Single Store Owner

JAN-FEB 2016

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20 Coffee is the hot beverage of choice in c-stores and the No. 1 subcategory of hot dispensed beverages, according to the National Association of Convenience Stores (NACS). With the right edible accompaniments, java can be the perfect pick-me-up for afernoon customers, notwithstanding the fact that nearly three-quarters of hot beverage category sales currently take place during morn- ing service hours, NACS reports. IRI's March 2015 State of the Snack Food Industry report, for example, suggests that 59 percent of consumers in- dulge when snacking, and that bakery snacks—a tradi- tional accompaniment to hot cofee—are consumed by 81 percent of consumers, and not always in the morning. "Afernoon and evening hours are popular snacking times for bakery snacks, especially for Millennials and Boomers," IRI data show. Pairing cofee with donuts, mufns and other sweet snacks for a mid-day promotion is an efective way for c-stores to boost both cofee and snack sales in the 2 to 5 p.m. daypart. It can also help the convenience segment compete with Dunkin' Donuts, Starbucks and other outlets that consum- ers consider go-to stops for both afernoon snacking and takeout cofee. "Te majority of Americans are cofee drinkers, drinking a wide variety of types," says Elizabeth Sisel, beverage analyst at Mintel. "Te category has great opportunity for growth, as long as it continues to evolve to meet drinker demands and innovate with current trends, including alternative preparation methods, premium or artisanal brews and better-for-you options. Traditional roasted cofee remains at the height of market penetration, helping to spark interest in newer format single-cup and ready-to-drink cofees, including cold brew." Retail-purchased cold brew cofee, in fact, has taken of recently, with peak appeal for older millennials ages 21 to 38 (55 percent), and men (30 percent), two strong customer groups for c-stores. "Retail sales of cold brew cofee refect its rising popularity as growth has been steady since 2010, shooting up rapidly from 2014 to 2015," says Sisel. "While cold brew represents a small portion of the overall category, our research indicates curiosity about trying a new style of cofee is driving cur- rent consumer demand." —Kathleen Furore COFFEE Perking up coffee sales SOURCE: NATIONAL COFFEE ASSOCIATION, 2015 SOURCE: IRI AGE GROUP 45% 18-24 25-39 40-59 60+ 57% 62% 65% Consumed coffee out of home in the past day Bakery snacks are consumed by 81% of consumers but not all in the morning YOUNGER MIL L ENNI A L S OL DER MIL L ENNI A L S MOR NING L UNCH A F T ER NOON E V ENING S P E C I A L O C C A S I O N / E N T E R TA I N M E N T YOUNGER BOOMER S Y O U N G E R B O O M E R S OL DER BOOMER S O L D E R B O O M E R S JANUARY 2016

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