Hot stuff

Not many consumers can survive without their daily intake of a hot drink. But the challenge for operators is making it a good value for money cuppa and a profitable one as well. John Porter reports.

Hot drinks are an essential part of any catering operation, but also an area where it can be a challenge to pass increased costs on to customers, who quickly notice when the price of their daily cuppa increases. Fortunately for operators, the World Bank is forecasting a fall in prices on the commodity markets of coffee, tea and cocoa this year and into 2012.

While 2010 saw high prices caused by relatively poor harvests, this year's crops are looking better. There is also an expectation that this higher crop production will be balanced by lower global consumer demand as the economic downturn continues, pushing prices down. However lower prices are not such good news for producers selling their crops.

Sourcing Fairtrade products is a way operators can ensure that producers get a good deal, while also meeting increased customer expectations that caterers should serve ethically sourced products. The recession hasn't stopped people from buying Fairtrade products. The Fairtrade Foundation estimates that a quarter of British consumers buy them, with total sales being worth £800m a year and rising.

The Rainforest Alliance accreditation, which encourages farmers to work sustainably as well as aiming to secure fair prices, is increasingly popular. Country Range claims to have the largest range of Rainforest Alliance certified hot beverages in foodservice, including new roast and ground filter coffee from sustainably managed farms in Brazil.

Brand manager Martin Ward says: "Buying coffee with the Rainforest Alliance seal of approval gives consumers the reassurance the coffee they are drinking is grown on farms where workers are paid decent wages, are properly equipped and are given access to education and medical care."

Other brands are also focusing on ethical sourcing in their marketing. In autumn 2010, Cadbury revamped the foodservice packaging of Cadbury instant hot chocolate. The pack redesign includes the Fairtrade mark that highlights the brand's partnership with the Fairtrade Foundation, which improves the livelihoods of cocoa growers in Ghana.

With a 63% market share of hot chocolate sales in foodservice, Cadbury's support for its brand helps drive the category. Its new education programme and trade initiative called 'Stir up Perfection', provides operators with information on how to serve premium hot chocolate, and is backed by a range of POS materials including wobblers, tent cards and posters.

Trade communications manager Susan Nash says: "Consumers see Cadbury as the classic hot chocolate, so by using POS to signpost the brand where available, the consumer knows they are choosing a great tasting Cadbury product."

The freezing weather in November and December last year will have helped convince many caterers that warm drinks are worth promoting, with Nielsen figures showing 3% year on year growth for the hot milky drinks category.

According to GlaxoSmithKline Nutritional Healthcare, its hot beverage brand Horlicks is outperforming the market, supported by an ongoing marketing investment for a range that includes light and extra light variants. The brand continues to run the 'Made for Evenings' marketing campaign supported by on pack promotions.

Coffee however remains the most popular out of home drink. Neil Stephens, managing director of Nestlé Professional, says: "We're becoming more familiar with the great British love affair with European café culture, which has proved unshakeable. Whether it's a latte or cappuccino, coffee remains an intrinsic part of a consumer's routine.

"Being innovative can be one of the ways to stay ahead of the game. Creating a menu of speciality drink recipes using premium ingredients could be one way to keep things fresh. Using flavoured syrups or dustings of nutmeg, cinnamon or chocolate; or side servings of luxury biscuits, chocolates or tea cakes, are all simple finishing touches but an important part of the customer experience.

"Special espresso cups have been a familiar sight for many years but increasingly we now see the latte mug, the cappuccino cup, the flat white mug – it's all about the presentation."

Adding value is important, argues Elaine Higginson, managing director of United Coffee UK & Ireland. "Operators should look to the character of the blend for inspiration; chocolate covered berries and stone fruits enhance the natural fruit flavours of coffee, while a piece of fudge served with a cup of our Grand Cru coffee complements the sweet fudge tones of the blend.

"But what matters to the consumer most is the quality of the drink. If you serve a bad cup of coffee, they won't order another just for the free sweets." Also with the emphasis on quality, Kenco is currently offering a money back guarantee on its 750g smooth and rich, 500g smooth and decaffeinated tins and its smooth and decaffeinated stick cases. The offer aims to demonstrate its confidence that customers will "believe in the taste".

Ashley Neal, director of sales at brand owner Kraft Foods UK, says: "Kenco has formats suitable for a wide range of audiences, from offices to hotels and hospitals to sports clubs, so everyone can take advantage of the offer. It's a no risk investment – if the people who drink our coffee aren't happy, we will take the hit."

The drive to meet consumer expectations of higher quality is creating some unexpected alliances. Cheltenham based Soho Coffee Co, which serves Fairtrade coffee and organic locally sourced food, has opened franchised outlets at the Butlins holiday parks at Minehead and Skegness.

Director Penny Manuel says: "Butlins is an exciting development for us. They are a dynamic partner and an enduring leading player in the UK leisure market. They impressed us with the passion and their commitment to offering healthier food options. Butlins has worked hard to reinvent itself and it's definitely a good fit with our brand."

At Everton Football Club's Goodison Park ground, Sodexo operates 26 kiosks around the stadium. Ian Simpson, Sodexo's general manager at the club, says: "We have around 12,000 fans using our catering facilities on match days and the vast majority of these will want service during the 15 minute half time break. It is important therefore that we have facilities in place that can cope with such high demand."

In addition to installing a beer dispenser that can pour a pint in just three seconds, Simpson recently started using Tetley on the Go in the kiosks. "Tetley on the Go provides us with everything that we need to serve a quality branded cup of takeaway tea in as shorter time as possible.

"We sell about 5,000 hot beverages during home games and with just 250 staff working within the kiosks we need something that is quick and easy to use. "With everything coming in one box, we are able to quickly place the teabags into the cups prior to kick off to ensure we are fully ready once that half time whistle blows."

The right equipment is also essential to the caterers' hot drinks offer. Coffee Nation has launched the Express Pod machine to provide a branded unmanned gourmet coffee offer. It is a chip and pin self-service coffee bar that can accommodate all major debit and credit cards as well as notes and coins.

It dispenses authentic cappuccino, latte, mocha and hot chocolate. In addition, it offers flavour syrups including vanilla, caramel and hazelnut, and the option to add extra coffee shots, allowing consumers to customise their drinks to their taste using the machine's touch screen for drink selection.

Lincat's Filter Flow automatic water boilers have built-in water filtration and variable temperature control. The boilers are cost effective and efficient to run and are also attractive being made from polished stainless steel.

The company has also now improved the performance of them by extending the life of the in-built filter cartridges by 33%. The cartridges will need to be changed every 4,000 litres instead of every 3,000, or every six months, whichever is reached first.

Marketing director Nick McDonald says: "Offering a continuous supply of high quality, filtered water to improve the taste and quality of hot beverages, they are ideal for every catering establishment."

The accessories too are just as important. Pritchitts for example says its long life skimmed milk Millac Maid and luxury coffee creamer Café Maid offer caterers a tried and tested solution to deliver the perfect result, as does its Millac cappuccino milk that has a lower fat content than semi-skimmed milk (1.7%), making it ideal for the growing demand for skinny lattes and cappuccinos.

"Any self-service hot beverage offering demands that the milk pots used deliver on quality and service," says head of marketing Simon Muschamp. "Milk is often what determines a good hot beverage experience and, as a market leader in dairy, Pritchitts invests heavily in research to ensure its mini pots are easy to use, guaranteeing there is no unnecessary spillage or wastage."