Daily Newsletter

08 August 2023

Daily Newsletter

08 August 2023

Emmi enters joint venture with Equator Coffee

Women-owned Equator will offer the new beverages at its own cafés, as well as at unnamed retailers in California.

Henry Mathieu

Swiss dairy giant Emmi has partnered with US-based Equator Coffee to release four ready-to-drink cold brew coffee products.

Financial details were not disclosed.

The companies have formed Emmi Equator RTD Coffee, which will offer product variations of Pure Black, Hint of Milk and Sugar, Velvet Mocha and Hint of Vanilla.

Women-owned Equator, headquartered in California with ten cafés throughout the state, will offer the beverages at its own locations, as well as at unnamed retailers in California.

The coffee in the products itself will be sourced from a combination of Colombia, Ethiopia and Indonesia, eventually getting roasted in California.

The new line will have a suggested retail price of $3.99 to $4.99 per each 8.5-ounce bottle.

“We are proud to partner with Equator Coffees, a leader in sustainable and specialty coffee, on launching a premium line of bottled cold brew,” said Brett Lanford, managing director of Emmi Equator RTD.

“We’re confident that pairing Equator Coffees’ rich history with Emmi’s experience in building a successful ready-to-drink coffee brand allows us to deliver distinctive cafe-quality bottled beverages that will drive market growth in the category.”

Helen Russell, co-founder of Equator Coffees said: “We believe that coffee is more than just a beverage.

“It's a way to connect with others, to create memories, and to build community. We’re delighted to team up with Emmi on a premium cold brew range that broadens our existing selection of specialty coffee and lets customers enjoy the experience they’ve come to expect from Equator Coffees while on the go.”

Just Drinks has approached both companies for further details about the joint venture.

In a joint statement, the groups said that the deal would help Equator meet the demand of the “growing category”.

Across the Atlantic, two weeks ago, UK drinks major Britvic announced last month that it had snapped up Jimmy’s Iced Coffee, alongside Brazilian energy drinks brand Extra Power.

[Link src="https://www.just-drinks.com/news/deal-focus-britvic-again-uses-bolt-on-ma-to-tap-emerging-growth-sources/" title="Deal focus: Britvic again uses bolt-on M&A to tap emerging growth sources " font-size="20px"]

Generative AI remains an untapped potential across the consumer industry

GlobalData estimates the total AI market will be worth $909 billion in 2030, growing at a CAGR of 35.2% between 2022 and 2030. The consumer goods, foodservice, and packaging sectors are undergoing digital transformation, accelerated by the COVID-19 pandemic and changing consumer preferences. AI can help companies operating in these sectors by significantly reducing costs and production times. In Nestlé's 2022 full-year results, the company announced a renewed focus on digitalization to drive growth. Financial and reputational pressures associated with supply chain disruptions and sustainability concerns are also driving interest in the digitalization of supply chains. Data science and ML are strong investments across all areas. However, the sectors cannot stop at AI-powered data analytics applications. They must also explore computer vision (CV), smart robots, AI sensors that automate manufacturing and distribution logistics, and generative AI tools that increase efficiency across corporate departments and customer service operations and enable innovation in product design. For the most part, the consumer goods, foodservice, and packaging sectors will not play a significant role in creating and developing AI hardware or platforms. Instead, these sectors will help scale up the adoption of AI technologies, such as CV, conversational platforms, and smart robots. This adoption will be driven by the financial benefits and potential cost savings AI automation delivers across global supply chains.

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