Private label coffee capsules are manufactured by a third-party supplier – like Metropolis – and sold under another company’s brand or label.
If you’re looking to start offering capsules but don’t have the infrastructure to do so, private label coffee capsules are the perfect solution. They eliminate the need to invest in infrastructure, expertise, or equipment. This makes it easy to start offering delicious branded espresso capsules to customers.
Over the past few years, we’ve invested over a million dollars in developing a purpose-built coffee capsule manufacturing facility to support our private label partners. But what are the specific benefits of using private label coffee capsules? Why not just sell third-party capsules, or stick to roasted coffee?
To answer these questions, we sat down with the Co-Founder and Co-President of Metropolis Coffee, Tony Dreyfuss. Read on to find out what he had to say.
Private label coffee capsules are single-serve coffee products prepared by a third party rather than the brand owner. Working with private label partners allows businesses without the necessary expertise (such as hotels, restaurants, and coffee shops) to offer their own branded espresso capsules.
So, why is this important?
Firstly, the US market for coffee capsules is growing by double digits year-on-year – creating a major opportunity for retailers looking to sell their own. And even if you aren’t planning to sell them directly, there are benefits for other hospitality businesses such as hotels, restaurants, and bars.
Customers are becoming increasingly motivated by convenience – meaning that a high-quality, easy-to-use product can make it more likely that hotel guests are likely to return. For restaurants and bars, meanwhile, capsules help you optimize efficiency without sacrificing quality.
So, what other benefits are there for businesses using private label coffee capsules?
Let’s take a look at five key ways that private label coffee capsules can help your business.
There is no understating just how important a strong brand is. Being recognizable and remaining front-of-mind with both prospective and existing customers is priceless.
Tony explains: "You can and should promote your brand through your products when it makes sense. You earn and keep brand equity. You strengthen your customers' connections to your brand through new products, whether you make those products yourself or not."
Quality is important. Often, when businesses source private label coffee capsules, they will work with partners to design a signature blend. This helps them create a proprietary flavor profile unique to their business.
This allows customers to become familiar with the distinct, unique taste of your coffee – making it more likely that they’ll come back for more.
This may not be a benefit offered by other private label partners, but when you source your capsules from us, you have control over everything from the coffee inside each capsule to SKU assortment and pricing.
Tony adds: "You have more flexibility in changing coffee and coffee capsule suppliers as you're not tied to your coffee supplier's brand. You can also set your pricing rather than depending on the market pricing for another brand's capsules.”
It’s no secret that ethical sourcing is something that coffee consumers are increasingly looking for. This means that certifications like Fair Trade and organic are only becoming more important.
By working with a private label partner, you can set expectations early in the process, which in turn helps to stand out from the competition. Whatever you might be looking for, private label coffee capsules give you the capacity to address specific sustainability concerns.
At Metropolis, for example, we offer commercially compostable coffee capsules. Unlike plastic and aluminum capsules, which often end up in landfills, you can dispose of our capsules at any commercial composting facility in the US.
Our capsules are also certified by the Biodegradable Products Institute (BPI) and the Composter Manufacturing Alliance (CMA), meaning they meet the strictest composting standards in the US.
In the first half of 2023, sales of private label food and beverage products increased by 8%. This maintains the growth seen during the pandemic. It ultimately shows that consumers are becoming increasingly happy to move away from household brand names.
This is good news in particular for small-to-medium businesses looking to sell directly to consumers. For retailers, roasters, and coffee shops looking to offer capsules, this growth represents an opportunity to capture market share as people move away from internationally recognized capsule brands.
Once you have concluded that you’re going to source private label coffee capsules, the next step is choosing a partner. Quality, flexibility, sustainability, and a good reputation in the coffee industry are all important factors.
As we’ve mentioned, you also need the right equipment, infrastructure, and expertise to get it done. Here at Metropolis, we have a long history of producing high-quality private label coffee products.
"People know and trust Metropolis to be both the highest quality and supremely good value in private label,” Tony says. “We have made our reputation on it over 20 years.”
The first step is to decide what’s best for you and your customers. After all, you know their preferences better than anyone else.
“Once we understand your needs a little better, we can describe the process simply and easily," Tony adds.
Next, we’ll work with you to develop a signature blend for your private label coffee capsules, before filling, sealing, and nitrogen-flushing them using our state-of-the-art Italian filling line.
Once that’s done, all that’s left is for us to ship your capsules – complete with custom, branded packaging.
Interested in learning more? Check out our wholesale co-packing and private-label espresso capsule solutions today.
Certified compostable facilities may not exist in your area. To find a composter near you, visit www.findacomposter.com or www.compostnow.org on all packaging and marketing materials.
Metropolis Coffee is not affiliated with, endorsed, or sponsored by Nespresso. Nespresso is a registered trademark of Société des Produits Nestlé.
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