Diamond Brew is utilising TikTok marketing and financial support from investors such as the CEO of GNC to capture the attention of Gen Z consumers.
A distinctive coffee startup is betting that its unique, shelf-stable format will allow it to stand out in the crowded and competitive sector.
Diamond Brew, which launched today, features freeze-dried “coffee crystals” that dissolve in hot or cold water without leaving any residue, requiring “no grinding, brewing, or waiting,” according to the brand. It is packaged in small aluminium pods and crafted from globally sourced beans.
Diamond Brew claims that the product can be used in innovative ways beyond standard coffee, including double-shot espresso, latte, iced Americano, and espresso martini options. Each pod contains 160 milligrams of caffeine, whereas a standard cup of coffee has roughly 95 milligrams.
The brand enters the market backed by prominent investors, including Michael Costello, CEO of nutrition giant GNC, Dream Ventures, Entrepreneur Ventures, and the Kali Mata family office.
The brand’s founder and CEO, Douglas Yu, emigrated to the US from China twelve years ago. He previously worked as a journalist covering the food industry before moving into the venture capital field. Living in America, where coffee is more culturally significant than in his home country, and engaging with industry leaders through his reporting job, sparked Yu’s interest in coffee.
At a food and beverage industry conference two years ago, Yu asked a group of founders and investors what types of brands they believed could scale up quickly. Many responded that food or beverage products in powdered format were ideal due to their ease of shipping and shelf stability. Yu’s ‘light bulb moment’ occurred when he realised that instant coffee, a category often derided by coffee aficionados, was ripe for innovation with a product made from higher quality beans.
“Resignedly, instant coffee will end up being the last resort for those who want a quick caffeine fix when coffee machines and cafes are not immediately accessible,” Yu said. “From that moment, I vowed to create a solution that merged barista quality with instant gratification.”
Yu said it took four months to perfect the technology needed to achieve the best-tasting roast after testing 40 different varieties of beans from around the world. He noticed that younger consumers increasingly value convenience without compromising on high-quality coffee. Diamond Brew’s technology, he said, preserves the flavour of the coffee beans better than other instant coffee brands, which often taste “burned” and contain lower amounts of caffeine.
“Some Gen Z are flat out intimidated by the at-home brewing process and are choosing not to invest in any coffee-making equipment,” Yu said.
Turning to TikTok
Diamond Brew is debuting as a direct-to-consumer brand on its website before expanding to brick-and-mortar retail stores, a decision Yu is approaching with “careful analysis and caution.”
“First and foremost, we want to make sure that we understand who our core target audiences are, their demographics, their drinking behaviours, instead of expanding as quickly as possible,” Yu said. “We want to make sure we can gather as much data as possible to better resonate with the consumer.”
Visibility with potential consumers is crucial for any fledgling brand, especially in the coffee category, where major players like Starbucks, Nestlé, and JM Smucker dominate the market.
Diamond Brew is leveraging social media platforms like TikTok to introduce itself. Through the TikTok Shop feature, which launched last autumn, users will soon be able to purchase the coffee within the app. Yu said he managed to negotiate a partnership with the platform within 15 days — a process that took other brands he has spoken to months — which he attributes to “pushing really hard” with the app’s customer support team.
Yu believes the brand’s coffee is uniquely suited to build a fanbase through the visibility afforded by TikTok, thanks to its format and premium packaging design. Creators will be able to document their experiences preparing and tasting the product.
“We’re partnering with zillions of influencers and creators, and a lot of them have more of a fanbase than a traditional celebrity,” Yu said.