Dive Brief:
- Nestle has surrendered in a long-running battle against French regulators and agreed to allow competitors to make knock-off pods for use in its Nespresso coffee makers.
- Nestle has long fought back against the makers of less-expensive imitation capsules by changing technology to limit compatibility, revoking warranties for use of a knock-off, etc. All such techniques are now forbidden under the terms of a deal with France's Competition Authority.
- Nespresso, made by Switzerland-based Nestle, is the most popular single-serve coffee brand in Europe.
Dive Insight:
French regulators, of course, have no role to play here in the States. But it's still pretty likely that the folks at Keurig Green Mountain yelled "sacrebleu" when they heard the news about Nespresso. Keurig is involved in a similar battle against copycat versions of its K-Cups. And the company has committed to making a new machine that won't be compatible with knock-off pods. That has promptedlegal action by one maker of knock-offs, Treehouse Foods.
