BREAKING INTO GROCERY

JAKE LEONTI | EDITOR-IN-CHIEF, COFFEETALK

There is no denying that

Groundworks is a relatively small company with 12 cafes, and 70% of their business coming from food service. Despite this, they have RTD cold brew distributed throughout 40 states in the US, with only two people leading the sales force. I connected with Groundworks Sales Manager, Craig Mueller, to discuss how they have managed to grow this market channel.

Straight off the bat, I asked, "What is the secret sauce for getting into grocery? Advertising? Using Brokers? What?"

Craig laughs a little and comes right back, "It's a combination of things. First, our brick and mortar coffee shops gave us visibility and conveyed our brand image and reputation for quality. Then it was the quality of the product." Groundworks is uniquely positioned by having both a roasting facility and a cold brew facility. They control the quality control process on everything from the sourcing and roasting of the coffee to the brewing and packaging. They also prefer to self-distribute to see the final product to the end-user. Self-distribution can be an occasional hindrance to some large box retailers, but it is considered an asset for most. Controlling these steps also allows them roast and brew to order when they receive a PO rather than holding more extensive inventory.

"That's all fine and good but assuming everyone has a good coffee, what made the difference in growing the grocery business?" I ask.

"The biggest thing is having a great brand story and compellingly communicating that. Creating relationships and then always adding value to those relationships. I spend a lot of time just talking with our partners and asking what works and what doesn't work. They all respond heavily to our brand story and then pass that along."

"How do you grow from your local specialty grocers to being in 40+ states?" I follow. "Showing traction and sharing data. Once we get into a store, we try to help push our product however we can. Whether through TPR (temporary price reductions), social media ads with geotags to push products in those local markets, or digital coupons to get people ordering from their phones. Once we can show a great performance, we take that track record and show how successful we are. We used to do some demo programs; however, they are costly and do seem to yield the best results for us."

"What's next for Groundworks?" I ask.

Craig quickly answers, "We have been incredibly focused on updating all our systems to support our coffee shops with mobile ordering and updating our website with more robust e-commerce. These tools will help us grow in the new environment, and we will continue to push in the CPG and RTD streams."

What this small sales force has been able to accomplish with a relatively small coffee company over the last five years is impressive. I'll be watching to see where their products pop up next.

LAUREN PFEIFFER | DIRECTOR OF MARKETING, BKON

Cold coffee, it’s a hot seller,

As a result, your cold coffee program is likely reliant on the cold supply chain, that frenemy that keeps things real on the flavor front but creates an operational cluster on the back end. But shelf-stable cold coffee is currently having a breakthrough.

There are two primary heat treatment methods used to create the shelf-stable cold brew, retort, and UHT. Retort is initiated after a can is filled by applying heat and pressure for multiple minutes. UHT is used with Bag-in-Box, Tetra Pak, and PET bottles and differs in that the liquid is first heated for up to 6 seconds and then filled in sterilized packaging. The gentler UHT method is known for a more positive flavor outcome, but while UHT cold brew has existed for several years, it’s fallen short on delivering the distinguished flavor you taste with a fresh cold brew. Recent advancements have led brands to partner with BKON to commercialize shelf-stable products that utilize our patented brewing technology to achieve optimal flavor.

Seattle headquartered Caffe Vita has felt the positive effects of this distinction. They desired a cold coffee program that circumvented refrigeration requirements while still maintaining product integrity. They found their partner in BKON and created a multi-channel program that includes 5-gallon KEGX Bag-in-Box (BiBs) for their cafes and wholesale accounts and a 2 Liter multi-serve CPG BiB.

“We used to brew in-house at each of our locations and spent a lot of resources testing for quality at each cafe,” said Kate Van Petten, Marketing Director for Caffe Vita. “Now we have the consistency of quality across locations with less effort.” By streamlining their brewing with BKON, Caffe Vita has extended that consistency to their multi-serve CPG product as well, allowing them to bring the café experience direct to people’s homes. Shipping cold coffee was never a reality before their shelf-stable formats launched. “It has allowed us to reach audiences all around the world. We’ve had orders from customers as far as Japan.” Van Petten noted.

“Transitioning to a shelf-stable program has allowed us to move away from the cold chain by removing the need for large refrigeration space in our warehouse since the product can be stored at room temperature,” said Lorenzo de Amicis, National Service Manager for Caffe Vita. “It has also made managing our cold brew stock simpler. The extended shelf life and reduced waste allow us to purchase more at a time, reducing purchase costs.”

The benefits of shelf-stable cold brew are real and making it possible for retailers, roasters, and coffee brands to think differently about their cold coffee program.