From sourcing to roasting, coffee companies can have a lot to say about their product. These messages can majorly influence consumer perception and behavior – but not necessarily in the ways you’d expect.
A new NCA Consumer Insights report (based on NCDT data) takes a closer look at coffee claims – which include general statements, perceptions, or things that people find motivating about coffee.
For example, said Cheryl Hung, VP of Research at Dig Insights, during a recent webinar: “What kind of equity does coffee have with consumers? Are there positive and negative associations with coffee among different demographics? Who perceives coffee in a negative light? And what can we say to persuade them from a marketing perspective, or via point of sale?”
Explore some highlighted insights from each of the mini reports below – and NCA members can check out the on-demand webinar, Single Cup & Consumer Insight Reports, featuring Cheryl Hung, Dig Insights VP.
Amazon’s food and beverage category has posted $4.75 billion in sales so far in 2018, making it the online retailer’s fastest growing segment, according to Automatic Vending watch.
And coffee continues to lead category. According to Edge Market Share, coffee sales on Amazon have totaled more than $140 million so far this year – and are expected to increase.
If the first wave of coffee was defined as having packaged coffee available in the home in packaged formats, the fourth wave may be the idea of having premium coffee available everywhere, all the time.
“It all begins with the coffee shop,” says Michael Schaefer, Euromonitor, in Food Navigator USA.
Reality is starting to settle in for grocery manufactures as consumers are flocking to Amazon to purchase their groceries. According to the Food Marketing Institute, online grocery sales are predicted to reach $100 billion by 2025 — with Amazon making up a big chunk of that.
But despite of – or perhaps due to – this sudden popularity, there are still a lot of questions and misconceptions around cold brew. This is especially true for coffee companies that are considering making, serving, or selling cold brew.
As spring rolls in, consumers start thinking about “form and function.” While this usually means getting “winter bodies” into shape, functionality is playing a greater role in beverages.
Earlier this year, NCA held a webinar entitled, “US Coffee Outlook 2018: Latest Market Trends and Future Market Growth.” Eric Penicka, senior research analyst with global market intelligence firm, Euromonitor International, who was the webinar presenter, noted that the key ingredients for the future are convenience and function. Both will lead to value growth.
But given the importance employees place on various coffee-related attributes, employed coffee drinkers’ satisfaction with those attributes falls short when applied to their workplace, which suggests that employers can win points by enhancing coffee-related products and services (most employees believe they should not have to pay for coffee at work anyway). Doing so may also translate to growing the bottom line, since employees are likely to view coffee as a productivity tool.
With the release in June 2017 of the newest IBM “Cost of Data Breach Study,” conducted by Ponemon Institute, the web is buzzing with discussions of what a breach costs.
As a result, now is a good time to provide a more nuanced analysis of this report through an examination of the assertions of a variety of recent breach cost reports that attempt to answer similar questions.
A New Industry Guide for Renovation & Rehabilitation
Coffee-growing regions around the world are feeling the impact of aging trees and diseases (such as coffee leaf rust, pictured above), on the quality and supply of coffee. Supporting responsible coffee farm renovation and rehabilitation is crucial to the future of coffee, and the longevity of our industry.
The Guidebook is a comprehensive resource for companies, governments, investors, and service providers interested in undertaking Renovation & Rehabilitation (R&R) efforts; it:
Defines the need and makes the case for renovation and rehabilitation
Provides practical & useful tips on how to structure R&R programs
Suggests ways that different stakeholders can engage in R&R
Presents case studies and links to experts and service providers
R&R investments are critical for ensuring the continued supply of coffee and meeting future demand. While governments and actors in coffee value chains have invested USD 1.2 billion in R&R so far, this has only met around 5% of the smallholder farmers in need
According to the Guidebook, if the industry did reach these farmers in need of R&R, benefits would include more coffee, higher incomes for farmers, and reduction in future deforestation.
Decaf with two raw sugars, half-caf with almond milk and agave, iced Americano with two pumps of caramel syrup: Coffee orders can be as varied and unique as the consumers ordering them.
One consistent aspect, however, is that customization is now an essential part of the coffee experience — a fundamental or basic need and no longer an enhanced need, as confirmed by research from S&D Coffee & Tea and Datassential.
According to their survey of regular coffee drinkers that purchase coffee away from home from a commercial operator or convenience store, the ability to customize is statistically tied with speed/convenience and variety of options as the third most important factor when consumers choose a venue from which to buy coffee. Only price and quality are deemed more important than the ability to add to one’s coffee.