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A unique coffee startup is hoping to stand out in a busy and competitive sector with its unique, shelf-stable format.
Launching today, Diamond Brew is made up of freeze-dried “coffee crystals” that the brand says dissolve in hot or cold water without residue, “without the need to grind, brew, or wait.” It comes in small aluminum pods and is made with beans sourced from around the world.
According to Diamond Brew, the product offers new ways to use it beyond standard coffee, including double-shot espresso, latte, iced Americano, and espresso martini options. Each pod contains 160 milligrams of caffeine, compared to about 95 milligrams in a standard cup of coffee.
The brand is coming to market with financial backing from high-profile investors including Michael Costello, CEO of nutrition giant GNC, Dream Ventures, Entrepreneur Ventures, and the Kali Mata Family Office.
Douglas Yu, founder and CEO of Diamond Brew Coffee.
Courtesy of Sarah Sherr @ Hyperion LA
Douglas Yu, founder and CEO of the brand, immigrated to the U.S. from China 12 years ago, and worked as a journalist covering the food industry before going into venture capital. Living in the U.S., where coffee has a greater cultural significance than in his home country, and working as a journalist and talking to leaders in the field, coffee began to catch his attention.
At a food and beverage industry conference two years ago, Yu asked a group of entrepreneurs and investors what types of brands they thought could scale quickly. Many said powdered food or beverage products because they were easy to transport and shelf-stable. Yu’s lightbulb moment came when he realized that instant coffee, long derided by coffee lovers, was a segment ripe for innovation, made from high-quality beans.
“Instant coffee will always be the last resort for people who want a quick caffeine hit when they don’t have access to a coffee machine or a café,” Yu said. “From that moment on, I was determined to create a solution that combined barista quality with instant gratification.”
Yu said it took four months to perfect the technology needed to get the best roaster after trying 40 different types of beans from around the world. He noticed that younger consumers increasingly value convenience without sacrificing high-quality coffee. He said Diamond Brew’s technology preserves the flavor of the coffee bean better than other instant coffee brands that have a “burnt” taste and lower caffeine content.
“Some Gen Zers are intimidated by the process of brewing coffee at home and choose not to invest in coffee-making equipment,” Yu said.
Switch to TikTok
Diamond Brew will be available directly to consumers on its website before hitting brick-and-mortar stores, a move Yu said he is approaching with “careful analysis and caution.”
“First, we want to understand who our core target customers are, their demographics, their drinking behaviors, rather than trying to scale as quickly as possible,” Yu said. “We want to collect as much data as possible so we can better empathize with our consumers.”
For any new brand, standing out to potential customers is paramount, especially in the coffee category where major players like Starbucks, Nestlé and JM Smucker dominate the market.
Diamond Brew is turning to social media platforms like TikTok to introduce itself. The TikTok Shop feature, which first launched last fall, will allow users to buy coffee within the app in the near future. Yu says it took months of talking to other brands, but he was able to negotiate a partnership with the platform in 15 days. He credits the app’s customer support team for “pushing really hard.”
Yu believes the brand’s coffee is uniquely suited to grow its fan base through TikTok’s visibility, due to the format and premium packaging design, which allows creators to document their experience preparing and tasting the product.
“We work with a lot of influencers and creators, many of whom have larger fan bases than traditional celebrities,” Yu said.
