Category Focus: It’s a brew-tiful day
Nowadays, Irish consumers demand not only premium quality coffee when they’re out and about, but they also expect to enjoy ‘coffee shop quality at home’. This is clearly illustrated by the fact that 20% of all Irish households now own a coffee machine, with coffee machine sales forecast to grow by a further 10% this year and coffee capsules growth remaining at over +30%, writes Gillian Hamill
17 September 2019 | 0
A recent report by Euromonitor on the coffee category in Ireland, published in May of this year, revealed a positive forecast. Coffee pods became hugely popular amongst Irish coffee drinkers over the review period and will continue to show solid value sales growth over the fiveyear forecast period.
Another key trend reported by Euromonitor is the surge in popularity of cold coffee. “Younger generations of Irish consumers are particularly health conscious and very likely to drive demand for new trends they have experienced abroad,” Euromonitor states.
Meeting the consumer’s needs for both convenience and choice is paramount, moreover. As Euromonitor’s report highlights, Ireland’s economy has boomed in recent years with Irish workers spending longer hours in the office than the majority of their EU counterparts. As a result, coffeehouses have begun to tailor their offerings to customers’ lifestyles.
Operating in a competitive landscape, sustainability concerns are increasingly coming into the spotlight. Leading players in the increasingly popular coffee pods segment have been extremely active from an environmental perspective. “Anxious that all plastic-containing and associated products such as aluminium are very likely to be hit by significant environmental levies due to environmentalist campaigning,” market leaders are adopting environmentally friendly initiatives, Euromonitor states.
Coffee capsule evolution
A few years ago, Irish kitchen countertops may have had a kettle, a toaster and tucked away in the cupboard, a jar of coffee.
Now, 20%* of all Irish households have a coffee machine on their kitchen counter and these machines are the single source of the recent €6m growth of ‘coffee capsules’ in 2019. The explosion in coffee machine sales is fuelling the single biggest hot beverage opportunity for Irish retailers; selling coffee capsules to fill these machines.
Ireland tops the polls for the number of coffee shops per capita*. We are fast becoming a nation of coffee drinkers looking for an array of different coffee drinks such as cappuccinos, lattes and flat whites. There is an expectation of being able to get all this variety and the coffee shop quality in the comfort of your own home. It is this trend that is the main driver of growth for coffee machines and coffee capsules.
In the last year, coffee machine sales sustained high single digit growth levels. Brands like Nespresso and Tassimo are leading this growth charge.
Jacobs Douwe Egberts (JDE), a newly formed business in 2015, is the biggest and fastest growing coffee business in Irish retail** and with coffee capsule offerings such as Tassimo and L’Or aluminium capsules, it is at the forefront of all the coffee capsule growth in Ireland. Tassimo which came to the market in 2013, is now the biggest selling capsules brand** in Irish supermarkets.
L’Or Capsules, which launched in May 2017, is the first aluminium capsule available in supermarkets that fit the Nespresso coffee machine and has quickly been established as the biggest** Nespresso compatible capsules sold in supermarkets. The exciting news for retailers retailers is that more and more innovative NPD keeps coming to these segments. This year, within the Nespresso compatible category*, L’Or Origins extended its range to include L’Or India and L’Or Papua New Guinea due to the success of the launch of L’Or Colombia last year. There have also been further product extensions to the Tassimo range in retail, namely the Tassimo Kenco Flat White and Tassimo Oreo Hot Chocolate which will continue to fulfil consumers’ demands for ‘coffee shop quality at home’.
Retailers have already engaged in the future of coffee by creating “coffee machines plus coffee capsules events”, placing shopper educational shelf trays on-shelf which highlight L’Or’s aluminium capsules and the “world of variety” that Tassimo offers to these coffee connoisseurs.
Equally, retailers have supported the growth in thlast few years by expanding the Tassimo range from two SKUs to 15 today, with brands like Costa, Kenco, L’Or, Cadburys chocolate and Baileys, plus supporting the L’Or aluminium capsules from launch of five SKUs in May 2017 to now having 13 in Ireland.
The coffee capsules market remains the number one opportunity. It is fully expected that coffee machine sales will continue to grow until at least one in every two households have a machine on their countertop. The exciting news for retailers is the growth sees no sign of stopping. Coffee machine sales will grow by about 10% this year, coffee capsules growth will continue to be over +30% and in 2019, this will account for over 60% of all the category growth.
Christmas is just over 100 days away. Now is the time to unlock your coffee category growth potential by having a stellar focus on the best range of Tassimo and L’Or aluminium capsules. Equally, at this key trading period, strong promotions linked to ‘away from main fixture space’ will help maximise driving consumers down the hot beverage aisle to capture this opportunity.
*(Source: GFK MAT July 2019)
*(Source: Kantar Worldpanel, MAT July 2019)
*(Source: Allegra Coffee Report, Ireland 2017)
Love of coffee
For retailers and their customers, finding a great cup of coffee is harder than ever — especially as the world of coffee gets more competitive and complicated. Seattle’s Best Coffee is solving that problem by bringing its customers “the only coffee with both personality and approachability — in taste and value”. Seattle’s Best Coffee has been roasting and brewing coffee for more than 40 years, with high-quality, Latin American arabica beans. According to the group, “it’s always been a labour of love; one we want to share”.
Seattle’s Best Coffee has subsequently worked hard to develop the perfect medium roast and signature smooth taste profile. “We fill every cup with great-tasting coffee, but it’s our customers who fill it with possibilities,” the group says.
“So when we say ‘Best’, we’re really talking about our customers and everything they make happen. We’re proud to be associated with them. Our customers deserve great coffee, and we’ve worked hard to learn exactly how they like it: medium roasts done well, with a smooth, wellbalanced taste. And we know it’s more than just coffee to the people who love it.”
As a result, Seattle’s Best Coffee has created a broad portfolio of tastes, all built around its customers.
Seattle’s Best Coffee shows up in places that great coffee usually isn’t found. And that’s the point! In fact, the group brings coffee to customers in over 250 places and formats that fit their lives. “We meet them where they already are, and then make the everyday just a little bit more awesome,” the company says. “We’re fun, we’re happy, and we’re a part of our customers’ day that makes them feel good.”
Seattle’s Best Coffee believes ‘Best’ comes in many forms. The company has therefore created a true portfolio of tastes — adventurous takes on delicious that aren’t afraid to take a risk or two. As the group points out: “We’re all about inclusive, welcoming, and joyful expressions of delicious. Why? Because great coffee is more than just great beans, it’s about great taste.”
Honesty pays off!
Impressively, Frank and Honest was recentlyshortlisted for an award in the Best Coffee Chain – UK and Ireland category in The Europe & Middle East Coffee Awards. These awards are the most prestigious awards in the European coffee and food-to-go sector, recognising and promoting company and individual excellence.
A select number of companies are shortlisted by Allegra Strategies based on feedback generated from more than 100 industry experts. In determining the shortlisted companies, Allegra takes into account a broad range of criteria to ensure it arrives at a set of candidates that demonstrate a commitment to excellence and strong business performance. Distinguished industry experts from across Europe will vote for the shortlisted candidates and selfserving votes are not recognised so the awards represent true recognition by industry peers.
“We’re incredibly proud that Frank and Honest has been shortlisted in these prestigious awards,” said marketing manager Rosemary Walsh. “We truly believe that Frank and Honest is the best-tasting coffee on the market at the moment, so to have its excellence acknowledged on this scale is incredible. With Frank and Honest we have something really special on our hands and we’re delighted those in the know agree with us.”
The winners will be announced at Allegra’s Europe & Middle East Coffee Symposium 2019, a high-profile profile event for top executives from across the coffee shop, food-to-go and foodservice landscape. Frank and Honest Coffee is available in SuperValu and Centra stores in over 630 locations nationwide. Find out the handiest place to get some Frank and Honest goodness at www.frankandhonest.ie.
A Star partnership is born
Nestlé has launched Starbucks by Nespresso, uniting Starbucks quality coffee with the Nespresso Original system to bring Starbucks at home to millions of coffee connoisseurs in Ireland.
Starbucks by Nespresso will be available in Irish supermarkets, making it the first time Nestlé has made available Nespresso’s unique aluminium capsule technology outside of its Nespresso business.
Irish coffee consumers will be pleased to learn that all Starbucks by Nespresso coffee is 100% premium grade Arabica coffee purchased from ethical sources and verified accordingly. The coffee found in Starbucks by Nespresso is a precise roast of the signature Starbucks taste specifications.
Whether consumers prefer Starbucks Blonde, Medium or Dark Roast, all three roasts will be available in the Starbucks by Nespresso line-up. Starbucks Blonde Roast is the lightestbodied, from crisp and well rounded, to mellow and soft, these coffees have a range of delicate flavours for consumers to enjoy.
Medium Roast means medium bodied, from bright and tangy to rich and lively, the balanced blends in the Medium Roasts deliver a range of exciting tastes. Dark Roast is fuller bodied and bold, from rich and roast sweet to earthy and herbal, the Dark Roasts have a range of bold tastes and flavours.
The Starbucks by Nespresso line-up includes: • Blonde Espresso Roast (Blonde Roast) • Colombia (Single Origin) (Medium Roast) • House Blend (Medium Roast) • Pike Place (Medium Roast) • Sumatra (Single Origin) (Dark Roast) (Tesco exclusive) • Caffe Verona (Dark Roast) • Espresso Roast (Dark Roast) • Decaf Espresso Roast (Dark Roast).
Each Starbucks by Nespresso capsule is recyclable by design, the aluminium is infinitely recyclable and the used coffee grounds are compostable. Consumers can recycle their used Starbucks by Nespresso capsules through the existing Nespresso recycling infrastructure including 175 Parcel Motel location points in Ireland. In addition, consumers can drop their filled recycling bags off at their nearest Nespresso Boutique.
“We are determined to bring high quality coffee options to millions more consumers,” says Carol Anne Deasy, beverage marketing manager, Nestlé Ireland. “Our coffee portfolio now boasts three iconic brands: Nescafé, Nespresso and Starbucks and we are constantly exploring new ways to bring these much-loved brands to more people than ever before,” she adds.
“Starbucks by Nespresso is a great example of our business focusing on coffee as a high growth area. It’s just the latest in our long series of upcoming and exciting coffee innovations; there is lots more to come.”
Nestlé’s agreement with Starbucks has helped to strengthen its global leadership position in the coffee business, at a time when coffee consumption is on the increase. Earlier this year, the Starbucks for Nescafé Dolce Gusto series launched alongside a range of whole bean, roast and ground coffees, which has attracted younger consumers to enjoy their favourite coffee at home. Starbucks by Nespresso is available now, stocked by all major retailers across Ireland.
A taste of Italy
Travellers can now enjoy Lavazza Coffee at Dublin Airport Terminal 2 Arrivals, upstairs in Wright’s Food Court. This excellent location has recently been refreshed in design and menu to include a branded Lavazza Espresso Bar as well as a multi self-service, fresh bean-to-cup coffee machine station.
As well as freshly ground coffee prepared by trained Lavazza baristas, the self-service bean-to-cup coffee machines also allow those who are in a hurry, to grab a freshly prepared, quality Americano or frothy Cappuccino to go at the push of a button from Lavazza, the internationally recognised standard for excellent coffee.
Wright’s Food Court also provides the exclusive Lavazza Coffee Loyalty Card and a discount for airport staff. Being one of the largest coffee roasters in the world, with over 124 years of coffee roasting history, presence in over 90 countries, high brand awareness and positive association with Italian coffee culture, Lavazza Coffee has a natural appeal to international travellers.
Vero Coffee Co is the official Lavazza coffee distributor in Ireland for both foodservice and A Modo Mio capsule retail sectors. Vero brings true Italian coffee and the authentic coffee experience to a wide range of businesses, including hotels, restaurants, cafés, offices, forecourts, grocers, schools, retailers and public sectors.
Vero partners with the very best of equipment suppliers, including Lavazza, Carimali, Franke, La Marzocco, Eureka and Marco Beverage Systems. With such world class products and equipment, combined with national technical support, attentive customer service, expertise in training and marketing support, as well as continual technology innovation, Vero Coffee Co is strategically positioned to deliver exceptional coffee solutions nationwide.
Get in touch with Vero to see how the team can help your business. Contact hello@ verocoffee.ie or visit the website, www.verocoffee.ie.