Store Brands - May 2018 - 56

CATEGORY INTELLIGENCE COFFEE AND TEA

DRIVING DISTINCTION

DO offer
products with
better-for-you
ingredients, more
functional benefits
and a focus on
more sustainable
and transparent
products.

Coffee can be as mundane as a two-hour college
lecture. The same for tea. But let's get one thing
straight: In this new era of private brands - where
retailers are being challenged to take their own
brands to the next level through differentiation and
exclusivity - these two beverage staples can't afford
to be humdrum.
The good news for retailers is that manufacturers
of private-branded coffee and tea products
understand this and want to help retailers develop
and offer the most distinctive own-brand coffee and
tea products in town. Just ask Clay Dockery, division
vice president of corporate brands for Suffolk,
Va.-based Massimo Zanetti Beverage U.S.A., which
manufactures coffee products for private brands.
"There are numerous opportunities for
differentiating on the basis of origin-based coffees,"
Dockery adds. "We are seeing an increase in calling
out specific growing regions within countries such
as Costa Rica Terrazu or Brazil Bahia."
There are also opportunities to drive differentiated products within the flavored segment - inclusive of but not limited to seasonal varieties, Dockery notes. Retailers can also offer differentiation
through package size, he adds. But Dockery points
out that one of the most important elements of differentiation is through marketing.
"In the private brand industry, your packaging
is the landscape upon which you can share any
information about
the product
you wish," he

Don't
offer coffee
and tea
products
that are only
differentiated
by price.

56

Store Brands / May 2018 / www.storebrands.com

says. "Retailers that have moved to
certified coffee with logo treatment
on the primary display panel and
romance copy on the back or side panels are doing
extremely well in gaining share in the category."
John Harper Crandall, vice president of sales for
Johns Creek, Ga.-based tea provider Amelia Bay, agrees,
noting that the key to successfully attain exclusivity
and differentiation for private brands is through a
great marketing campaign that highlights the authentic
claims that manufacturers choose to target.
"For many of our grocery store and retail chain
customers, private label beverages represent some of
the best-selling products in store," he adds.
Shannon Clayton, senior director of marketing/
beverage division for Oak Brook, Ill.-based
TreeHouse Foods, says private brands offer the
perfect vehicle for retailers to provide "the much
sought-after point of difference" in the coffee and
tea category, especially considering the category is
a destination category where consumers have an
emotional connection to products.
"[Coffee and tea] are growing in the premium
end of their segments as well as the ready-to-drink
(RTD) format," Clayton says. "Retailers with a
premium tier in their private brand offering are best
suited to capitalize on [this]."
Kirby J. Harris, chief commercial officer of
Dakota, Ill.-based Berner Food & Beverage, believes
the rapid change and growth in the coffee and tea
category is driving challenges for suppliers to be in
a position to drive exclusivity and differentiation.
But Harris believes retailers are in the "infancy
stage" of tapping the category when it comes to
differentiation and exclusivity.
"They are highly aware of the opportunity but are
playing catch up versus national brands," he adds.
"Similar to other categories, they are starting with
an approach to national brand match in terms of
quality while driving value for the consumer."
Citing research from market researcher The
Hartman Group, Jerry Gilbert, vice president of retail
sales/North America for Mississauga, Ontario-based
Mother Parkers Tea & Coffee, notes that 93 percent of
consumers shopped between two and 10 retail channels
for groceries in a recent 30-day period, and only 7
percent of them were loyal to one retailer.
"Differentiation is key to keeping loyal customers
in the store and attracting new shoppers, but too


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Table of Contents for the Digital Edition of Store Brands - May 2018

Contents
Store Brands - May 2018 - Cover1
Store Brands - May 2018 - Cover2
Store Brands - May 2018 - 3
Store Brands - May 2018 - Contents
Store Brands - May 2018 - 5
Store Brands - May 2018 - 6
Store Brands - May 2018 - 7
Store Brands - May 2018 - 8
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Store Brands - May 2018 - Cover3
Store Brands - May 2018 - Cover4
https://www.nxtbook.com/nxtbooks/ensembleiq/storebrands_201902
https://www.nxtbook.com/nxtbooks/ensembleiq/storebrands_201901
https://www.nxtbook.com/nxtbooks/ensembleiq/storebrands_201812
https://www.nxtbook.com/nxtbooks/ensembleiq/storebrands_201811
https://www.nxtbook.com/nxtbooks/ensembleiq/storebrands_201810
https://www.nxtbook.com/nxtbooks/ensembleiq/storebrands_201809
https://www.nxtbook.com/nxtbooks/ensembleiq/storebrands_201808
https://www.nxtbook.com/nxtbooks/ensembleiq/storebrands_201807
https://www.nxtbook.com/nxtbooks/ensembleiq/storebrands_201806
https://www.nxtbook.com/nxtbooks/ensembleiq/storebrands_bestpractice
https://www.nxtbook.com/nxtbooks/ensembleiq/storebrands_201805
https://www.nxtbookmedia.com