Wide Awake
By John J. Pierce

Winn & Lovett’s French Roast Café beans at Winn-Dixie are top-rated for boldness on the chain’s “meter.”

Coffee keeps people going on the job. Specialty and flavored items gain in tea as well as coffee, with consumers getting choosier.

Coffee has overtaken soft drinks in daily consumption for the first time since 1990, and ground coffee sales are booming in store brands at U.S. food outlets, even as convenience stores vie for the take-out trade with their exclusive brands.

Some 57% of American adults drink coffee daily, while 51% consume soft drinks each day, according to the National Coffee Association. Meanwhile, store brand ground coffee sales soared 11.7% to $175.2 million for the 52 weeks ended 12/2/2007, according to Information Resources, Inc. (IRI), Chicago, IL.

At convenience stores, where about a third of the business comes during morning commutes, retailers are expanding and upgrading their private label programs. Strengthening its early morning appeal, 7-Eleven, Dallas, TX, has introduced Exclusive Bold coffee, the strongest brew ever sold in its stores, in the South Central states.

It’s doubtless only a coincidence, but Winn-Dixie, Jacksonville, FL, has strengthened its store brand program by introducing premium ground and whole bean coffees under the new Winn & Lovett brand–“serious coffee for serious coffee drinkers.” Packaging includes what might be called a bold-a-meter: whole bean French Café Roast is rated at maximum boldness.

Bolder is better, it seems, for people who want to stay awake and alert at work. Indeed, sales are dropping for decaffeinated coffee in both ground and instant, and in both national brands and store brands, IRI reports. But decaf already had a small share of the coffee market–$260 million versus $2.1 billion in ground (Store brand ground decaf sales, at $35.5 million, were down 2.4%.

Variety is the spice of private label. Wegmans, Rochester, NY, features a different coffee each week in free-standing displays. For the week before Christmas, it was Kenya Nyeri AA, grown between 5,000 and 7,000 feet above sea level and boasting “a bright, full-bodied cup, with an elegantly smooth, wine-like flavor.”

Convenience store chains are increasingly getting into specialty and flavored coffees. At Wawa, Wawa, PA, you can find Original Blend, Dark Roast, Decaffeinated, Irish Cream, Hazelnut, Chocolate Macadamia Nut, Vanilla Cream, Decaffeinated Hazelnut and Kenya AA.

Store brand tea may be new to convenience stores, but it’s a staple at supermarkets. Only, the product mix is in flux. Shizandra green tea and jasmine tea are both carried in six-packs under the Meijer Gold brand at Meijer, while Target, Minneapolis, MN, has a single-serve including Pomegranate Black, Lemon & Honey Green, Lychee & Ginseng White and more. Target is also pioneering a new concept in packaging: pyramid bags of loose-leaf tea. Under the Archer Farms brand, it offers 15-count Earl Gray Black and Citrus Leaf Green teas at $3.99 in that format.

Recommended Suppliers

• Massimo Zanetti Beverage USA, Harrison, NY, 914-670-3300
• Chamong Tea Company, Yardley, PA, 267-233-0046
• Mother Parker’s Tea & Coffee, Mississauga, Ont. Canada, 800-387-9398

Products described or shown in this article are not necessarily available from these suppliers. For more suppliers see current Private Label Directory & Buyer’s Guide.