Fuelled up and ready to go
Fiona Donnellan examines how retailers can boost their footfall with more offerings in the hot beverage market
Print17 September 2012
AT A GLANCE : HOT BEVERAGES
- Coffee sales were valued at €73 million for 2011, an increase of 6% up to 25 Dec 2011 (Kantar, May 2012)
- The tea market has grown by 2% in the same period, valued at €85 million (Kantar, May 2012)
- Barry’s Tea accounts for 38% of all tea sales in Ireland
- The hot beverage to-go market is valued at €50m annually
- 25% of Irish consumers drink more roast and ground coffee at home (Nielsen Extended Scantrak 52 week to June 17 2012)
Leading the way
The hot beverage market is continuing to develop in contrast to the economic challenges facing the retail sector. Despite a worldwide reputation of being tea drinkers, Irish consumers are becoming more and more knowledgeable about their coffee. Speciality coffees are becoming more available and retailers offering a wide range of hot beverages are seeing an increase in footfall. Over 80% of customers cite it as the main purpose for visiting an outlet. With a value of over €50m annually, the market continues to remain buoyant as one of the most profitable categories for convenience and forecourt operators. Bewley’s to-go solutions are helping convenience stores to capitalise on this trend with a strong focus on competitiveness and quality to improve the margins for retailers. Bewley’s is helping outlets to create the best coffee experience, boost sales, increase customer loyalty and maximise profits.
Bewley’s to-go solutions helping convenience store outlets to create the best coffee experience
With Bewley’s to-go, retailers reap the benefits of using the highest quality coffees and teas with the most modern serving equipment, high impact point of sale materials and expert advice from Ireland’s leading fresh coffee and tea company. Bewley’s maximises these advantages for operators with tailored solutions for outlets of any size and scale. The offer includes a free and confidential Business Healthcheck for convenience store partners, where Bewley’s will advise on the most appropriate hot beverage mix, equipment, best selling options, recommendations designed to maximise retail space, increase customer visits and loyalty ratings and improve the overall productivity of the in-store hot beverage offer.
Combined effort
Tim Horton’s is Canada’s largest foodservice provider and has built its success by focusing on service and product quality. Horton’s brings this expertise to retailers across Ireland, including them in its worldwide success. The Tim Horton’s model is based on complementing excellent coffee with a range of baked goods, from donuts and muffins to wrapped confectionery bars. This full service concept of coffee and baked goods offers retailers a unique point of difference in the market place and yields higher cash margins. It also allows for extensive cross selling and meal-deals offering value to consumers.
Horton’s coffee has a unique two bean system, made from 100% Arabica beans, and delivers an intense flavour for coffee lovers. In addition to the quality of coffee, Horton’s, through its Coffee Partnership, has worked directly with over 2,500 farmers in Central and South America to ensure all its coffee is both sustainable and ethically sourced.
Costa’s at home range, ‘coffee shop quality’ coffee to meet increased at home consumption
Get the professional effect at home
Kraft Foods has teamed up with Costa Coffee to deliver ‘coffee shop quality’ coffee that can be produced in your own home. Costa’s full flavour blend with intense aroma is sure to be a hit with consumers. The coffee shop trend has heightened consumers’ expectations and the number of chain stores in Ireland has grown by 412% since 2005*.
Research has shown that 25%** of Irish consumers are now drinking more roast and ground coffee at home, due, in part, to the increase in home entertaining. The Irish coffee retail market is growing in the ‘coffee shop quality’ segments with both wholebean instant and roast and ground growing ahead of the market**. The Costa brand in roast and ground will bring younger shoppers into the category trading up from instant coffee at a higher price per unit. Shoppers that don’t currently buy into the roast and ground market will be attracted via the new range which consists of a 200g pack, a 250g keep sake tin and a 52g trial pack ideal for trying for the first time.
*(Source: Bord Bia)
**(Source: Nielson: Extended Scantrak 52 weeks to June 17 2012)
Convenient pack on the go
Kenco Millicano’s launch of the first wholebean instant coffee last year has been hailed as a huge success. Following on, Kenco has introduced Kenco Millicano Stick Packs – individual handbag sized packs so coffee lovers can enjoy Kenco Millicano whenever, wherever. Kenco Millicano now has 48.7% share* of the wholebean instant segment with 17.9% penetration and 39.5% repeat purchase**.
The Kenco Millicano drinker is a busy woman on the go so the new range of stick packs are perfect to throw in the handbag and have on-the-go. Kenco Millicano is Kenco’s first ‘wholebean instant coffee’ – a combination of instant coffee and finely-milled beans that gives coffee lovers the convenience of instant with the quality and taste reminiscent of roast and ground coffee at home. Kenco Millicano is a medium roast coffee made from quality Arabica beans, the smooth, full-bodied, rich aroma and velvety texture gives an indulgent and satisfying coffee experience.
*(Source: Nielson Extended Scantrak 52 week to June 17 2012)
**(Source: Kantar Worldpanel June 2012)
The new Kenco Millicano Caff Free range available in 100g tin and 85g refill formats.
Taste, without the caffeine
Also new to the market, is Kenco Millicano Caff Free range, a decaffeinated blend of instant coffee and finely milled coffee beans which helps coffee lovers love coffee for longer. The new range is a wholebean instant coffee, offering an alternative to caffeine during the day. Kenco Millicano Caff Free range is available in 100g tin and 85g refill formats and should be shelved within the wholebean instant segment.
One cup at a time
Nescafé has launched a new range of barista-style coffee, Azera, bringing more choice to the coffee category. Nescafé Azera meets the increasing demand for coffee-shop quality coffee that can be consumed at home. Azera combines finely ground beans with instant coffee to deliver a full-bodied coffee taste as well as an intense aroma and a swirl of golden crema – the true sign of a barista-style coffee.
Available in a handy pack of five one-cup sachet servings and a 60g silver metallic tin with an orange lid, the new Azera range creates great stand-out on shelf. The RRP for the handy pack is eur*1.39 and eur*3.89* for the 60g tin.
*RRP – resale prices remain at the sole discretion of the retailer.
Keeping it in the family
Lavazza Roast and Ground Coffee is a family owned company which began in 1895 when Luigi Lavazza opened a grocery stop selling coffee. Today, Lavazza is the symbol of truly authentic Italian coffee worldwide.
Available in a variety of blends, Lavazza uses the finest materials and its unique vacuum pack guarantees freshness and quality for customers. Consumers can now create that unique Italian espresso coffee shop taste experience at home. Lavazza coffee is suitable for all coffee preparation methods such as cafetieres, espresso machines and moka pots. Lavazza coffee is available in several blends including; Qualita Rossa, Café Espresso, Quakita Oro, Crema e Gusto and Decaff.
Standing the test of time
Iconic Irish brand, Barry’s Tea, has been blended since 1901 specifically for the Irish palate and continues to be the nation’s favourite Irish tea, accounting for 38% of all tea sales in Ireland. Barry’s Tea ensures that tea fans are always guaranteed a ‘golden moment’, whether it’s with its main tea range, or its speciality tea blends including the new Barry’s Green Tea & Lemon.
Barry’s Tea has also managed to cross over into the digital space, with over 92,000 Facebook fans, a strong presence on Twitter, Flickr, YouTube and its ‘Your Name, Your Tea’ Facebook app. The app delighted tea fans all over the world, offering them the opportunity to finally customise a box of the flagship Gold Blend with their own name and purchase a box of ‘their tea’ via the online tea shop.
Rewards for quality
Bewley’s take home teas and coffees have won 11 Gold Stars at the 2012 international Great Taste Awards. Among the winners were; Bewley’s Fairtrade Special Blend Tea, Irish Breakfast Tea, Decaf Blend Tea, Organic Fairtrade Guatemala Coffee and Espresso Coffee Beans. Each winner was awarded in recognition of their exceptional taste and quality.
Mark Saunders, general manager, retail and at-home division, Bewley’s, said: “We are delighted that once again, and for the fifth year running, Bewley’s Teas and Coffees have achieved international recognition by the Guild of Fine Foods. The 11 Gold Stars awarded to Bewley’s confirm what Irish consumers have known for generations – that Bewley’s products are of the highest quality.”
The Irish palette is becoming more accustomed to expertly-blended, full-bodied taste and texture in our hot beverages. Brands are extending out beyond the traditional tea and instant coffee to meet demand from consumers.
Q&A with…
Carol Geary, foodservice marketing manager, Bewley’s
How many stores across Ireland currently offer Bewley’s in-store branded offering?
There are over 700 stores in Ireland that currently serve Bewley’s coffee and tea from our convenience in-store (CIS) units. We know from our market research that consumers value the importance and quality of a well-known coffee brand. Approximately 32% of the 700 stores that serve our coffee and teas have implemented a branded Bewley’s offering that includes a fully branded merchandising unit for the coffee equipment with a full range of Bewley’s branded teas, coffees and ancillaries.
How much does it cost to install a self-service Bewley’s machine and how quickly will retailers witness a return on their investment?
The cost of our in-store units is variable to each store’s requirements. We work in partnership with retailers to help them provide the ultimate coffee experience. Bewley’s convenience in-store programmes provide a full-service, turnkey hot beverage programme that will increase sales and profits, drive increased customer visits and loyalty and ultimately add value to the overall in-store experience. In general, Bewley’s in store hot beverage programmes will provide a return on investment in 1-2 years.
What are the advantages for retailers of offering Bewley’s in-store equipment over competitors’ offerings?
Our CIS Island can serve up to 1,000 cups per day and for smaller stores our CIS 40 is a compact unit which only requires a small amount of floor space and can serve up to 40 cups a day. Our self-serve bean to cup coffee machines are state-of-the-art producing high quality hot beverages in just under 35 seconds. The machines are easy to clean and are extremely user friendly cutting out the need for intensive store employee intervention. Bewley’s has an in-house service department and a nationwide team of engineers who implement preventative maintenance programmes, comprehensive site surveys and work to a 90% ‘first-time-fix’ rate.
Does Bewley’s in-store offering provide a varied choice of beverages for consumers?
Bewley’s has developed CIS programmes that include not only our finest quality coffee and tea products but also self-serve machines that can dispense everything from tea, to cappuccinos, to hot chocolates all at the touch of a button. We also know that energy boosting and kick starting the day are the main reasons cited by c-store consumers for purchasing a take-away coffee. Bewley’s signature ‘Jet Black’ high caffeine espresso bean coffee can also be dispensed from the same machine as standard coffee beverages meaning a retailer can easily offer a variety of hot beverages to suit a range of consumer tastes.
Does the Bewley’s offering deliver a value-for-money proposition for consumers?
Bewley’s provides dedicated marketing support tools for retailers to develop promotional programmes aimed at driving the run rate of hot beverages while also increasing consumer average spend per visit. Bewley’s high quality beverage programmes can be aligned with complimentary food solutions to drive added value in-store for consumers. The positive outcome that Bewley’s seeks to achieve is satisfaction and quality for the consumer and profitability for the store owner from their hot beverage sales.
Q&A with…
Eddie Carr, business account manager, Ireland, Burton’s Biscuit Company
Burton’s Wagon Wheel has undergone a €3m re-launch of the brand designed to appeal to a new teenage generation. The introduction of a brand new product, Wagon Wheels Wheelies; a snack size version of the well known Wagon Wheel, has seen the company build on its re-launch success.
Burton’s Biscuit Company has had a really exciting 2011 with some clever marketing initiatives and NPD, how has Burton foods performed so far in 2012?
Since the beginning of the year, we’ve relaunched Wagon Wheels and introduced a caramel variant, along with a family sharing version called Wagon Wheels Wheelies. We’ve also extended the Dodgers range to now include Choccie and Toffee. This is to name but a few of our recent achievements – more of which are yet to come this year. On a marketing front, innovative display stands have been key as well as optimising the forecourt and convenience business in helping support sales.
In the current economic climate, how essential has value-for-money / price promotions become within the biscuit category?
Price marked packs (PMPs) help to create standout on fixtures, especially in the context of price sensitivity amongst consumers. These PMPs deliver outstanding taste, quality and value, appealing to the core market and new consumers. Burton’s Biscuit Company was one of the first companies to introduce price marked packs and we ensure that the retailer also makes a good return on our products.
What advice would you offer retailers to help continue drive sales in your category?
We are supporting retailers with category insight-led solutions around simplification and optimal merchandising flow in order to increase shopper engagement. Eye-catching and well activated shelf-ready packaging is essential for increasing visibility and off-shelf displays have shown significant growth in both volume and value.
How extensively will you be investing in marketing / NPD over the coming year?
As a leading innovator in the biscuit market, NPD and marketing investment remains a key priority in what’s going to be another exciting year for Burton’s Biscuit Company. We’re introducing innovative new brand extensions to market over the coming months and will continue to come through to market in the coming year. Burton’s will continue to invest heavily on ATL and BTL campaigns to further support growth of our power brands.
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