Issue link: http://read.dmtmag.com/i/737343
32 STiR coffee and tea / Issue 5, 2016 (October/November) According to S&D Coffee and Tea these in- dividuals have $2 billion in spending power and are expected to outspend baby boomers by 2017. But it's not their money that makes millennials in- teresting to coffee segment, it is the way they are engage with coffee. This behavior is redefining the specialty coffee landscape. "The average young millennial, age 18 to 24, started drinking coffee at 14.7 years old, while the older millennial was introduced typically at age 17," says John Buckner, vice president, marketing, S&D Coffee and Tea. A large majority regularly consume both cold and hot coffee beverages. They are the self-defined foodie generation, with 48% of older millennials, and 34% of younger millennials taking pride in a refined and discerning palate. Their on-the-go life style naturally lends itself to stopping into their favorite coffee shop for barista prepared beverages. These individuals want coffee that elevates their experience whether the taste or the story behind the beverage – prefer- ably both. The emotion of coffee To best identify with this subgroup, coffee manu- facturers and roasters should reflect on how their product responds to this particular group's needs. "The language millennials use and the attitudes that they have indicate that they are connected to coffee at an emotional level," says Buckner. "For them, coffee is not just a drink, it's an experience." When coffee companies focus on qualities such as fresh, arabica, or single origin, they are focusing on only one of many aspects that millennials seek. These attributes are still important to this cohort, but if it is all that it is talked about, the company will fail to connect with this audience. At bare minimum, the product needs to be fresh, consistent, and easily customized. However; Buckner stresses that to truly engage this consum- er group, both the coffee and the coffee company must respond to the elevated needs of this group including sustainability, community connections, and the use of innovative ingredients. Perfect market for explorers This adventurous subgroup is ideal for coffee roasters and manufacturers who avoid the beaten path to try something new whether it's an unex- plored origin, a unique roasting profile, or flavor. Buckner, reports that 25% of this subgroup con- siders themselves coffee experts, compared to only 20% of the non-millennials. They are curious and willing to experiment, and willingly pay more for a product if they feel that it's worth it. Individual millennials want to be trend setters, and will eagerly share their experience through social media and their online connections. Spe- cialty methods such as cold brew, Chemex, French press, and the pourover naturally lend themselves to this group. Millennials take pride in being able to person- alize and customize their brew, whether through brewing methods or experiments with flavors. Specialty coffee is their drink of choice. In fact, the coffee shop experience adds additional appeal to the millennials, with this market appreciating both the face-to-face interaction and expertise of baristas. Buckner explains that "49% of millenni- als believe that truly handcrafted coffee must be poured by a barista." The best coffee in their view is both freshly roasted and ground and brewed to order. Millennials lead the pack, not follow. Cof- fee manufacturers benefit by demonstrating the unique value of their beverage, feed into their tastes, their focus on health and wellness, and so- cial values. Building bridges NMI's Steve French stresses that companies need to invest in complex media strategies. These con- sumers acquired a dislike for pop up ads. They pre- fer messaging and stories that they can relate to. The millennial consumers are drawn to prod- ucts that share their values. To connect with this audience, coffee companies benefit not only from certifications that signal concern for growers and the environment but beyond such as cause-based investments. According to Buckner, 45% of millenni- als think more positively of a coffee product the brand can demonstrate it was sustainably pro- duced. These consumers not only want to en- gage with companies that are socially responsible, they are willing to pay more for the products that reflect their values. "Everything you do is being scrutinized as millennials demand genuineness and transparency across the value chain," says French. The environment remains one of the top pillars that these consumers connect with, and so coffee roasters would benefit by sharing their sustainable practices. This market is looking for companies that produce less waste, follow green practices, and minimize their impact on the environment. With a radar for authenticity, these group are not swayed by promises without the stories that support them. The key to connecting to this discerning market group is for companies to share their unique story, and in turn, pro- vide opportunities for this consumer group to connect in the experience. This cohort already loves the possibilities in a cup of coffee and is eager to explore a variety of beverages. The challenge is to develop a platform that does not advertise but instead reflects a value system that the millennial believes in.