Consumer Goods Firms Benefit From At-Home Coffee Sales

A focus on home-brew options paid off as consumers snapped up coffee pods and bags. 

April 23, 2021

Coffee

ARLINGTON, Va.—During the past year as consumers stayed home more often, home-brewed coffee saw a resurgence, the Wall Street Journal reports. For Nestlé, which turned its attention to coffee pods and bags, that spelled the best quarterly sales in nearly 10 years.

The company pointed to coffee as its biggest growth booster, driven by Starbucks-branded products including Nescafé instant coffee and Nespresso pods. When the pandemic shutdowns began last year, consumers grabbed whatever coffee products they could. Now, as the pandemic drags on, consumers have upgraded their home-coffee experience by buying French presses, pour-over brewers and espresso machines.

“We clearly benefited from people enjoying their coffee at home rather than in the office or the cafeteria,” said a Nestlé spokesman. The company had made its coffee division a priority as part of its focus on growth potential categories. In 2018, Nestlé struck a deal with Starbucks to sell the chain’s packaged coffee at retail stores. Nestlé continues to innovate in the category, rolling out touchless machines for office workers and introducing new products and flavors for at-home consumption.

Keurig Dr Pepper, which is slated to release first-quarter results on April 29, also has enjoyed solid demand for its at-home coffee systems. Keurig Dr Pepper added about three million new U.S. households using the Keurig coffee system in 2020, the company said.

In reporting full-year results for 2020 in February, Keurig Dr Pepper Chairman and CEO Bob Gamgort said strong sales growth was “driven by market share gains across our portfolio and accelerated household adoption of the Keurig system.”

The company said retail consumption of single-serve coffee pods made by KDP “grew nearly 10% in IRi tracked channels, with accelerated growth in e-commerce.”

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