Tetley refashions its coffee lines: Bustelo and Medaglia d'Oro move to capture share of gourmet coffee market By Gerry Khermouc

NEW YORK Both the Cuban and the Italian wings of the Tetley coffee family are looking

Miami-based Bustelo, launched in New York in 1928 by a young Cuban emigre, has spent $18 million upgrading its roasting capabilities and is ready to launch a Specialty Coffee Division that will seek to serve the growing numbers of coffee carts and cares. The unit also is looking at franchising and direct-marl opportunities.
Meanwhile, the Italian espresso line Medaglia D’Oro, based at Tetley’s Shelton, Conn., headquarters, is “re-examining everything about the brand,” said John Bacon, associate brand manager for grocery coffee products.
That brand, building on previous on-pack recipes, is readying promotions that will deliver the message that the brand can be used as a base for popular cappuccino, latte and granita drinks, or blended with Tetley’s Savarin or Martinson lines to make a French roast. And while advertising has been minimal in recent years, “we are re-looking at our position on advertising,” Bacon said. Its agency is Rotando, Lerch & Iafeliece of Stamford, Conn.
The push at Bustelo represents a radical department for the company, which has used supermarket channels to sell a narrow espresso line packaged entirely in cans. Bustelo doesn’t disclose its sales, but they are estimated at $60-70 million.
Its new division will offer a broad line of coffees from 10 or 20 different countries, in a variety of flavors, in one-way-valve bags, said Bustelo president Luis Fernandez. He said he will initially target carts and retail operations in New York, Florida and California, with support from advertising, sampling and some telemarketing. The agency hasn’t yet been determined. The new lines will not be sold in supermarkets.
Copyright Adweek L.P. (1993)