September-October 2022 - 18

CHART 5A: % OCS sales
by supplier type
SUPPLIER TYPE
Private label
Local coffee brands
(known to customers)
National brand -
value coffee
National brand -
specialty coffee
Espresso coffee
2022
26.7%
22.55
34.5
10.75
5.5
CHART 5B: % OCS sales
by product category
PRODUCT CATEGORY 2022
Frac pack
Whole bean coffee
K-cups
Single cup (non K-cup)
33.8%
36.9
14.5
14.8
CHART 5C: Top-selling OCS
products for past 12 months,
by volume
TOP PRODUCT
Local coffee brands
Private label
Value frac packs
Specialty drinks
Whole bean
National brand coffees
K-Cups
Single-cup
Tea
Pantry or direct
delivery service
(food/snacks/beverages
delivered to locations)
Water filtration service
(point-of-use/POU)
2022
25%
15
5
15
20
5
10
5
HIGH COSTS AND
HIGH DEMANDS
According to the data from the
International Coffee Organization,
green coffee prices reached a 10-year
high in late 2021 and continued into
the first half of 2022. Weather, both
drought and frost in 2021 in Brazil,
as well as global supply constraints
and other pandemic-related issues,
have had a substantial impact on the
coffee market. For 2022, inflation is
an additional factor in the rising cost
of coffee.
OCS operators tried to combat the
10.4%
12.9%
26.3%
33.2%
24.6%
2020/21
5.5%
challenges of rising costs in products,
equipment, coffee, fuel and shipping.
Some raised prices, and others
absorbed costs. A small percentage of
operators chose to divest their OCS
businesses. Many adjusted their
product mix and began selling
additional services. About 14% of
operators added pantry and water
service, and 7% added micro markets.
Of those that added micro markets,
bean-to-cup brewing was the dominant
choice of coffee service system.
In 2021, whole-bean varieties
CHART 5D: OCS product
category, % of sales
PRODUCT CATEGORY
Coffee
Non-coffee hot beverages
Soft drinks
Bottled water (5 gallon)
Creamers/sweeteners
Cups/plates/paper
products
Tea
Pantry service/micro
kitchen (paid by employer
offered to employees)
Water filtration service
(non bottled)
Ice machines
2022
41.5%
6.9
9.3
7.5
6.8
9.1
7.1
3.5
5.2
3.1
showed an increase from 2020, and
frac packs were also among the
dominant coffee products sold in the
OCS channel. Operators continue to
provide high-quality coffee, with local
coffee brands familiar to clients (25%)
as the top-selling OCS product, then
nationally branded coffee (20%),
private-label products (15%), whole
bean (15%), and single-cup at 10%.
Almost 39% of respondents said
brand is fairly important to customers,
50% said important to some and not
others, and 11% said it's not important
for the majority.
For OCS product categories, ice
machines showed a notable jump in
2021 sales due to customer demand.
Technology is also among the new
services that some OCS operators are
adding. Nearly 78% said they offered
online ordering of coffee or related
18 Automatic Merchandiser * September/October 2022
21.5%
2021/22
products in 2021. And a little over
30% said they are using industryspecific
software to manage OCS
business; 16% are using the same
software for vending.
Trends in sustainability and
environmental concerns also affect
the products that OCS operators offer
to their customers. More than half
of the respondents said they offer
recycled products (cups, filters, pods,
utensils), 16% said they offer water
filtration devices to reduce bottled
water, and a little over 11% said they
supplied coffee with attributes such as
organic and fair trade.
Cold brew, another trend in the
office coffee service channel, shows
an upward trajectory by the
respondents with over 66% offering
cold brew coffee options to locations.
Among those, 22% offer on-draft kegs
and 16% offer single-serve bottles.
LOCATION
About 42% of operators said the
number of locations of their coffee
service accounts increased in 2021;
26% said the number remained the
same; and 31% said it decreased.
In 2021, the typical location
population of coffee service
accounts from respondents had
39.8%
19.1%
6.7%
CHART 6: Plumbed-in, automatic
and thermal as % of total
● Pourover glass pot
● Automatic thermal
● Pourover thermal
● Automatic glass pot
● Single-cup
163777541 | Nadiia Oborska | Dreamstime

September-October 2022

Table of Contents for the Digital Edition of September-October 2022

Editor’s Note
Industry News
Recession? Choose not to participate and pour on the sales effort
State of the Office Coffee Service Industry Report
40 Under 40
Cold brew solutions in OCS
Bringing Joy to the Workplace
Classifieds
Social Hubs
September-October 2022 - PCOV1
September-October 2022 - PCOV2
September-October 2022 - 1
September-October 2022 - 2
September-October 2022 - 3
September-October 2022 - 4
September-October 2022 - 5
September-October 2022 - Editor’s Note
September-October 2022 - 7
September-October 2022 - Industry News
September-October 2022 - 9
September-October 2022 - Recession? Choose not to participate and pour on the sales effort
September-October 2022 - 11
September-October 2022 - 12
September-October 2022 - 13
September-October 2022 - 14
September-October 2022 - 15
September-October 2022 - State of the Office Coffee Service Industry Report
September-October 2022 - 17
September-October 2022 - 18
September-October 2022 - 19
September-October 2022 - 20
September-October 2022 - 21
September-October 2022 - 22
September-October 2022 - 23
September-October 2022 - 24
September-October 2022 - 25
September-October 2022 - 40 Under 40
September-October 2022 - 27
September-October 2022 - 28
September-October 2022 - 29
September-October 2022 - 30
September-October 2022 - 31
September-October 2022 - 32
September-October 2022 - 33
September-October 2022 - 34
September-October 2022 - 35
September-October 2022 - 36
September-October 2022 - 37
September-October 2022 - Cold brew solutions in OCS
September-October 2022 - 39
September-October 2022 - 40
September-October 2022 - 41
September-October 2022 - Bringing Joy to the Workplace
September-October 2022 - 43
September-October 2022 - 44
September-October 2022 - 45
September-October 2022 - 46
September-October 2022 - 47
September-October 2022 - 48
September-October 2022 - 49
September-October 2022 - Classifieds
September-October 2022 - Social Hubs
September-October 2022 - 52
https://www.nxtbook.com/endeavor/automaticmerchandiser/april2024
https://www.nxtbook.com/endeavor/automaticmerchandiser/februarymarch2024
https://www.nxtbook.com/endeavor/automaticmerchandiser/november2023
https://www.nxtbook.com/endeavor/automaticmerchandiser/september-october2023
https://www.nxtbook.com/endeavor/automaticmerchandiser/august-2023
https://www.nxtbook.com/endeavor/automaticmerchandiser/june-july-2023
https://www.nxtbook.com/endeavor/automaticmerchandiser/april-2023
https://www.nxtbook.com/endeavor/automaticmerchandiser/february-march-2023
https://www.nxtbook.com/endeavor/automaticmerchandiser/november-2022
https://www.nxtbook.com/endeavor/automaticmerchandiser/september-october-2022
https://www.nxtbook.com/endeavor/automaticmerchandiser/august-2022
https://www.nxtbook.com/endeavor/automaticmerchandiser/june-july-2022
https://www.nxtbook.com/endeavor/automaticmerchandiser/april_2022
https://www.nxtbook.com/endeavor/automaticmerchandiser/february-march-2022
https://www.nxtbook.com/endeavor/automaticmerchandiser/december-2021
https://www.nxtbook.com/endeavor/automaticmerchandiser/october-november-2021
https://www.nxtbook.com/endeavor/automaticmerchandiser/September_2021
https://www.nxtbook.com/endeavor/automaticmerchandiser/august2021
https://www.nxtbook.com/endeavor/automaticmerchandiser/automatic_merchandiser_june-july_2021
https://www.nxtbook.com/endeavor/automaticmerchandiser/automatic_merchandiser_april_2021
https://www.nxtbook.com/endeavor/automaticmerchandiser/automatic_merchandiser_february-march_2021
https://www.nxtbook.com/endeavor/automaticmerchandiser/december2020
https://www.nxtbook.com/endeavor/automaticmerchandiser/AUTM_1020
https://www.nxtbook.com/endeavor/automaticmerchandiser/september2020
https://www.nxtbook.com/endeavor/automaticmerchandiser/august2020
https://www.nxtbook.com/endeavor/automaticmerchandiser/junejuly2020
https://www.nxtbook.com/endeavor/automaticmerchandiser/april2020
https://www.nxtbook.com/endeavor/automaticmerchandiser/Automatic_Merchandiser_February-March_2020
https://www.nxtbook.com/endeavor/automaticmerchandiser/december2019
https://www.nxtbook.com/endeavor/automaticmerchandiser/octobernovember2019
https://www.nxtbook.com/endeavor/automaticmerchandiser/september2019
https://www.nxtbook.com/endeavor/automaticmerchandiser/august2019
https://www.nxtbook.com/endeavor/automaticmerchandiser/junejuly2019
https://www.nxtbook.com/endeavor/automaticmerchandiser/april2019
https://www.nxtbook.com/endeavor/automaticmerchandiser/februarymarch2019
https://www.nxtbookmedia.com