US-based Atomo Coffee is hoping to secure production and sales partnerships with coffee businesses and more coffee shops globally this year to scale its bean-free ground coffee, following its launch in the UK.
The group has already secured sales partnerships with on-premise locations in the US and Japan, and just announced a new listing this week at specialist roastery Hagen Espresso Bar in London.
Speaking to Just Drinks, Atomo Coffee CEO Andy Kleitsch said, “we are right now in that process of talking with several brands and several coffee shops in different regions to understand how would we bring a product to market in that region?”
He added, “this year you’re going to see a handful of pilots launch with coffee brands that are embracing [the] blended future of coffee”.
The company looks to create products in collaboration with large coffee manufacturers, which could include a 50:50 blend of coffee beans and Atomo’s beanless grounds. Future tie-ups could also include sales partnerships.
Kleitsch was coy on whether the group had begun developing products with any large companies just yet. “I can say that we actively are speaking with the largest coffee companies in the world”, he said.
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By GlobalDataThe business, which sells both pure beanless and hybrid coffee grounds, is focused on growth in Western Europe, Asia and the US. “Those are the big markets for us right now”, said Kleitsch.
Headquartered in Seattle, Washington state, the group made its first steps outside of the US in December through a tie-up with the zero-waste coffee shop Ash in Tokyo, Japan, and Kleitsch said the business is now in talks to establish itself in retail there. It’s sold in over 70 coffee chains across the US, including Bluestone Lane and Vigo Coffee.
Last year, Kleitsch told Just Drinks Atomo had “either met with, talked with or provided samples to the largest coffee companies in Japan, Italy, Germany, UK, [the] Netherlands”.
Speaking further on the group’s future growth strategy, Kleitsch said, “we love cafes as partners, but we also understand that the vast majority of coffee is consumed in food service, at home in capsules and ready-to-drink in store or with grab and go, and so really, it’s our desire to be available in all of those formats, and to partner with coffee brands in all of those formats, to be able to make their products more sustainable.”
Founded in 2019, Atomo’s portfolio includes Pure Atomo beanless coffee crafted for regular filter or drip, and a 50:50 range, which blends 50% Arabica coffee grounds with 50% of its bean-free grounds. It also offers decaf versions.
The beanless blend includes ingredients such as green tea leaves for caffeine, carob, fenugreek seeds, and upcycled date pits sourced from its upcycling centre in Coachella, California.
Atomo raised $7.8m at the end of 2024, bringing its total amount raised to around $58m.
The funds will be used to scale production of at its 40,000 square foot site in Seattle, Kleitsch said.
While the company doesn’t disclose current volumes, Atomo is working towards producing four million pounds of coffee a year at the facility.
The business is open to further fundraising, but Kleitsch did not mention how soon this might be.
“Fundraising is always going to be part of our strategy, because we’re trying to build ahead of the demand, and we’re trying to encourage the use of this product for the sake of the planet.”
When asked whether the company would be open to being acquired, Kleitsch said, “it would seem very natural that a large coffee company would want to buy Atomo to ensure supply of coffee for themselves. That seems natural and so that is a likely outcome.”
He added, “what I hope happens is that, if that does have to occur, that the company that buys us would continue to grow as quickly as possible to supply the rest of the industry with coffee as well.”
Atomo is one of a few start-ups operating in the beanless coffee space as coffee becomes a more vulnerable commodity. Other bean-free brands include US-based Minus, Dutch group Northern Wonder and Singapore’s Prefer.
