UNLOCKING COFFEE GROWTH

RESEARCH: NESCAFÉ

FRESHLY GROUND, BIG BRAND, UNDER £2

NEW RESEARCH FROM NESCAFÉ CLAIMS TO HAVE UNCOVERED THE KEYS TO UNLOCKING FURTHER GROWTH IN THE WELL-ESTABLISHED BEAN-TO-CUP COFFEE MARKET.

BY ANTONY BEGLEY

Once the darling of the coffee category, back in the days before the likes of Starbucks and Costa turned coffee on its head, Nescafé is fighting back as it aims to secure a bigger footing in the vital bean-to-cup, freshly ground market in convenience.

The coffee giant’s latest move is commissioning new research conducted by Onepoll into the freshly ground coffee market among 1,000 regular coffee drinkers. The research claims to have pinpointed the key factors in unlocking further growth for local retailers. The report found that almost two thirds of the respondents would buy coffee-to-go if it was freshly ground, from a well-known brand and under £2 a cup.

The last point is probably the most interesting to retailers and appears to be a direct challenge to the standard price points of well over £2 a cup for the established leaders in bean-to-cup coffee in convenience. Nescafé clearly has strong brand equity among consumers and is hailing its Mini Bean to Cup Coffee unit as the machine for the job.

Charlotte Smith, Category Manager – Coffee-to-go at Nestlé Professional UK & Ireland says: “As more people shop and work locally, small business and convenience store owners have the opportunity to satisfy consumers and drive loyalty through a quality fresh bean coffee offering. Our survey shows that a trusted brand and affordable price point are important, making the Nescafé Mini Bean to Cup Coffee Machine ideally placed to help local convenience stores compete with coffee shops and tap into a new consumption occasion as local shoppers look to take coffee-to-go back to their home working spaces.”

The company has produced a guide off the back of the research, called Brewing profits locally: One cup at a time, which highlights the trend towards supporting local retailers, with 70% of consumers using them for ‘top-up’ shops and more than half (51%) citing a visit to their local convenience store as a way to support local businesses.

The guide says that quality, price and speed of service are the three most important factors for consumers when it comes to deciding to purchase coffee-to-go.

Also highlighted in the guide is the shift to frictionless convenience as well as the option to personalise choices and the opportunity to increase profits by cross-merchandising, since the majority of consumers surveyed (60%) say they would buy food-to-go alongside a coffee.

Nescafé has also recently launched a new online coffee-togo hub. The hub features more about the latest coffee market trends, advice and tips for success, plus access to a ‘click n deliver’ online ordering service as well as POS materials.