Subscribe
Copied to clipboard
Share
Share
Copied to clipboard
Embed
Copied to clipboard
Recap: Recent Developments in Coffee
Trailer
Bonus
Episode 16
Season 1
#16 | August 27, 2020
Welcome to Recap, a brief overview of recent coffee developments every two weeks from the Specialty Coffee Association, made possible with the support of DaVinci.
Special Thanks to Our Sponsor, DaVinci
This episode of Recap is made possible with support from DaVinci. With its heritage in specialty coffee and expertise in trends and menu innovation, DaVinci is the beverage brand of choice for the foodservice professional. Their product range is designed to provide end-to-end solutions and support specialty coffee professionals in their mission to create inspirational beverages. Follow us at DaVinci Europe, DaVinci North America, or using #WeAreDaVinciGourmet.
Welcome to Recap, a brief overview of recent coffee developments every two weeks from the Specialty Coffee Association, made possible with the support of DaVinci.
As communities endure lockdown around the world, market researchers are tracking a strong increase in at-home consumption. In the UK, the Guardian reports that consumers spent an additional GB£24 million in tea and coffee sales across July. Across the Atlantic, Keurig and Breville both reported increases in sales of their respective home brewing devices. Searches for coffee subscription services—whether for whole bean, ground, or specialty instant offerings—yield numerous features across popular media outlets touting lists of “the best coffee subscriptions for every kind of coffee lover.” Less anecdotally, the SCA’s own research with Square showed a 109% increase in subscription coffee sales for coffee shops. A separate SCA COVID-19 community impact survey confirmed this trend, reporting that 42% of the responding businesses saw a significant increase in online coffee revenues. As specialty coffee roasters around the world worked to grow their online sales, an explosion of brew guides and other home-consumption content appeared across our feeds.
This trend for increased at-home coffee consumption is reflected across investment news outlets. JDE Peet’s, which encompasses several coffee brands including Peet’s Coffee, L’OR, Douwe Egberts, Tassimo, and Kenco, reported growth across the first half of 2020 despite the challenges of the COVID-19 pandemic. The company attributed this to the variety of companies in its portfolio, remarking that it allowed them to “quickly adapt to rapidly changing consumer habits, following the dynamic shift of cups from the away-from-home to the in-home environment.” Nestlé and Nespresso reported similar growth across the first half of 2020, particularly across their coffee at-home product category. But the trend isn’t limited to large, multinational brands: At this year’s Re:co event, James Watson, a beverage analyst with Rabobank, reported strong growth in US grocery sales of whole bean coffee since March. This metric is often used as a proxy for specialty coffee sales.
As the pandemic continues to push consumers into this segment of the market, some specialty coffee companies have begun to focus on making coffee easier for consumers to access and enjoy. In Australia, Market Lane set up a vending machine full of roasted coffee and brewing equipment outside of their shop for customers’ 24-hour access. Online retail is one way to reach customers through fluctuating lockdowns, so some roasting companies are exploring more “ready to drink” options, like white-label specialty instant coffee services or growlers of cold coffee. Notably, Cometeer, a company offering frozen specialty-grade coffee has participated in group purchases of the 2020 Cup of Excellence winning lots across Ethiopia, Nicaragua, Guatemala, El Salvador, and Costa Rica. Cometeer’s coffee capsules were the recipient of a 2019 Specialty Coffee Expo Best New Product Award in the Open Class category.
Despite more people brewing at home, coffee companies are still struggling with the current climate of work closures and social distancing measures. In the second iteration of our COVID-19 community impact survey, 48% of respondents said the impact on their business was significantly or existentially negative. However, there was a significant shift in optimism between the surveys, opened in March and June, as specialty coffee companies are learning to adapt and survive in the current pandemic.
This episode of Recap was made possible with the support of DaVinci. If you want to dive deeper into anything you heard today, check out the links in the description of this episode. Recap will be back in two weeks’ time. Thanks for listening.
Further Reading:
- Market researchers are tracking a strong increase in at-home consumption.
- COVID-19 and Specialty Coffee Survey Response: Survey Results and Key Learnings (SCA News)
- Second Community Survey: Continued Impact of COVID-19 (SCA News; results forthcoming!)
- Specialty Coffee Consumption and COVID-19: The 2020 Square x SCA Coffee Report (SCA News)
- JDE Peet’s In-Home Sales Leads to Strong Growth in First Half of 2020 (Global Coffee Report)
- Nestle and Nespresso Report Growth Despite COVID-19 in Half-Year Results (Global Coffee Report)
- Caffeine Consumption ‘Spiking’ As People Swap Cafés for Coffee at Home (Rolling Stone)
- 12 Best Coffee Subscriptions for Every Kind of Coffee Lover (Good Housekeeping)
- JDE Peet’s, Nestle, and Nespresso report growth in the first half of 2020.
- JDE Peet’s In-Home Sales Leads to Strong Growth in First Half of 2020 (Global Coffee Report)
- Nestle and Nespresso Report Growth Despite COVID-19 in Half-Year Results (Global Coffee Report)
- Specialty coffee companies have focused on new ways to make coffee easier for consumers to access and enjoy.
- Market Lane set up a roasted coffee and equipment vending machine (Instagram)
- Independent coffee hosp reported a 129% increase in sales of “growlers,” large glass jugs filled with ready-to-drink cold coffee (2020 SCaure x SCA Coffee Report)
- Cometeer has participated in the winning bids for the top lots of all 2020 Cup of Excellence Auctions so far (Alliance for Coffee Excellence)
- Despite more people brewing at home, coffee companies are still struggling with the current climate of work closures and social distancing measures.
- The World is Drinking Less Coffee While Office Workers Stay at Home (Bloomberg)
- Somehow We’re All Getting By on Less Coffee Than Usual This Year (Food and Wine Magazine)
- Coffee Drinkers Stay Home, Hitting Some Beans Harder than Others (Wall Street Journal)