After Layoffs And A CEO Change, Cometeer’s Frozen Coffee Pod Business Is In Hot Water

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In December, Cometeer quietly conducted layoffs and installed its chief operating officer as co-CEO. Former employees spoke of dysfunction and high executive turnover as growth has slowed at the most-funded coffee startup ever, where head count is down nearly 50%.

For those who an attractive salary didn’t immediately sway, there was Roberts, the company’s founder, who made the Forbes

To acquire and ship coffee from its 12 roaster partners like Counter Culture, Joe Coffee and Klatch in such a fashion wasn’t cheap, either. At about $2 per cup, Cometeer was twice as expensive as Nespresso pods, or six times the price of lower-end Green Mountain pods available at Staples. Unlike those rivals, Cometeer touted that its aluminum pods were recyclable, as was its packaging. But even at its higher price point, Cometeer was lucky to make a dime per pod, one source said.

When Cometeer laid off about 20 people that June, leaders told remaining employees the cuts had been long planned and didn’t reflect weakness in the company’s business prospects, two people said. But that summer, as growth slowed, according to one person with knowledge, Roberts and the company’s board started to preach cutting costs, from how much it paid its roasters to advertising spend.

 

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