Desperation?: That’s why Migros is giving away its coffee system

Long distance 22 days discount Coffee B

The 22-day discount marathon of Migros’ Super-Lungo brand, which started with the motto “Buy now, without capsules, for free”, amazes industry observers. The question arises as to whether Coffee B, with an unnaturally long Black Friday discount period, now has to force its system into the market through a desperate price move.

In October 2023, Coffee-B boss Frank Wilde spoke with individual success reports, but also had to admit that his biodegradable coffee balls system was in a race against time. Wilde drew a comparison with his former employer: “Nespresso has taken over a decade to land since its launch. Unfortunately, no one has that much time these days. We must succeed faster than Nespresso.”

Being fast also means bringing as many new machines to market as quickly as possible. This is the only way to gain customers who will subsequently purchase Coffee-B-Balls. Wilde said that the ultra-long Black Friday is not an act of desperation in terms of the pricing of the system, which was first introduced in September 2022, and said: “Promotional prices are part of Migros’ sales strategy and are used exclusively throughout the year.” Coffee B’s discount campaign to continue beyond Cyber ​​Monday is a “strategic decision and planned well in advance so that consumers can take advantage of it for their Christmas shopping.”

Resident ecology problem

Coffee B has been a success with the launch of the fully degradable “capsule-free coffee capsule”. But when it comes to promoting ecological benefits, there is always a problem with consumption. To earn points as an eco-champion, consumers must first purchase a machine; This is something they wouldn’t be able to do otherwise. Frank Wilde, Coffee B Manager at Migros’ industrial subsidiary Delica, says: “In Switzerland, consumers replace their coffee machines on average every four years. “More than 300,000 households purchase a new single-serve coffee machine every year.”

This natural cycle should actually benefit Migros’ innovative system. However, it seems that Coffee B probably needs to attract attention with an actual giveaway campaign in order to reach wider circles. Wilde counters: “We are targeting those who are already looking for a new machine.”

But it is clear that this will not work without a long-term price hammer. In any case, the price history tracked by Migros subsidiary Galaxus on its website clearly shows that Coffee-B machines have never been cheaper since their launch in September 2022.

Swiss benefit more than Germans

Compared to Germany, where the discount offer is less attractive and is promoted only as “Green Week”, local consumers are for once stronger and have a longer interest.

Wilde says: “Pricing in Germany and France is the responsibility of the retailers so we cannot comment on this. However, we assume that Black Friday promotions will also be held there.”