Specialty Coffee Retailer is a publication for owners, managers and employees of retail outlets that sell specialty coffee. Its scope includes best sales practices, supplies, business trends and anything else to assist the small coffee retailer.
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Confection perfection When it comes to coffeehouse sweets, chocolate is king, but passing a mint has its perks. BY BRENDA PORTER-ROCKWELL W hat started as a way to curb coff ee breath has turned the candy and mints category into a must-have for any coff eehouse. Th ere are two driving forces for impulse purchases of candy or mints in a coff eehouse, says Marcia Mogelonsky, an analyst for global market research fi rm Mintel. Mogelonsky pointed to Starbucks' early days, when the complaint was that the coff ee would leave you with coff ee breath. Th is was partly a result of the coff ees' dark roasting (over- roasting, as many saw it). So the fi rst mints on the wrap stand were branded by Starbucks. "I think that was a really clever marketing idea. Th e coff ee leſt a taste in your mouth—a very high suggestion factor that you might want to buy a mint," Mogelonsky says. Today, says David Kerdoon, chief enlightenment In addition to the standard breath- coffee and other flavors. Photo courtesy of Sencha Naturals freshening function, mints can incorporate coff ee business for more than 25 years, supplying premium chocolates and candies. Its most successful programs address the six primary segments of fruit, nut, coff ee, toff ee, caramel and cookie with products such as chocolate caramels, chocolate fruits (cherries, blueberries and strawberries), chocolate nuts (with almonds and cashews being the most popular) and chocolate toff ee and other sweet/savory items. While there is a "pickup" eff ect at the counter, "Off ering it to those who deliberately want a tasty treat along with their coff ee contributes to the café owner's bottom line. Th e markup is usually 50 percent over wholesale cost. You can increase your profi t margin by buying in bulk (unwrapped items)," said John Mangel II, owner of Long Grove Confectionery, Buff alo Grove, Ill. Long Grove's signature confection is the Giant Myrtles—a milk chocolate pecan myrtle. offi cer at Sencha Naturals in Los Angeles, one of the key growth areas for confectionary is its "functional" attribute. "I believe the role has extended, even at the coff eehouse, to provide some type of added benefi t beyond 'minty' breath. Th is could be in the form of a unique fl avor or added benefi t such as 'caff einated' mints or, in our case, 'green tea'-induced, which provide antioxidant benefi ts (three mints equals one cup of green tea antioxidants)," Kerdoon says. According to Brad van Damm, president and CEO of Marich Confectionery, Watsonville, Calif., chocolates, like mints, have a certain impulse factor. "Chocolates…hold a similarly prominent position in any café product off ering," van Damm says. "Daily sales are generally impulse-driven, as most chocolate and candy sales are, and as such, placement is critical to capture the impulse nature of candy." Marich has been actively involved with the specialty 16 | February 2012 • www.specialty-coffee.com Also included in the lineup are milk or dark chocolate peanut butter cups, with Long Grove's homemade peanut butter fi lling the center, and milk chocolate or creamy white Bavarian pretzels individually wrapped in cellophane. SHARE AND SHARE ALIKE Mogelonsky's second observation is that Starbucks mints to this day are fancy and pricey. "All of these impulse items are expensive. Th is suggests a status symbol—if you bought these mints, then shared them with friends, it upsold the impulse," Mogelonsky says. "Th e person feels like they stand out when they share a mint. It does encourage people who don't feel funny shelling out $3 for a cup of coff ee to pick up these fancy mints." Sencha's Kerdoon notes, "I believe it's not that helpful for a coff ee shop on profi tability, but can be a huge help as a marketing tool." Kerdoon says Sencha now produces private label mints,