Cold brew solutions offer revenue opportunities in office coffee service
In case you haven’t heard, cold brew coffee is one of the hottest trends in the U.S. coffee market. According to a 2022 report published by Statista, the total size of this market stood at around $166 million in 2017, and by 2025, this figure is forecast to increase to around $944 million. Another market study by Technavio even has the cold brew coffee market figures to increase by $1.37 billion from 2020 to 2025.
Cold brew coffee is not a new concept – it is simply steeped coffee grounds in cold water for several hours – but every year, it continues to heat up in favor with consumers.
I remember traveling to see a Wisconsin-based operator nearly eight years ago who was offering nitro cold brew on tap to some of his customers. He was the outlier at that time – an operator who was taking a chance on a trend that was yet to be solidified. Nearly a decade later, many other operators around the country are offering cold brew to their customers. Cold brew coffee is not a trend anymore; it is a staple in coffee service, and operators who can - should be taking advantage of this revenue opportunity.
Which option is right for you?
Previously, cold brew coffee offerings were a challenge for operators. Kegs and CO2 tanks were extra barriers, keeping some OCS operators out of the cold brew coffee business. But manufacturers have seen that hurdle and replied with equipment that makes offering cold brew coffee a possibility.
At the NAMA Show earlier this year, Bunn showcased its keg-free nitro cold brew machine Nitron. The Nitron comes with two dispense options: the Nitro/Still or the All-Nitro. With the Nitro/Still, consumers have the option to dispense a nitro-infused beverage from one tap or a still beverage from the other. The All-Nitro model dispenses nitro-infusion from both taps, which gives operators the ability to meet higher volume needs and double the selection of nitro beverages. The Nitron comes with two door types as well: removable graphic door model and the all-black door model. With the removable graphic door model, operators can easily (without tools) change the marketing panel on the front of the machine. This allows an operator or location to promote unique brands and beverage offerings.
Various models available use either two 1-gallon (3.8-liter) concentrate BIBs (bag-in-box) or Bunn refillable containers (for ball-valve models), two 1/2-gallon (1.9-liter) concentrate BIBs or a single 1-gallon concentrate BIB (for Scholle models) that staff are already familiar with, and each BIB yields multiple gallons of finished drinks.
Earlier this year, illycaffe announced its new cold brew dispenser system, the illy Cold Brew Blade dispenser, a one-touch system that makes two different cold brew preparations with the twist of knob and venturi spout. Without the need for nitrogen tanks or an external compressed air source, the Cold Brew Blade dispenses illy Cold Brew or nitro-style illy Cold Brew Aria.
The Cold Brew Blade utilizes a 4.5-liter soft pack of cold brew consisting of the signature illy blend equipped with disposable dispensing tubes, which eliminates the need to clean any internal elements. This not only improves its food safety features but also reduces day-to-day maintenance needed from staff.
The unit base footprint is 8.5 inches wide by 11 inches long and is designed to keep the coffee fresh with a 14-day shelf life while in the dispensing unit.
Also at the 2022 NAMA Show, Segafredo Zanetti showed off its NitroTap, a two-in-one cold brew on-draft dispensing unit. NitroTap dispenses both cold brew and nitro brew coffee.
With no nitrogen gas service and no waterline connections needed, the NitroTap takes up minimal space with its small countertop design. It provides easy installation by simply plugging in the machine, connecting the bag and enjoying draft cold brew coffee, giving operators the ability to serve both low- and high-volume clientele.
In 2021, Marco Beverage Systems introduced its cold coffee dispenser called Pour’d, available in ready-to-drink (RTD) or concentrate variants. In the RTD option, cold coffee is dispensed from a BIB, urn or container kept in a fridge, kegerator or under the counter. The Pour’d RTD is available in a one-button font for push and hold, a hands-free font for hygienic activation or a three-button font.
The concentrate models can dispense beverages from a single concentrate source, automating the dilution process using either chilled or mains water to dilute the concentrate for cold coffee. The system is compatible with concentrate ratios from 1:1 to 9:1. It also allows operators to preprogram up to three beverage choices and volumes.
The Pour’d three-button concentrate option gives users flexibility over their offerings, including the ability to use a shot of concentrate for mochas or iced lattes, cold brew and even a hot water stream for teas or Americanos.
Speaking with Automatic Merchandiser’s Bob Tullio in early 2022, Marco’s North American Sales Director Matt Dudley said, “Pour’d eliminates the need for kegs and for CO2 tanks. It enables the use of concentrates or RTD. It adds flexibility and takes away a lot of the cumbersome aspects of a traditional cold brew program.” Read the full interview here.
In late 2021, the company announced La Colombe’s ready-to-drink, shelf stable BIB cold brew compatibility with its Pour’d dispenser.
RTD optionsIf adding cold brew equipment isn’t a possibility at a particular location or even for your business at this moment, there are many RTD options on the market. Rise Brewing Co. offers its Nitro Cold Brew Coffee in 7-fl.oz. cans. Monster Energy announced earlier this year that its Java Monster Cold Brew in a can is available in Latte and Sweet Black flavors. And in May, Lavazza launched its organic ready-to-drink cans of cold brew coffee in four flavor profiles: Classic Cold Brew, Nitro Cold Brew, Cappuccino Cold Brew with Milk, and Double Shot Cold Brew with Oat Milk.
Illy also introduced two new ready-to-drink products, illy Cold Brew Cappuccino and Latte Macchiato, in 8.45-oz. slim cans. This comes after the company introduced its first-ever RTD cold brew in 2020. "The expansion of our illy Cold Brew drinks positions illy to meet coffee lovers' ongoing appetite for super premium cold coffee preparations," said Jack Edwards, president of illy caffè North America, in the company’s announcement. "The illy Cold Brew portfolio represents the newest innovations from illy and delivers on our unwavering commitment to superior taste, quality and sustainability that is recognized around the world."
It is clear that cold brew coffee is not a fad that will be going away. It has been gaining traction for the better part of a decade. If you are still in doubt, take a look at grocery retailers and the number of cold brew options available to customers today. In this post-pandemic workplace, operators are challenged to look outside of the box to find new revenue streams, and cold brew coffee offerings could provide the boost in sales that’s needed.
Don’t skip the extras
At the 2022 NAMA Show, several companies showcased plant-based coffee creamers, including many different varieties of increasingly popular oat milk. This is unsurprising considering the offerings at coffee retailers, convenience and grocery stores. Allied Market Research found that the global non-dairy creamer market size was valued at $1.7 million in 2019 and is projected to reach $2.3 million by 2027.
Among the many plant-based creamers available, Chobani, earlier this year, launched its first plant-based coffee creamers in Sweet & Creamy, French Vanilla, Chocolate Hazelnut and Caramel Macchiato.
Additionally, Nestle’s Coffee Mate will launch plant-based almond and oat creamers in January 2023.
Although traditional creamers are still a necessary offering, plant-based creamers are gaining traction.
Adrienne Klein | Contributing Editor
Adrienne Zimmer Klein is a freelance writer with a background in the vending, micro market and office coffee service industry. She worked as an associate editor and managing editor at Automatic Merchandiser and VendingMarketWatch.com from 2013 until 2017. She is a regular contributing writer at Automatic Merchandiser.
