Can DTC and TikTok boost sales of instant coffee among Gen Z and Millennial consumers in the U.S.?
Diamond Brew™, a Chicago-based startup, aims to do so by offering a “brewless” Craft Espresso that makes barista quality coffee without grinding, brewing, or waiting.
Douglas Yu founded the company in 2023 after covering the consumer packaged goods industry as a journalist and working at venture capital firm Springdale Ventures. Investors in Diamond Brew include GNC CEO Michael Costello, DreamVentures, Entrepreneur Ventures, and Kali Mata Family Office.
Instant coffee is a big market. Sales of instant coffee reached $945.5 million in the U.S. and $33.8 billion globally in 2023, according to data from Euromonitor International (cited by CNBC).
Yu grew up drinking instant coffee in China and was shocked to discover that every American household owns a coffee maker after moving to the U.S.
I had a chance to chat with Yu about Diamond Coffee in late May at a Startup CPG Chicago Meet Up at XMarket Foodhall.
Yu calls Diamond Brew, “America’s first brewless coffee” and states that it fully dissolves in hot or cold water. You open the Diamond Brew pod, pour the coffee into a cup, add 6-9 oz of hot (150-170F) or cold water, stir, and enjoy. Unlike your grandma’s instant coffee that is sold in glass jars and non-recyclable, single-serve sachets, Diamond Brew comes in individually-portioned, recyclable aluminum pods.
𝐃𝐢𝐚𝐦𝐨𝐧𝐝 𝐁𝐫𝐞𝐰 𝐯𝐬. 𝐈𝐧𝐬𝐭𝐚𝐧𝐭 𝐂𝐨𝐟𝐟𝐞𝐞 𝐚𝐜𝐜𝐨𝐫𝐝𝐢𝐧𝐠 𝐭𝐨 𝐭𝐡𝐞 𝐜𝐨𝐦𝐩𝐚𝐧𝐲:
𝐅𝐥𝐚𝐯𝐨𝐫𝐬: Aromatic, barista quality, and freshly brewed taste vs. bitter, burned, and harsh
𝐃𝐢𝐬𝐬𝐨𝐥𝐯𝐚𝐛𝐢𝐥𝐢𝐭𝐲: Fully dissolves in hot & cold water easily vs. won’t dissolve in cold water
𝐏𝐫𝐨𝐜𝐞𝐬𝐬𝐢𝐧𝐠: Freeze-dried coffee crystals that lock in flavor and aroma through proprietary technology vs. spray drying using high heat
𝐂𝐚𝐟𝐟𝐞𝐢𝐧𝐞: About 165 mg per serving vs. about 35 mg per serving
𝐌𝐢𝐜𝐫𝐨𝐠𝐫𝐨𝐮𝐧𝐝: Zero microground vs. heavy coffee residual left behind
Diamond Brew launched through direct-to-consumer (DTC) on its website and on TikTok Shop this week. At a price of $2.49 per serving (12 pods for $29.88), Diamond Brew falls into the little luxuries category that many Gen Z and Millennial consumers can afford. Go check out Diamond Brew on TikTok to see how the company is marketing #instantcoffee 2.0 to young coffee drinkers!
𝐏𝐡𝐨𝐭𝐨𝐬: Virginia Lee and Diamond Brew (via TikTok)
#coffee #Chicagocoffee #TikTokShop
