Cometeer’s Flash-Frozen Coffees Make Retail Debut in Erewhon

Flash-frozen coffee producer Cometeer is making its brick-and-mortar retail debut this month in all seven Erewhon locations in Southern California.

As part of the rollout, the company is also debuting three new 4-pack varieties, available exclusively in Erewhon stores, which will retail for $10.99 each.

What is Cometeer?

Founded in 2015 by CEO Matt Roberts and CTO Douglas Hoon, Massachusetts-based Cometeer produces “precision-brewed, flash-frozen” coffee extract pods that consumers can mix with 8 oz. of hot water or milk to create instant cups of coffee that, according to the company, maintain “an unparalleled degree of freshness.”

The company works with a roster of 11 specialty coffee roasters from around the country – including Bird Rock, Counter Culture, Red Bay, Go Get Em Tiger, Klatch, Onyx, George Howell, Equator, Joe Coffee, Birch and Square Mile – to provide a variety of blends and roasts.

Last year, Cometeer raised a $35 million funding round, bringing its total financing to over $100 million. Investors in the brand include D1 Capital, Tao Capital, Greycroft Partners and the founders of companies such as Allbirds, Android Mobile, Daring Foods, Dollar Shave Club, Harry’s, Morning Brew, Omaze, Parade, Stripe, and Warby Parker.

In conjunction with the fundraise, the company announced it was taking the first step in an eventual retail launch, removing its waitlist for online orders and functioning as a standard ecommerce retailer. At the time, Roberts said that he believed an ecommerce focus would offer a deeper connection with consumers that could translate into repeat business.

However, he told NOSH last year, the financing would go towards an eventual retail launch in order to broaden its consumer base beyond the dedicated coffee consumers it has focused on, noting the goal is to “grab those drinkers who have never had a great cup of coffee before and bring them into the industry.” The biggest hurdle, said today, was simply achieving the capacity to be able to support brick and mortar retail partners. In addition to manufacturing its own products, Cometeer also oversees logistics and delivery.

What is the Significance of a Retail Launch?

Until now, Cometeer has been available exclusively as a direct-to-consumer product, selling 32-packs for $64 via its website. Though the brand may command a premium price point, Roberts believes Cometeer can attract a mass audience by emphasizing quality; he noted that chain coffee shops often charge $4-$5 for a far lower quality cup of coffee. Now, launching with a lower price point and pack-size, he said, will help drive trial as “customers can have a hard time committing to a full-sized box” for a first-time purchase.

COO Matt Mandel said in a press release that the company now believes it has reached the necessary manufacturing scale at its 70,000 square foot facility in Gloucester, Massachusetts and has shored up its supply chain in order to support an omnichannel expansion.

Erewhon is now scheduled to be the first of many brick-and-mortar retail launches in the coming months, Roberts confirmed, with additional retailers set to come online in September and a goal of eventually expanding into all channels of retail. Roberts also teased that the brand will rotate new SKUs sold in stores seasonally.

“Cometeer is embracing an omnichannel approach. That means meeting customers wherever they may be—and especially at the grocery store,” Roberts told NOSH via email. “Retail also unlocks huge in-person sampling and trial opportunities for Cometeer, helping us drive conviction and educate consumers about our product in ways that just can’t happen through digital channels.”

Erewhon will carry three exclusive varieties of Cometeer, each made in partnership with a different specialty roaster: Light Roast (Klatch Coffee), Medium Roast (Counter Culture) and Dark Roast (Equator Coffee).

While Cometeer may be one of the only frozen coffee offerings in store, a number of emerging brands have introduced innovations in recent years aimed at improving and modernizing the instant coffee format, including companies like Copper and Cow, Partner’s Coffee, Kuju and Steeped Coffee, among others.

However, most of these competitors have designed their packaging to work on shelf next to bagged, higher-end roasted coffees, whereas Cometeer is hoping to establish itself more or less on its own in the frozen foods aisle. That will make sampling a key pillar of its field strategy, Roberts said, as the brand will need to take extra steps to steer shoppers to the product on shelf.

“Merchandising is a key challenge,” he added. “We’re exploring all kinds of solutions, ranging from placement in the freezer aisle, packaging imagery, and even the installation of Cometeer branded freezers wherever customers are looking for coffee, much like FreshPet’s refrigerated solution for the pet food aisle.”