Pod wars as Nespresso, Expressi and others go head-to-head for Christmas coffee machine buyers

IT'S the must-have Christmas gift and has touched off a war among brands and retailers. Is there one in your home yet?

IT'S the must-have 2013 Christmas gift, and the brand competitors are going head-to-head in the festive coffee pod war.

Pod coffee has become big business, with Australians spending more than $150 million a year, and some machine manufacturers reporting a 70 per cent increase in sales at Christmas.

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Industry insiders predict that one in four Australian homes will have a capsule coffee machine before the end of the year.

With up to 10 different brands all vying for business, the consumer is the ultimate winner, with price promotions and added coffee blends for the festive season.

There is something Hollywood about pod coffee products, thanks in part to the star power of George Clooney and Matt Damon, who represent market giant Nespresso. But as well as the actors' good looks, the company has created high-end boutiques around the country and an exclusive Nespresso Club that appeals to the coffee lover.

Pod coffee is not instant and it is not quite espresso. It hits the mark somewhere in the middle, offering no-mess, cafe-style coffee at as little as 50c per cup.

Supermarkets are waging war on the prestige players in this pod revolution.

Nahum Seeman the head of Nescafe Dolce Gusto said: ``We saw a 50 per cent growth in sales last Christmas and the pods have taken off since then, so we would be looking at a 60 to 70 per cent spike this year. We are running price cut promotions over Christmas as well as launching mocha, chai tea and summer variant flavours."

A Woolworths spokeswoman confirmed that the $119 Dolce Gusto would be on sale for $99 this month. The Woolworths Caffitaly S14 is selling for less than $100.

``Our Caffitaly S14 Coffee Machine allows coffee lovers to try different pods from different brands like Gloria Jeans and Lavazza; we even have Twinings tea capsules. Woolworths most affordable capsule sells for 37c per capsule, so with a capsule and 100ml of milk (worth around 10c) you can make a cafe-quality coffee for 50c in the comfort of your own home,'' she said.

You can buy an Aldi Espressi Multi Beverage Capsule System for $79. Milk frothers are $27.99 and pods 37c.

A Coles spokeswoman said: ``We are predicting strong sales of our coffee capsules this Christmas, which is why we have introduced four new flavours to our Coles Finest range just in time for the Christmas rush.''

Sumatran, Ethiopian, Brazilian and also decaffeinated are the new additions. A sleeve of 10 premium pods are priced at $4.

Nespresso offers high-end machine The Lattissima+ at $549. Variations capsules are $8.40 for sleeve of 10 capsules.

News_Module: NND Christmas Gift Guide Multipromo