Woolworths expansion into coffee pod machines, a vertical extension of a brand?

Woolworths’ latest move in the coffee pod market signals a new trend in brand extension and retail diversification.

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Woolworths is the latest to jump on the single-serve coffee machine nbandwagon, and its exclusive “Caffitaly S14” coffee-pod machine will be none of the cheapest on the market.

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The move by Woolworths seems to be an interesting extension beyond nthe concept of a supermarket selling small kitchen electrical nappliances. The move possibly reflects a new trend for companies, and nretailers in particular, to up-sell their branded consumables through nthe sale of their own dispensing machines. Arguably, this can hook ncustomers directly into the brand’s own vertical supply chain. Australian Food News – Read More. ​