HOME kitchen and cooking appliance manufacturer Breville is taking aim at the coffee bean industry.
The Australian company is banking on a rise in sales of its espresso machines.
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Breville reported revenue growth in the double digits on its coffee machines across Asia, North and South America, and Europe, as other industries struggle against rising costs worldwide.
Breville coffee machine sales rose to $97.5 million (AUD) in net profits, up 16% from the previous year.
Breville’s line of espresso makers include products in the range of thousands of dollars.
One of its products, the Oracle Touch, retails for a whopping $3,699.
The company, which also sells high end kitchen appliances including ovens, air fryers, and blenders, is shifting much of its focus toward coffee.
The company told investors that its coffee bean business is thriving, with sales up over 70% year over year.
The appliance maker is also emphasizing growth of Beanz, an online coffee-based marketplace that Breville launched in 2022.
With Beanz, a dropshipping business, Breville can make commissions on sales without having to keep inventory on hand.
The platform ships products directly to the consumer’s doorstep through a subscription service.
Customers can even use Beanz to match up with their preferred coffee beans by taking a quiz.
Breville hopes that by expanding its coffee business, it can undermine supermarket coffee products and provide fresher beans to customers.
“Put bad, stale coffee (grocery store) in a capable machine, you get a bad outcome,” Breville said in its investors presentation.
The company did not disclose the exact details of its financial outcomes from the business.
The luxury appliance maker’s share price is approaching an all-time high, with shares at around $36 at the time of publication.
Breville CEO Jim Clayton said that the company was still in phase one of its expansion.
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The venture comes as Starbucks recently reported major losses and declining visitor flow.
Many coffee shop businesses are transitioning to coffee bean sales as customers increasingly prefer to brew coffee at home.
Since the Covid-19 Pandemic, Breville has been leading the way in making strides toward home brewing, which rose in popularity during lockdown.
Breville has also been preparing for potential impacts from US-imposed tariffs, which may be as high as 25% for Australian-made goods, and 10% on goods from China.
The company began shifting its manufacturing away from China quickly after the 2024 presidential election in anticipation of a possible trade war.
