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Bruvi is Disrupting Keurig with a Tastier and Sustainable Alternative to Coffee at Home

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Bruvi is Disrupting Keurig with a Tastier and Sustainable Alternative to Coffee at Home

Posted | Updated by Insights team:

Publication | Update:

Jun 2023
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In episode 188 of the Disruptors for GOOD podcast, we speak with Mel Elias, co-founder of Bruvi, on disrupting and innovating the in-home, single-serve coffee experience with a more tastier and sustainable alternative.

Listen to more Causeartist podcasts.

Mel Elias is an accomplished investor and entrepreneur based in Los Angeles. With a strong background in the consumer packaged goods (CPG) industry, he has served as the President & CEO of The Coffee Bean & Tea Leaf, leading the brand to significant growth and international success.

Mel’s expertise extends to various consumer-facing businesses, both in the United States and internationally, where he has served on boards and provided guidance as an advisor.

Currently, Mel is deeply involved in the start-up venture BRUVI, which he co-founded. BRUVI recently launched an innovative coffee capsule system in the United States in early 2021.

Mel Elias, co-founder of Bruvi

With a focus on consumer technology and a razor-blade business model, BRUVI aims to offer noticeably tastier coffee through an eco-conscious capsule system.

With a market potential exceeding 62 million households, BRUVI aims to revolutionize the coffee experience.

Mel’s journey in the specialty coffee industry began in 1998, and he assumed the role of President and CEO of The Coffee Bean & Tea Leaf in 2008.

Under his leadership, the brand expanded to over 1,000 stores worldwide, generating over $ 500 million in systemwide sales and employing more than 12,000 individuals.

Mel remained on the Board of The Coffee Bean & Tea Leaf and continued to provide advisory services until its recent sale in September 2019.

Before venturing into the coffee retail sector, Mel Elias served as the Managing Director of the Tower Records Franchise in Malaysia.

He also practiced law in Singapore for two years following his graduation from the London School of Economics. Additionally, Mel has a background in the Singapore Military, where he served for 2.5 years.

About Bruvi

Bruvi, the innovative single-serve coffee brewer, presents a remarkable solution for those seeking a tastier and more convenient coffee experience. Bruvi firmly believes in the possibility of combining supreme quality with enhanced convenience in the realm of single-serve coffee.

With a vision to reimagine the entire coffee brewing experience, Bruvi has revolutionized brewing and pod technology, curated a selection of high-quality coffees, and introduced the first Guilt Free Toss™ capsule.

By engaging all the senses, Bruvi aims to completely transform the way people enjoy coffee in the comfort of their homes.

At the heart of Bruvi’s mission lies a commitment to transforming the coffee brewing experience into something extraordinary.

Addressing the Plastic End of Life Challenge:

Plastic has become an integral part of our lives, particularly in the form of food packaging. Its convenience, affordability, and ability to preserve freshness have made it a popular choice.

However, the issue lies not in plastic itself but in the problem of plastic waste. While consumers have embraced the concept of recycling, the reality is far from simple.

Shockingly, only around 9% of all plastic is effectively recycled, and the disposal of certain items, like small coffee capsules, poses even greater challenges.

The unfortunate truth is that untreated plastic takes hundreds of years to decompose in landfills.

Although compostable bioplastic pods may seem like a viable alternative, the lack of proper industrial composting infrastructure often leads to these pods ending up in landfills, yielding similar consequences.

Recognizing the urgent need for a more practical solution, Bruvi has made a significant investment of time and resources into tackling this complex issue.

The company’s sleek and compact Bruvi® Brewing System combines cutting-edge technology with convenience, offering coffee enthusiasts an unparalleled experience in the comfort of their own homes.

Superior Brewing Technology

Bruvi’s coffee pods, known as Bruvi® Fresh Cups, are crafted with meticulous attention to detail. They use precision-controlled flow rates, optimal water temperature, and specific brewing times to ensure a consistent and exceptional cup of coffee every time.

This innovative technology guarantees a rich, flavorful, and aromatic coffee experience that surpasses traditional single-serve alternatives.

Wide Variety of Coffee Selections

Bruvi caters to diverse tastes with its extensive range of coffee options. Whether you prefer a bold espresso, a smooth medium roast, or a delicate single-origin blend, Bruvi has you covered.

They partner with renowned coffee roasters from around the world to source high-quality beans, ensuring an impressive assortment of flavors and profiles for their customers to choose from.

Customizable Strength and Size

One of the standout features of the Bruvi® Brewing System is its ability to customize the strength and size of each cup.

With a simple touch on the intuitive control panel, users can adjust the coffee’s strength according to their preference, whether it’s a robust and full-bodied brew or a milder cup for a more delicate palate.

Additionally, the machine offers multiple serving size options, from a small espresso shot to a large travel mug, catering to various caffeine needs throughout the day.

Guilt Free Toss®

Say goodbye to guilt and complicated recycling processes with Guilt Free Toss® and its revolutionary B-Pods. It’s true – B-Pods can be simply thrown in the trash after use.* No more peeling off lids, separating coffee grounds, or washing cups.

These pods are specifically designed for landfill disposal, making the process hassle-free. What sets B-Pods apart is their unique composition, allowing them to break down rapidly and significantly, without leaving behind harmful microplastics.

In certain landfills, B-Pods can even contribute to Landfill Gas to Energy projects, generating renewable energy and adding value to their end-of-life cycle.*

While the breakthrough B-Pods may not be the ultimate solution for waste management or climate preservation, they provide a practical alternative within the constraints of the existing recycling and waste disposal infrastructure.

*Please check local waste disposal regulations for proper disposal guidelines.

From Trash to Potential Energy: Redefining Waste Management

Unlike traditional single-serve pods made of untreated plastic or even compostable alternatives that take centuries to decompose in landfills, Bruvi B-Pods break down significantly over just a few years. Through an organic process, these innovative pods leave no harmful microplastics behind.

Today, every one of the 1,280 municipal landfills across the United States, where our household waste is deposited, operates within highly regulated environments.

Moreover, an impressive 493 landfills have implemented Landfill to Gas Energy (LFGTE) projects, repurposing collected methane into clean and renewable energy.

To put it simply, the existing capacity for electricity generation from these projects can power over one million homes for an entire year.

Even more promising, the Environmental Protection Agency (EPA) has identified an additional 474 candidates for these initiatives.

In applicable landfills with active LFGTE projects, B-Pods can play a part in this renewable energy creation, fueling cities and driving turbines.

Bruvi is proud to contribute to these efforts, one pod at a time, as we strive to bring enhanced end-of-life value to our pod packaging. And there’s nothing trashy about that.

Experience waste management that leads to a brighter future with Bruvi B-Pods – transforming trash into potential energy.

Bruvi’s Impact Commitment

Bruvi recognizes the importance of sustainable practices in today’s world. To minimize their environmental impact, the company has implemented several initiatives:

  • Supporting Sustainable Coffee Sourcing: We prioritize sourcing coffee beans from sustainable farms and cooperatives that adhere to responsible farming practices. By partnering with these producers, we ensure that every sip of our coffee contributes to a more sustainable future for the coffee industry and the communities involved.
  • Long-Term Relationships with Producers: We believe in building strong, long-term relationships with our coffee producers. By fostering direct connections and providing fair compensation, we create a sustainable ecosystem that benefits both the farmers and our customers. These relationships enable us to maintain consistent quality while promoting social and economic well-being at the source.
  • Impact Fund for Local Producer Projects: We go beyond traditional support by establishing an Impact Fund. Through this fund, we direct capital to local producer projects, allocating up to 10 cents per pound of coffee sold. By investing in initiatives that enhance sustainability, education, and community development, we empower producers to thrive and create a positive ripple effect in their regions.
  • Fewer Resources Used Compared to Batch Brewing: Bruvi® single-serve brewing utilizes fewer resources than traditional batch brewing methods. This means we can achieve a satisfying coffee experience while minimizing our environmental footprint.
  • Reducing Coffee Waste: With Bruvi®, coffee waste is significantly reduced. Unlike other brewing methods, there is no wasted coffee from unused portions. This means every cup is brewed to perfection, eliminating unnecessary waste.
  • Minimizing Water Waste: We are committed to conserving water resources. Bruvi® helps reduce water waste in two ways. Firstly, there is no water wasted from unused brewed coffee. Additionally, by minimizing coffee waste, we contribute to the reduction of water waste in the coffee production process. It is estimated that approximately 140 liters of water are used to grow and process a single cup of coffee. By using Bruvi®, you actively participate in water conservation efforts.
  • Streamlined Cleanup: Bruvi® single-serve brewing simplifies your coffee-making routine. With no carafes to wash or brewers to clean daily, you save time and water. A recommended weekly cleaning ensures that maintenance is efficient and manageable.
  • Energy Efficiency: Contrary to misconceptions, single-serve brewing, including Bruvi®, is designed to be energy-efficient. Our system optimizes energy usage, minimizing energy waste and environmental impact.

Bruvi is more than just a single-serve coffee startup; it’s a brewing revolution. With its dedication to superior technology, wide selection of coffee blends, customizable brewing options, and sustainable practices, Bruvi has carved a niche for itself in the coffee industry.

Whether you’re a coffee aficionado seeking a new brewing experience or a sustainability-conscious consumer looking for eco-friendly alternatives, Bruvi is an excellent choice. Embrace the future of coffee brewing with Bruvi, and unlock a world of exceptional coffee one cup at a time.

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Forecast methodology

The future outlook “forecast” is based on a set of statistical methods such as regression analysis, industry specific drivers as well as analyst evaluations, as well as analysis of the trends that influence economic outcomes and business decision making.
The Global Economic Model is covering the political environment, the macroeconomic environment, market opportunities, policy towards free enterprise and competition, policy towards foreign investment, foreign trade and exchange controls, taxes, financing, the labour market and infrastructure. We aim update our market forecast to include the latest market developments and trends.

Forecasts, Data modelling and indicator normalisation

Review of independent forecasts for the main macroeconomic variables by the following organizations provide a holistic overview of the range of alternative opinions:

  • Cambridge Econometrics (CE)

  • The Centre for Economic and Business Research (CEBR)

  • Experian Economics (EE)

  • Oxford Economics (OE)

As a result, the reported forecasts derive from different forecasters and may not represent the view of any one forecaster over the whole of the forecast period. These projections provide an indication of what is, in our view most likely to happen, not what it will definitely happen.

Short- and medium-term forecasts are based on a “demand-side” forecasting framework, under the assumption that supply adjusts to meet demand either directly through changes in output or through the depletion of inventories.
Long-term projections rely on a supply-side framework, in which output is determined by the availability of labour and capital equipment and the growth in productivity.
Long-term growth prospects, are impacted by factors including the workforce capabilities, the openness of the economy to trade, the legal framework, fiscal policy, the degree of government regulation.

Direct contribution to GDP
The method for calculating the direct contribution of an industry to GDP, is to measure its ‘gross value added’ (GVA); that is, to calculate the difference between the industry’s total pre­tax revenue and its total bought­in costs (costs excluding wages and salaries).

Forecasts of GDP growth: GDP = CN+IN+GS+NEX

GDP growth estimates take into account:

  • Consumption, expressed as a function of income, wealth, prices and interest rates;

  • Investment as a function of the return on capital and changes in capacity utilization; Government spending as a function of intervention initiatives and state of the economy;

  • Net exports as a function of global economic conditions.

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Market Quantification
All relevant markets are quantified utilizing revenue figures for the forecast period. The Compound Annual Growth Rate (CAGR) within each segment is used to measure growth and to extrapolate data when figures are not publicly available.

Revenues

Our market segments reflect major categories and subcategories of the global market, followed by an analysis of statistical data covering national spending and international trade relations and patterns. Market values reflect revenues paid by the final customer / end user to vendors and service providers either directly or through distribution channels, excluding VAT. Local currencies are converted to USD using the yearly average exchange rates of local currencies to the USD for the respective year as provided by the IMF World Economic Outlook Database.

Industry Life Cycle Market Phase

Market phase is determined using factors in the Industry Life Cycle model. The adapted market phase definitions are as follows:

  • Nascent: New market need not yet determined; growth begins increasing toward end of cycle

  • Growth: Growth trajectory picks up; high growth rates

  • Mature: Typically fewer firms than growth phase, as dominant solutions continue to capture the majority of market share and market consolidation occurs, displaying lower growth rates that are typically on par with the general economy

  • Decline: Further market consolidation, rapidly declining growth rates

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The Global Economic Model
The Global Economic Model brings together macroeconomic and sectoral forecasts for quantifying the key relationships.

The model is a hybrid statistical model that uses macroeconomic variables and inter-industry linkages to forecast sectoral output. The model is used to forecast not just output, but prices, wages, employment and investment. The principal variables driving the industry model are the components of final demand, which directly or indirectly determine the demand facing each industry. However, other macroeconomic assumptions — in particular exchange rates, as well as world commodity prices — also enter into the equation, as well as other industry specific factors that have been or are expected to impact.

  • Vector Auto Regression (VAR) statistical models capturing the linear interdependencies among multiple time series, are best used for short-term forecasting, whereby shocks to demand will generate economic cycles that can be influenced by fiscal and monetary policy.

  • Dynamic-Stochastic Equilibrium (DSE) models replicate the behaviour of the economy by analyzing the interaction of economic variables, whereby output is determined by supply side factors, such as investment, demographics, labour participation and productivity.

  • Dynamic Econometric Error Correction (DEEC) modelling combines VAR and DSE models by estimating the speed at which a dependent variable returns to its equilibrium after a shock, as well as assessing the impact of a company, industry, new technology, regulation, or market change. DEEC modelling is best suited for forecasting.

Forecasts of GDP growth per capita based on these factors can then be combined with demographic projections to give forecasts for overall GDP growth.
Wherever possible, publicly available data from official sources are used for the latest available year. Qualitative indicators are normalised (on the basis of: Normalised x = (x - Min(x)) / (Max(x) - Min(x)) where Min(x) and Max(x) are, the lowest and highest values for any given indicator respectively) and then aggregated across categories to enable an overall comparison. The normalised value is then transformed into a positive number on a scale of 0 to 100. The weighting assigned to each indicator can be changed to reflect different assumptions about their relative importance.

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The principal explanatory variable in each industry’s output equation is the Total Demand variable, encompassing exogenous macroeconomic assumptions, consumer spending and investment, and intermediate demand for goods and services by sectors of the economy for use as inputs in the production of their own goods and services.

Elasticities
Elasticity measures the response of one economic variable to a change in another economic variable, whether the good or service is demanded as an input into a final product or whether it is the final product, and provides insight into the proportional impact of different economic actions and policy decisions.
Demand elasticities measure the change in the quantity demanded of a particular good or service as a result of changes to other economic variables, such as its own price, the price of competing or complementary goods and services, income levels, taxes.
Demand elasticities can be influenced by several factors. Each of these factors, along with the specific characteristics of the product, will interact to determine its overall responsiveness of demand to changes in prices and incomes.
The individual characteristics of a good or service will have an impact, but there are also a number of general factors that will typically affect the sensitivity of demand, such as the availability of substitutes, whereby the elasticity is typically higher the greater the number of available substitutes, as consumers can easily switch between different products.
The degree of necessity. Luxury products and habit forming ones, typically have a higher elasticity.
Proportion of the budget consumed by the item. Products that consume a large portion of the consumer’s budget tend to have greater elasticity.
Elasticities tend to be greater over the long run because consumers have more time to adjust their behaviour.
Finally, if the product or service is an input into a final product then the price elasticity will depend on the price elasticity of the final product, its cost share in the production costs, and the availability of substitutes for that good or service.

Prices
Prices are also forecast using an input-output framework. Input costs have two components; labour costs are driven by wages, while intermediate costs are computed as an input-output weighted aggregate of input sectors’ prices. Employment is a function of output and real sectoral wages, that are forecast as a function of whole economy growth in wages. Investment is forecast as a function of output and aggregate level business investment.

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