Breville has announced record sales of $1.53 billion and a 7.5% jump in net profit.
👉 Background: Breville is the Australian company that’s been around since 1932 and manufactures a bunch of kitchen items like toasters, kettles, grills and coffee machines.
👉 What happened: Breville has announced record sales of $1.53 billion and a 7.5% jump in net profit. This juicy news sent Breville’s share price up over 8%. And the hero behind this caffeinated success story? Breville’s coffee machines.
👉 What else: Breville’s coffee machines hit double digit revenue growth, particularly in the US. This was off the back of Breville acquiring Italian coffee machine supplier Lelit in 2022, and introducing its premium coffee machines into US Target.
💡Premiumisation is when a large chunk of a market moves towards more expensive, premium versions of a product.
💡As a market matures, consumers become more knowledgeable and familiar with the product and its features. As a result, they start to demand higher-end versions, which is where Breville is capitalising, especially in the US.
💡Coffee consumption in the US is increasing, and so is the popularity of coffee machines. In fact, the US coffee machine industry is expected to reach $3.7 billion by the end of this year, the largest in the world, and will grow at 2.35% till 2028.
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