Equator Coffee is teaming with Swiss dairy giant Emmi AG on a joint venture that kicks off with the launch of a four-SKU line of premium refrigerated cold brews this summer.
For publicly traded Emmi Group, a more than century-old milk and cheese processor that raked in over $4 billion in revenue last year, the partnership with San Francisco Bay Area-based third-wave coffee specialists Equator represents its entrance into the U.S. RTD market, but its international presence in the category is well established. The company’s Caffe Latte brand is a leader in Europe, selling over 200 million units annually of its mini to-go coffee cups, according to the company.
Former KeVita and Ugly Drinks exec Brett Lanford is leading the Emmi Equator RTD project, which formally launched in 2022, three years after Emmi’s leadership and Equator co-founders Helen Russell and Brooke McDonald agreed to form a U.S.-based LLC. The specialty coffee roaster has been around since 1995 and has developed traction in culinary circles through collaborations with chefs like Tanya Holland and Brandon Jew, but is previously untested in the RTD world.
“We believe that coffee is more than just a beverage,” said Russell in a press release. “It’s a way to connect with others, to create memories, and to build community. We’re delighted to team up with Emmi on a premium cold brew range that broadens our existing selection of specialty coffee and lets customers enjoy the experience they’ve come to expect from Equator Coffees while on the go.”
Despite Emmi’s success with Caffe Latte, its U.S. release takes a decidedly different approach, starting with the packaging. That may be due to copyright restrictions – Dyla Brands’ Forto coffee reportedly has the patent on coffee cup packaging for RTDs – but not according to Lanford, who identified glass bottles as one of the primary distinguishing factors gleaned from a year’s worth of R&D and consumer testing, along with Fair Trade and organic certification.
“The other thing that we heard [from consumers] was wanting something that tasted like it came from a cafe,” he said. “And so that was something we leaned into heavily: getting that right balance of coffee to milk to sugar ratio with our recipes so that you get that cafe experience you get that crafted beverage feel.”
The final result aims to align the straightforward (and sweeter) flavors favored by RTD fans with Equator’s serious coffee credentials: organic, Fair Trade certified cold brews in 8.5 oz glass bottles in four varieties– Pure Black, plus the dairy-based Hint of Milk and Sugar (16 grams of sugar), Velvet Mocha (18 grams) and Hint of Vanilla (16 grams). The suggested price is $3.99 to $4.99 each.
The Emmi Equator joint venture is just one of several divisions of the Swiss corporation operating independently in the U.S., and certainly the leanest. Lanford is leading the business alongside VP of sales Ryan Sowards, who joined the company after helping another glass bottle coffee brand – Lucky Jack – expand its reach from specialty to conventional grocery channels in the later 2010s. Each company will retain its existing sales teams for other parts of its respective businesses, whether wholesale coffee or dairy, while manufacturing of the RTDs is being handled by a California-based co-packer.
Getting an early start has paid off: Sowards was already talking with San Francisco area retailers about the product while it was still being finalized, Lanford said, securing a slate of 270 stores to enter on day one, including Safeway, Whole Foods, Mollie Stone’s, Nugget and others. The line has since entered Erehwon in Los Angeles, with Bristol Farms set to come online next month. The company is also working with The Touch Agency as a broker.
In terms of marketing, Equator’s RTDs will be featured alongside the roaster’s whole bean coffees within existing social channels. The brand is also hoping that placements inside its 10 cafe locations across California will help lift awareness for the new product.
Even as momentum behind RTD cold brew continues, the venture faces a complex route to growth. Despite its partnership with an international goliath (JAB Group), fellow Bay Area specialty roaster Peet’s struggled to gain traction for its similarly positioned glass bottle, refrigerated cold brews, even with its own dedicated cold-chain distribution setup. Within single-serving coffees, La Colombe’s new partnership with Keurig Dr Pepper (KDP) may result in tighter competition for placements, although that product is shelf-stable.
“I just saw a white space here that Equator can be a national brand,” Lanford said. “There’s this great opportunity to introduce this beautiful, early stage third-wave coffee to the entire U.S. market and I just wanted to be a part of that.”