‘Brewless’ instant coffee startup tackles crowded category

A unique coffee startup is hoping its unique, shelf-stable format will help it stand out among the bustling and competitive segment. 

Diamond Brew, which launched today, consists of freeze-dried “coffee crystals” that dissolve in hot or cold water without residue, and requires “no grinding, brewing, or waiting,” according to the brand. It comes in small aluminum pods, and is made with beans sourced globally.

According to Diamond Brew, the product can also be utilized in novel ways beyond just standard coffee, including double-shot espresso, latte, iced Americano and espresso martini options. Each pod contains 160 miligrams of caffeine, whereas a standard cup of coffee contains roughly 95 miligrams.

The brand is making its entrance into the marketplace with the financial backing of big-name investors including CEO of nutrition giant GNC Michael Costello, Dream Ventures, Entrepreneur Ventures and the Kali Mata family office.

The brand’s founder and CEO Douglas Yu emigrated to the U.S. from China twelve years ago and previously worked as a journalist covering the food industry before entering the venture capital space. Through living in America, where coffee holds more cultural prominence than his home country, and talking to leaders in the category through his reporting job, coffee began to pique his interest.

At a food and beverage industry conference two years ago, Yu asked a group of founders and investors what kinds of brands they believe could quickly scale up. The answer for many was food or beverage products in a powdered format, because of their ease of shipping and shelf stability. Yu’s light bulb moment came when he realized instant coffee, a category long derided by coffee aficionados, was a segment primed for innovation with a product made from higher quality beans.

“Resignedly, instant coffee will end up being the last resort for those who want a quick caffeine fix when coffee machines and cafes are not immediately accessible,” Yu said. “From that moment, I vowed to create a solution that merged barista quality with instant gratification.”

Yu said it took four months to nail the technology needed to secure the best-tasting roaster after trying 40 different varieties of beans from around the world. He noticed younger consumers increasingly value convenience without sacrificing high quality coffee. Diamond Brew’s technology, he said, better preserves the flavor of the coffee beans than other instant coffee brands that taste “burned” and contain lower amounts of caffeine.

“Some Gen Z are flat out intimidated by the at-home brewing process and are choosing not to invest in any coffee making equipment,” Yu said.

Turning to TikTok 

Diamond Brew is debuting direct-to-consumer on its website before approaching brick-and-mortar retail stores, a decision Yu said he is approaching with “careful analysis and caution.” 

“First and foremost, we want to make sure that we understand who our core target audiences are, their demographics, their drinking behaviors, instead of expanding as quickly as possible,” Yu said. “We want to make sure we can gather as much data as possible to better resonate with the consumer.”

The most important thing for any fledgling brand is visibility with potential consumers, particularly in the coffee category where major players like Starbucks, Nestlé and JM Smucker dominate the marketplace.

Diamond Brew is turning to social media platforms like TikTok in order to introduce themselves. Using the TikTok Shop feature, which first launched last fall, users will be able to buy the coffee from within the app in the near future. Yu said he was able to negotiate a partnership with the platform within 15 days — when it took other brands he’s spoken to months — which he attributes to “pushing really hard,” with the app’s customer support team.

Yu believes the brand’s coffee is uniquely suited to grow a fanbase on the back of the visibility afforded by TikTok, because of its format and premium packaging design. Creators will be able to document their experience preparing and tasting the product.

“We’re partnering with zillions of influencers and creators, and a lot of them have more of a fanbase than a traditional celebrity,” Yu said.