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Hot beverages

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More and more consumers are now purchasing hot drinks out of home and the popularity of quality beverages shows no sign of abating. In fact, according to Mintel, the market has grown by 37% over the last fi ve years to £3.4bn in 2016, with the biggest year-on-year sales increase of 10.4% being between 2015 and 2016. It has been forecast that coffee shop sales will leap a further 29%, taking the market value to a staggering £4.3bn. “Britain’s appetite for coffee shops continues,” says Trish Caddy, foodservice analyst for Mintel. “Much of the growth we’ve seen in recent years is driven by habitual coffee drinkers and the continually increasing number of coffee retailers that are now ubiquitous on British high streets.”

According to Huhtamaki, takeaway hot beverage sales continue to accelerate, with 80% of the UK population buying a takeaway hot drink and almost a quarter of consumers purchasing them two to three times a week. This highlights the demand for on-the-go consumption, making takeaway beverages a regular part of daily life.

“Premiumisation has given UK customers a taste for higher quality coffee, whether it’s from coffee shops or grounds they can brew at home,” explains Mike Hardman, marketing manager for Alliance Online. “The large variety of coffee drinks available has given the

drink a massive rise in the market, consumer consumption being up to 70m cups a day across the UK.”

Although it’s not all about coffee it certainly is a driving force in the sector’s growth, so operators need to ensure their menu is spot on in order to stand out from high street chains. “The good news for smaller operators is that brand fatigue appears to be turning some consumers away from bland, ubiquitous national high street chains,” says Neil Clark, co-founder of Hessian Coffee. “This gives independents an opportunity to offer something a little less predictable.”

Consumer demand In the out of home arena it seems to be coffee-based drinks that are in greater demand, accounting for 77% of hot drinks bought, with cappuccinos and lattes being the most sought-after. “The ideal base is a coffee with a strong, powerful, intense taste, and a somewhat sweet, spicy aftertaste,” explains Rebecca Parker, category manager UK and Ireland – liquid, beans and R&G UK for Jacobs Douwe Egberts. “Professional darker roasts will be most suitable.”

According to the Allegra Project Café UK Report 2017, the shorter, stronger fl at white has risen in sales by 8% between 2015 and 2016. This increase in demand has led to greater availability, which has in

With more Brits consuming hot drinks than ever before, it’s vital that operators make the most of this burgeoning market

Premiumisation has given

UK customers a taste for

higher quality coffee

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turn further fuelled demand. Although there is a growing coffee culture in the UK, tea

remains an integral part of British consumers’ drinking habits with 165m cups being consumed each day. Traditional black tea taken with milk is the preferred choice of 71% of consumers drinking out of home.

Interestingly, Allegra reports that 55% of consumers prefer their tea to be made from a standard bag. However, in order to capitalise on the black tea market, operators need to invest in premium tea brands, which 53% of consumers favour. “There is increasing demand for fi ne teas and loose-leaf teas, and we’d always recommend that a hot beverage menu includes these variations,” says Natalie Cross, out of home manager for Taylors of Harrogate. “These teas are best served in pots, as this can add to the overall customer experience and allow customers to try something new.”

Current climate There are several trends emerging in the hot beverage market, with some following a Heston Blumenthal-style scientifi c approach such as nitro coffee (or NCB as it’s more commonly known). This is where cold brewed coffee is charged with nitrogen to give it a decadent, creamy head. The addition of nitrogen not only infl uences the texture of the coffee but the taste too. NCB is slightly sweeter than regular ice coffee. “Cortado coffee, where coffee or espresso is mixed with roughly equal amounts of warm milk to reduce acidity, is the other one to watch,” reveals Jennie

Hessian Coffee

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Hot beverages

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Fisher, brand director for Brakes. “Hot chocolate infused with spices is not yet widely available in the UK, but adding the heat of Mexican spices – or others such as cinnamon and cardamom – works really well.”

The clean eating and drinking phenomenon has fi ltered into the hot drinks market with increasing demand for innovative, healthy beverages such as turmeric and matcha lattes. Mintel has also reported signifi cant increase in the popularity of loose leaf, herbal and fruit teas, with 49% of UK consumers between the ages of 25 and 34 drinking green tea. “Offering speciality teas is a great way of capturing the ever-infl uential millennial market and boosting sales,” says Kathryn Oldershaw, marketing director for Utopia. “Think about serving speciality teas in transparent teapots and mugs to enhance the customer experience and encourage that all-important social share.”

Consumers are becoming increasingly aware of environmental issues and therefore now expect to see eco-friendly packaging that they can dispose of responsibly. With Huhtamaki revealing that 89% of consumers believe information about the recyclability and compostability of products should be provided, it’s essential that operators consider how customers will effectively discard them too. “According to Huhtamaki independent research, consumers are actively recycling,” explains Clare Moulson, marketing executive for Huhtamaki UK. “Some 76% claim to recycle when away from home and 63% believe that environmental issues have had more of an effect on them than they did three years ago.”

Pushing the pound Hot beverages provide foodservice outlets with the ideal opportunity to cross-sell all day long. From food pairing to meal deals, there are many ways that operators can get customers spending more than they originally intended. “The opportunity for cross-selling

in the hot beverages market lies in pairing products together that share the same ethos and principles while also complementing the fl avour profi le,” explains Adele Ward, Clipper Teas brand controller for Wessanen UK. “Breakfast is a key time of day for cross-selling breakfast staples like pain au chocolat and green tea. Most tea drinkers appreciate a great tasting cuppa to start the day. It is the most important tea-drinking occasion across all key age groups.”

It’s the cost of little extras that can really add up, so operators should encourage customers to upgrade with additional items such as cream, fl avoured syrups, marshmallows or chocolate shavings. Similarly, consumers can be tempted by bits on the side, such as chocolate-covered coffee beans, amaretto biscuits or gingerbread cookies.

Upgrading your hot chocolate

powder to chocolate fl akes can

prove a real money maker

TOP TIPS

EXPERT ADVICE TO MAXIMISE SALES

· Trade up – “Upgrading your hot chocolate powder to chocolate fl akes can prove a real money maker over the winter months,” says Fiona Morgan, head of foodservice for Ferrero UK & Ireland.

· Fit for purpose – “Ensure your hot beverage equipment is suitable for the extensive and varied menu you are looking to produce,” warns Ian Harbinson, head of marketing for Burco Commercial.

· Perfect pour – “Serve is increasingly important to add theatre and boost price points,” explains Ricky Flax, general manager for The Italian Beverage Company. “Experimenting with new ways of serving, such as pour at table options and interesting serve ware, will premiumise the offer and justify the price.”

· Seasonal fl avour – “During the festive season, stocking two or three festive fl avoured syrups such as gingerbread, salted caramel and popcorn will make putting a festive twist on your usual hot beverage menu easy,” says Lee Hyde, beverage innovation manager for Monin.

· Knowledge is key – “Simply serving quality coffee is no longer enough for many customers,” says Jean Baptiste Coutant, Nespresso UK B2B commercial manager. “Baristas need to go beyond the norm and demonstrate an understanding of high quality coffee. Sound background knowledge and the ability to discuss a coffee’s origins

is something that people are demanding more and more.”

Ferrero

Monin

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Positioning is key when it comes to boosting sales, so it’s vital that impulse items, such as cookies and muffi ns that are likely to be bought alongside a hot drink, are situated at eye level near the till points. “Display and point of sale are key, as is labelling,” says Rob Owen, executive development chef for Creed Foodservice. “No matter where your cakes or confectionery are displayed, adding stands of differing heights or risers to the display creates interest.”

Afternoon and high teas are becoming more in demand thanks to programmes such as The Great British Bake Off and Downton Abbey, creating a sense of nostalgia among consumers. Offering additional add-ons such as a glass of prosecco or bucks fi zz is the perfect way to add to the consumer experience as well as the bill. “There is an opportunity to encourage consumer spend through introducing special afternoon tea deals, such as afternoon tea packages,” says Cross. “We’d always recommend an afternoon tea menu includes a strong black tea, such as English breakfast, and a range of fruit and herbal teas to satisfy those looking to try new fl avours.”

Today’s consumers are keen to know all about the food they

are eating, so ingredients and provenance are important to them. Operators can use this to their advantage by communicating the nutritional benefi ts and story behind their products. Consumers love to know where the ingredients and fl avours they’re about to eat have come from, as well as the nutritional benefi ts. Branding, provenance and labelling can reinforce these stories and messages.

Food and drink pairing has long been popular with alcoholic beverages, but the same opportunity is available with hot drinks too. Operators can push incremental sales and promote the hot drinks menu by suggesting ideal pairings. Why not try pairing a smoky lapsang souchong tea with rich smoked salmon or spicy foods? Classic breakfast tea and earl grey are the perfect accompaniments to scones with jam and cream, and fragrant tea such as jasmine-scented green tea or darjeeling are ideal to be sipped alongside viennoiserie.

With one of the highest mark-ups in the foodservice industry, hot drinks offer signifi cant profi t margins. Therefore, it’s vital that operators make their offering not only of high quality, but also relevant to customers in order to take advantage of this lucrative market.

Products

Fresh topping The MiniWip from Carpigiani is a compact countertop appliance that can quickly and effi ciently produce real, fresh whipped cream. With a 2L capacity, and a variable adjustor that means the whipped cream can be dispensed either in variable portions or continuously, simply with the push of a button, caterers can easily manage portion control and reduce waste.

Wild fl avour The Yayu Wild Forest Coffee from Union Hand Roasted Coffee is an espresso with a soft citrus acidity upfront, a syrupy body and notes of marzipan and dark chocolate that lend depth to this coffee; or as a lighter brew, where fl avours reminiscent of kumquat, brown sugar and bittersweet notes of roasted cocoa beans are displayed.

Award-winning infusions Novus’s teas and infusions include Citrus Chamomile, English Breakfast, Organic Darjeeling, Decaf Ceylon, Sapphire Earl Grey, and Spiced Chai. Green/white teas include Dragonwell Green, Organic Jasmine, Eight Secrets of the Far East, Pai Mu Tan, and White Pear and Ginger. Herbal teas include Egyptian Mint, Citrus Chamomile, Wild Encounter, Persian Pomegranate, White Mulled Wine, and Spicy Rooibos.

Added extra

The Flavour Point unit from Caffeine is capable of holding four different bottles of syrup or alcohol to flavour drinks. This unit enables operators to create drinks by programming specific mixtures of syrup, milk and coffee. Up to 40 beverages can be programmed into the Schaerer machines, including chocolate and cold drinks.

There is increasing

demand for fi ne teas

and loose-leaf teas

GDPA