Frothing Over

Coffee still plays an important role in the foodservice sector and, despite the current volatile market, continues to offer caterers opportunities. Sheila Eggleston reports.

The UK has become a magnet for aficionados, consumers and businesses, appreciating a good coffee brand.

According to consultants Allegra Strategies, there are more branded coffee bars in the UK than anywhere else in Europe, with Caffe Nero, Costa and Starbucks heading the league.

Allegra predicts the market to reach 10,000 by 2010 and exceed 14,000 by 2015 and, while in the current economic downturn it believes there will be a "limited impact" on long term market growth, it may impact on consumer expectations.

With these predictions about growth, no wonder there was a storm in a coffee cup in July when Coffee Republic, one of the leading chains in the UK, took the sector by surprise when it went into administration.

In August however it was back in the game – acquired by the privately owned London based property investment firm Arab Investment, which recognised the value of the brand and has lined up investment and expansion plans for the chain here and overseas.

Further acquisitions from interested foreign buyers include leading Italian producer Café do Brasil, owner of the Caffé Kimbo and Caffé Kosé brands, which has acquired the business assets of the Metropolitan Coffee Company in the UK.

At the time Café do Brasil CEO Michele Rubino said it was a "strategic move to provide Café do Brasil with a firm foothold" as it prepared to launch Caffé Kimbo, its best selling traditional Italian espresso, into the UK foodservice sector. The name Metropolitan would continue as a subsidiary of the business and be its sole UK distributor. Metropolitan's managing director Angus McKenzie said he looked forward to being part of "a dynamic, forward looking company with a clear focus for the future and real passion for what they do".

According to the TNS out of home survey in February 2009, coffee is doing very well in the out of home sector, a view echoed by Nestlé Professional's marketing director Martin Lines. "In the UK market, coffee is performing extremely well, having just overtaken tea as the most commonly consumed beverage out of home.

"In fact, it is one of only two drinks to have grown sales in this market, the other being pure juice. Now is the time to maximise this opportunity and invest in a good quality coffee offering.

"There are many things to consider when putting together a coffee menu, and this depends greatly on your clientele and the most popular times of the day for your outlet.

"For example, cappuccino is preferred by men between 25 and 34 years and consumers most often request this drink in the morning and between 2pm and 6pm; whereas latte is most often drunk by women between 35 and 64 years old and sales tend to peak during the morning.

"It is therefore imperative to think about what range you offer and how, depending on the outlet's footprint, throughput, customer type and budget.

"Putting in place the right solution is vital to ensure that every cup of coffee receives the same degree of care and attention so that the presentation and the serve are of optimum standard time and again.

"We have a full range of café style coffees and these come in a range of formats, such as vending machines, table top systems and catering tins. For caterers interested in creating a profitable coffee menu, Nestlé has consultants ready and waiting to give advice and support."

Douwe Egberts customer marketing manager Helen Cridge says the state of the economy this year has had an impact on coffee sales in the out of home market. However it's not all doom and gloom out there.

"Our customers have been telling us that consumers are still buying their daily latte or cappuccino but are cutting back when it comes to added value options such as large sizes and syrups.

"Consumers still see coffee as an affordable indulgence but they are adopting a 'back to basics' approach so that they can still justify and enjoy a daily purchase.

"The latest Allegra report indicates 40% of consumers site price as a key consideration when they choose where to purchase their coffee from. It highlights that consumers are placing greater emphasis on value for money options – lower costs, yet still high quality. This is where the foodservice sector can really benefit.

"By offering a good quality, trusted brand of coffee at an affordable price they can secure a loyal customer base, which will stand them in good stead."

Douwe Egberts recently brought out an instant coffee range in 10 x 300g packs for the vending industry.

It claims Pure Gold, the flagship product in the new range, is currently the fastest growing freeze dried instant coffee brand in the retail sector, while Good Origin is an ethical option being 100% Utz certified. Its Original blend and Decaf complement the range.

"Coffee has become an integral part of our society and will remain so for many years to come," says Cridge.

"Despite the current economic climate, coffee volume should remain stable.

"What we will see in the coffee market is a continued improvement in the quality of the offering in all outlets as consumers' expectations continue to grow.

"It will become a necessity for operators to provide quality assurance and a clear identity of serving a good quality cup of coffee to survive the downturn.

"Competition will heighten in the high street as more foodservice outlets – delicatessens, bakeries, etc – mirror the offering at coffee shop chains, which will continue to seek growth through franchising."

Cridge believes ethical and sustainable products will remain a must have for consumers and will influence their purchasing decisions over the coming years. "Foodservice companies and outlets need to look at placing a greater focus on sustainability in all aspects of everyday business. I think sustainably sourced coffee will become the norm and not a niche."

Sustainability is one of three essentials the Kenco Coffee Company says it is focusing on for a successful beverage service – the other two being quality brands and great value.

Kenco is backing its certified instant coffee with a £7m media campaign to keep brand awareness to the max. Around 75% of the beans the company sources for its Kenco freeze dried coffee range come from Rainforest Alliance certified farms.

The company says: "Our work with the Rainforest Alliance helps to ensure a better quality of life for coffee farming communities and helps protect the environment and the wildlife that depend on it.

"Kenco is among the first mainstream, quality brands with such strong ethical credentials and it's an important message to carry through to customers front of house. With Kenco you can serve a sustainably farmed coffee at every hot beverage consumption point."

Since August the company has been offering a hot drinks on the go system under the Kenco FreshSeal 2Go name, which it says is easy to use and works in conjunction with FreshSeal products such as Rainforest Alliance certified Kenco freeze dried instant coffee and its Suchard hot chocolate flavour drink, plus other branded offerings.

Kenco says the unit is simple to install and operate, as well as being quick and easy to clean. It can be plumbed or there is a non plumbed version and it says its neat footprint means it can fit into small spaces.

First Choice Coffee's Grand Café certified coffee range now includes its new triple certified products, with all three accreditations – Rainforest Alliance, fairtrade and organic.

Managing director Elaine Higginson says: "With certification from three of the biggest names in ethical accreditation Grand Café coffee really ticks all the boxes. The triple certified coffee is ideal for operators who want to provide an ethical choice without needing to make a differentiation between the accreditation.

"Beverages have been in the vanguard of ethical trading and many catering operators have turned a good deed into a competitive advantage by evidencing their CSR credentials through the coffee they serve.

"Our Grand Café range promotes sustainable farming by benefiting coffee growing communities and protecting their environments. The development of the brand is part of our commitment to responsible business practices and is in response to the growing demand from consumers; more than 80% of all the coffee we sell is now 100% certified."

Over the last five years, fair-trade pioneer Cafédirect has invested more than £3m in its producer partners, representing more than half of the company's profits, and has paid more than £7.5m above market prices for its raw materials, it says.

Despite the downturn in the global economy, it announced record results for the 2008 financial year. Turnover for the year totalled £22.34m, slightly up on 2007, and profits were £901,000.

CEO Anne MacCaig says the results show that "it demonstrates that doing business in a socially and environmentally responsible manner continues to matter".

Aimia Foods category marketing manager Carys Delve says selecting the appropriate coffee menu is all about knowing your clientele and the issues that are important to them such as organic and ethically sourced products.

"At present more than 900,000 cups of fairtrade coffee are drunk every day in the UK and sales are increasing at 40% year on year so consumer demand cannot be ignored," she says.

"With 80% of our coffee currently coming from fair and ethical sources, we are perfectly placed to help the foodservice industry respond to this demand at a variety of price points."

Coffee system supplier Café du Monde has also added to its green credentials with the inclusion of two new Rainforest Alliance certified coffees in its range. These are premier cru beans for espresso use and a filter coffee roasted, ground and portion packed for bulk brew and pour and serve machines respectively. The coffee used in the new blends is sourced from the acclaimed Monte Sión farm in northern El Salvador, Central America.

Coffee roaster Gala Coffee has launched Gala Coffee Direct, an ecommerce site offering customers the opportunity to purchase a range of branded coffee at the click of a button.

Targeting independent coffee shops, small chains as well as bars, hotels and restaurants, the company claims this is the first time it has been possible and will enable customers to buy its Lyons, Templo and Rossano brands in the quantities they want.

Once ordered and paid for online, the goods are delivered within two working days.

Managing director Murray Leslie says: "Our aim has been to create a fantastic website, with straightforward navigation and a simple ordering system, plus also to ensure that we can deliver an excellent and consistent standard of fulfilment to new and existing customers using the service.

"Many customers tell us they struggle to find these qualities in one solution – this essentially is what Gala Coffee Direct is all about.

"The site will be constantly evolving and new products and SKUs will be added according to demand to meet individual requirements, so that we can provide a one stop shop for all coffee needs."

The Drury Tea & Coffee Company is now offering its 250g speciality coffee with new packaging and it has separated the range into six different categories: Coffee of the East, of the Americas, of Africa and of the World, together with espresso coffee and Rainforest Alliance coffee.

Each section has a menu of interesting varieties, in many cases originals, single estate or blended for a specific application, such as Monsooned Malabar, Kenya Peaberry or Caffè Siena.

Twinings too has recently launched Options Café Coffee in convenient single serve 14g sachets.

Available in three variants: Dreamy Cappuccino, Luscious Latte and Melting Mocha, it is made from unsweetened coffee with just over 60 calories per cup that only needs hot water for frothy, creamy, low calorie coffee. It will be backed by a heavyweight TV campaign this year.

The company says it is targeted at self-service occasions out of home, including staff catering sites, leisure, conferencing and hotels that offer in-room beverage stations.

"Options' success in hot chocolate has demonstrated the demand for a low calorie, great tasting hot beverage treat. "

As a high profile brand, the launch of Options café coffee not only enables operators to offer a complete low calorie hot beverage selection without the need for costly machine investment, but it can also drive profits because of its premium quality positioning," says senior customer marketing manager Andrea Stopher.

Lotus Bakeries says it understands that coffee breaks are about more than just a hot drink, and that they are a moment for relaxing, reflecting and recharging.

It says each year, more than one billion individually wrapped Lotus caramelized biscuits are consumed in cafés, restaurants, salons and hotels all over the world and, in the UK, it claims it is the top selling branded coffee accompaniment, accounting for one in four of the occasions when a complimentary product is added to a saucer.

A traditional family owned business, it still bakes in the small Belgian town of Lembeke offering biscuits with a hint of cinnamon that complements coffee and tea.

Meanwhile Brits' love of white coffee is well known, particularly their preference for cappuccinos and lattes so milk and whiteners are just as important as the coffee they are mixed with. Aimia has responded to this trend with the recent launch of Milfresh Mooo2 whitener.

Made from 100% dairy ingredients, it claims it is suitable for a range of coffee machines, including bean to cup.

Aimia's Delve says to offer healthier options means addressing the fat content of drinks taken with milk.

"The British are famous for their taste in 'milky' drinks; four out of five cups of coffee and nine out of 10 cups of tea are drunk white in the UK and the most popular white coffee is cappuccino which, by strict definition is two thirds milk and one third coffee.

"The milk component is therefore not only a vital component of the resulting hot beverage, it represents an opportunity to offer healthier options."

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