STiR coffee and tea magazine

Volume 4, Number 2

Issue link: https://read.dmtmag.com/i/491377

Contents of this Issue

Navigation

Page 46 of 83

STiR tea & coffee industry international 47 Brewer preference There is a clear link between office work- er satisfaction and brewing equipment. The National Coffee Association's 2015 National Coffee Drinking Trends (NCDT) survey reveals coffee drinkers in offices with single-serve brewers are much more satisfied (90%) than those in offices with only a drip coffee maker. Workers in offices with an espresso machine were even more satisfied, at 94%. Those desir- ing a brewer in the office prefer (34%) single cup to all other preparations. Only 29% of office workers prefer drip coffee makers. Satisfaction with drip coffee makers is even lower than instant. "Satisfaction with drip has been stagnant from 2012 to 2015, while instant has gained, with 50% being "very" satisfied, according to the NCDT survey. The latter likely do to the popularity of Starbucks Via. So why are there still so many drip coffee makers in offices? And did major office coffee vendor Corporate Essentials end its 20-year relationship with Keurig Green Mountain, the nation's dominate single-cup supplier? Complexities It seemed so simple back in 1992. The BUNN VPR pour-over with two warm- ing stations was the number one office brewer in those days. Office coffee ser- vice (OCS) providers offered on average 15 items: regular and decaf, sugar and creamers, and two low-calorie sweeten- ers, cups, stir sticks, napkins, tea, and instant cocoa. Coffee market penetration was 3% with large and efficient routes of loyal corporate customers in every major city. Single-serve brewers were in only 2% of offices. To remain competitive an OCS busi- ness today must provide sophisticated brewing equipment, a broad offering of branded and private label beverages, multiple sweeteners, flavored creamers, and even office supplies that can easily approach 1000 items. Routes are frag- mented, clients distant and the number of people reporting to work (versus working from home) is in decline. More ominous yet is the fact that OCS firms resupply- ing capsule machines are competing with grocery, drug, big box, convenience and even kitchen stores. Large numbers now bring coffee to work (41%) and 71% report drinking cof- www.rychiger.com SWISS QUALITY MADE BY FS 200 WORLD'S LEADING FILLING & SEALING SOLUTION. FS200_124x178.indd 1 04.02.15 11:35 fee before going to work. Packaged Facts reported those working from home on an average day increased to 23.6% between 2003 and 2010. Satisfaction is high for 46% of office coffee drinkers, up 4% compared to 2014 and up 6% since 2011 but that still that leaves 54% somewhat or less satisfied, according to NCDT. Cost OCS is valued at about $4.36 billion in 2014 with coffee making up 71% of the total. About 12% of the coffee Americans drink is in offices, the majority of which is pur- chased by employers, according to NCA. The cost of capsule coffee can be five times the per-serving expense of drip brewed coffee for OCS clients. Companies like Corporate Essentials buy a lot of coffee. The firm serves 150,000 workers daily in 1,500 corporate offices in New York and New Jersey as well as 50,000 households through its www.shoffee.com website. In January, Corporate Essentials ended its 20-year distribution agreement with Keurig Green Mountain, switching in- stead to a non-licensed RealCup capsules produced by Mother Parkers Tea & Coffee.

Articles in this issue

Links on this page

Archives of this issue

view archives of STiR coffee and tea magazine - Volume 4, Number 2