Feature - Home Café

AT-HOME COFFEE

Demand continues to grow

BY EMILY BENCIC

The home café category experienced 11% unit growth and 25% value growth for the year to June 2021, according to GfK data. Strong year-on-year growth continued until March 2021, at which point cycling began over the initial surge brought on by the pandemic from the same time last year.

Nonetheless, demand remains high for quality coffee at home, seen by the uplift of premium segments with automatic machines up 13% and manual machines up 38%, as most people maintain work from home arrangements.

Euromonitor confirmed that café culture continues to thrive and with Australians spending more time at home, they have been investing in their home office and mimicking their daily life prior to Covid-19.

“One of the appliances they have been purchasing is espresso machines, which is experiencing year-on-year volume and value growth,” Euromonitor International Australia head of research, Tim Foulds said.

“Key growth drivers include consumers wanting café quality coffee experiences at home and customisation when it comes to bean type, strength and temperature. With that, growth is also visible in categories such as coffee mills and milk frothers. The shift from high volume turnover items is visible as shoppers look for better performance models and high-quality features.”

DE’LONGHI

Jessica Hull

Category Manager

De’Longhi remains focused on being agile and has adapted to ongoing changes by modifying key interactions with consumers and trade to reach more people more efficiently.

“Our sales and training teams have embraced remote communication and video content for presentations and training. By reaching and engaging more staff around the country and utilising agile advertising methods, particularly digital channels, we’ve seen great success from our product launches through these newer ways of working,” Jessica Hull said.

One of De’Longhi’s recent machine launches, the PrimaDonna Soul is performing above expectations among both new consumers and those wanting to upgrade, in line with an increasing shift towards the premium end of the coffee market.

“These consumers want the finer things in life, including great quality coffee, and they are willing to pay a premium for the latest technology to bring the café experience home.”

Reducing its environmental footprint continues to be a focus for De’Longhi, which is a signatory to the Australian Packaging Covenant (APCO) and claims to receive “beyond best practice scores in all core criteria” when benchmarked against other APCO members.

During times of lockdown, De’Longhi staff in both head office and in the field have embraced new ways of working. “We’ve enjoyed an ongoing engagement program from HR to ensure that staff are constantly connected and engaged in a wide range of activities,” Hull said.

De’Longhi recently kicked off its biggest abovethe-line campaign to date, combining TVC and digital activity, featuring the company’s new global ambassador, Brad Pitt. The campaign, which is running through to Christmas, is complemented by ongoing retail support to launch the new De’Longhi La Specialista Arte manual pump coffee machine.

“This product brings all of the investment in design, technology and innovation that we’ve seen in previous La Specialista models and combines it into a compact product that is sure to be a game changer,” Hull said.

“We are confident that our record investment in our biggest campaign ever will provide huge impact and further accelerate momentum in the coffee category.” AR

De’Longhi La Specialista Arte

- Active temperature control

- Three pre-set recipes – espresso, long black and hot water

- Unique dosing and tamping guide and MyLatte Art steam wand for microfoam

- Barista accessories included – milk jug, metal tamper, tamp mat, single-wall baskets and cleaning tools

RRP: $799

JURA

Melinda Nuzzaco

Marketing Executive

The supply chain remains volatile and ongoing challenges have forced Jura to focus on business continuity through improved channel and inventory management.

“To ensure that we remain present, we are investing heavily in integrated marketing campaigns that showcase our latest innovations in the lead up to Christmas,” Melinda Nuzzaco said.

Aligning with Jura’s core DNA of producing premium coffee machines for the home, there has been an increasing trend toward product premiumisation.

“We have seen strong growth in our mid to premium lines, as consumers place more importance on the longevity of their investments. Our research tells us that consumers’ willingness to pay is in line with quality and durability as opposed to additional features so this will remain a core focus in our messaging.”

Demand for quality also ties in with a greater consumer awareness around sustainability, which is reflected in Jura’s brand promise and slogan: ‘coffee pleasure – freshly ground, not capsuled’ to emphasise the ability to use fresh beans not coffee pods, eliminating packaging waste. “In addition, all of our products are designed with energy save mode and switch off after programming to mitigate power usage.”

At the peak of the pandemic, every Jura employee was equipped with a laptop and new phone system, which enabled most employees to work with the same productivity levels from the comfort of their home. “Flexibility in allowing employees to work from home has allowed staff to stay motivated and feel safe.”

In response to the important role that online plays in the consumer research journey, particularly when physical stores are closed due to lockdown restrictions, Jura has adapted its marketing approach to reach its target audience wherever they are spending time online, whether it be on social media, Google search or catch-up TV.

“Together with our online advisory service, Jura Live, we are able to remain relevant and at the forefront of consumers’ minds if they are searching for a new automatic coffee machine.” AR

Jura Z10 Hot & Cold Automatic Coffee Machine

- Pioneering Cold Extraction Process

- 32 coffee specialties at the touch of a button

- 4.3-inch touch display and Blue Crystal Rotary Switch

- Product Recognising Grinder (P.R.G.) makes it possible to produce cold brew espresso and café latte

RRP: $4,150

NESPRESSO

Mariah Monaghan

Head of Marketing

As sales continue to gravitate online due to snap lockdowns, Nespresso is calling on retailers to review and improve their online customer journey by delivering engaging content, various shipping options and providing information in real-time such as via chat capabilities.

“Brands should put themselves in the position of the consumer and ask ‘If a person was shopping in a physical store or online today, would they have a similar experience? Is it easy to find products and check out quickly? If there are promotions, is it easy to understand the call to action and how to participate?’ Online or in-store mystery shopper surveys are ideal to tap into online health and understand where improvements can be made,” Mariah Monaghan said.

Retailers must also be agile and have processes in place ahead of time to pivot quickly as circumstances change to minimise sales disruption.

“For example, once a lockdown is announced in one state, promote Click & Collect and contactless shipping options to database members and update the website to include different shopping options by state, if applicable. Website content may have to be updated more regularly to include new banners with promotional information to mirror in-store point of sale messaging.”

As people spend more time at home, Nespresso has seen strong demand for coffee machines across all price points, with many consumers purchasing their first coffee machine, while others trade up to a more premium machine with added features and benefits.

“We have also seen increasing demand for the Aeroccino3 Milk Frother, both as a standalone product, and together with machines such as our Vertuo range,” Monaghan said.

Sustainability is at the core of the Nespresso business, reflected in its dedicated AAA Sustainable Quality program, local recycling initiatives, use of aluminium coffee capsules, and products including the Nespresso Vertuo machine made using 54% recyclable material and sold within fully recyclable boxes made from 95% recycled material.

“Most importantly, every cup of Nespresso coffee will be carbon neutral by 2022 by increased energy efficiency, insetting and offsetting, and covers the whole product lifecycle, from growing beans on the farm to transportation, customer consumption and end of life.”

In addition to sustainability, Nespresso Professional recently commissioned research on the Workplace of the Future 2021, which confirmed the desire for a workplace that is flexible and socially engaging through the creation of memorable moments.

“We want to offer an inspiring environment for our staff, to ensure their wellbeing is reflected in their work. Moments spent with colleagues and friends have become more important, and we want to help make them memorable to keep staff engaged and feeling productive.”

Nespresso is constantly investing in new machines, taking advantage of the latest technology and colour extensions to keep ranges fresh and align with design trends. “We always support new launches with a comprehensive marketing program including a mix of media, point-of-sale material, tasting and training programs,” Monaghan said. AR

Nespresso Vertuo Next & Aeroccino3 Milk Frother Bundle

- 30 second heat up time

- Intelligent barcode technology

- One-touch operation on the machine and milk frother

- Create a range of coffees including double espresso, cappuccino, iced coffee and more

RRP: $349

NEWELL BRANDS

William Tran

Associate Manager, Brand Marketing APAC — Coffee

Social distancing, stay at home orders and hybrid working have become the norm and driven fundamental changes to consumer behaviour, according to Newell Brands’ William Tran.

“As a result, online shopping has increased significantly, and is likely to continue well after lockdowns are lifted. This means it is imperative to serve consumers where they want to shop by fusing the online and offline shopping experiences,” he said.

“At the core of what Sunbeam stands for is to bring effortlessness to every day – to make every consumer experience more effortless, including pre-store research. With the growing importance of digital channels, Sunbeam will drive consumer awareness through online touchpoints including product reviews, QR codes on in-store point of sale material, engaging product videos, rich photography assets and influencer sponsored content on social media platforms.”

Sunbeam is launching the Barista Yourself campaign that celebrates the joy of learning, making and drinking coffee. “Sunbeam takes pride in making café style coffee fun and effortless to learn for home coffee lovers. To execute this campaign, we’ve leveraged the expertise of an award-winning coffee roaster to bring consumers a series of virtual coffee classes.”

In a remote work environment, more consumers are looking to replicate their local café experience at home, which is driving demand for authentic café quality coffee and trade ups to premium models with better quality features.

“Sales data from the last 12 months has shown that the manual coffee machine category experienced 77% growth, and opportunities for further growth remain as the penetration rate for manual coffee machine owners has not reached its peak,” Tran said.

As for fostering staff engagement when embracing a hybrid work model, Sunbeam has partnered with coffee roaster, Ben Gleeson from Glee Coffee, to host training classes for staff across Australia and New Zealand.

“Learning how to make café style coffee and latte art not only spurs creativity, but it increases engagement and is a great way to bring remote workers together. The key is to keep them interactive so everyone can have fun and learn a new skill in the process.”

Another initiative that Sunbeam has introduced is the virtual coffee club, providing an opportunity for a 15-minute oneon-one catch up with colleagues. “Coffee is part of our DNA and the driving force for culture, conversation and connection. Employees crave connection and this allows them to share what’s happening in their lives, celebrate milestones, offer support and build relationships with one another.”

When it comes to reaching end consumers, Sunbeam recognises the increase in media consumption as people spend more time at home and has shifted its marketing approach accordingly.

“Online remains an important pre-store research tool for many shoppers so we have ensured all of the key information is provided upfront, alongside an increased allocation of marketing resources to digital channels including online videos, social media, influencer partnerships, display and branded content,” Tran said. AR

Sunbeam Barista Plus Espresso Machine EMM5400BK

- Temp°IQ Shot Control for optimal temperature

- Enjoy café style coffee in under three minutes

- Integrated stainless steel conical burr grinder with Tap & Go technology

- Digital grind and shot timer provide feedback for consistent dosing and extraction

RRP: $849

BOSCH

Christine Haas

Category Manager — Cooking

To leverage the growth in built-in kitchen appliances including coffee machines, Bosch has launched new campaigns and product ranges to meet customer demand.

“We continue to focus on planning excellence and a strong product portfolio driven by consumer needs and trends. There has been a spike in sales and interest for fully automatic coffee machines and we expect this to continue as people adapt to home coffee consumption,” Christine Haas said.

“Continuous lockdowns have driven an increasing shift towards more premium built-in coffee machines. The integration of built-in appliances in stacked tower or horizontal configurations now not only includes ovens and steam ovens, but also integrated coffee machines to perfectly round out a gourmet experience.”

In September, Bosch introduced a new premium product line, Bosch AccentLine, in a modern Carbon Black design where the handles and operating ring are discreetly incorporated for a more premium look.

“It offers consumers more choice in terms of design aesthetics, while still maintaining the intuitive features synonymous with Bosch built-in appliances.”

In addition to aligning with the latest design trends, Bosch remains conscious of its sustainability credentials with all BSH locations worldwide now carbon neutral with all products developed and manufactured without leaving a carbon footprint.

As for maintaining staff engagement when restrictions are in place, BSH Australia is offering staff a balanced office and remote working roster. “This allows employees to enjoy the benefits of collaboration, as well as the flexibility of working from home.”

To support its built-in product launches, including coffee machines, the Bosch marketing strategy incorporates campaigns, promotions, digital and social media activations. “Our content is designed to be informative and fun, highlighting product benefits while inspiring consumers to consider purchasing products that go the extra mile.” AR

Bosch Series 8 Built-In Fully Automatic Coffee Machine CTL636EB6

- SensoFlow System guarantees an ideal constant brewing temperature

- MyCoffee allows users to save eight favourite beverages

- Fully automatic steam cleaning after every beverage

- AromaDouble Shot for extra-strong coffee with less bitterness thanks to two grinding and brewing processes

RRP: $4,199

GLEN DIMPLEX

Richard Banks

Product and Sales Assistant — SDA

Glen Dimplex will continue to support retailers and work closely with them for new product development as consumer demand remains above pre-Covid levels.

“Morphy Richards has a long history of offering mid-premium quality products with exceptional value. With people spending more time at home, they are investing in products featuring on-trend colours and designs that add style and flair to the kitchen,” Richard Banks said.

Glen Dimplex works closely with its suppliers to produce recyclable packaging and provide more environmentally friendly protective material. “This is a key focus for us now and will continue to be an important consideration moving forward.”

The company is finding the right balance between working from home and in the office with regular meetings to help keep staff engaged, as well as deliver greater efficiencies and collaboration. “An employee assistance program is available for employees that require additional support.”

Like the rest of the industry, Morphy Richards’ sales teams have had to revert to phone and online meetings in place of face-to-face interaction with retail partners. “It has been challenging for in-store merchandising and training; however, product launch packs are given to retailers and sales teams to distribute.” AR

Morphy Richards Rose Gold Filtered Coffee Maker

- Thermostatic hotplate ` 12 cup or 1.8-litre capacity ` Glass with hinged lid carafe

- Auto shut off function and keep warm for 30 minutes

RRP: $99.95

SMEG

Luca Duarte

Product Manager — Small Appliances

Smeg continues to focus on creating high quality, easy to use coffee machines that deliver professional results for the home barista.

“Our new fully automatic bean to cup machine features a conical burr grinder, 19-bar professional pressure and Thermoblock heating system, in addition to a steam wand for perfectly textured milk,” Luca Duarte said.

“We know that Smeg customers appreciate beautiful design and ease of use in the home café category and our auxiliary products such as coffee grinder and milk frother provide an opportunity for customers to grow their collection, while our extensive colour palette offers a hue to suit any taste or style.”

Environmental sustainability remains a priority for Smeg across product development, manufacturing, and supply chain. “We are also committed to reducing landfill with whole bean and ground coffee machines only.”

When it comes to staff engagement, Smeg undertakes regular product sessions to help employees remain focused on weekly tasks, which is supported by online communication platforms that have made processes more efficient, according to Duarte.

As for product launches, following the development of promotional material such as books and videos, the Smeg team delivers product training, with demonstrators and merchandisers providing exposure in stores. AR

Smeg Bean to Cup Coffee Machine BCC02

- 19-bar pressure

- Six coffee beverage functions

- Thermoblock heating system

- Stainless steel conical burr grinder

RRP: $1,299

NESTLÉ

Raelene Fanning

Marketing Manager — Nescafé Dolce Gusto

Consumers are becoming increasingly demanding and discerning when it comes to coffee quality, according to Nestlé’s Raelene Fanning.

“This trend has been evident for quite some time but was accelerated during Covid-19 as people sought to recreate the café experience at home and experiment with various coffee recipes, such as cold brew and flavours like single origin,” she said.

“Growth in ecommerce and online subscriptions has supported the shift to more customised solutions which Nescafé Dolce Gusto (NDG) is well-positioned to take advantage of. Our Starbucks by NDG offering continues to drive premiumisation across the brand.”

End-of-life is an ongoing focus in the NDG Sustainability Strategy with the aim to improve recycling of coffee capsules and increase the number of collection points in key locations each year. “Our products feature end-of-life labelling to help guide the consumer and support local collection, sorting and recycling infrastructure.”

NDG will continue to leverage the power of the Starbucks brand to drive overall system appeal, which is supported by the Make It Yours At Home campaign and in-store sampling, when possible. AR

Nescafé Dolce Gusto Starbucks GenioS Plus Black Bundle with Frother

- 15-bar high pressure system

- Intuitive LED control to manage settings

- Play & Select function to customise beverage size

- Offers 16 coffee recipes including espresso and cappuccino

RRP: $119