Cometeer is a coffee-tech start-up company based in Gloucester, Massachusetts that introduced innovative new frozen coffee capsules to the world six years ago. Last week, the company raised $35 million in a Series B round, which will help them finish building their headquarters.
The company announced that the money raised is the largest made investment in the specialty coffee sector. Cometeer, which was founded in 2015, has a total of $100 million in funding.
According to a press release from the company, “Institutional investors backing the company include D1 Capital, Elephant, Tao Capital, Addition Ventures, Avenir, Greycroft Partners and TQ Ventures. Coffee-related backers include the founder of Keurig Green Mountain, the former President of Nespresso and lead investors in Blue Bottle.”
Cometeer creates frozen coffee pods that look like pucks and are packaged in a fully recyclable capsule. The puck is placed in a cup of hot water and stirred to create a coffee beverage which could then be made into a latte, cortado, iced coffee, or simply drank as is. The capsules can also be used in a machine such as Keurig to create the perfect cup of coffee.
Matthew Roberts and Douglas Hoon, the co-founders of Cometeer, worked with chemists and coffee professionals to create this design and develop this idea. The product’s design focuses on elements that are usually overlooked during the brewing process, which includes water, chemistry, extraction yield and atmospheres of pressure. In addition, the company uses liquid nitrogen to flash freeze the brew and lock in the aromas.
“We are focused on building out a diverse group of roasting partners with unique backgrounds, sourcing techniques, and roasting styles. Alongside these partners, we look to support the de-commoditization of the coffee industry,” Matt Roberts, the co-founder and CEO of Cometeer, said in the press release.
The global specialty coffee market was valued at $35 million and had a volume of 973,999 tons in 2018. The market revenue has grown since then and is expected to reach $83 million with 1,644,371 tons in volume by 2025. This means that the market is projected to grow at a CAGR of 8.3 percent.
Coffee shops, baristas and at-home coffee makers have increased in number, and now more than ever, there is a wide selection of great products to choose from. Therefore, companies are focusing more on ways to bring the coffee source closer to the consumer to save money and time.
Additionally, consumers are looking for ways to better the planet by seeking out sustainable and recyclable beverages. Also, better-for-you drinks are finding their place in the market as a trend that is here to stay; thus, organic beverages are expected to gain further market share.
During the pandemic, the consumption of coffee increased, especially at-home coffee drinking. Per capita, coffee drinkers have around two cups of the beverage daily, which means that Americans, on average, drink 646 million cups of coffee a day.
Cometeer is a sustainable brand because the coffee pucks were made to reduce waste at every step. For example, the company says that the capsules do not contain grounds, making them fully recyclable. The material is made of aluminum, which is 100 percent recyclable, and the pucks have a long shelf life. Additionally, because of the simplified process of making the coffee, there is no waste from poor brewing or making too much.
The frozen coffee can be bought from Cometeer’s website and is delivered straight to the consumer’s doorstep. The capsules are shipped in a box with dry ice to keep the pucks frozen. With a monthly subscription, the starting price of the coffee is $64 for 32 capsules.