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The Coffee Fix: Can the $11,000 Clover Machine Save Starbucks?
It's 10 am on a Thursday, and the line at Ritual Coffee Roasters in San Francisco snakes out the door. Inside, an espresso machine hisses like an angry tomcat as customers order their cappuccinos. But the real action is taking place a few steps away, where a scruffy barista stands at a stainless steel contraption, introducing the coffee he's about to serve to his rapt audience. "The Honduran is sweet," he says, "with a refined acidity and an excellent finish." He lets one perfectly measured scoop of fresh grounds shimmy deep into the machine, then goes to work, twiddling knobs, pushing buttons, and whirling a whisk in a chamber at the top of the silver box.
Forty-five seconds later, he sets down a single cup of custom-made coffee that's Jessica Alba hot, Bill Gates rich, and as unique as a snowflake. No foam. No caramel. No whip. Just beans and water — pushed through a cool little machine called the Clover — for a pricey $4 a pop.
The Clover coffeemaker debuted in a handful of cafés in 2006 and was promptly hailed as the best thing to happen to coffee lovers since the car cup holder. With an $11,000 asking price, the Clover has become a fetish object among the coffee-obsessed. Long queues signal its arrival in new cities, and self-described "Cloveristas" post videos on YouTube demonstrating the machine's flashy brewing process. There are more photos on Flickr paying homage to this shiny gadget (700 and counting) than actual Clovers in existence (roughly 250 worldwide).
The Clover also wowed Howard Schultz, founder and CEO of Starbucks. Last year, Schultz stumbled upon the machine in New York City when he had spotted a line of people standing outside a tiny joint called Café Grumpy. He tried a sample and declared it "the best cup of brewed coffee I have ever tasted." In March 2008, Starbucks announced the acquisition of the Coffee Equipment Company — the Seattle-based startup that manufactures Clovers in a converted trolley shed. His hope is that the Clover will bolster Starbucks' bottom line.
Chalk up some of the excitement — and the equipment's hefty price tag — to artisanal tech. A robotic hybrid of a French press and a Dirt Devil, the Clover is the first coffeemaker that lets the user program three key variables: dose, water temperature, and brew time. (Example: 37.5 grams of Brazilian Fazenda São João at 204 degrees for 43 seconds.) After the coffee steeps, a piston mechanism extracts the liquid from spent beans, resulting in a fresh cuppa in less than a minute. A filter platform pops a hockey puck of grounds out of the top, where it's easily wiped away. An Ethernet port connected to an online database is designed to let users save favorite recipes for specific beans. Made of stainless steel and copper, a single Clover typically takes several hours to assemble by hand. Fast, fancy, and idiot-proof? No surprise that Starbucks is all over the Clover — the company has been rolling them out since last summer. Half-caf nonfat toffee-nut latte lovers, get ready for a real cup of coffee.
I'm a coffee achiever, as that old ad campaign goes. I own two French presses, a stainless steel Cuisinart grinder/drip, a retro De'Longhi espresso machine, an Italian Vev Vigano moka pot, and a Vietnamese drip that I purchased in old Hanoi for making ca phe sua nong. My San Francisco neighborhood has five coffee shops within a five-block radius: four mom-and-pop operations and a Peet's. But compared with David Latourell, CEC's 42-year-old resident coffee expert, I'm a Sanka-slurping rube.
Latourell and I are standing in the middle of CEC's cupping room, a tasting area next to the company's small Seattle factory. The Clover is specifically designed to bring out the nuances of high-end coffees like Los Delirios, which comes from a Portland, Oregon, company called Stumptown Coffee Roasters. Los Delirios is a blend of Caturra, Typica, and Bourbon beans grown near Esteli, Nicaragua. Actually, it's on a micro lot located at 13° 22'45.99"N x 86° 28'50.45"W, between 1,050 and 1,450 meters above sea level, according to a manila "origin" card that comes with each bag of beans. Underneath the farm's GPS coordinates are flavor descriptions that read in part, "violets and black cherry, baking chocolate, and chocolate covered raisins."
Latourell hands me a cup of Los Delirios coffee made in the Clover. We both take slow, even sips. "I'm picking up a little chocolate," he says with a toss of his shoulder-length hair. I sip again, summoning every taste bud. I just taste — well, coffee. Delicious, sure, but coffee.
Like wine and, more recently, chocolate, a quality coffee bean must reflect a certain terroir — the climate, soil composition, and elevation of its place of origin. At least in theory, this gives a bean its unique and desirable flavor. Whether or not your average caffeine fiend can tell a Guatemalan Maragogype bean from a Honduran Catuai is debatable, but terroir explains how Stumptown can sell bags of beans for $40 a pound (about 10 times the price of commercial-grade coffee) and cafés can charge from $3 to $7 for a single cup of joe. "For $7, you can get a bad glass of wine," says CEC cofounder Randy Hulett. "Or you can get one of the best cups of coffee in the world."
Clover, From the Grounds Up
Clover looks like just another countertop coffee machine. But peek under the hood and you'll find an innovative brewing system. Here's how it works: 1. A barista selects dose, water temperature, and steep time. 2. A piston pulls down the filter platform while freshly ground coffee is poured into the chamber. 3. Hot water flows into the chamber. 4. The barista briskly stirs the grounds with a whisk, and the water and beans steep for several seconds. 5.The piston rises, creating a vacuum that separates the brew from the grounds, then lowers, forcing the joe out of a nozzle below. 6. The piston rises to the surface again, pushing up a disc of grounds, which are squeegeed away.
Then there's the top-shelf stuff. Stumptown sells beans from Nicaragua called Las Golondrinas for $80 a pound. On the international market, Esmeralda Special, a rare kind of Panamanian bean, can go for $130 a pound wholesale. And consider Kopi Luwak, also known as catshit coffee: It's an Indonesian bean that's eaten by a civet cat, then "harvested" from the animal's dung. (The bean's bitter flavor is apparently greatly improved by passing through a cat's digestive tract.) A single cup of Kopi Luwak at the Peter Jones espresso bar in London goes for $100, and a pound of the beans can cost as much as $600.
If you're going to pay that much for beans, of course, you want to have the right machine. Back in the cupping room, Latourell fires up the Clover and goes to work on a second cup of Los Delirios: He measures out 46 grams of beans, grinds them, and then slides them into the recessed chamber on top. Next, he programs a new brew time and temperature, raising the heat from 205 degrees to 207 and increasing the brewing time from 45 seconds to 50. As the hot water rushes into the chamber from a topside nozzle, Latourell stirs the blend with a metal whisk, being careful not to break the stream, which would cool the water. "The temperature has a massive effect on the extraction of chemicals that affect flavor," he explains.
I take a swig. Bang, there it is: chocolate. Scharffen Berger, eat your heart out! A few tweaks and I have a new beverage. And it's not just the chocolate flavor; the mouthfeel and acidity are completely different from the first cup. All Latourell did was adjust the brew time and temperature and add 6 grams of beans. Taste-testing it against the earlier brew, I wouldn't have guessed they were the same bean. I'm starting to become a Clover convert.
Brewed coffee is awful.That's what Zander Nosler thought back in 2001, when he was developing a commercial coffeemaker for — of all places — Starbucks. The bespectacled, rail-thin product designer had previously spent 18 months at Ideo developing everything from sunglasses to medical supplies. As he tinkered with a revolutionary single-serve, push-button brewing machine targeted for the workplace, he realized that most makers were as stale as the coffee. "I got to see firsthand how coffee was better by the cup," Nosler says. "The coffee coming out of those glass office pots is wretched." (Starbucks later called the prototype the Interactive Cup.) When the project was finished, Nosler kept thinking about the single-brew concept. He soon decided he could do better, making a superior brewer that wasn't one-size-fits-all.
By 2004, Nosler had cooked up a business plan. He recruited other Stanford alums, including Hulett, 34. Within a year, the team raised half a million dollars from friends and family and set up shop inside an old trolley shed a few minutes north of downtown Seattle. The Coffee Equipment Company was born.
For months, the group reworked the design. They abandoned the office market in favor of cafés, ditched the grinder, and shrunk the countertop footprint. By spring 2005 they had the first Clover prototype. Code name: Chalupa. Made of particleboard, with its guts bolted crudely on the outside, it looked like Mr. Coffee designed by Dr. Frankenstein. But to roasters wanting a high-end single-serve option, it was gorgeous. CEC demo'd a final prototype that October at a local party and sold three units before they were even built. When Clover debuted at the Specialty Coffee Association of America event in 2006, Nosler was mobbed. "People saw us walking in and began chanting, 'Clo-ver, Clo-ver!'" he says, his eyes wide at the memory. To the little indie guys, Nosler was a god.
While interest in CEC was percolating, Starbucks was crashing. Its share price had dipped from nearly $40 in 2006 to around $19 in January 2008. The company that brought macchiato to the masses had lost its way — and a chunk of its profit margin. Was Starbucks in the market of selling coffee drinks or fancy milk shakes? Cappuccinos or compact discs? Was it competing with Peet's or Mickey D's? After just three years, CEO Jim Donald was on his way out, and Schultz, Starbucks' founder, retook the helm. On Valentine's Day 2007, Schultz wrote an internal memo (later leaked to the press) lamenting the state of the company. "I'm not sure people today even know we are roasting coffee," the missive read. "You certainly can't get the message from being in our stores ... At a minimum [we] should support the foundation of our coffee heritage."
Schultz announced that Starbucks would return to its roots. No more vacuum-sealed bags of beans or breakfast sandwiches (the smell of bacon and eggs overwhelmed the coffee aroma). Starbucks would once again grind beans in the store. It would introduce new blends and better espresso machines. But most important: It was going to road-test a little machine that Schultz had discovered a few months before on a walk through New York's Chelsea district. "In my 25 years at Starbucks, the Clover machine unquestionably delivers the best cup of brewed coffee I have ever tasted," Schultz later gushed to his stockholders. "And we want to share this experience with our customers."
Starting in summer 2007, Starbucks discreetly purchased and installed a few Clovers at stores in Seattle and Boston. It sold a cup of Clover-made coffee for as much as $3.05, about a dollar more than Starbucks' regular brew. The early reviews were glowing. As one Yelper put it, "If you're a coffee snob who normally scorns Sbucks and its burnt offerings, you might try the Clover pressed coffee at this location and be pleasantly surprised."
After roughly six months of successful trials, Schultz proposed buying Clover's maker, the Coffee Equipment Company. "We thought Starbucks wanted to take us out on a few dates," Nosler says of the deal. "But they wanted to go steady." Michelle Gass, a senior VP of global strategy for Starbucks, is slightly less romantic: "Frankly, we just don't want anyone else to have it."
Starbucks is willing to share custody, however, of the 250 machines already out there, plus maintain and repair them, but it won't sell any more Clovers to independent cafés. The company has already pulled the plug on CloverNet, the online database that tracks sales, maintenance, and brewing preferences for Clover owners.
Clover's early adopters are outraged to see their coffee machine become part of the Coffee Machine. "We made the decision to purchase the Clover to support this small independent manufacturer," says Stumptown owner Duane Sorenson, who bought the first Clover in the US. "When we found out that CEC was sold to Starbucks, we made the decision to sell our Clovers."
Nosler shrugs off the criticism: "Everyone has their favorite little band that they've watched change as it signs with bigger labels," he says. "But I can defend to anyone that selling to Starbucks was absolutely the right thing for us to do. Starbucks has a larger market than all the independent roasters and specialty shops combined. I'm a product designer first, a coffee guy second. I love coffee; I'm passionate about it, but I want to make products, plural. Having a gigantically hungry customer is appealing on a lot of levels. It was the best of all possible paths for us — and the coffee industry as well."
By the end of 2008, there will 80 machines installed in upscale urban markets across the country. Next year, Starbucks plans to remodel those stores with the Clover as their centerpiece. "Other than espresso, there's been no innovation in brewed coffee to speak of," Schultz says. "Now we're driving new traffic because of the Clover." Then there's that other counter where the Clover is destined to end up — the one in your kitchen. "The Clover is a commercial machine," he says, "but there's potential to create more consumer-based opportunities, specifically at home." Today, you buy a $10 bag of Starbucks French Roast to take home. Soon, you might buy a $40 bag and use your very own Clover to brew it.
Coffee snobs are skeptical. "Clover will differentiate them from the Dunkin' Donuts, the McDonald's," says Tony Konecny, an industry consultant who runs the coffee blog Tonx.org and was one of the first to see a Clover prototype. "But it comes down to the coffee." The machine is only as good as the beans you put in it. Which is a problem for Starbucks, a chain that purchases coffee in mass quantities and can't deliver fresh bags of beans as quickly as the indie cafés. Then there's quality control: "By the time the customer experiences it, the beans have been blended and have been sitting in a bag for six weeks. Anything special about the coffee is lost."
A few days after my cupping room challenge, I'm standing in line at a hilltop Starbucks in Seattle's Queen Anne neighborhood — one of Clover's beta sites. I do a taste test: a cup of Clover coffee versus brewed coffee. A young barista tells me they're out of the first two specialty coffees I request and suggests instead Starbucks' everyday blend, called Pike Place. During brewing, the barista stirs the grounds into the Clover with a clunky rubber spatula — not a metal whisk — and pours the concoction into a crummy paper cup. I smell, I sip, I inhale. I can't tell which cup of coffee is which — and neither is anything special. Is it the beans? My palate? After a few minutes, I finally pick it out: This coffee tastes a little bit like hype.
Mathew Honan (mhonan@gmail.com) offers tips on Twittering in our How To: Self Promote package.
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