• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

College-educated women are snapping up the highest-earning men without college degrees, leaving the rest further behind

2

New York City women are making up to $30,000 per month by renting out their closets to strangers

3

An 11-year-old is cleaning his neighbors' trash cans for $10 each—he now has 100K followers as teens face the worst summer job market since 1948

1

College-educated women are snapping up the highest-earning men without college degrees, leaving the rest further behind

2

New York City women are making up to $30,000 per month by renting out their closets to strangers

3

An 11-year-old is cleaning his neighbors' trash cans for $10 each—he now has 100K followers as teens face the worst summer job market since 1948
Retailsubscription economy

Blue Bottle and Tonx pour efforts into expanded subscription service

By
Brittany Shoot
Brittany Shoot
Down Arrow Button Icon
By
Brittany Shoot
Brittany Shoot
Down Arrow Button Icon
September 18, 2014, 10:00 AM ET
Blue Bottle coffee
Courtesy: Blue Bottle
Add Fortune on Google for similar content.

Big changes are brewing for coffee retailer Blue Bottle. In January, the company raised a steep fundraising round of $25.75 million, following a $20 million round in October 2012. In April, Blue Bottle acquired coffee bean subscription service Tonx, a brand particularly beloved by the tech set.

Today, Blue Bottle announced that the Tonx acquisition paved the way to launch its newly reconfigured subscription service, Blue Bottle at Home. The coffee company is also opening its first café overseas.

In a crowded marketplace, Blue Bottle at Home stands apart by delivering its trademark expertly sourced, single origin beans to your doorstep just 24 hours after roasting. Blue Bottle home delivery costs a flat $19 a month, while other boutique coffee roasters, including Chicago’s Intelligentsia and Portland’s Stumptown, offer tiered plans that can be adjusted to ship weekly or monthly. It’s hard to find a major coffee company that doesn’t have a recurring home delivery option. Even global leader Dunkin’ Donuts offers a monthly subscription plan starting at $8.99.

The slow-drip sales add up. According to market research firm StudyLogic, online sales of coffee, tea, and hot cocoa hit $12.5 billion in 2013, up from nearly $10 billion in 2011. Revamping subscription and online sales platforms is also on trend. In April, for instance, Peet’s hired digital marketing agency Razorfish to overhaul its e-commerce platform, which offers subscriptions for both coffee and tea, at various prices based on the coffee bean or tea leaf.


Nik Bauman, Tonx co-founder and now Blue Bottle’s Director of Digital Product, admits that in terms of offering a subscription, “We’re not doing something completely revolutionary.” Rather, he explains, “We’re sweating the details.” What type of coffee you want, at what cadence—and in the perfect packaging—should be a top-shelf experience.

The acquisition was warmly welcomed by Tonx, which needed a jolt of energy to move from savoring a strong digital following toward attempting to become a household name. “Jumping over that chasm and getting to real brand recognition in the marketplace—you can’t rush that,” Bauman says. “Investors don’t enjoy putting money behind the phrase ‘brand building’.” By aligning with Blue Bottle, Tonx was getting the boost of a proven brand.

Blue Bottle already had a skeletal subscription service. The idea of bringing on a technical partner to optimize the existing system had been percolating for a while. “David [Bowman, Blue Bottle’s CFO] and James [Freeman, Blue Bottle’s CEO] had been looking at Tonx before I called them,” Bauman says.

For founders known for obsessing about single origin beans, the blend of the two companies is surprisingly smooth. Blue Bottle is known for high quality control standards, refusing to outsource any offering, even down to its pastries. Freeman says though he greatly admires Tonx, the idea of an acquisition was, for a short time, a major philosophical hurdle. His biggest challenge was understanding that “it’s okay to not make it yourself sometimes,” he says with a chuckle. His team was behind the merger from early on. “Sometimes the reason to have people on your team is to listen to them,” he further concedes.

Blue Bottle at Home arrives at a time when, thanks to the ever-expanding subscription economy, you can have everything from beauty samples to exotic foods delivered straight to your door on a recurring basis. But Bauman notes that an off-the-shelf subscription model doesn’t actually fit that many businesses. He warns that simply getting someone to sign up isn’t the goal, and in fact, overselling your product up front is a great way to lose a potential long-term customer. “If you subscribe to paper towels and you get two bundles of six, you have 12 paper towel rolls sitting around,” he says. “And you don’t want that.”

Optimizing the Blue Bottle at Home experience isn’t just about looking at a virtual dashboard, though the engineering team does collect customer data to improve the overall experience. But Bauman notes that a typical Blue Bottle customer wants a delightful but utilitarian experience. Proactively reaching out to customers is a further extension of the thoughtful care Blue Bottle has been known for. “You have two months to make sure you meet and exceed [the customer’s] expectation,” Bauman adds. “They want us to have sweat the details, to have crafted things in a way that creates a pleasant and fun experience but not for fun’s sake.”

The acquisition also brews fresh opportunities for brick-and-mortar, with new cafés opening next week in Los Angeles and New York City. Blue Bottle’s first café abroad is slated open in Japan during the first quarter of 2015. “[Tokyo] is not a license. It’s not a joint venture,” Freeman emphasizes. “It’s all our money and all our risk.” Japan is also an ideal testing ground abroad, he notes. “Tokyo and Japan in general has most demanding consumer culture in the world. If we can please them, we’ve proven something we can bring back to benefit the U.S. market.”

Don’t expect Blue Bottle to saturate urban neighborhoods the way Starbucks did—at least, not yet. “Cafes are expensive. They take a long time to build. Even if we had all the money in the world, it would take a long time to build cafes,” Freeman explains. By taking a two-pronged approach with new storefronts and a customizable subscription plan, Blue Bottle can quench consumers’ thirst for both more shops and a better home brewing experience.

“Someone is our customer, whether or not they’re in a café or having Blue Bottle at home,” Freeman says.

 

About the Author
By Brittany Shoot
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Retail

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • TikTok icon
  • YouTube icon

Latest in Retail

magic
RetailMillennials
What Magic: The Gathering’s record year reveals about America’s stalled adulthood economy
By Nick LichtenbergJuly 27, 2026
2 hours ago
cb
C-SuiteRestaurants
Cracker Barrel CEO steps down nearly a year after logo change inflamed Trump country
By Dee-Ann Durbin and The Associated PressJuly 27, 2026
2 hours ago
Workers help a traveler at a Trip.com tabling session booth.
Big TechChina
Trip.com struck with $765 million penalty from China over monopoly allegations
By The Associated PressJuly 27, 2026
5 hours ago
Woman holding a Pickle bag getting out of a taxi
RetailLuxury
New York City women are making up to $30,000 per month by renting out their closets to strangers
By Sarah GlodekJuly 27, 2026
14 hours ago
The Pete behind Jersey Mike’s was only 17 years old when he borrowed $125,000 to buy the chain—with some help from his high school football coach
SuccessFounders
The Pete behind Jersey Mike’s was only 17 years old when he borrowed $125,000 to buy the chain—with some help from his high school football coach
By Marco Quiroz-GutierrezJuly 26, 2026
2 days ago
t
EconomyInflation
Meet the Americans learning to go without after the biggest grocery inflation in 50 years
By Dee-Ann Durbin, Terry Tang, Maggie Scales, Sandy Guatibonza, Hikari Mae Hida and The Associated PressJuly 25, 2026
2 days ago

Most Popular

College-educated women are snapping up the highest-earning men without college degrees, leaving the rest further behind
Economy
College-educated women are snapping up the highest-earning men without college degrees, leaving the rest further behind
By Mia OsmonbekovJuly 26, 2026
1 day ago
New York City women are making up to $30,000 per month by renting out their closets to strangers
Retail
New York City women are making up to $30,000 per month by renting out their closets to strangers
By Sarah GlodekJuly 27, 2026
14 hours ago
An 11-year-old is cleaning his neighbors' trash cans for $10 each—he now has 100K followers as teens face the worst summer job market since 1948
Success
An 11-year-old is cleaning his neighbors' trash cans for $10 each—he now has 100K followers as teens face the worst summer job market since 1948
By Orianna Rosa RoyleJuly 25, 2026
2 days ago
The millennial generation is split in 2: an older crowd with boomer-style comfort, a younger set going 'back to the early 1900s'
Real Estate
The millennial generation is split in 2: an older crowd with boomer-style comfort, a younger set going 'back to the early 1900s'
By Nick LichtenbergJuly 25, 2026
2 days ago
I've been teaching college students for decades. Most of them can no longer finish a book
Commentary
I've been teaching college students for decades. Most of them can no longer finish a book
By Austin SaratJuly 26, 2026
1 day ago
One-third of Seattle's downtown is empty: Here's how America's boomtown turned into one of the toughest places to find a job
Real Estate
One-third of Seattle's downtown is empty: Here's how America's boomtown turned into one of the toughest places to find a job
By Nick LichtenbergJuly 27, 2026
13 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.