, and more about which is best for your workspace. With a 36.5 percent share of the total US distribution of coffee in 2017, single serve coffeemakers are no doubt on your list of options for at least some of your teams.

The Three Contestants

To solidify these choices in your mind for what they represent, we’ll call them by fuller names:

  1. Keurig the Incumbent;
  2. Verismo the Contender; and
  3. Nespresso the Swiss “Italian Job” (its Swiss origins and Italian flare strongly factor)

Keurig by Keurig Green Mountain with K-Cups (Now Recyclable)

Keurig was first introduced in the late nineties with its patented single-cup coffeemaker. It has been the most widely known in North America—at least in terms of commercialization. We’re often unaware of other inventors less fortunate to patent—much less successfully launch—their products.

Keurig certainly had first mover advantages that it still benefits from. It may not have been the absolute first of the single cup coffeemakers but it was first in the minds of many for being easy-to-use, fast, and just affordable enough to be better than going to a coffee shop for every cup.

Keurig machines have had numerous no-name or even brand name contenders over the years but the original K-Cup system has remained top-of-mind for millions for its simplicity, system quality, and the coffee choices available.

While for some time selection was limited, all the major coffee brands now make products for the Keurig. In addition to its own brands (Green Mountain, Van Houtte, Donut House, etc.), a full line of Starbucks brews and blends can be enjoyed, among others. Even Tim Horton’s provides a way for people everywhere to enjoy Canadian coffee.

While there was some controversy around the release of the Keurig 2.0 with limitations on third-party coffee, it has become an excellent new edition, besting earlier models. The ability to not only choose mug size but also strength (strong or normal), and its larger water tanks means it is a solid option for offices. It brews quickly and provides good customization options.

Upside

  •   Machines and K-Cups available everywhere
  •   K-Cups from Seemingly Unlimited Brands (Green Mountain, Starbucks, Tim Hortons, etc.)
  •   Produces each cup quickly
  •   Cost per serving relatively low

Downside

  •   Beverage quality similar to regular drip machines

Verismo by Starbucks with Pods

Verismo came much later as a contender, with the help of a broad distribution system, AKA Starbucks stores in every city. It is Starbucks’ own coffeemaker using pods with its own coffee roasts and blends. With more than 25,000 coffeehouses internationally, there was little wonder the company launched its own system.

After all, Starbucks took coffee from being a commodity in the 1970s to being a boutique offering in the 80s and 90s at premium prices. If someone could raise the quality of the more generic single serve industry, Starbucks had a reasonable bet and the infrastructure to take on the challenge.

Verismo machines do make coffee that tastes very much like its store-bought beverages. While Keurigs make a solid cup of drip-style coffee, the Starbucks alternative does have a leg up with more espresso-based options. The combination of the machine process and the grind quality and freshness does tend to produce a hot cup with a good crema—that light colored froth on top of a freshly made brew.

Upside

  •   Machines and pods available at virtually every Starbucks location
  •   Pods from Starbucks’ most popular roasts and blends
  •   Taste is nearly equivalent to a quality brew at Starbucks

Downside

  •   Cost per pod is greater than for Keurig K-Cups
  •   Pods from other brands are not available in Starbucks stores
  •   Pod availability differs from location to location (e.g. at times, decaf will not be available; at other times, certain espressos are unavailable, etc.)

Nespresso by Nestlé with Capsules

By its own account, Nespresso began its journey in 1986 but did not enter its real startup phase until the mid-to-late 90s. While it may have been an earlier innovation than the Keurig, it did not enjoy first mover advantages in North America. It’s been the leader outside of the US however.

And Nespresso does have a similarly large brand behind it—Swiss conglomerate Nestlé Group. If one were to choose a company to produce a machine with clockwork precision, and a food product with European richness, Nestlé would be the prime contender. And, like Apple in a PC world, there is often room for higher-end products in large markets. In the world of coffee, the higher end of the market continues to encroach on the more commoditized alternatives. While Starbucks has positioned itself as more high-end than Keurig generally, it does not touch the Nespresso in terms of overall appeal to the espresso-drinking and higher end coffee consuming market.

As to the crema, while Starbucks produces a good froth, the Nespresso’s is perfect every time and distinctly unlike any of the American brands. The espressos and full-cup coffees are richer and more unique all around. I called it the Swiss “Italian Job” because it produces the ultimate Italian espresso and blends. If you’ve ever had a perfect cup of Lavazza at a genuine Italian-style café you will find the Nespresso holds its own.

As mentioned, Nestlé is a food and beverage manufacturer in its own right. As such, it’s able to compete with Starbucks on level ground for flavor consistency, while targeting a higher-end product. It likewise brings together Swiss engineering and innovation at the system level which further makes for a perfect cup every time.

While Nespresso is a later mover in the American market it’s certainly well-known and loved overseas, with some $3 billion in annual sales. The willingness of major celebrities to promote the brand has also positioned it as a brand with cachet worldwide. The company notes that it was its Nespresso Club members who selected George Clooney as brand ambassador.

Upside

  •   The most high-end in flavor and consistency
  •   Nespresso Club itself is a fun and engaging way to interact with the company
  •   Will impress any client or customer as a genuinely boutique experience

Downside

  •   Only in America: for American tastes it is high-end enough that many are not used to the full-flavored richness and some may not enjoy it for every cup (I would argue it’s good to get over this obstacle, but it may affect your decision to introduce it to certain workplaces)
  •   Capsule costs are higher than most other single-serve coffeemakers (100 for $105 through the club)

Nespresso vs Keurig vs Verismo

Ultimately, the choice is up to you, and we live in a time where this is among the easier decisions to make. You get to choose based on what your team, department, or company will benefit best from. The reason these three were selected for review is because they are each very good options.

Some helpful tips:

If you have a large department (>100s of laborers) consider the Keurig for its robustness and relative flexibility. You can also provide a diverse selection of flavors to satisfy broad ranging tastes, from diner-like coffees to Starbucks-style offerings.

If you have a small or home office (SOHO/SME) consider either the Verismo or Nespresso alternatives based on the palates of your staff.

If you are outside of the US, with discriminating tastes, consider the Nespresso; with less discriminating tastes, the Verismo; with indifferent or mixed tastes, the Keurig.

If your business is in creative or high tech sectors consider polling your teams to find out coffee preferences. Creatives, techies, and millennials enjoy dialog around decisions that affect them.

It’s possible to combine as well, by having large drip coffee machines alongside single-serve options, especially in environments where it’s important to have coffee already brewed and ready to grab. It’s also conceivable that a series of machines could be helpful to manage lineups.

What is not recommended is different styles of single-serve coffeemakers and pods in the same department. The combination of purchasing for multiple system types and troubleshooting the same could be problematic.

Let us know what works best in YOUR workplace.

SwivelBlog Keurig Video SwivelBlog Verismo Video SwivelBlog Nespresso Video

(Above) Videos of the Keurig, Verismo, and Nespresso brands, respectively

Employee Perks: Better Coffee and Morale

by Mike Chalmers Mike Chalmers No Comments
Retro desk with coffee - SwivelBlog

What’s better—brewing your teams better coffee in the workplace or leaving that task to Starbucks? Is it better to provide an onsite mini-cafe or let employees grab a joe on the way to work? The answer may impact your bottom line.

The decision is not particularly hard to make with the right information and an understanding of your own corporate culture. But companies can make the wrong choice and either spend frivolously and fail to impress, or go cheap and miss an opportunity to provide easy benefits for employees.

It’s really a simplified form of the outsourcing decision, where the product is for your employees rather than your customers. Will you provide your staff with the better cup or will someone else? The right decision isn’t always to do it yourself, but when it makes sense to do so, do it right.

The Place of Coffee In the Workplace

First, some background. Coffee is a staple of hardworking people everywhere. Bustling offices have for decades had famed (or infamous) water cooler conversations, and right there in the background on a counter by the sink, the humble coffeemaker silently brewed servings for entire departments at a time. These were the workhorses of coffee machines. They never complained, rarely broke down, and always obeyed the law of “garbage-in, garbage-out.”

Sawdust-like particulate and water in, stale hot fluid out.

The Introduction of Better Coffee

Along came premium and boutique coffee houses and the office worker was no longer satisfied with a five-hour-old cup of tar-colored juice. The everyman and everywoman had discovered fresh, flavorful servings of personalized cups. And as it turns out, employees will pay for their own perks (pardon the pun) if they believe it will help them do their job better or enjoy it more fully.

Entrepreneurs vs. Corporate Budget Managers

This is where smart employers come in and recognize that companies have for decades provided coffee for their people. But while they ditched their mainframe computers in 1984 and their glass brick office dividers in 1990, too many continue to brew toxic sludge while their employees go to Starbucks, Tim Horton’s, or a boutique roaster-brewer—even at some distance from the office.

When simply a budgeting matter, the ordinary manager will often resist change and continue the decades-old tradition of mass brewing for the simple utility of a brewed cup for the minions. However, entrepreneurial leaders will not approach the problem as though only the old way makes financial sense.

Happy workers make more productive workers, and more productive workers improve bottom line finances. This is not about millennials vs. baby boomers. It’s not even as much about coffee as it is about providing benefits to employees according to their preferences and in ways that improve morale. The same decision-making in this post could apply to numerous employee retention discussions.

A Holistic Perspective On Worker Perks

When viewing the problem more like an outsourcing question, some simple questions will assist in making the right decision based on the bigger picture:

1. Is there a high-end coffee shop in the building or within a 5-minute walk of the office?

If so, unless you can produce better coffee in-house (unlikely), don’t try to recreate that atmosphere. It’s good for productivity for everyone to get up and stretch about as often as they feel the need for a coffee. A basic coffee option with quality beans should suffice for those who need a quick cup in-house as desired but are willing to walk a short distance for something top-notch.

2. Is good coffee farther than walking distance from the office?

You might want to provide better options right where you are. If there are coffee shops within a short driving distance, you won’t necessarily need to build an on-campus Starbucks, but you’ll need to determine how high-end to go. The better your coffee, the less they’ll feel they need to leave for prolonged periods of the day to find a satisfactory beverage.

3. Are you a large firm or SME?

Larger companies will always save by having more advanced machinery and contracts for bulk coffee. Smaller firms at times can get away with Keurig-style single-serving systems. In both cases the quality of coffee is important. Remember, garbage in, garbage out.

4. Do many of your workers go beyond the hours of 9am-5pm?

This is huge. If you have an entrepreneurial, self-motivated workforce spending late evenings or abnormally early mornings serving your company, coffee and tea options that serve them well are essential. Again, it depends on your answer to #1, but consider that even if you have a coffee shop nearby, their hours of operation will partly determine whether you offer better options in-house.

5. Does your company depend upon teamwork and collaboration?

As mentioned, the water cooler has always been a conversation point in the building, and coffee has a way of connecting people also. Ask yourself whether you want to foster those kinds of conversations and how you want to facilitate them.

You Know Your People Best

Add to these questions the additional variables for your industry and you’ll make a more profitable decision every time.

In reality, you are more likely to want some combination of coffee services. For example, there will always be some employees satisfied with very simple coffee options and for them, the convenience of a basic, utilitarian cup should be preserved. On the other hand, some will only drink the highest quality at any time. Figure out how to achieve the best mix for the diverse teams you employ.

In Sum

Why such a serious analysis of the coffee-buying decision? By 2015, “The total economic impact of the coffee industry in the United States in 2015 was $225.2 billion” (National Coffee Association USA). In the US and around the world, coffee is part of each working day for most people.

There’s no shame in doing the right thing by your employees and being budget-conscious. This decision has to be as much about a return on investment as about benefiting your employees. Your profitability will enable you to provide better perks for them over the long-term, not just over one decision. So make your choice based on the needs of your people and your business.