Kraft Foods Inc. launches new initiatives to further fuel the growth trajectory of its proprietary Tassimo hot beverage system. Tassimo is Kraft's on-demand beverage system that freshly brews a wide variety of hot beverages, including coffees, cappuccinos/lattes, teas and hot chocolate, at the touch of a button. Since its launch in
France in 2004, more than two million Tassimo brewers have been sold in seven countries. With the global on-demand coffee category currently experiencing double-digit growth, Tassimo is on track to become a $200 million brand by year's end.
The first initiative is a new alliance with Starbucks Coffee Company to add select varieties of its popular Starbucks coffee to the Tassimo beverage lineup in the United States and Canada. Kraft and Starbucks relationship dates back to 1998 when the two companies entered into a supply and distribution agreement.
Furthermore, Kraft announces a new global brewer alliance. In mid-2008, Bosch Household Appliances will launch a new Tassimo brewer carrying the well-known Bosch name. The Bosch consumer-centric approach to innovation, quality and product development is expected to ensure the Tassimo system will continue to be made to exacting performance standards.
"We're excited about this new alliance. Both the company and the Bosch brand are an excellent fit and perfectly complement our plans to continue expanding the Tassimo system's benefits for consumers," says Hubert Weber, vice president and general manager, Tassimo.
Though mutually successful, Kraft and Braun, the current distributor of the Tassimo brewer, decided to end their partnership as Braun is owned by Procter & Gamble, a coffee competitor of Kraft. Both companies agreed that continued partnership on Tassimo could interfere with the future growth potential of their respective coffee businesses.
