The Rise of Alternative Coffee: Insights from Koppie’s Innovative Approach

In an era where new alt-coffee startups seem to emerge every other month, distinguishing the winners from the losers in this burgeoning market is essential. Daan Raemdonck, co-founder of the Belgian startup Koppie, believes that while it’s premature to identify leading products, certain key factors can offer a competitive edge.

The Power of Integration

Koppie produces a coffee substitute made from fermented, roasted peas. According to Raemdonck, a significant advantage lies in the ability of their product to integrate effortlessly into existing coffee systems, from large-scale industrial grinders and roasters to standard countertop machines. “What makes us unique is not just the fermentation process but the resultant ‘bean’ that simplifies usage for businesses,” he explained.

Raemdonck points out that Koppie’s product can be roasted in precisely the same manner as coffee, enhancing its efficiency for potential partners. Additionally, adaptability is a core feature; Koppie offers customization based on flavor profiles through fermentation techniques. With a single ingredient labeled simply as ‘roasted peas,’ Koppie aims to simplify sourcing for companies.

Saving the Coffee Ritual

At the Future Food-Tech event in London, Raemdonck shared Koppie’s mission. “We’re attempting to preserve the ritual of coffee amidst the challenges that climate change poses to supply chains,” he stated. The process involves utilizing patented fermentation technology for local pulses, which can be roasted, ground, and brewed using common coffee equipment.

Business Model and Market Reception

Currently, Koppie focuses on a business-to-business (B2B) model. While it’s still early to define the most successful strategy, Raemdonck is optimistic about the future: “We want to be prepared for where the market leads us.” Coffee companies perceive Koppie’s offering differently depending on their focus; while pure coffee roasters may hesitate to adopt Koppie exclusively, options in ready-to-drink coffee and desserts show promise for easy substitution.

Competitive Pricing and Market Dynamics

When asked about pricing strategy, Raemdonck acknowledged the market expectation for alternative coffee products to be cheaper than traditional options. Despite the unpredictability of market dynamics, he envisions a long-term aim for price parity with standard Arabica coffee, which could level around €4-5 per kilogram.

Flavor Profile and Market Positioning

Koppie’s initial strategy focuses on achieving a flavor profile that closely approximates Arabica coffee, estimated to satisfy 35-40% of market demand. Raemdonck asserts that they have reached this target in their minimum viable product (MVP), allowing for exploration of complex flavors through varied fermentation methods.

As for positioning hybrid products in the market, Raemdonck acknowledges a range of potential strategies. “We see various angles, from health benefits to sustainability,” he explains. However, he emphasizes the need for respectful positioning to avoid perceptions of lower quality that could arise from price-cutting practices.

Future Growth and Scaling Strategies

Without the backing for significant capital expenditure (CapEx), Koppie must partner with manufacturers to strengthen its production capabilities. Raemdonck notes that they’ve identified two potential manufacturing partners in Belgium that possess the requisite capacity for their needs.

“We’re looking forward to testing and potentially scaling by the end of this year,” he added, underscoring the importance of volume in the coffee market. The right partnerships and strategies will be crucial for Koppie’s long-term success.

A Promising Market Response

Raemdonck expressed gratitude for the positive response from the market, emphasizing the industry’s openness as they progress through the letter of intent (LOI) phase, with early piloting already underway. As they prepare for industrial readiness, he anticipates exciting updates by the end of the year.

Further Reading

• Prefer raises $4.2m, launches soluble bean-free coffee and cocoa powders
• Compound Foods launches ingredient platform to future proof coffee and cocoa
• Belgian startup Koppie emerges from stealth to disrupt alt-coffee market with single-ingredient offering
• Atomo beanless coffee makes UK debut, but firm will ‘not be profitable on the back of small coffee shops’