STiR coffee and tea magazine

STiR coffee and tea 33 Portable Coffee Machine Installation & Training Included *) Hot/Cold water *) A touch of a button *) Car cigarette lighter or a normal power outlet *) Ground coffee, Dolce Gusto Capsule, Nespresso Capsule and K-CUP pod Email: sales@eastsign.com Eastsign Inc 10203 Corkwood Road , Dallas, TX 75238 RCC-1-3000 PCM-50 Single Serve Cup Filling & Sealing Machine *) High Speed Rotary Machine: RCC-1-3000 *) One Machine, Different Cups *) Speed: 50 pcs / min *) Weight / Dimension: 880lb / 80'' x 26.5'' x 70'' *) Supply the Lids and the Welded Cups *) Materials weight: 1–7g *) Speed: 2400 pcs per hour *) Inner Bag Size: 40-80mm in length 60-80mm in width *) Outer Bag Size: 80-140mm in length 80-130mm in width PTB-2400-F Pyramid Tea Bag Machine Costco Wholesale sells 3-pound cans of its Kirkland Signature private label Colombian coffee to millions of members shopping 770 outlets across the US. Photo by Dan Shryock/STiR The numbers are not surprising to coffee producers in the private brand space who were contacted for this report. Nor is the conclusion that consumers be- lieve private label products offer value. "We're primarily a private label com- pany so most of our partners are in that space and we're seeing very strong de- mand from them," said Angelo Campan- ella, v.p. for channel development in the United States for Club Coffee, a Canada- based full-line roaster and co-manufac- turer. "And, looking further ahead into Q4 (2019) and then into 2020 that seems like it's continuing," he said. Two of Club Coffee's primary products, Keurig-com- patible coffee pods and Nespresso-com- patible espresso capsules, are among the strong sellers in 2019, Campanella said. Clay Dockery, Massimo Zanetti Bever- age USA's corporate brands division v.p., agrees: "We had a very good year in cof- fee, and we anticipate that continuing." Massimo Zanetti's coffee portfolio includes well-known American coffee brands including Chock Full O'Nuts, MJB, and Hills Bros. The company's international coffee products are led by Segafredo Zanetti but private label pro- duction represents a significant amount of Massimo Zanetti Beverage Group's $1.2 billion coffee total. Marketing quality Both Dockery and Campanella say the success of private label coffee is centered on the retail consumer's growing under- standing that quality is attainable with a less expensive brand. "I think there's an economic differ- ence for the shopper," Campanella said. "And, I also think the private brand own- ers have gotten smarter and better with their marketing and communicating to their customers." Campanella pointed to The Kroger Co. as an example. Kroger rolled out new branding in November with the tag- line "Fresh for Everyone." In explaining the new brand, a Kroger official said in a statement that "Kroger believes that ev- eryone deserves to have access to fresh, affordable, and delicious food, no matter who you are, how you shop or what you like to eat. Kroger's winning combination of assets puts our team in a unique posi- tion to deliver fresh … for everyone." Efforts like this, Campanella said, make "buying private brand quite com-

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