My Thoughts: JAB and Illy's Weird Nespresso Deal

JAB Group recently did a deal with Illy which seemed worth discussing - but the more I thought about it the weirder it seemed...
Link to a piece in the Economist: www.economist.com/business/20...
Your thoughts welcome!

[@DemPilafian]

_"Amazon increasingly has a trust issue."_ 3:32 That’s the understatement of the year.

[@expecto10]

Can you please do review between Nespresso Pod coffee vs normal espresso machine eg Delonghi

[@sylvainr0]

What a great pleasure to listen to your videos when I go to sleep. I love them, along with Watchfinder videos. Many, many thanks for your time.

[@piotrskoczylas7915]

siting with you for an interview was high on my wish list so thank you for that :-) Really interesting points and info James. Thank you for that!

[@Taraisgood]

So.. we’re still waiting for your comparison between nespresso and a “real” espresso. Maybe low the bar and use a Delonghi EC155 machine.

[@Paul37Ontario]

with blind taste test

[@dinosaurusdog9118]

Nespresso is considered commodity coffee marketed as specialty coffee. Don't get me wrong though it makes good cuppa....

[@gregory49]

Nespresso tastes like garbage, the only thing they nail is texture.

[@maxman1244]

@@gregory49 I would have to agree, however I've noted that it only seems to be nespresso's own branded coffee pods (speaking from an original pod perspective) taste off. Overly bitter is a common theme from their's. 3rd party capsules taste 1000x better. I think it may have something to do with their design as well, lower pressure inside the capsule perhaps, it seems the 3rd party ones I use have extra space within the capsule, and there is a distinct difference in the flow. Might be speaking out my ass though, who knows

[@amberspecter8691]

@@gregory49 They have some varieties that taste almost fruity, I dare say. Not perfect, not garbage

[@Dinckelburg]

The best part of this video is the innumerable ways that the auto generated subtitles chose to spell illy.

[@willlane1969]

Once again, love the insight and curiosity

[@jtenkely]

I haven't seen a video in which you discuss the Nestle acquisition of Starbucks CPG coffee rights. I think you may want to consider their market-share challenges in the face of the manufacturer of Nespresso pods putting a globally-known brand into those pods at a much more "mainstream" price than anything JAB currently owns. Peets, Stumptown, Intelligencia are all "boutique" brands. Illy is most likely their "call:" to Nestle placing their bet with Starbucks.

[@american1911]

James, your presentations are scholarly. Do you have any reviews of the Nespresso Original? Loved your insight on the Vertuo.

[@charlieeleftheriou6894]

Thanks for the video, I’m glad to know this is happening. Have you heard anything about the timing?

[@kypiper]

My guess would be that they are trying to break into the USA market to get distribution. Out of no where you started to see their products on shelves at American supermarkets and I had to try their K cups to see what the price difference was. The darkroast kcups are outstanding for a kcup product, but, VERY hard to find now. They also have bagged coffee on the shelf now, but, I think its getting in on the USA market. They aren't as well known in the USA. Their espresso machines are rare here in the states and if you can find capsules for them, good luck. Most people are using generic Nespresso paten expired pods.

[@LinasR]

I tries quick googling on capsule espresso, but couldn't find separate video made by James Hoffmann on the capsuled coffee topic. Could someone ask to do comparison or impressions video?

[@arbiflores30]

Nespresso vs. real espresso please :D

[@Marian1st.]

Nespresso. It’s faster and it always works.

[@sO_RoNerY]

Espresso is better.

[@DemstarAus]

@@Marian1st. thanks! Now James doesn't need to make a video 😑

[@thomassantacatharina2666]

There is an extra "a" in the Economist URL (industrya)

[@bogiesan]

I have both Illy iperespresso and Nespresso machines. I have gone through many boxes of the JAB/Illy aluminum capsules for Nespresso. They are distinctly awful compared to the iperespresso units. I do not have Hoffmann’s palate so I cannot tell you precisely why they are so horrible but one reason is the brewing ratio of 8 to 1 for a 40ml shot and 4 to 1 for the 20ml ristretto shot. The Illy blend just doesn’t stand up to the dilution. Of course, your opinions may differ greatly. I should like to see Mr Hoffmann perform a side by side of these two capsule systems.

[@ivandelsur4445]

I just bought 100 capsules of FORTE illy nespresso coffee. Is those capsules the one you are referring to?

[@bogiesan]

@@ivandelsur4445 Forte is a name used on MANY Nespresso -compatible capsules. It means “strong”. The two Illy capsules are Classico (red) and Forte (black).

[@Yabyahoo]

@@bogiesan I'd say the Illy aluminium capsules outperform the Iperespresso plastics cups BY FAR

[@nomebear]

Nespresso OriginalLine user here, I own several. There seem to many brands offering Nespresso OriginalLine pods, and I have tried many. To my taste the Italian brands offer the best flavor, crema, but the stand out for me is the Lavazza Armonico Dark Roast. Like many, I choose brands that are packaged in a biodegradable pods.

[@abrahammusalem5788]

Please do Nespresso vs Espresso !!

[@alfredoasalidelamora5945]

Are the Illy capsules for Nespresso any better in taste than the other “original” Nespresso capsules? I just bought the Illy Intenso to try it out and thought I could find some tasting guides. Have a great day!

[@androszantis1611]

Hi James, please review the Amazon brand pods please! Bezos coffee

[@borges87]

Great insight, as always. But the video image looks a bit weird (washed, low contrast)

[@s_lafi]

Have a magnificent day!

[@sO_RoNerY]

Never seen Illy in our local store here in Oregon. Seems the best bet for to to try Illy is to purchase it on Amazon.

[@davidbyck]

James, although I don't need a new hobby I love your videos and information they contain. Presently I have a Nespresso machine but wonder if the illy coffee is actually better. What you you think? Have you done an illy machine / coffee pod review? thank you, David

[@DemstarAus]

We did a price comparison just on beans at work. You're paying (depending on pods) about $154AUD/kg for coffee when delivered in Nespresso pod form. We estimate it costs them about 3c per 5g pod for the beans alone (possibly less considering they use a lot of robusta in there too), and about $6.60 per kilo for their green beans. Granted there are MANY other costs that aren't accounted for here... packaging, distribution, marketing, power, wages, grinding, etc etc etc Now that $154 1kg of coffee beans will get you 200 pods which is impossible to compete with in terms of cost. 200 espressos at a cafe will cost you about $700 (@$3.5 per espresso). A 1kg bag of beans will make you 142 coffees (if you use only 7g per serve) and will cost you anywhere from $25 for a supermarket brand to upwards of $60 for good quality specialty coffee from a hipster roastery. I will have to do this math more thoroughly because it's not looking good cost wise for Nespresso compared to brewing at home - no hope for cafe beverages to compete in this race though. Also I suck at math so I welcome corrections.

[@nadiaelderbas8515]

Nespresso tastes better than anything you can brew at home

[@adobedoug2564]

@@nadiaelderbas8515 No, no it doesn’t. Chacun à son goût.

[@mariodilorenzo7473]

Do you know if Peet's and Illy Capsules are the same? Both from France, same exact capsule. ???

[@OOpSjm]

I have both and they appear identical. Probably use the same capsule supplier.

[@hernancaceres4961]

hello, what recipe do you use to prepare illy espresso? , according to the official website it is 7 gr, 25-30 seconds, 30 ml of coffee, but it is softer than what they sell in coffee shops

[@sharvo6]

That yellow really amps your blue eyes.

[@distlledbrewedreviewed]

Very interesting and informative.

[@chnelis]

I have a reusable stainless steel pod for my Nespresso machine which I fill with Illy expresso regularly. Normally I do a pour over of local Portland OR coffees but when rushed I resort to the pod. It makes an acceptable coffee. Much better than Nespresso's coffees which I find lacking.

[@faithcote9331]

Do you have a link for the reusable capsule?

[@Halbmond]

Illy also has their own aluminum capsule system called Iperespresso. But I figure that just like Starbucks’ own Verismo system it’s probably not selling well so they are trying to broaden their portfolio. Maybe they’re outsourcing the Nespresso capsule distribution for optics. It’s always an admission of failure in my opinion when a manufacturer of a proprietary capsule system caves and starts to also support the Nespresso system.

[@OOpSjm]

Iperespresso just never got the marketing push that someone like Nestle could provide Nespresso.

[@leoblack9732]

Who can help me with my francis francis x1 gen 2. Had it since 2007 and love it but recently makes terrible esspresso!! 😔 After I changes o rings myself and having to use step up voltage converter since movong to the US! HELP!!!

[@samek81]

Another vote for Nespresso vs "real" Espresso comparison...

[@nevboard]

And Campos bought by Dutch firm JDE Peet last year

[@addicted2caffeine]

Nespresso have their own stores. If Illy just made a capsule they would have to market it. Shelf space etc... and then well starbucks are already there. They can't really just make a tv advert saying new because it's not its old news. But having ppl see their brand in nespresso stores is probably more likely to add value to their machines and give free advertising at which point supermarkets will have their hand forced to take Illy's capsules too.

[@OOpSjm]

Not at Nespresso stores but regular stores and thru website.

[@MichaelRozie]

Jab & Illy... sounds about right in 2021

[@guenzburghdcl7637]

Amazon reviews , i read them never trust them, used to be trustworthy .... also sometimes good brands disappear from amazon whilst pushing inferior rubbish as though they were premium. Dirty company.

[@petermitov8432]

Hello everyone! I’m stil new to the dialing espresso machines so i need help from someone experienced. I currently own a breville barista express and I’m hardly trying to get a decent shot using illy intenso (beans). If someone have used that machine with that coffee please share your settings( coffee amount, grind settings, extraction time). Thank you

[@charlesgray6385]

When dialing in coffee you can use this compass for a good starting point www.baristahustle.com/blog/the-espresso-compass/

[@pk4459]

Peter, you need to check out the KZbin channel Hoon's Coffee. That channel specializes in getting good results from your exact machine. One tip I have for you, try to get beans from a local roaster that are fresh, ideally between 5 and 15 days from the roast date. Unless you do that, you're going to be going around in circles to get a really decent shot.

[@PUDINHED]

I worked at illy's NA HQ when this happened, I was called into a meeting to announce this. I thought I was being terminated.

[@MojoPapiFPV]

Illy wants to delegate and offload the expense as much as possible without much concern for quality, because the sole purpose of the move is to take market share from Nespresso.

[@AtomicCheri]

Looks like the illy thing never happened.. But Nespresso went with Starbucks instead. WTF?

[@OOpSjm]

I have Illy pods in my Kitchen. My current goto. Available at Target, but toss-up between Peets or Illy it seems based on the geographical location of the physical store. Marketing/sales limitation placed on regions in the USA at least.

[@AtomicCheri]

@@OOpSjm I meant the Nespresso partnership with Illy never happened. I know they have compatible capsules you can use in a Nespresso machine.

[@OOpSjm]

@@AtomicCheri Illy and Nestle coming to agreement would not likely happen as Illy would probably be asked to give up control beyond distribution. Starbucks branded products are produced and distributed by Nestle. Nespresso is a division of Nestle.

[@andrelabadie371]

Most nespresso cap[sules suck. The Illy ones however are not bad at all.

[@nevboard]

Antipodean news now sl. Old. Asahi bought Allpress

[@dexal409]

fun fact, jab is also a porn comics brand

[@alainapristine3305]

The fact that I’ve looked at them

[@amitliss7433]

Aren't You tasting it.........??????

[@-----REDACTED-----]

Coffee pods being premium except for in pricing and pollution is completely beyond me...

[@ab6arxo505]

،

[@middlesbrough123]

Still no illy nespresso in the uk

[@morejelloplease]

Illy is a hot mess, their advertising, website sucks and the way they try and lock you into their coffee programs. I just bought 2 illy machines and went thru hell getting the wrong coffee, the wrong capsules, etc. Now I'm stuck with coffee and a machine I'm not going to use.

[@SteveInScotland]

Just bought some illy for nespresso to try via Amazon and the use by date is just two months away. Not doing that again. I wasn’t impressed, I have to drink decaf but it tasted chemically.

[@gregory49]

Nespresso doesn’t taste like coffee 🤢