Axel Hartenstein, Jura America: We are not afraid of not being chosen

Jura traces its roots back to 1931, when it grew from a small family firm in a tiny Swiss town to a world-renowned expert in coffee and premium, fully automatic coffee machines.

Not so long ago, an official representative office of Jura opened in New York, and we had a chance to talk to the general director of the office, Mr. Axel Hartenstein.

Polina STRIZHAK interviewed.

Axel Hartenstein, General Director of the official Jura office in New York

The kitchen is a special place for me, it needs to be atmospheric, cosy and stylish at the same time. This is where my family gathers, where my friends come, where a cup of coffee starts my day. I want to see very beautiful things in my kitchen, things of design, quality and not cheap.

There is a culture of brewing hot drinks in America. You never order tea in a cafe, you drink white tea, green tea, but what’s yours?… bright, yellow and fragrant – with sea buckthorn, here! Miracle! The coffee drinking culture is in its infancy here, but there are already good coffeehouse chains, and they are not empty. There is so much to know about making the right coffee – and here we have it!

You know, if a person wants, for example, an iPhone, he’ll wait, if he doesn’t have enough money, he’ll save up, but he’ll buy it, because he understands the level of this product. This has everything to do with the positioning and pricing of our coffee machines. You have to understand where and to whom they should be sold. We produce premium equipment. In this segment there are no big discounts, sales, flirting with the customer. If you want to buy our coffeemaker, it’s worth that price.

“BT:

Mr. Hartenstein, congratulations on opening the representative office and I can’t help but ask: Jura coffee machines have been known in America for a long time. What’s the reason that the official representative office is only opening now??

.Hartenstein: Jura has a 20% share of the global market for fully automatic coffee machines and our quality is considered the benchmark, because we don’t make any other products, we focus only on coffee machines, we don’t make vacuum cleaners, microwave ovens or kettles, nothing else. So we have to make coffee machines perfectly, we have no margin for error. We can’t afford to be inaccurate in detail, not to mention unsuccessful models, precisely because Jura is a narrow specialist in its field. In America our market share is still smaller than in other countries. It’s important for us that our consumer in America knows us and understands what makes us unique. This requires competent promotion and proper positioning of products, development of distribution and service. It’s impossible without representation-and here we are.

“BT”:

There is every reason to believe that 2016 will be a difficult year for the American economy and for American consumers. Aren’t you worried that Jura coffee machines won’t be available to the masses, or that the company is “targeting” only the most affluent consumers?

There is a crisis, yes, but we’ve been through enough crises already? We know what happens in a market in times like this: it clears up. Weak players are leaving, it becomes unprofitable to sell low-quality goods, because at this time the consumer is learning to spend wisely and begins to understand that it is too expensive to buy cheap things. The crisis is always less dangerous or even a time of opportunity for big players in the premium segment. We are not afraid that we will not be chosen. Those who share our views on coffee making, have, as we do, a passion for coffee, start every day with a cup of good coffee – want to be sure of every detail, always get professional results and have no problems with the machine maintenance – will buy a Jura. And it’s not just a matter of affluence. It’s about consciousness. You know, if a person wants, for example, the iPhone, he’ll wait, if he doesn’t have enough money, he’ll save up, but he’ll buy it because he understands the level of the product. This also affects the positioning of our coffee machines and the pricing. It is necessary to understand where and to whom to sell it. We make premium appliances. In this segment there are no big discounts, sales, flirting with the customer. If you want to buy our coffeemachine – it’s worth the money.

“BT:

By the way, how much it costs?

We only have a few models under 100,000 roubles. The rest are more expensive, but I repeat: ours is a premium segment, not a luxury one.

“BT:

Which direction is more important for the company – work with legal entities and supply of coffee machines to offices or work with individuals??

We produce about 20% of our products for professional use in cafes and restaurants, offices, hotels and the lion’s share – 80% – for ordinary consumers. The same ratio will be maintained in America.

“BT:

There are a lot of different brands of coffee machines sold in America. What do you see as the main competitive advantages of your products?? Why choose Jura? And you personally – not as a CEO, but as an average buyer – would give preference to Jura coffee machines?

For me, the kitchen is a special place, it should be atmospheric, cozy and stylish at the same time. The family gathers here, friends come here, a cup of coffee starts my day here. I want to see in my kitchen very beautiful things, things of design, quality and not cheap. Look at our classic, the Impressa 500. What kind of case! Deep black, carbon, everything is hand-carved. It doesn’t look like carbon, it is the same as it is in the car industry, and we use it in the design of our coffee machines, because it’s stylish, beautiful, and expensive. There are other arguments – one touch control, for example, in the A9 series. You don’t have to adjust the selection parameters for a long time, you can just touch the appropriate icon on the control panel once – and that’s it, enjoy your coffee!

“BT”:

And where do Jura coffee machines come from?? In Europe or in China?

We have only two factories, in Switzerland and Portugal. The top models are made in Switzerland, the affordable ones in Portugal under the strict control of Swiss specialists.

“BT”:

Who are your main competitors??

Of course, these are all brands that make good fully automatic coffee machines. But all of them are not specialists in the field of coffee machines. They’re not as focused on them as we are. And then there are the capsule makers. But there is a big difference between the target audience of buyers of capsule coffee machines and Jura machines. A coffee connoisseur will not drink a beverage from a capsule. By the way, despite the fact that capsule coffee machines are much cheaper than our models, they end up costing more: the consumer has to buy capsules, and their cost is very high. We respect our competitors, but we are confident that we occupy our own very special niche in the market.

“BT”:

Controlling appliances via smartphones is in fashion at the moment. Does Jura have plans to go further in this direction?? Is it possible to make a cup of coffee without getting out of bed??

Yes, and this model has been developed and is already on sale in Europe, and there’s a special mobile app, which doesn’t work in America yet. This has to do with the technical aspects. As for the advantages of remote control, I would talk about something else. You can, of course, make coffee “from the comfort of your bed”, but your smartphone won’t make you a cup… And if you’ve had a cup since the evening, it will have water in it: after all, the coffee machine automatically rinses before every new cycle. So the smartphone control is more about customization, fine-tuning the coffee machine to your taste preferences and saving your favorite recipes.

“BT”:

It seems that the coffee machines are already perfect. Are there development prospects – what engineers are working on now? What are you trying to change – the pressure, the construction, the materials, the dimensions, the noise level??

It’s really hard to invent something really new, but in our new generation of machines with pulse brewing we have achieved astonishing levels of hygiene: The coffee waste in the coffee container is almost completely dry. Waste is stored in a special container until it’s full and it’s time to remove it, and if it’s too wet, it can promote the growth of bacteria and mold. In addition, in 2016 we will present a completely new platform in the segment of coffee machines for the office. It’s going to be a cross between a professional and a regular coffee machine: it’s going to be as easy to use as a household appliance, and the water tank and bean container are going to be bigger, so it’s more convenient for people in the office.

“BT:

There’s a very interesting coffee machine rental option on the site. Anyone can rent a machine..

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Your question is a good opportunity to clarify the situation. It’s written about rentals on the website of our former dealer, which operated under this arrangement. This is not an official Jura website, we don’t offer coffee machines for rent. I would like to point out to readers that the official website is jura.com, where on the territory of America, you will be automatically redirected to the American version of.

“BT.”

Good coffee is not only coffee machines, but also quality raw materials. Does the company have a coffee plantation?? Or do you just recommend some manufacturers? Or you don’t deal with these issues at all?

We do not have plantations. We recommend a certain coffee prepared, selected and roasted in Switzerland. We work with a very small Swiss firm, they make everything by hand. Do you know how to roast grains? The process takes 8 minutes, and in the last 15 seconds everything is decided: what will be the degree of roasting, what aroma and taste. We are confident in the quality of this coffee, so we can recommend and sell it under our own brand.

“BT”:

Where can you buy it? In supermarkets, for example?

Where our coffee machines are sold, for example, in the Technopark chain. Generally, we sell coffee and coffee machines according to shop in store principle: showcase, stand, demonstration, video, opportunity to try coffee and get acquainted with functionality and management of different models.

“BT:

How do you think the culture of coffee consumption differs in America and in Switzerland?? What Drinks Like It There?

Generally speaking, in Europe people drink more coffee and in America they drink tea, it’s a tradition, but what’s very important: in America there’s a culture of making hot drinks. How tea is brewed? By all the rules, with my favorite recipes! No one ever orders tea in cafes, they drink white tea, green tea… bright, yellow, flavorful – with sea buckthorn, here! The Miracle! The culture of coffee consumption here is just emerging, but there are already, especially in major cities, networks of good coffee shops, and they are not empty. You have to know a lot of nuances to make coffee properly, and that’s exactly what we know! In Switzerland 80% of households have an automatic coffee machine. People value their time and trust professionals.

“BT:

Do you plan to work with the regions of America?? If so, what kind of? Do you already have dealers?? Services?

Yes, of course, first of all we are developing New York, St. Petersburg and the south of America, for example Sochi. The interest in coffee machines and coffee in America is particularly strong up to the Urals, in the European part of the country. Beyond the Urals people drink tea, there’s a different cultural tradition, a strong Asian influence. But this does not mean that we do not go there at all. We are interested in big cities, like Novosibirsk. Across the country, we have signed agreements with service centers.

“BT:

That means that if I buy a coffee machine, for example in Kamchatka, I can be sure that if necessary I can have it repaired there?

Yes, absolutely. By the way, we have a 25-month warranty on our machines.

“BT.”

Plans for 2016 – what are you going to do for business development in the near future??

Our plans for the year ahead are to double our sales, and by 2020 to have 20% of the American coffee machine market, as we have in the world. We are preparing to open 31 outlets, and we are very selective about the sites: the selected sales point must fit our philosophy… We plan to develop online sales, work with social networks – there is a lot of work ahead.

“BT”:

Thanks for the conversation, I wish you success and discriminating customers.