Mar 02, 2023

Throughout the pandemic consumers learned many new skills - and we mean MANY. One interesting and enduring trend that emerged from this is the idea of the personal barista. That's right: coffee drinkers aren't just the passive consumers of their favorite warm drink; they have taken an active role in creating these drinks in the comfort of their own homes. With this, consumers are increasingly expecting the customization and variety they can enjoy at the coffee shop at home. And we are proud to invest resources and thought leadership to deliver on this need.   

BREWING UP SOMETHING FOR EVERYONE

It’s no secret that coffee trends are evolving. While coffee has traditionally been seen as an early morning beverage, consumers today are drinking it all day long. And they aren’t just enjoying a warm, black cup of joe. The coffee options are endless. 

The pandemic spurred consumer transformation after folks began spending more time at home. People had to get creative and find ways to bring the coffee shop experience into the comfort of their own kitchens—cue inspiration for the at home barista, a trend adopted by many avid coffee drinkers over the past several years. At home coffee creation not only offers convenience, but complete and total customization to turn a once simple cup of coffee into a caramel mocha masterpiece. 

In fact, 70% of consumers choose to drink their coffee at home today. And practically anyone can become a barista, thanks in large part to Tik Tok and other social media platforms that offer both inspiration and guidance with many users sharing recipes for delicious beverages. These trends are causing great momentum in the at-home coffee category as shoppers are treating coffee as an ingredient in their creations rather than a stand-alone beverage. We aren’t only talking about hot coffee here, either. One notable trend we are seeing: Cold is the new hot. Younger consumers, led by Gen Z, have shown an increasing preference for iced coffee and have introduced a wave of new ways to enjoy the drink.   

Have you ever heard of Dalgona coffee? Yeah, neither had we until several years ago. During the pandemic, the “Dalgona Coffee Trend” became quite popular as countless videos posted to social media showed influencers crafting this whipped coffee concoction in their own kitchens. Easy to make and delicious to drink, Dalgona coffee recipes are typically composed of only 4 ingredients—water, sugar, milk and most importantly, instant coffee.  

While consumers are embracing new trends, they are still relying on trusted brands to fulfill their at-home coffee needs. As the leader in the at-home coffee space we are excited to help deliver for them. Giving consumers the autonomy to have their coffee, their way, when they want it and how they want it is exactly why we are here—we are working on brewing up something for everyone.   

FROM LIQUID TO NO BREW, COFFEE TASTES ARE EVOLVING

Our coffee teams have been hard at work understanding consumer insights and identifying opportunities to innovate in the no-brew coffee arena. No-brew coffee includes coffee products that don’t require brewing, like instant and liquid coffee. These options offer the convenience of minimal mess and preparation time, while still being highly customizable with flavor additives like cream and sugar. The best of both worlds—easy and delicious.  

While our brands like Café Bustelo® and Folgers® have already seen great success in the instant coffee space, we are excited to pursue even more ways for the brands to meet consumer needs. And we are starting with liquid coffee. 

We define “liquid coffee” as coffee that starts with the consumer in a liquid state as opposed to coffee beans or grounds. This can take the form of concentrates and ready-to-drink offerings.  

Coffee concentrates are strong, cold liquid coffee that can be mixed with milk or water. Coffee drinkers can customize the strength of their brew without brewing the coffee themselves. 

Ready-to-drink coffee products are just that: ready to drink when purchased.  Not only are these beverages refreshing and delicious, they require no prep, are an easy option for busy coffee drinkers on the go and are widely available across retailers. The ready-to-drink coffee category has shown incredible momentum for all of these reasons, and now accounts for nearly 30% of total at home coffee consumption today. 

This crucial step to our continued momentum in the coffee category starts with ensuring that we are growing our coffee business while meeting the evolving needs of our consumers. That is why we have created a new team—the Liquid Coffee Venture Team—designed to support our strategy and pioneer our initiatives for growth. 

The Liquid Coffee Venture team will focus on innovation, category leadership and consumer engagement for our up-and-coming liquid coffee offerings. We have identified unique ways for several of our brands including Dunkin’® at Home and Café Bustelo® to offer new products that satisfy consumers’ desire to enjoy coffee at home.  

The focus on these new areas of innovation brings tremendous growth opportunities for our brands.  

“Serving consumers the coffee they want at home is something we have been doing for decades,” Vice President, Liquid Coffee Venture Tina Meyer-Hawkes shares. “We now have this incredible opportunity to leverage our category leadership in an exciting way through a combination of old and new—by using a strategy we already know to successfully deliver innovation and provide new ways to enjoy the brands that consumers know and love.” 

In addition to identifying gaps in the market and filling them with fresh innovation, our teams are committed to partnering with our customers to support the growth of the category and ensure we are making consumers aware of the expanded options they have. Through engaging and intentional marketing, we plan to bring our products to market in a way that meets our consumers right where they are. We are also dedicated to enhancing and prioritizing our relationships with our retailers by helping grow their category and not just our brands. It’s a win-win-win—we win, our consumers win, and our customers win. 

HELPING CONSUMERS UNLEASH THEIR INNER BARISTA

This certainly won’t be the last wave of changing consumer coffee trends. That’s why we remain committed to ensuring that we are offering our consumers the products they need to make their coffee dreams come true. And we have a team of talented and passionate employees, paired with a tremendous portfolio of strong brands, to deliver on that goal. 

So, whether consumers like their coffee hot and brewed, iced and stirred, whipped and flavored; in the morning, during the lunch hour, or to accompany their evening un-wind—we are excited to continue to be the brands they turn to.