Instant coffee smackdown

Swiss giant Nestle isn't about to roll over and let Starbucks steal customers

By Kim Peterson Nov 18, 2009 2:31PM
Starbucks introduced its own instant coffee product last month, and immediately insulted the competition by calling other instant coffees "flat and lifeless."

That talk isn't sitting too well with Nestlé, the Swiss company who makes the well-known Nescafé Tasters Choice instant coffee.
So Nestlé is striking back, launching a nationwide campaign calling Starbucks' new Via product "a lot of hype."

A new coffee war is on.

MarketWatch reports that Nestlé employees are handing out samples and $1 coupons in San Francisco, Los Angeles, Philadelphia and Washington D.C.

The samples have the tagline: "A lot of hype or a lot of flavor. Taste for yourself."

Why all the attention? In this economy, people may be more open to trying instant coffee, which is cheaper -- certainly more so than your average cup at Starbucks.

Also, the U.S. is just a newbie when it comes to instant stuff. This country has only 5% of the instant coffee market, which amounts to $21 billion worldwide, MarketWatch reports.

Starbucks seized the opportunity with its Via Ready Brew, and even put out a video (you can watch it here) showing how Via is superior to other instant coffees.


Via costs about $1 per single serving, though the price drops as you buy larger quantities. Nescafé is significantly cheaper -- at least in my town.


I have to admit that I haven't tried either company's instant coffees. Can anyone share their experiences? Which one is better, and how do they stack up against other coffee?

97Comments
Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2013 Microsoft. All rights reserved.

Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges.

Fundamental company data and historical chart data provided by Thomson Reuters (click for restrictions). Real-time quotes provided by BATS Exchange. Real-time index quotes and delayed quotes supplied by Interactive Data Real-Time Services. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by SIX Financial Information.

Japanese stock price data provided by Nomura Research Institute Ltd.; quotes delayed 20 minutes. Canadian fund data provided by CANNEX Financial Exchanges Ltd.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

125
125 rated 1
272
272 rated 2
424
424 rated 3
589
589 rated 4
697
697 rated 5
589
589 rated 6
666
666 rated 7
435
435 rated 8
260
260 rated 9
144
144 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
ABTAbbott Laboratories10
AIGAmerican International Group Inc10
AMTDTD Ameritrade Holding Corp10
ATVIActivision Blizzard Inc10
CACA Inc10
More
Fidelity Brokerage Services, Member NYSE, SIPC. (c) 2011 FMR LLC. All rights reserved

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.