Nespresso opens up

People who have been using non-Nespresso branded capsules need worry no more.

After attempting to wrap their machines in a security blanket of patents, regulations and menacingly worded warranties, Nestle, the company behind Europe’s most popular home brewer, has decided to open up their products to third parties.

Under the agreement, which was initially announced last week by French anti-trust regulators, the company will now give competitors at least four months’ notice to any changes that they plan to make. They will also hand over any prototypes for new Nespresso brewers.

They will even work with and share information with manufacturers who sell outside of the French market.

The decision brings an end to years of Nestle’s (extremely profitable) grip on the market.

Previously, the only way to buy licenced Nespresso capsules was at the boutique own-brand stores. That will no longer be the case.

It marks a complete turnaround on their original stance which was met with contempt from their opponents. Numerous patent lawsuits were thrown around and, according to the French anti-trust regulators at least, there were four separate attempts in a four year period to make other, non-Nespresso, pods unusable.

“Nespresso acted as though it were legal to obstruct competition,” said Jean-Paul Gaillard, the president of Ethical Coffee and a former Nespresso executive.

“Everything is compatible today,” he added, before comparing the situation to replacement parts and accessories for numerous items such as cars, mobile phones and gadgets where you aren’t ‘locked’ in to solely buying from the original manufacturer.

However with their aggressive marketing campaigns which have been fronted by Hollywood A-listers George Clooney and Matt Damon, many consumers are expected to still willingly pay a premium to be associated with the Nespresso brand.

This voluntary decision (though it may have been forced upon them sooner rather than later) is at odds with their biggest rival in the capsule market, Keurig.

Keurig (whose own home brewer is extremely popular in North America) has recently released a second generation version of their unit which comes with a form of digital rights management in an attempt to lockout rival and third party K-Cups. Sadly for them, it appears to have been hacked already.

Could Nespresso’s decision be an admittance they if they carried on they’d be fighting a losing battle?

photo: Elido Turco (Flickr) Creative Commons