STiR coffee and tea magazine

32 STiR coffee and tea / Issue 6, 2019 (December / January 2020) P By Dan Shryock Coffee Rides Wave of Coffee Rides Wave of Private Label Sales Private Label Sales Massimo Zanetti Beverage USA produces coffee for a variety of private label customers. rivate label products continue to extend their sales reach across the United States and both coffee producers and their retail partners are reaping the rewards. Numbers provided by the Private Label Manufacturers Asso- ciation show that coffee once again enjoyed strong sales in 2018. Overall, coffee sales across all categories rose 7.6% during the calendar year over the previous period. Sales totaled $1.49 billion. Increases were found in practically every category, too. Spe- cialty coffee, for example, climbed 11.6% and espresso grew 15.1% over the previous year. Only one category – coffee sub- stitutes – showed a decline (-2.3%). The most eye-popping gains were in coffee concentrates (104.2%) and packaged coffee com- bination packs (78.9%). The primary general coffee category, whole beans and ground coffee, sold more than $1.43 billion. Its 7.4% growth matched overall numbers. The data is in keeping with a new, larger study from the Food Marketing Institute and research firm IRI indicating 46% of American consumers consider private brands when decid- ing what they buy. That's up from 35% of consumers surveyed three years ago. And, the study stated, private label products are appealing to a broader range of demographics and genera- tions. "The solid growth of private brands reflects the success of retailers treating private brands as brands, rather than just fol- lowing the lead of national and legacy brands," Doug Baker, the institute's v.p. of industry relations, said in the study summary released on Nov. 7, 2019. "The proof is in consumer satisfac- tion; shoppers surveyed shared most that they trust the quality of private brands and believe they get a good value." Photo courtesy Massimo Zanetti Beverage USA

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