Capsules store ground espresso, and keep it fresh with an airtight seal. Instead of reconstituting old coffee like the instant approach, capsule machines pull a new shot of espresso right away - true instant. I don't know who was the first to do it, but it seems to me that Nespresso wears the capsule crown right now. Their popularity has exploded. You can see George Clooney's face drinking a crema-rich shot in virtually all major cities around the world.

More companies have recognized the capsule trend, and have tried to capitalize on it. Lavazza and Illy are two major coffee suppliers with capsule systems, Illy beginning in 2008, and it now looks like Nespresso has substantial competition - which is probably good for consumers. However only Illy counts as real competition in the home coffee drinkers arena, since only Illy and Nespresso sell wildly affordable coffee machines. Lavazza's Espresso Point Matinee - the small version - retails for over $650, which is probably beyond what home drinkers would spend on a pod system. Lavazza's real target seems to be offices.
Illy's newest offering is the FrancisFrancis! Y1. Since the SingleServeCoffee review of the machine reads like an Illy marketing pamphlet, I decided to write about the new iperEspresso machine myself, and give some background to the debate between Illy's capsule system and the longtime champion of espresso capsules, Nespresso.
FrancisFrancis! Y1
I don't think I could differentiate between the espresso of Illy, Lavazza, and Segafredo, but having enjoyed an especially unearthly cup at the Illy Caffe in Rome's Termini Station (manned solely by female baristas - a unique place), I couldn't ignore Illy's attempt at a capsule system. Their coffee just tastes so good. Whereas Nespresso is owned by Nestle, known for its plebian Nescafe brand of instant coffee, Illy's iperEspresso system can count on its illustrious parentage as the source of Arabica coffee to a large chunk of espresso houses in the world - for the last 80 years. At the very least, we know that the ground espresso going into their capsules is of high quality.
The systems are very similar - so similar that I'm confident that one served as an inspiration for the other. Nespresso has been around since the late 1980s, and has really mastered the art of marketing coffee to yuppies. Their capsules are regal, with ten capsules packaged in a long, richly-colored box, giving the impression of a box of truffles. Their machines are tasteful and conservative, and embrace the trend towards artistic kitchen appliances. Finally, they innovated the idea of "coffee flavours", something previously uncommon with respect to espresso, offering drinkers the choice of 16 distinct origins and types of espresso. Starbucks has taken a cue from Nespersso as well, now marketing their own luxury single-serve coffee system, 'VIA Ready Brew' packets.
The Illy iperEspresso system has only 4 flavours, or to be more precise, two different roast levels (medium and dark), a decaf, and a lungo. Four types may actually be an improvement over the Nespresso model. To me, offfering 16 flavours seems like it must have been a gamble for Nespresso. Too much choice can dilute the impression of exclusivity and quality, making each flavour seem less prestigious. It gives the impression that Nespresso was unable to predict which flavour would be best loved, and therefore provided all of them. Perhaps Illy took a cue from Apple in their iPhone production, believeing that they understood the desires of consumers well enough to make choices for them, and produce a single excellent product, while their competitor Android promoted choice by consumers.
Still it's funny comparing Nespresso to iPhone's nerdy competitor Android, given Nespresso's obvious sex appeal. Just check out Nespresso's competition for best 'Nespresso Moment.' Each picture has a pretty girl drinking coffee in a revealing state - in the bathtub, in bed, or in her morning gown. Every Nespresso boutique I've been to has the Nespresso charm. Employees dress like first-class stewardesses, giving shoppers the feeling that they are exclusive guests, there to be served and indulged. In Israel, the lady who served me was wearing a black tunic with a minimalist gold belt. As far as marketing is concerned, Nespresso is a classy lable.
Illy's iperEspresso machines are manufactured under its own FrancisFrancis! lable, which produced respected espresso machines before the introduction of the iperEspresso system. This reputation is another strong-point for Illy. Their machines, designed by Italian architect and designer Lucca Trazzi, properly compete with the modern appeal of the Nespresso machines. They currently offer 4 machines - the X1, X7, X8, and the Y1, their newest offering. The first three used the standard FrancisFranis! design (which is anything but standard), while the Y1 was entirely redesigned. Without seeing it in person, I can't say whether or not it's an improvement, but at least it did away with the traditional espresso-holder, which was only there to reassure drinkers that what came out of the machine was pure espresso extraction, and not instant coffee.
At the heart of the comparison, both systems have their strengths. Cost-wise, Illy's capsules are minimally more expensive. I'm currently loving the Nespresso coffees, but I would really like to try the illy system to see how it compares.


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