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betterRetailing.com // 10 September 2021 RN
COFFEE Brewing sales
Coffee is a convenience store essential and a high-margin, take-out staple. Lisa Moore looks at the market from a supplier and retailer perspective
G
rabbing a coffee on the way to work was a ritual for many until March last year. When lockdown struck and coffee shops closed, habits were forced to change, but that didn’t mean consumers abandoned coffee. In fact, they missed their morning Americanos, lattes, and cappuccinos so much that they shifted their spend to upgrade the coffee they drink at home. Helen Boulter, multi-sector sales controller at Taylors of Harrogate, says the pandemic has affected the
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coffee category in convenience in numerous ways. “People have spent more time at home, so out-of-home spend moved into the home. This not only means people have been drinking more coffee at home, but also trading up,” she adds. Pointing to the 7.8% year-on-year sales increase of ground coffee to June 2021, Boulter adds that roast and ground coffee is growing faster than any other hot beverages option. “With ground coffee making up 64% of these sales, independent stores should consider increasing
Enhance your range by stocking premium lines their range and ensuring the bestsellers are available,” she says.
Roast and ground coffee is growing faster than any other option
SUSTAINABILITY Shai Eilon, co-owner and founder of premium coffee brand Mont58, says there was a direct, positive impact on sales from coffee shop customers trading up at home during the height of the pandemic, which drove “a huge increase” in orders during lockdown. “With flexible working becoming the norm, we expect this trend to continue,” says Eilon. Eilon stresses as shoppers become more eco-conscious in their food choices, they are increasingly putting brands under the microscope. “Making sure we are as eco-friendly as possible in everything we do was a priority for us from day one, and our coffee sells really well in zerowaste shops,” he adds, also pointing out that Mont58’s packaging is recyclable or compostable and made using paper sourced from sustainable forests. A veteran of sustainability is Cafédirect, which invests 50% of all profits into Producers Direct – a UK charity working directly with farmers. Lesley Parker, brand controller at distributor RH Amar, says Cafédirect was a key beneficiary of the lockdown trade-up, with sales of its Single Grind, Freeze Dried and Beans varieties growing by 46% in value over the past year. “It’s the premium end of the category that has had the greatest growth. Sales of Roast & Ground, for example, are up by 14%, while Single Grind offerings and Beans are up by 8% and 16% respectively,” she says. Parker adds that instant coffee has
07/09/2021 11:16
