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AUTOMATIC MERCHANDISER (USPS 017-280) (ISSN 1061-
1797, print; ISSN 1948-5697, online) is published nine times
per year: February, March, April, May, June, August, September,
October and December by Cygnus Business Media. Periodicals
postage paid at Fort Atkinson, WI and additional entry offices.
POSTMASTER: Please send all change of address to AUTOMATIC
MERCHANDISER, PO Box 3257, Northbrook, IL 60065-3257.
Canada Post PM40612608. Return Undeliverable Canadian
Addresses to: Automatic Merchandiser, PO Box 25542, London,
ON N6C 6B2. Volume 56, Number 7 Printed in the U.S.A.
CONSULTANT
REPRESENTATIVE,
ITSL MEDIA
REPRESENTATIVE
The hot business of coffee
The number of coffee addicts is increasing, but they are still price
conscious about their artistically roasted specialty-grade beans.
LOCAL
roasters
have
developed a
following.
Facebook/VendingMarket @VendingMagazine http://linkd.in/VendingMarketWatch
h…coffee. I was a late follower to
this warm, caffeinated morning
(afternoon and evening) ritual. But
once I joined in, I haven't looked back,
except maybe with pity on those who
don't partake. And I, like most consumers,
try to balance my increasingly discerning
coffee tastes with how much my wallet
can bare. Now more than ever before,
consumers know
about coffee and are
daily drinkers. The
evidence is every-
where — the new
trend in roasters, the
addition of coffee
in more quick serve
restaurants, statistics
from multiple organi-
zations and positive
growth in the offce
coffee segment.
Third-wave and local
More local coffee
shops are carrying
local roasts manufac-
tured in the back-
room facility, or are showcasing artisan
roasters who don't trust their brand to
large foodservice companies. These roast-
ers are looking for additional markets,
creating the opportunity for OCS opera-
tors to become distributors, especially if
the coffee has created a local following.
The popularity of smaller roasters has
also driven a more proftable single-cup
opportunity with bean-to-cup systems
and offered customers a premium cup of
coffee. See how a Chicago, IL-operation
used all of these ideas and more to
broaden business and thrive in a tough
urban market, on page 14.
QSR coffee goes national
Quick serve restaurants, most often
known for their food, are now viewing
coffee as a proft generating segment.
VendingMarketWatch.com recently
reported that McDonald's is counting
on the popularity of its McCafé brand to
drive coffee sales…outside restaurants.
With the help of Kraft Foods, the McCafé
coffee will be available in 12-ounce bags
and in on-demand single-cup packages in
the U.S. starting in early 2015.
Another QSR restaurant, Chick-fl-A®,
announced it will start serving specialty-
grade coffee in restaurants using the stan-
dards of the Specialty Coffee Association
of American (SCAA) — a designation met
by only 10 percent of coffee worldwide,
according to the announcement. Chick-fl-
A is partnering with THRIVE Farmers™
Coffee to introduce the chain's exclusive
coffee blend.
The National Coffee Association
reports strong coffee drinking habits
among U.S. adults, page 34, as does the
SCAA. Even organizations geared more
toward consumer spending recognize
coffee as an important trend. Money
Level, an app that helps smartphone users
see how much money they can spend,
recently published a report on what Mil-
lennials are purchasing and coffee topped
the list. And no wonder, coffee can be a
pick me up, a status symbol and a way to
make personal connections, not to men-
tion a premium perk in the workplace.
And as one OCS operator said to me, "It's
a great time to be in coffee."
A
6 Automatic Merchandiser VendingMarketWatch.com September 2014
E D I T O R ' S N O T E B Y E M I L Y R E F E R M A T