STiR coffee and tea magazine

58 STiR coffee and tea / Issue 2, 2018 (April / May) STiR Magazine 89 mm (w) x254 mm (h) JOINTLY ORGANIZED BY Ms Lynn How Koelnmesse Pte Ltd. Tel: +65 6500 6712 l.how@koelnmesse.com.sg CONTACT US >2,000 EXHIBITORS >2,000 HOSTED BUYERS >55,000 VISITORS 5 TRADE DAYS ACROSS 11 HALLS 107,000 SQM based PET plastic at commercial scale with Coca-Cola and other bottle giants already adding 30% plant-based plastics with a pledge to increase that amount. Hard sided single-use coffee capsules with a long shelf life pose greater challenges and new opportunities. "The supply chain of capsules is rapidly losing its oligopo- listic nature," according to AIM. "The former dominance of major suppliers is challenged as the market expands... leading to a more fragmented supply chain that affects the overall profit pool and the way consumers make their choices." Convenience dictates This year's National Coffee Association's annual survey of past- day coffee drinkers shows daily use of traditional drip coffee ma- chines continues to decline. Forty-one percent of past-day drink- ers reported brewing their coffee on a drip machine, a number that has fallen below half for the first time. This is strong evidence that the convenience of single-serve will replace drip. Single-cup brewers are found in 41% of homes and 28% of offices, according to the National Coffee Drinking Trends survey. Single-cup brewers were used by 26% of past-day drinkers to make the coffee they drank, up from 19% in 2012. Those aged 25-39 with kids at home are the most likely to own a single-cup brewer. Households with a combined income greater than $100,000 own the most machines. If anything, the trend to make better coffee at home is gaining momentum. The annual survey found 13% of past-day coffee brewed their coffee using an espresso machine. One reason cited for drinking less at-home coffee is waste. Seven percent of past-day drinkers expressed concern "about the waste that it creates." This was much more important for Generation X and Millennials, a group that also cited concerns about "the carbon footprint of the coffee I drink." A compa- rable 8% cite "the waste it creates" as a reason for drinking less coffee out of home. Among the most important reasons for drinking more coffee out of home are "tastes great" (63%), "to give myself a treat" (59%) and its "convenient" (53%). Coffee at home is viewed as more affordable, good with food, a taste-treat, or part of a daily ritual. Convenience is cited as a reason for drinking coffee at home and increasingly viewed as a prerequisite for premium brands. There appears to be little inter- est in filling K-Cups with Blue Bottle (now owned by Nestle) or Stumptown Coffee Roasters (now owned by JAB Holdings) but Peets Coffee & Tea in K-Cups is a big seller. In April JM Smuckers launched its "1850 by Folgers" a 100% arabica in both 12-ounce bags and, not surprisingly, K-Cups. The premium steel-cut coffee is finished in perforated drum roasters and sells for 55 cents an ounce, more than double the retail price of Folgers' traditional blend of arabica and robusta coffee. Wanted: A simple solution Starbucks has invested a lot of money in researching end-of-life solutions. In March the company turned to the public for help, offering a $10 million reward for ideas on how to make a more environmentally friendly take-away cup. Now everyone is chas- ing the big breakthrough. Every problem has a solution — but it's not necessarily an easy solution. Progress resolving limitations in materials, as well as manufacturing and design issues during the past year was in- cremental, but it's progress.

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