Nestlé Coffee Partners October Coffee Notes

COFFEE NOTES OCTOBER 2020

Welcome to October’s edition of Monthly Coffee Notes. This time we’re talking traceability and the ‘ethically focused’ consumer, and looking at the surprisingly varied ways in which filtered water can affect coffee quality and coffee machinery. Then we’re exploring how operators can drive sales through winter while maintaining their COVID-safe precautions, and finally we’ve got the lowdown on our predicted trends for 2021 as they stand right now. We hope you’re enjoying the first hints of autumn, wherever you might be reading.

Perhaps you’ve already tried out the We Proudly Serve Starbucks® Programme Autumn Mocha Range, or Seattle’s Best Coffee’s Seasonal Toffee Latte or Toffee Hot Chocolate? Get in touch if you’d like to chat about anything you’ve seen here or have any questions on how we can help.

5-MIN READ

TRACEABILITY & THE ETHICALLY DRIVEN CONSUMER Over the past few years we’ve seen an evolution in the way that food and drink brands communicate their sustainability credentials to consumers. Driven by the ‘ethically focused’ consumer, brands are recognising the need to advance their sustainability initiatives.

66%

OF GLOBAL CONSUMERS ARE WILLING TO PAY MORE FOR PRODUCTS MANUFACTURED WITH THE ENVIRONMENT IN MIND.

£14 BILLION

UK ETHICAL SPENDING GREW TO ITS HIGHEST IN 2019, WITH A TOTAL MARKET WORTH OF £14 BILLION.1

The demand for this level of traceability among ethically driven consumers has seen coffee brands become far more transparent about their supply chains and responsible sourcing practices.

But meeting this consumer demand for more transparency requires more than marketing ethical claims. Some brands are taking this demand for transparency one step further, by allowing consumers to trace a product's journey through the supply chain — from where the beans are grown, to the people who grew them — showcasing these ethical claims in a tangible way and helping to build all-important trust between brand and consumer.

This helps to cultivate a relationship that encourages loyalty and, ultimately, drives sales.

WHAT DO CONSUMERS WANT TO TRACE? • T he origin of their coffee, down to the region, type of beans and their varietals, and specific farmers and growers that produce the beans and their certifications.

• H ow producers are treated ethically.

• W hat the total supply chain looks like and who’s involved.

• H ow all of this information was traced, and the process for collecting it.

Source: 1 - 2020 Retail Trend Report. Lightspeed UK, 2020.

5-MIN READ

HOW IS THIS DONE? Using trusted third-party software, brands can ‘map’ the end-to-end coffee supply chain using data uploaded by participants at each stage of the process, with the support of industry groups that provide regulation throughout the chain. This data is then fed into the brand’s chosen platform and can be viewed by the customer via an app or website after scanning or entering a code on the back of a bag of coffee (or any other product ).

A great example of traceability in action is the new Starbucks® Digital Traceability Tool, which transforms each bag of coffee beans into a ‘digital passport,’ taking coffee lovers on a virtual expedition around the world to explore where their coffee comes from. Along the way, they’ll meet the farmers, roasters and baristas that make each cup possible.

Offering this level of traceability for coffee not only meets the needs of these ethically driven consumers, but helps them to truly enjoy the coffee they’ve purchased, having been able to see for themselves that it’s been sourced responsibly.

While traceability tools aren’t yet fully translatable from the consumer retail space into on-site cafés, these initiatives can provide a level of reassurance for operators looking to partner with brands in the foodservice space.

This time last year, to celebrate International Coffee Day, We Proudly Serve Starbucks® programme 'coffee passports' were sent to foodservice partners.

These handy keepsakes were ideal for those who wanted to understand a little more about the coffee-growing process, the regions where coffee is grown and the sustainability initiatives undertaken by Starbucks®.

Whilst not as advanced as the Starbucks® Digital Traceability Tool, the idea stems from the same desire to share the coffee journey and sustainability credentials of Starbucks® coffee and the We Proudly Serve Starbucks® programme with foodservice partners. In case you missed it, please click here to take a look.

READ MORE

5-MIN READ

WHAT'S THE FUSS OVER FILTERED WATER? It may not be the most exciting part of brewing coffee, but water is a huge factor in how it’s made and how it tastes. Whether tap or filtered, water makes up 98% of brewed coffee before we add other ingredients like milk, sugar or syrups. Such a large component must logically make a difference to not only the taste of a coffee drink, but to the machinery that brews it too.

With consumers surveyed by Brita 1 stating that filtered water is one of their top three factors in judging café coffee quality, we’re taking a look at how water filtration affects the humble coffee drink, and what that means for operators.

Source: 1 - ‘Beyond the Brew’ e-zine. Brita Group, 2019.

THE DIFFERENCE IN TASTE • T ap water contains minerals that directly affect coffee’s flavour, such as calcium and iron.

• T hese minerals can contribute to a more bitter, chemical-like aftertaste.

• S ome minerals found in tap water are said to pull out the flavours in espresso but this is unverified, and regular water filters are unable to pick and choose which minerals to sift out and which to keep.

• M inerals can also cause damage to espresso machinery from a build-up of limescale.

• F iltered tap water removes some of these minerals as well as tiny impurities, which improves the coffee’s taste.

WHAT ABOUT EQUIPMENT? The UK has one of the cleanest, most protected drinking water systems in the world, but its hardness and softness varies between region, directly affecting not only the taste but its likelihood to corrupt the inner workings of an espresso machine.

• T he destructive nature of calcium-rich hard water wreaks havoc as it runs through espresso machines, affecting pump pressure and creating blockages.

• B y using filtered water, operators are less likely to experience a build-up of limescale-causing minerals inside their equipment.

CERTAIN BREWING EQUIPMENT CAN BE IMPLEMENTED TO FILTER TAP WATER AUTOMATICALLY, AND THERE ARE A FEW OPTIONS FOR OPERATORS TO CONSIDER: • O perators manually filling low-volume machines with tap water may want to consider using a portable in-tank filter if the local water isn’t too hard.

• O perators using plumbed-in water systems can build their filter into the plumbing line for their espresso machine, creating a more reliable filtered water source that can cope with the needs of a high-volume outlet.

However operators choose to filter their water, it’s always imperative that they continually test its hardness. No matter the make or model, filters will lose effectiveness over time and water piping will need to be serviced periodically, so it’s important to continue testing once or twice a month to be safe in the knowledge that beverage flavour remains consistent year-round.

2-MIN READ

DRIVING SALES THROUGH WINTER If you have a café in your office or university buildings, it’s a great opportunity during the colder, wetter winter months to give customers a reason to stay inside and on-site instead of heading out to the high street for their favourite coffee fix. Let’s take a look at how café operators can play to their customers’ needs as they return to office or university life this winter.

INCREASED COVID SAFETY All the great work that operators are doing to increase the safety of their outlets remains all-important through winter. Continuing to give vital attention to cleaning, communication and social distancing will be the top priorities. Safe pre-ordering and collection services can be implemented even where digital versions aren’t available.

As an example, the We Proudly Serve Starbucks® programme supported foodservice partners in workplace and university locations by creating pre-order and collection points with the supply of multipurpose PODs, interchangeable point-of-sale and pre-order pads.

MADE TO YOUR SCHEDULE

PRE-ORDER YOUR DRINKS HERE. Starbucks and the Starbucks logo are trademarks of Starbucks used under license by Nestlé.

PICK UP A PICKME-UP

COLLECT YOUR DRINKS HERE. Starbucks and the Starbucks logo are trademarks of Starbucks used under license by Nestlé.

NEED A PICKME-UP?

GET YOUR FILTER COFFEE HERE. Starbucks and the Starbucks logo are trademarks of Starbucks used under license by Nestlé.

SELF-SERVE & SERVED OVER In recent months self-serve has become an important format to sit alongside a served model. As long as the same attention to cleaning is given to both solutions, the contactless self-serve model provides a great opportunity to offer additional hot beverage points, manage queues, crowds and avoid bottlenecks. Careful planning and thought to the placement of the self-serve unit means that you can limit flow and traffic to certain areas, which can further support the management of social bubbles too.

SEASONAL SPECIALITIES With the holiday season around the corner, it’s the prime time to attract customers with seasonal speciality beverages and drive footfall with ‘newness.’ While we know that customers are looking for comfort and familiarity in their return to normal, we also know that innovation provides a level of excitement and an additional reason to visit. Operators can’t go wrong by offering both!

CLASSIC FAVOURITES & ALTERNATIVE MILKS Through the winter season, customers will be looking for a level of comfort that they should be able to find in the familiarity of their cafés. Offering classic favourites and allowing customisation with alternative milks and low-sugar syrups meets the need for familiarity, and means operators can continue to drive sales with or without a seasonal range. Just don’t forget the hot chocolate!

2-MIN READ

2021 COFFEE TRENDS TO WATCH Predicting beverage trends in an ever-changing world may seem futile, but surprisingly there are a few that seem to have more viability than others as we move into the planning stages of the end of the calendar year. Let’s take a quick look at the main hot beverage trends we think we’ll see in 2021 and beyond.

ETHICS & SUSTAINABILITY As we covered earlier, the growing consumer focus on traceability and sustainability is an important one for brands to address in the story of the coffee’s origin. Clear communication of ethical and environmental goals will be key in attracting the ethically driven consumer into outlets.

AT-HOME EXPERIENCES Home is where the coffee is for millions of consumers, and the premiumisation of at-home coffee shows no sign of slowing down. In fact if anything – as the UK moves into new ways of working and studying from home – it's likely that we could see an even greater level of at-home coffee innovations. As a result, consumer expectation around the out-of-home coffee experience will mean that café operators will have to pull out all of the stops when it comes to space and design, quality, menu and service to encourage consumers to step out of their 'at-home coffee bubble.’

SUBSCRIPTION SERVICES We’ve already seen beverage brands jumping on the subscription trend this year, and we expect to see more of the same in 2021.

We have seen subscription services include a set number of coffees for a fixed price point or even an unlimited number for a monthly fee. This is a particularly effective way for operators to guarantee footfall, even if it has an impact on margins.

SEASONAL COFFEE & SPECIAL BLENDS Coffee shops lead the charge in introducing exciting and specialised beverages to the market. Whether complimenting a particular season or simply introducing a bespoke blend to please customers, coffee shops endeavour to have new beverages in constant rotation to keep their offer fresh. As we move into 2021 and face new and existing challenges, operators will want to keep these fresh offers coming to continually drive footfall.

FUNCTIONAL 'PLUS' Functionality has been playing a greater role in the consumer perception of coffee for some time as an everyday drink for re-fuelling. But with the pandemic driving consumers to carefully assess their health and wellness goals, the ‘plus sides’ of coffee as a functional beverage are being more heavily explored.

Convenience and accessibility are key, and so is consumer desire for energy that comes with additional benefits, such as performance and mental clarity.

Nestlé Coffee Partners offers a range of brands and solutions to fit your customers’ 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 socially distanced coffee, we’d love to hear from you.

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

STARBUCKS and the Starbucks logo are used under license by Nestlé. Serveware varies from images shown.