18 minute read
FEATURE: HOME CAFE
Cafés lose their cool as at-home coffee consumption soars
- BY EMILY BENCIC
The coffee machine market continued its sustained trajectory of value growth, up 15% in 2022, according to the latest GfK data.
As in prior years, manual types were instrumental in delivering this result, which now accounts for over half of category revenue. However, the fastest growing segment in 2022 was in fact fully automatic types, up 26%.
Almost one-third of Australians (30%) prefer the coffee they make at home over a café brew, according to recent research from Canstar Blue. Further, 43% of people said they spend less money buying coffee outside the home since getting their coffee machine.
Canstar Blue survey respondents named performance and reliability as the number one consideration (24%), ahead of design (24%) and ease of cleaning (17%), closely followed by ease of use (15%) and taste quality (12%).
Consumers spend an average of $573 on a new coffee machine with close to half (48%) using their machine every day, while 17% don’t use their machine as much as they thought they would.
FROM THE FLOOR
Leading Edge Group is seeing an uplift in coffee machine sales as budgets are squeezed.
“As interest rates rise and free cash shrinks, items like coffee machines are always seen as an instant cost saver, despite the sometimes hefty upfront cost,” Leading Edge Retail head of home appliances and audio visual, Cameron Harvey told Appliance Retailer
“Generally over time, the cost of a coffee from a machine will work out ahead of the average price of a coffee from a café.”
Harvey expects the category to grow not only in machines but accessory sales in 2023, as those currently using a capsule machine make the move to a manual or automatic machine, which creates a flow-on effect.
“Social media is flooded with coffee aficionados helping to bring in a new audience,” he said.
“A coffee machine is a very personal choice, whether it’s a capsule machine for convenience or the first-time drinker, a manual machine for those who want to perfect their barista skills or an automatic machine for the time poor who don’t want to give up on quality. Promotions such as free beans or in-home demonstrations help bring a different type of buyer in. Any promotions that remove objections or barriers to entry are well-received.”
DE’LONGHI
George O’Neill, Marketing Director – Australia & New Zealand
Over the past 12 months, De’Longhi has seen increasing consumer interest in coffee and creating quality coffee at home.
“Australian coffee drinkers are gaining a deeper understanding of which type of machine best suits their taste, lifestyle, and desired coffee experience. The rising cost-of-living is also having an impact as coffee machines have become a cost-effective way to achieve the café experience at home,” George O’Neill said.
Cold brew coffee continues to rise in popularity, with recent De’Longhi research showing that onethird (33%) of Australians are currently drinking cold brew and 51% are interested in purchasing a machine to make cold brew at home.
“De’Longhi’s Cold Extraction technology and the smooth flavour of our cold brew expands coffee occasions beyond the morning ritual, offering a range of new coffee recipes, including cocktails and afternoon refreshments,” O’Neill said.
The new Eletta Explore Wi-Fi Connect, launching in March, provides up to 50 recipes including batch cold brew and combinations with the LatteCrema Cool system (cold milk foam), like cold brew latte.
“With Wi-Fi capabilities, consumers can connect their smartphones via the updated Coffee Link app to activate Bean Adapt technology for optimal grind and dose settings according to the bean type being used. The app also supports new functions of the coffee machine, including clusters, cold drinks, to-go and favourites. User profiles allow households to personalise and save recipes to enjoy the perfect cup every time.”
The Eletta Explore Wi-Fi Connect complements De’Longhi’s latest release, the La Specialista Maestro with Cold Brew technology, which also responds to the desire for cold coffee beverages by producing cafe-quality cold brew in under five minutes.
When it comes to retail training, in addition to face-to-face product training sessions with retail partners, De’Longhi develops high-quality video content that is shareable and easy to digest.
“These videos explain how the machines work and share insight into product design and features. The resources support the sales teams in understanding the machines and who they are best suited for, so they can best assist the customer.”
Building a strong omni-channel marketing program is important as consumers often conduct research online but many still prefer to go in store to see and touch the product and talk to someone faceto-face before making their final decision, according to O’Neill. “Both channels provide an important function and work to complement each other.”
De’Longhi Eletta Explore Connect
RRP: $2,199
Looking to the year ahead, O’Neill expects the consumer appetite for quality coffee at home will continue to increase. “Coffee is embedded within Australian culture. As the cost-of-living continues to rise, we anticipate people will be looking for ways to make the most of their investments. Purchasing a coffee machine is one way to lower the cost of your daily cup without compromising on quality. We see this as an opportunity to provide tools for our customers to develop their barista skills and explore new and styles of coffee.”
De’Longhi Eletta Explore Connect
ECAM45086T
- Easy to use touch control panel
- New Coffee Link app supports a range of new functions
- Up to 50 recipes can be created at the touch of a button, including hot, iced and cold brew coffee
- Cold Extraction technology delivers cafe-quality cold brew in under five minutes
- Bean Adapt technology recognises the chosen beans and ensures the optimal settings
•••
SMEG
Luca Duarte, Product Manager – SDA
The coffee category continued to grow in 2022, and Smeg has seen a shift towards fully automatic coffee machines with one touch milk solutions and espresso machines with built-in grinders.
“Consumers are still taking their time to purchase as they want the best machine for their home. Therefore, we remain focused on improving our point-of-sale and online execution so that our customers have sufficient information to decide which machine best suits them,” Luca Duarte said.
Ease of use, results and flavour, together with design, are the resounding consumer requirements in the purchase decision. “Taking our bean to cup machine as an example, it has a simple push button panel, delivering a cup of coffee in a matter of seconds. The machines also use a direct grind system, ensuring freshly ground coffee is used at every extraction.”
Face-to-face training remains a critical part of the Smeg training program, but with the introduction of the Smeg Learning platform, the company is able to reach retail floor staff more frequently. “With the platform, staff can quickly access product information whenever necessary.”
Smeg Fully Automatic Bean to Cup Coffee Machine Full Black
RRP: $1,399
When it comes to marketing, Smeg uses various digital communication channels to share product and brand news with consumers from EDMs with new product information, recipes and sales promotions to social media posts.
“We also have a wealth of information on YouTube to assist consumers with product selection, how to get the best from their appliances and maintenance. In store, we constantly assess point-of-sale material to ensure we are communicating product features and benefits.”
Smeg Fully Automatic Bean to Cup Coffee Machine Full Black
BCC02FBMAU
- Steam wand
- Matte black finish
- 19 bar professional pressure
- Direct grind system with easy to remove brewing unit
- Six coffee recipes and two different strength settings
•••
JURA
George Liakatos, Managing Director
The path to purchase for coffee machines remains similar to pre-Covid; however, the role of online is more important, according to Jura’s George Liakatos.
“Our research shows that decision-making is mostly made online with bricks-and-mortar stores used for final validation and price negotiation. The pre-purchase ‘consideration duration’ is shorter than pre-Covid with purchases being made within three months as opposed to up to two years previously,” he said.
Jura GIGA 10
RRP: $5,490
Great tasting coffee and ease of use remain the most important considerations among consumers. “These two factors are integral to the design and philosophy of our products and our engineers always ask how we can improve the coffee quality and ease of use with each new product we develop.”
The latest Jura coffee machines feature cold brew technology and a new coffee product using a world-first sweet foam. Jura will also introduce its new grinder, the P.A.G.2+, which actively monitors the grind consistency to ensure perfect results every time.
Sales training has long been a core focus at Jura and during Covid, the company was forced to re-think its approach. “We rolled out our global training platform – the Jura Academy – to our retail partners to ensure our program of sales training could be shared even when face-to-face training was not possible. This year will see the return of physical training events in conjunction with the digital tools we developed over the last three years,” Liakatos said.
Jura continues to invest in both online and in-store activities as it recognises that consumers use both when considering and finalising their purchases. “We are focusing our digital marketing investments on above-the-line activities to drive awareness and saliency of our brand. The bulk of our investments in-store are in improving our presence at point-ofsale with new fixtures and fittings.”
While Liakatos acknowledged the impact of inflationary pressures on the industry overall, he expects little to no change in coffee machine purchase intentions in the short to medium term.
“In fact, our tracking shows that intention has increased when compared to last year. We believe this stems from increased coffee machine usage in the home since the start of the pandemic. Consumers are constantly looking to improve and upgrade their coffee experience at home so will prioritise investments in this area. We remain cautiously optimistic for the coffee machine category for the remainder of 2023 and encourage our retail partners to share the same outlook,” he said.
Jura GIGA 10
- Cold extraction process for cold brew beverages
- Two bean containers each with their own grinder
- New intuitive operation with touch panel in wide panoramic format
- Offering 35 specialty coffees – the widest choice of any Jura coffee machine
- Available in diamond black with chrome elements and redesigned cup grille
•••
NESPRESSO
Mariah Monaghan, Head of Marketing
With the rising cost-of-living, consumers are looking for ways to manage their spending, according to Nespresso’s Mariah Monaghan, and with café coffee increasing in price, capsule machines offer great value and can replicate café quality at home.
“Machines such as our Vertuo Next are popular for the café-style, double-shot experience they deliver at an affordable price,” she said.
Nespresso’s 2022 Australian Coffee Report revealed almost three-quarters (73%) of Australians were making coffee at home in some capacity last year, with 63% of those claiming to do so as part of a plan to save money. “As such, investing in a good coffee machine has been one of the ways that Australians have been paring back their spending without sacrificing on quality.”
Taste is the most important consideration in the purchase decision, closely followed by ease of use and design.
“At Nespresso we source the highest quality coffee and offer a wide range of choice. We recently developed a range for the Australian market specifically to be consumed with milk, our Barista Creations range,” Monaghan said.
Vertuo Next & Aeroccino3 Milk Frother
RRP: $389
“We also know great design is important, from the sustainability of the machine through to ease of use. Coffee machines are on display so it is important that it fits the home aesthetic.
“Consumers are doing a lot of research online to understand what’s available and compare models, but many are returning to stores before making a final decision.”
Vertuo Next & Aeroccino3 Milk Frother
- 30-second heat-up time
- Made from 54% recycled materials
- Wi-Fi capability and Bluetooth to connect to the Nespresso app
- Intelligent barcode technology reads each capsule to deliver the perfect extraction
- Café quality coffee choices including espresso, double espresso, long black, cappuccino and more
•••
BREVILLE
Athena Kalos, Category Manager – Coffee
Consumers are doing a lot more research and Breville is seeing the online research phase bleeding into online purchases.
“Consumers are looking for ease of use and a machine that takes the guesswork out of making a coffee but are not prepared to compromise on coffee quality. The manual machine category has experienced the greatest growth and is now the largest segment with over 50% share,” Athena Kalos said.
Breville Barista Express Impress
RRP: $1,199
“Most coffee machine purchases are made instore following extensive online research which leads consumers into stores to view the product, its quality and see demonstrations before making a purchase.”
When it comes to sales training, Kalos said online training and video content is the best way to scale educational resources for retail staff. “However, face-to-face training in-store remains very important.”
While acknowledging the challenges in 2023 due to economic pressures both locally and globally, Breville expects the coffee category to hold its own as it is both a necessity and luxury. “Consumers are expected to continue to invest in their homes and in items which enhance their quality of life at home. The continued growth of the coffee category and the price a consumer is prepared to pay is evidence to this,” Kalos said.
Breville Barista Express Impress
BES876
- Puck for less mess and less fuss
- Intelligent dosing with 25 grind settings
- Assisted Tamp delivers a constant 10kg pressure
- Precision measure auto corrects the next dose
- Low pressure pre-infusion with 9 bar extraction
•••
MIELE
Joshua Hall, Category Marketing Leader – Small Appliances and A&C
Miele has noticed growth in the coffee machine category, as more people work from home.
“With many businesses now using a hybrid work model, and coffee being a huge part of most people’s daily work routine, we’ve seen a demand for good quality coffee machines,” Joshua Hall said.
The most important feature of a coffee machine is delivering fresh coffee, intense flavour and perfect results every time. Miele’s AromaticSystem has flavour-conserving grinding and intelligent brewing to achieve best possible results. “Another key feature that is important to customers is easy cleaning. We have designed our coffee machines to automatically clean themselves after each use, so the consumer doesn’t need to.”
Miele CM 6360 MilkPerfection Benchtop Coffee Machine
RRP: $2,499
Miele places a large focus on education and training to ensure staff know every detail about the appliances. “We provide our sales team with the tools and information they need to thoroughly educate customers wanting to purchase a new coffee machine to ensure they choose one that best suits their needs.”
Commenting on the company’s outlook for the year ahead, Hall said: “We’re confident we’ll continue to see the coffee machine category grow in 2023. We know consumers will be looking for ways to cut costs and anticipate people will be swapping their daily takeaway coffee purchase for coffee at home.”
Miele CM 6360 MilkPerfection Benchtop Coffee Machine
- Double Venturi system adds two bursts of steam to increase milk temperature and create a light creamy texture
- AromaticSystem means the brew chamber expands when water flows in allowing for coffee to be mixed thoroughly with water and for the coffee aroma to unfold
- New OneTouch for Two function allows two cups of latte macchiato or cappuccino, coffee or espresso to be made at the same time
- Coated with Miele’s CleanSteal splashback for easy cleaning, while the drip tray, water container and waste container are dishwasher safe
- Control and monitor the coffee machine via Miele@mobile app
•••
NEWELL BRANDS
Micaela Little, Senior Brand Marketing & Activation Manager
As hybrid working remains the dominant working model, at-home coffee demand continues to grow, especially in the premium manual machine segment, Newell Brands’ Micaela Little said.
“We’re seeing strong demand for manual coffee machines with many consumers moving from pod to manual, while others are trading up to a more premium machine with better performance, increased durability and enhanced style for their kitchen.
Sunbeam Mini Barista Espresso Machine
RRP: $329
“Consumers are willing to invest in products that resemble sophistication and quality of commercial machines to achieve café quality coffee at home.”
Sunbeam remains agile when it comes to marketing, evolving to blend the in-store and online experience. “Our goal is to serve relevant content to those shoppers who are seeking more information about the product, including ratings and reviews and how-to videos. In-store point of sale material now directs the shopper to a digital experience where they can watch product videos.
With purse strings expected to tighten in 2023, Sunbeam believes it is well placed with a wide range of machines across many price segments.
Sunbeam Mini Barista Espresso Machine
- 15 bar pump pressure
- 58mm commercial size group head
- Auto shot café extraction to pour just the right amount every time
- Powerful steam wand produces velvety-smooth milk
- Designed and engineered in Australia
•••
PHILIPS DOMESTIC APPLIANCES
Geoff Hannaford, Country Manager – Australia & New Zealand
Philips experienced strong sales of its fully automatic espresso machines during Covid, and this trend has continued even as people embrace a hybrid working arrangement.
“Consumers want machines that produce good quality coffee and are easy to use and maintain. Our Philips LatteGo has a tubeless milk frother that can be cleaned in under 15 seconds. The display is easy to use and understand, allowing consumers to customise and save their coffee favourites,” Geoff Hannaford said.
Consumers continue to purchase machines based on the information they read on brand pages and retailer’s websites. “We aim to provide the best online description with images and videos, encouraging customers to experience the product without physically visiting a store.”
Philips 4300 Series Fully Automatic Espresso Machine
RRP: $1,199
Philips believes a hands-on approach is critical when it comes to sales training. “We always ensure our offline sales staff touch and feel the product and use it. Seeing the Philips LatteGo in action and just how easy it is to make a delicious cup of coffee is important.”
Originally launched online only due to global stock constraints, the Philips LatteGo is now expanding into bricks-and-mortar stores. “The online approach was due to the growth in ecommerce during the pandemic. A coffee machine is not a small investment, so most consumers still want to see the product in-person and obtain recommendations.”
Philips 4300 Series Fully Automatic Espresso Machine
EP4346
- Eight coffees to choose from, including latte macchiato, cappuccino and espresso
- LatteGo for easy cleaning in as little as 15 seconds
- Intuitive touch display to customise coffee length, strength and milk length
- Grinders made from 100% ceramic material
- Save favourite beverages with two user profiles
GLEN DIMPLEX
Sheena Herath, Marketing Specialist – Seasonal & SDA
As some cafés and restaurants were forced to close or offer only takeaway service during lockdowns, consumers had the option to purchase their own coffee machine, making this category an area of growth for Morphy Richards.
“Consumers like to determine the strength of their coffee, be it with beans or with ground coffee, and the ability to set a timer so that their coffee is waiting for them when they are ready for it. Morphy Richards filter coffee machines provide these functions and are aesthetically pleasing as well,” Sheena Herath said.
Morphy Richards Ascend Soft Gold Filtered Coffee Maker
RRP: $99.95
Glen Dimplex has regular meetings with its sales and marketing teams, which incorporates product training, so key stakeholders are equipped with everything they need when visiting retail stores. “We also produce product training packs for our sales representatives to keep them updated with product features and benefits.”
In line with online shopping growth, Glen Dimplex continues to experience strong online sales. “Convenience and the impacts of the pandemic appear to be the major driver of online sales, although there is still a tradition of purchasing appliances in person.”
Glen Dimplex expects continued growth in its coffee machine range in 2023, as visiting the local café slowly becomes a luxury due to the increased prices of raw ingredients, according to Herath.
Morphy Richards Ascend Soft Gold Filtered Coffee Maker
MRSGFC18B
- 12 cup / 1.8L capacity
- Brushed stainless steel with satin black finish
- Thermostatic hotplate
- Glass with hinged lid carafe
- Keep warm function with auto shut off after 40 minutes
