8 out of 10 cups of coffee are consumed at home. 27% of American coffee drinkers have used a single-service coffee brewing machine in the past year. The diversity of choice and enhanced taste profiles coupled with the efficiency of these systems are responsible for the single pod coffee segment becoming the leading segment in terms of dollar amount spent annually as a part of the overall coffee market. Bruvi is a next-generation single-serve coffee system that offers tastier coffee along with environmentally friendly pods. The system can brew filter coffee, espressos, Americanos, ice coffees, infused coffee, and tea. For the pods, Bruvi offers sustainably sourced coffees as well as choices from Los Angeles’ most prominent roasters.
LA TechWatch caught up with Bruvi Cofounder Mel Elias to learn more about the single-serve coffee market, the company’s strategic plans including national expansion, latest round of funding, which brings the total funding raised to $10.8M, and much, much more.
Who were your investors and how much did you raise?
We raised just over $7 million in this round of funding (Pre-Series A). Investors include notable high net worth individuals, family offices as well as entrepreneurs represented by The Merchant Club. Additionally, venture capital funds include Terpsi Capital, 9Yards Capital, Cambridge Companies SPG, Miroma Ventures, and M1 on behalf of BIA, a food and coffee conglomerate in the Americas.
Tell us about your product or service.
Bruvi is a new kind of single-serve coffee system that offers remarkably tastier coffee and eco-friendly pods.
Traditional single-serve coffee is too often lukewarm, weak, and bitter. Bruvi solves all that and delivers both brewed coffee and true espresso beverages that are remarkably tastier – stronger, hotter and less bitter. Moreover, we do it in a more eco-conscious manner to address the issues of plastic waste. Imagine a world where you can enjoy the most delicious craft coffees in the convenience of a single-serve format.
What inspired the start of Bruvi?
We’re coffee lovers and experienced coffee executives. We wanted to elevate single-serve coffee at home, to make sure coffee drinkers no longer have to compromise taste and quality for convenience. We saw the creation of Bruvi as the perfect union of both the craft and science of coffee.
How is it different?
Bruvi is a breakthrough single-serve brewer. It uses proprietary, patented brewing and pod technology while delivering enhanced convenience and ease of use. Precision heating, hygienic brew, a high-pressure pump for real espresso, cold brew, and even low acid personalization options are a few features that set this brewer apart. Even coffee aficionados are surprised that such great coffee can be brewed from a pod-based system.
What market are you targeting and how big is it?
The US single-serve market, which is already $7B and has the potential to more than double. At-home coffee consumption and premiumization is growing double-digits, in part from the pandemic. We are targeting consumers who know and appreciate the convenience, affordability, and ease of use of single-serve but want quality, personalization options, and the best coffees available to replicate the taste of pour-over coffee with the touch of a button.
What’s your business model?
Direct-to-consumer, with a classic razor/razor blade model.
What are your post-COVID office plans?
Our team was working largely remotely even prior to Covid. We have a coffee lab and office space for when we need to meet in person. We hold regular team Zoom meetings to ensure engagement, but everyone enjoys the flexibility of remote work.
What was the funding process like?
Our first angel raise was to complete prototyping and proof of concept. In July 2020 we raised a $2.5M+ seed round and that capital was used primarily for manufacturing and development. This pre-series A raise is what we are calling launch capital and covers marketing, inventory, and co-packing expenses as well as continued team building.
What are the biggest challenges that you faced while raising capital?
We were pre-revenue and a hardware startup. Investors had to believe in our world-class teams’ ability to execute a realistic plan. Also, the single-serve coffee market is largely dominated by one large player where patent, engineering, and go-to-market complexities make it difficult for any challenger brand to excel.
What factors about your business led your investors to write the check?
Our investors share our excitement about the strength of the single-serve category and the at-home coffee market, as well as the breakthrough features that will set a new standard for single-serve coffee quality and taste. Our team has single-serve coffee expertise and our go-to market plan is concentrated and focused. What really seals the deal is when investors see our working prototypes, taste the coffee compared to the competitors, and find it virtually impossible to tell the difference between our capsule coffee and a pour-over comparable. Some investors were impressed with the novel and practical way we are addressing the issue of plastic waste.
What are the milestones you plan to achieve in the next six months?
Starting mass production of brewers and establishing B-Pod® production, pre-order campaign in Q4 2021, and national introduction in early 2022.
What advice can you offer companies in Los Angeles that do not have a fresh injection of capital in the bank?
Be resilient. Fundraising is very difficult even in the best of circumstances, but there are creative and ingenious non-traditional ways of raising capital if need be.
Where do you see the company going now over the near term?
Other than our financial and other business milestones, we want to create a positive impact through our business practices, coffee sourcing, and innovations. We don’t only want to do well, we want to do good.
What’s your favorite outdoor activity in LA?
Rather unusually for LA, my favorite activity is playing soccer every Sunday and then spending the rest of the week trying to recover. That’s why swimming and the occasional yoga session also helps me keep physically and mentally sharp.
