Monthly Coffee Notes May 2020

COFFEE NOTES MAY 2020

Welcome to your new issue of Coffee Notes.

This month’s edition was written to support your thinking while you take the time to pause and re-group around the future of the hot beverages category. As the effects of the coronavirus (COVID-19) outbreak continue to be felt across the world, Nestlé and Starbucks remain entirely committed to supporting you, your consumers, colleagues, and the community through this challenging time. We’re always open for you, and we hope you enjoy the new look of our monthly Coffee Notes.

2-MIN READ

THE BEST COFFEE & FOOD COMBINATIONS As we look forward to the coming months, most café re-openings will require a reduced and easy-to-manage offer to provide reassurance to clients and customers that it is safe to purchase and consume food in the café environment.

With this in mind, we have taken a look at some of the simpler options that can form part of a reduced offer, span multiple dayparts, and still hit the spot with customers.

FRUIT

CHOCOLATE

BAKED GOODS

•K enyan coffee pairs nicely with any kind of berry, making it the perfect accompaniment to a fruity snack.

•A ny full-bodied coffee, like those from Indonesia or Guatemala, are great accompaniments to chocolate brownies.

•B iscotti and espresso make for a heavenly match, with any flavour of this biscuit favourite satisfying every palate.

•P air fruit-based baked goods with medium to dark Brazilian and Costa Rican coffees for an indulgent mid-afternoon treat.

•D ark roasts go well with the antioxidant-rich dark chocolate, especially coffee from Brazil or Ethiopia.

•P opular throughout lockdown, banana bread (with or without nuts) makes a perfect pairing with Costa Rican, or Kenyan coffee, while pumpkin bread is delicious with Colombian or Costa Rican roasts.

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5-MIN READ

THE FUTURE’S BRIGHT FOR UK COFFEE SHOPS Coffee shops are being hit particularly hard by the current global situation, with the vast majority either forced to close or stay partially open to provide some sort of takeaway or grocery service. With COVID-19 bringing major concerns for most businesses, our collective new normal has yet to be fully realised. Nevertheless, it’s heartening to note that Allegra anticipates most operators will be up and running again by summer 2020, and that the future of what it calls “the resilient UK coffee shop market” remains bright.

THE VALUE OF QUALITY Coffee shop operators have responded well to the ever-increasing consumer demand for premium food and drink products, such as adding a great choice of alternative milks, offering cold brew coffee, and focusing on the bean origin and quality. Future profitability post-COVID-19 will depend on operators continuing to deliver not only on this quality of service and range, but on innovation and consistency too.

HUMAN TECHNOLOGY Allegra has previously reported that smart technology is “radically reshaping the UK coffee shop segment,” with a growing number of card-payment-only cafés signalling the start of our societal shift towards a cashless life. Operators are more likely to be seen as ahead of the curve post-COVID-19 due to many of them having implemented smart payments long ago, both by offering contactless and the ability to use mobile payments, while still providing the human touch of hospitality and memorable service that their customers expect.

THE APPEAL OF SUSTAINABILITY Sustainability initiatives will be a key part of sales-driving efforts once cafés are re-opened. Paper straws, recycling points, and discounts for customers who re-use their cups have all come to be an expected benefit within coffee shops around the world. Allegra forecasts reusable cup usage will increase as part of a “wider reshaping of cultural behaviours,” and noted that 42% of consumers believe coffee shops can be proud of their overall sustainability efforts.

HEALTH IS WEALTH With many consumers using their time at home as an opportunity to work on their wellbeing, it’s important that operators continue to provide a wide variety of choice in their offer to speak to this demand once we return to our new normal and the trend of good health intensifies. Whether that’s through offering a great selection of alternative milks, a range of reduced-sugar snacks or sugar-free syrups.

COFFEE SHOP TALENT Staff benefits and resources are hot commodities in today’s job market, so it’s no surprise that operators looking to source and retain quality people must provide them with unique training and support in return. Allegra notes that “65% of consumers surveyed perceive baristas as skilled professionals with just one fifth foreseeing automation as replacing coffee made by humans,” so it’s never been more important for cafés to maintain focus on the retention of people to keep building on their excellent customer service.

If operators can continue to push forward with these significant victories that have long been in place with the consumer’s needs at the heart of it, the future of the UK hot beverages sector looks to remain productive and on-trend post-COVID-19.

Commenting on The Future of Coffee UK 2020 findings, Allegra Group Founder & CEO, Jeffrey Young said:

“Consumer demand for quality coffee and café experiences shows no signs of disappearing. Digital technology will play a deepening role in the coming decade as coffee shops devise new, innovative ways to serve customers and forge lasting human connectivity.”

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5-MIN READ

WHICH ALTERNATIVE MILKS SHOULD YOU OFFER? Operators will already know that sales of alternative milks in coffee purchases are booming, but which ones are most popular and which ones should you include in your offer?

STRIKING THE RIGHT BALANCE When the health and wellness movement rules the ‘top trends’ lists each year, it may seem prudent to carry more alternative milks to meet the reportedly huge level of choice that consumers demand. But by focusing efforts and driving sales with your best sellers, you’ll continue to retain this ever-growing customer base by offering a solid key range for an uncomplicated, easy choice.

HOW TO MARKET ALTERNATIVE MILKS - OPTIONS AT A GLANCE: make the choices clear on your menu - POINT OUT THE FEATURES OF EACH MILK: frothy, creamy, light etc.

- HIGHLIGHT THE BENEFITS: organic, nut-free, gluten-free, plant-based.

MOST REQUESTED DAIRY ALTERNATIVES

ALMOND

COCONUT

OAT

SOY

ENSURE YOUR TEAM ARE CONFIDENT ACROSS THE RANGE Baristas must be well-versed in the use of alternative milks and how they differ from their dairy counterparts in the coffee-making process. To maintain quality and the all-important consistency, baristas will need to learn to handle each milk, as there are differences in flavour and texture across the spectrum of plant-based alternatives.

Ultimately, it’s about training your team to make a consistently good cup that works for your consumers within your menu.

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2-MIN READ

WHO ARE OUR COFFEE CONSUMERS? Based on trends from the past year, we take a look at what the UK coffee consumer looks like to guide you and help focus your plans to meet their demands once we’re back to business as usual.

THE UK COFFEE CONSUMER

80%

VISIT HIGH STREET COFFEE SHOPS AT LEAST ONCE A WEEK, WITH 16% VISITING ON A DAILY BASIS

MOST POPULAR BEVERAGE LATTE

63%

REGULARLY USE A COFFEE SHOP LOYALTY SCHEME

48%

HAVE TRIED A DAIRY ALTERNATIVE MILK

MOST POPULAR FOOD ITEM CAKE SLICE

Answering these trends will mean you can rival the temptation of the high street and keep consumers on-site to get their coffee fix.

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2-MIN READ

NEW RESEARCH SAYS COFFEE MAKES LIFE SWEETER Scientists in Denmark have made a delicious discovery: coffee makes other foods taste sweeter!

Caffeine’s mood-enhancing properties have long been hailed as one of the many benefits of drinking coffee, but researchers at Aarhus University in Denmark have studied another perceived benefit. The study consisted of 156 participants aged 18 to 39 who were asked to point out their perceptions of varying aromas and tastes before and after drinking regular and decaffeinated coffee. The focus was to examine if these perceptions were driven by caffeine, or by coffee’s other flavours. They found that drinking coffee makes people more sensitive to sweet flavours, and that participants were...

“...clearly more sensitive to sweetness and less sensitive to bitterness after drinking regular coffee.”

So, what does this mean for those of us in the business of coffee?

This news makes a strong case for the inclusion of a range of sweet food choices to sit alongside a coffee offer — including the sugarfree or low-sugar alternatives — to help drive sales while consumers are feeling the need for a sweet treat to complement their coffee.

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Nestlé Coffee Partners offer a range of brands and solutions to fit your customer’s requirements.

If you’d like to talk through any of what you’ve read and explore how we can help you leverage the insight we’ve shared this month, or if you’d simply like to catch up over a coffee, we’d love to hear from you.

We’re available on +44 (0)203 124 1029 (Option 2) or at StarbucksSupportEMENA@nestle.com