New White Paper Offers Beverage Insights

CONCORD, N.C.—S&D Coffee & Tea has released a new white paper that details How to Deliver a Better Beverage Experience.

According to research, soda consumption reached a 31-year low in 2016, providing ample opportunities in the better-for-you beverage space. Retailers can boost beverage sales and meaningful incremental profits by focusing on three key areas: 

• Functional beverages: S&D has identified three main areas of focus: botanicals (as health and flavor agents), protein (collagen in beauty drinks) and superfoods (charcoal lattes and mushroom coffee). This trio has enjoyed significant growth, with turmeric and charcoal use increasing by a particularly high 200%.
• Twists on old favorites: S&D suggests six ways that retailers can elevate staple beverages, such as offering craft sodas, custom-blended juices and trendy cold coffees like nitro and cold brew (a category projected to grow by nearly 80% by 2021).  Water also represents an opportunity. With the popularity of natural sparkling waters comes interest in exotic alternatives, such as maple, coconut and cactus water.
• Make an emotional connection: More customers, particularly Gen Zs and millennials, are interested in the story behind the food and beverages they purchase. Creating an emotional connection is key. Delving into a menu item’s origins and sustainability story can make a lasting impression on consumers. 

Demand for authentic beverages made with real ingredients is not going away anytime soon. In fact, more consumers are seeking a better beverage experience everyday via flavor, convenience and other benefits.

Nutrition-packed superfoods, such as turmeric and charcoal, and botanical agents, like lemongrass, elderflower and hibiscus, are being infused in everything from cocktails to coffees and teas. These health-forward ingredients pack nutritional properties, unique flavors and brilliant colors, and they play well on social media, leading to a surge in Instagram posts featuring charcoal lattes turmeric teas and more.

“Operators can take advantage of these trends in the form of limited-time offers that can create buzz,” said Helen Griffith, vice president of marketing, S&D Coffee & Tea. “An LTO creates a sense of urgency and highlights the special craft nature of these drinks.”

The white paper suggests that operators test their customers’ thirst for premium beverages with LTO offerings, such as turmeric iced tea or a vanilla collagen latte.

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