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New eco-efficient and healthy professional espresso coffee machine

Periodic Reporting for period 1 - ECOBREW (New eco-efficient and healthy professional espresso coffee machine)

Reporting period: 2014-11-01 to 2015-04-30

Espresso coffee has always been closely associated with social culture and fashion in Europe, and one of the fastest growth segments in this market is the gourmet coffee shop market.
Consumers are increasingly returning to drink coffee as a social activity. There is a growing number of coffee connoisseurs willing to pay a premium for coffee that is not only of high quality, but has also been professionally prepared and sourced in an environmentally and socially responsible way. However, current professional espresso coffee machines do not match this demand, as they are based on technologies that have barely evolved in 100 years. These machines are extremely energy inefficient whilst also, due to the materials used internally in the machine, generate unhealthy metal impurities which are then passed to the customer in the drink. This creates an anomaly, and IBERITAL has acknowledged the opportunity to move into this niche.

The general objectives of the ECOBREW action were:
i) to study the technical feasibility of the proposed solution, namely, a new professional espresso coffee machine fit for with two main requirements: low energy consumption and reduction of heavy metals passed to the coffee;
ii) to analyze the business feasibility of the new product, by conducting a market research and drawing up a business plan based upon the production requirements and market evidence collected.
IBERITAL has accomplished the following activities:
1) Technical testing. A preliminary series of tests and analyses have proven the technical viability of the proposed solution, namely, that energy savings and heavy metal passed to the drink can be achieved through suitable machine configurations. The tests have also suggested further issues that need to be addressed in Phase 2, regarding e.g. stress tests with new materials, production engineering, upscaling and final user testing.
2) Market research and cool hunting forecasting have shown that ECOBREW delivers a value proposition that matches clear market trends that are expected to spread over the next years. The research also revealed that more technical, ergonomic and aesthetic features need to be included in the new machine, in accordance with what the target market is demanding. The market analysis, including stakeholders, distribution channels and marketing strategy has helped to learn about the market, the product definition and positioning, and the marketing strategy that needs to be developed for the product launch and promotion. Investment in marketing actions in Phases 2 and 3 will be key to a successful and quick uptake of the product.
3) The business plan is based on a conservative approach in terms of sales forecasts and cost assessment. The plan draws up a profit and loss statement for 5 years that evidences the economical feasibility of the new product.
"IBERITAL expects to launch the new healthy and eco-friendly ECOBREW espresso coffee machine into the premium market segment within 18 months. The marketing positioning for the launch will be based on a ""more value for a bit more"" approach. The market research has evidenced that ECOBREW bridges a clear market gap with an unmet value proposition.
IBERITAL plans to carry out the R&D to accomplish a final product that can be produced at IBERITAL's new factory in Barcelona.
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