The Rise and Fall of ECC: The Pod War, Legal Battles, and Bankruptcy

2024-01-16 16:11:00

The procedure brings together eleven creditors of ECC, a company founded in 2008 by a former Nespresso executive with the aim of marketing biodegradable capsules, cheaper and compatible with his former employer’s coffee machines.

But exhausted by the multiplication of legal proceedings in what had been nicknamed “the pod war”, ECC had to cease its activity in 2017 before its bankruptcy was declared in 2018.

In 2011, ECC launched its pods in Switzerland within a chain of electronic and household appliances. But they had only been on the market for “a few days”, recalled the daily 24 Heures, with Nespresso quickly taking legal action to protect its brand.

ECC’s lawyers had obtained three years following the lifting of the ban on marketing its pods.

The legal disputes have dragged on for several years, which explains why the complaint from ECC’s creditors has only now been filed.

“It was necessary to have the damage assessed”, following a court decision concerning the brand in 2021, the lawyer said.

He did not indicate how much the investment made by the radio and television presenter amounted to, the daily 24 Heures mentioning for its part an amount of 8 million euros disbursed between 2009 and 2010 to increase his participation in ECC at 5%.

In 2022, Nespresso achieved a turnover of 6.4 billion. Nestlé has the lion’s share of the capsule market, particularly following sealing a partnership in 2018 with the American Starbucks to market capsules under its brand in supermarkets.

The Swiss giant, also owner of the Nescafé brand, had paid 7.15 billion dollars (6.56 billion euros at current rates) to obtain the right to market pods under the Starbucks brand in supermarkets.

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