Store Brands - December 2017 - 20

TRENDWATCH COLD-BREW COFFEE

THE BIG CHILL
COLD BREW AN UP-AND-COMING BEVERAGE AS
CONSUMERS FALL FOR THE TASTE
By Dana Cvetan

Though overall coffee sales are
slowing, innovative products like
cold brew are sparking new life in
the category, according to global
market research firm Mintel.
Reinvention, particularly in coldbrew and ready-to-drink, is driving
coffee category growth, writes
George Puro in a December 2016
Packaged Facts report, "Coffee and
Ready-to-Drink Coffee: U.S. Retail
Market, 9th Edition."
Though 16 percent of respondents
to a Lightspeed/Mintel online survey
of 1,663 adults said they drink
more cold coffee than they did a
year ago, 13 percent admitted they
were confused about the difference
between cold brew and other cold
coffees. However, 10 percent said
they prefer cold brew to other ready-

20

to-drink cold coffees, according to
Mintel's July report, "Coffee U.S."
"Cold-brew coffee is one of the
fastest-growing non-alcoholic
beverage categories in the
U.S.," observes Andy Renner,
senior director of store brand
strategy and commercialization for
Heartland Food Products Group in
Carmel, Ind.
Citing Nielsen statistics, Renner
says dollar sales of $129 million
for the 52 weeks ending Oct. 28
represent a 554 percent increase
over $23 million recorded two years
earlier for cold-brew coffee.
This growth presents a significant
opportunity for private brands to
introduce and grow their cold-brew
coffee offerings, Renner adds.
Private brands currently

Store Brands /December 2017 / www.storebrands.com

command a 3 percent dollar share
of cold-brew coffee, compared to
10.1 percent of the hot coffee and
40.4 percent of the bottled water
categories, says Renner, citing
Euromonitor statistics.
Taste is the most significant
differentiator of authentic coldbrew coffee versus other liquid
coffees, says Chris Brown, marketing
director for Heartland Food
Products Group.
Made by steeping ground coffee
in cold water for 12 to 24 hours,
authentic cold brew is 100 percent
pure - free from reconstituted
coffee, coffee additives, derivatives,
extracts, flavor systems and
preservatives, Brown explains.
Because it is made without heat or
other advanced extraction methods,
the resulting beverage is sweeter,
softer and smoother than either hotbrewed coffee or coffee brewed cold
and cut with coffee derivatives or
additives, he says.
Its rich, less acidic and less bitter
benefits are primarily enjoyed cold,
Renner says. However, in markets
where it is more established, such as
New Orleans, many consumers are
now enjoying these same benefits in
a heated cup, by adding hot water to
cold brew concentrate, he reports.
Heartland's research shows that
nearly 60 percent of the cold-brew
category at retail is purchased
by millennials. Quoting Cadent
Consulting Group, Renner says
51 percent of millennials (who
in a decade will outnumber baby
boomers by 15 million) have no
real preference for national brands,
compared to 39 percent of boomers.
"This trend puts retailers with
private brands in position to be very
successful, provided their products
meet the high quality standards and
shared values of this demographic,"
Renner adds. SB
Cvetan is a freelance writer from
Barrington, Ill.


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Table of Contents for the Digital Edition of Store Brands - December 2017

Contents
Store Brands - December 2017 - Cover1
Store Brands - December 2017 - Cover2
Store Brands - December 2017 - 3
Store Brands - December 2017 - Contents
Store Brands - December 2017 - 5
Store Brands - December 2017 - 6
Store Brands - December 2017 - 7
Store Brands - December 2017 - 8
Store Brands - December 2017 - 9
Store Brands - December 2017 - 10
Store Brands - December 2017 - 11
Store Brands - December 2017 - 12
Store Brands - December 2017 - 13
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Store Brands - December 2017 - 15
Store Brands - December 2017 - 16
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Store Brands - December 2017 - 18
Store Brands - December 2017 - 19
Store Brands - December 2017 - 20
Store Brands - December 2017 - 21
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Store Brands - December 2017 - Cover3
Store Brands - December 2017 - Cover4
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