Innovation Report for Instant Coffee

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Instant coffee, or soluble coffee, which is a beverage in liquid form made from coffee and can be soon reconstituted by adding water, has been a popular product for decades (Allwords, n.d.). People has gradually become so used to drinking instant coffee that some even did not know what the fresh-brewed coffee tastes like which was found as a result of tastes tests made by at least one manufacturer (Stacey, Blachford & Cengage, 2002). It would seem that the innovation of instant coffee could make a considerable contribution to economy and people's daily life. The aim of this essay is to analyze the innovation of instant coffee. It will firstly examine the history of coffee which is the origin of instant coffee, how the invention of instant coffee was generated. Secondly, it would explain the history and development of its innovations and discuss the change type of instant coffee innovations. After that, it is likely to discuss the uncertainty and risk calculation of instant coffee during the innovation process of instant coffee and also the competition. Then, it will examine the stakeholder analysis of the innovation of instant coffee and explain how instant coffee was spread to the whole world. Finally, it is likely to analyze the economic and social contributions of instant coffee and the future development of instant coffee would be discussed.

It appears that coffee was discovered in the ninth century after a goatherd named Kaldi found the berries that his sheep were eating made his sheep and then himself unusually energetic. The stimulating berries after being roasted and brewed eventually evolved into coffee as a hot drink and became popular throughout Arabia, Turkey and Europe by the seventeenth century. (Thomson, 2006). In 1901, the first successful technique for manufacturing a stable powered product was invented by Sartori Kato, a Japanese chemist living in America. Kato received a patent for his invention and the instant coffee history was made. He then set up his own coffee company named Kato Coffee Company in Chicago (Stefanie, n.d.).

Around 1910, an American chemist, G. Washington, created a more refined water-soluble powered coffee, which had a better taste and was marketed on a broad scale. It was the first time that instant coffee was mass produced owing to such a meaningful innovation of instant coffee and Washington's brand "Red E Coffee” dominated the instant coffee market in the United States for 30 years (Thomson, 2006). The World War I mainly motivated the production and popularity of instant coffee, as the US Amy bought all available instant coffee when they returned home for its convenience and its function of exciting people.

As a result of this incentive, under the circumstances that the instant coffee at that time was not readily soluble and was still tasted horrible and also with the suggestion of developing a new product of instant coffee from the Brazilian Coffee Institute in 1930 when Brazil had a huge coffee surplus and was in need of increasing coffee consumption, the modern instant coffee was created in 1938 in Switzerland named Nescafe as a combination of the brand name Nestle and café (Nestlé UK Ltd, 2008). Another great chance for the development of instant coffee was the World War II during which the troops, especially the US troops, provided instant coffee sales a dramatic boost, though the World War II saw a temporary slowdown to global coffee consumption. G. Washington Coffee, Nescafe and others had all seized the opportunity to meet the demand (Mike, 2003).

The type of changes from Schumpeter's crucial distinction could be discussed in the process of innovations of instant coffee. Basically, instant coffee can be considered as regularly brewed coffee for its brewing process was conducted in the factory with approximately all the water removed. Two methods for drying the solids and producing instant coffee crystals could be found called freeze-drying and spray-drying,...
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