Tim Hortons brews up Nespresso capsules for retail

The brand is innovating into one of the fastest growing segments of the coffee market.
Tim Hortons Espresso Capsules

Tim Hortons is launching a new line of products for one of the fastest-growing segments in the coffee category with the release of new espresso capsules for the Nespresso Original Line.

The move is just one part of the market leader’s innovation efforts in a category it already has “extremely strong equity” in, according to Sourabh Malik, VP of CPG at Tim Hortons, who notes that Tims is also “the leading market share brand in the CPG market as well, within grocery.”

“When you look at the various segments of coffee, be it K Cups, cans, instant – across all of the segments, we are growing well,” Malik says.

He tells strategy that capsules, which are compatible with the Nespresso original line brewers, are growing by almost 60 to 70%. “Given this massive growth in the segment and Tim’s position as the leading brand in the market, our consumers expect our quality and experience in the Nespresso line of products.”

Last summer, Nespresso leaned into a more premium, quality positioning with a digitally-led campaign by McCann.

The four-SKU lineup includes Classic, Bright, Bold, and Decaf.

Tims has gone all-in on the packaging for the new line, giving it a premium presentation with gold foil lettering while keeping the brand’s colours prominent. This packaging is intended to help the product stand out on the shelves within its retail partners, which include Sobeys, Safeway, Freshco, Metro, Federated Co-Op, London Drugs and select Loblaw banners. The Bold and Bright espresso capsules will also be available at participating Tim Hortons restaurants.

While on the QSR side of the business the company has been sticking to basics, on the CPG side, it has been innovating both cross-category and within the categories it is already strong in. Earlier this year, Tims launched a line of ice cream products; in the past, it has also branched out with a line of soup products. “Within coffee, because it’s a strong point, innovating and keeping things exciting for our consumers is definitely within our plans,” Malik adds.

To promote the new line, Tim Hortons will be drawing from its portfolio of “marketing tactics and strategies” that include various in-store activations and shopper marketing programs, with sampling being a part of the mix now that the pandemic is largely in the rearview.

According to Malik, its drawing on past successes and coming to market from a position of confidence and strength.