T OPSYTURVY
CATEGORY UPDATE
“In a state of flux” possibly best describes the current situation in the breakroom space, as OPI’s Michelle Sturman finds out…
T
he breakroom was a category full of promise and endless potential as room designs and food and beverage habits waxed and waned. COVID put the skids on breakroom sales as buildings emptied during the pandemic and, in many cases, are yet to return to pre-2020 capacity as hybrid working persists. For employees that do work in an office, there is a lingering wariness over shared facilities, equipment and utensils. It’s not all doom and gloom, however. Because of all of the above – coupled with the after-effects of coronavirus in terms of trends such as a renewed interest in sustainability – the breakroom environment is currently being reinvented. The emphasis is on cleanliness, higher-quality products/equipment, and careful consideration of space utilisation. Importantly, the breakroom is being used to entice staff back to the office. As Emerald Brand Managing Director Ralph Bianculli Jr remarks: “As corporations are pushing for employees to return to the office, they are incentivising them with major investments in pantries, corporate dining facilities and catering.”
The breakroom is part of the back-to-office strategy while OP is not Inflation is already having an effect which, says Office Snax CEO Todd Elmers, has caused significant price increases for commodities and by-products such as sugar and corn starch. This has resulted in steeper prices across the snack and candy product categories. “Shrinkflation will occur following the trends detected in the grocery and big box channels, with items shrinking in size to make up the inflation-related cost increases.” Leazer agrees, adding that inflation is impacting other breakroom supplies, especially cups, utensils, stirrers and equipment, but is also a factor in coffee and water services. At Dutch wholesaler/dealer group Quantore, Head of Purchasing and Category Management Dennis Albers predicts breakroom sales will continue to grow through a clear surge in demand
July/August 2022
ON THE AGENDA Mark Leazer, Executive Director of US national accounts organisation AOPD, and Craig Church, VP of Sales at dealer Miller’s Supplies at Work, both believe that customers are now far more willing to engage in conversations about the breakroom – including jan/san and facilities supplies – than office products. They agree that the breakroom is part of the back-to-office strategy while OP is not. According to the Retail Tracking Service from market research firm The NPD Group, the US
janitorial and breakroom categories grew 1% in retail dollar sales for the 12 months ended April 2022 versus the prior year. The key drivers of the retail dollar volume growth include paper towels, napkins and dispensers, and tissue and dispensers – mostly thanks to a rise in average selling prices (ASPs) of 8% and 7%, respectively. Based on NPD’s latest Future of Office Supplies report, the retail outlook for janitorial and breakroom supplies shows dollar sales will be up 10% year on year in 2022, down 2% in 2023 and flat in 2024. Again, the principal growth driver is ASPs within the paper-based categories.
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