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

Trendingnow

1

The U.S. campaigned to host the World Cup. Now soccer fans will trade their countries' train system for the U.S.'s 'D' rated infrastructure

2

The pig in the python: Baby Boomers are strangling the economy they built by refusing to move or retire

3

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

1

The U.S. campaigned to host the World Cup. Now soccer fans will trade their countries' train system for the U.S.'s 'D' rated infrastructure

2

The pig in the python: Baby Boomers are strangling the economy they built by refusing to move or retire

3

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
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

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

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
  • Pinterest icon

Latest in Retail

gg
North Americaconsumer sentiment
Gas is up 51% since February. Americans just started buying less of everything else
By Christopher Rugaber and The Associated PressMay 26, 2026
6 hours ago
t
RetailEconomics
The market keeps winning. Most Americans are losing faith
By Stan Choe and The Associated PressMay 23, 2026
3 days ago
James Daunt sits in a booksop, gesturing with both hands and smiling.
AIbooks
Barnes & Noble CEO clarifies the bookseller’s stance on AI-written books after refusing to ban them: ‘This is a straightforward rejection of AI books’
By Sasha RogelbergMay 22, 2026
4 days ago
Walmart shoppers are filling their gas tanks with less than 10 gallons for the first time since 2022, and its CFO calls it ‘an indication of stress’
EconomyRetail
Walmart shoppers are filling their gas tanks with less than 10 gallons for the first time since 2022, and its CFO calls it ‘an indication of stress’
By Marco Quiroz-GutierrezMay 22, 2026
4 days ago
trump
EnvironmentWhite House
Trump reverses grocery, air conditioning pollution regulations because they’re too woke
By Matthew Daly and The Associated PressMay 21, 2026
5 days ago
target
Retailearnings
Target posts biggest jump in comparable sales in 4 years as turnaround takes shape
By Anne D'Innocenzio and The Associated PressMay 20, 2026
6 days ago

Most Popular

The U.S. campaigned to host the World Cup. Now soccer fans will trade their countries' train system for the U.S.'s 'D' rated infrastructure
Travel & Leisure
The U.S. campaigned to host the World Cup. Now soccer fans will trade their countries' train system for the U.S.'s 'D' rated infrastructure
By Catherina GioinoMay 25, 2026
1 day ago
The pig in the python: Baby Boomers are strangling the economy they built by refusing to move or retire
Economy
The pig in the python: Baby Boomers are strangling the economy they built by refusing to move or retire
By Nick LichtenbergMay 25, 2026
2 days ago
Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
Success
Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
By Preston ForeMay 21, 2026
5 days ago
A billionaire and an A-list actor found refuge in a 37-home Florida neighborhood with armed guards—proof that privacy is now the ultimate luxury
Real Estate
A billionaire and an A-list actor found refuge in a 37-home Florida neighborhood with armed guards—proof that privacy is now the ultimate luxury
By Marco Quiroz-GutierrezMay 25, 2026
1 day ago
The Supreme Court handed Trump a Golden Chariot on tariffs — now he just has to take it
Commentary
The Supreme Court handed Trump a Golden Chariot on tariffs — now he just has to take it
By Jeffrey Sonnenfeld and Steven TianMay 26, 2026
10 hours ago
Elon Musk's best friend could make more than $100 billion from SpaceX's IPO. His firm is also owed billions by SpaceX
Investing
Elon Musk's best friend could make more than $100 billion from SpaceX's IPO. His firm is also owed billions by SpaceX
By Eva RoytburgMay 25, 2026
1 day 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.