A focus on quality over convenience in 2011 proved “too far of a leap” for the third brand in today's gallery, Nescafé, which is most closely associated with instant coffee, according to Interbrand's report.
While single-cup coffee might only account for 8% of world coffee sales, it is the fastest-growing trend in the coffee industry.
But Interbrand said that Nescafé’s move to sell Dolce Gusto coffee machines and capsules posed challenges for the brand in overseas markets, since “the cost of the machine and the capsules that go into it make the average cup considerably more expensive than traditionally made Java”.
“In Europe, the Nescafé brand is instantly recognizable, but in the US, the brand has significantly less equity,” Interbrand said.
“Attempting to elbow into an already crowded US market has proven to be a costly venture, and it remains to be seen if Nescafe can become the category leader in the US that it is in Europe," the research firm's analysts added.