Firm offers insights on ways to tempt more consumers into convenience stores
COFFEE to go solutions have been rising in popularity in the convenience sector, bringing in ample opportunities for retailers to take advantage of.
According to Nielsen Scantrack data, convenience sales of coffee are growing faster than the wider Scottish market in both value and volume – at over 6% – beating the wider Scottish retail grocery market.
C-store retailers shouldn’t be shy to make the most of this and coffee firm Lincoln & York Coffee Roasters has pushed for more of them to consider stocking up on a coffee to go solution.
Richard Milner, category insight manager at the company, said: “To maximise opportunities for growth in such a competitive market, it’s crucial for c-store retailers to maintain a range of engaging, flavoursome coffees that cater to differing consumer tastes and drinking occasions.
“While instant coffee remains by far the most popular format in the convenience market, pods and ground coffee are both experiencing growth, so being able to offer a range of formats is a great way to tap into these emerging markets, broaden your appeal, and set yourself apart from the competition.”
Lincoln & York offers a range of household as well as in-store coffee products, including ground options and pod formats, coming in a variety of different flavours, blends and roasts, along with decaf options.
Further to this, Milner reckons that a strong coffee to go range will be a surefire way to bring in some extra sales during the cost-of-living crisis as more consumers seek affordable, permissible treats.
Citing Kantar data covering the 52 weeks to 19 February, Milner pointed out that there has been a rise in out-of-home ‘treat’ options by around 0.8% among consumers – showing that, while a small rise, shoppers still continue to seek out of home indulgence.
He said: “They are instead increasingly looking for smaller, more affordable ways to indulge, such as a coffee and a slice of cake.
“The trend of ‘affordable luxury’ lends itself very well to the coffee market, as shown by the continued popularity of more indulgent coffees such as lattes and cappuccinos in both the Scottish and the wider UK market.”
Ultimately, it does come down to the preference of taste for consumers as everyone seeks a morning caffeine fix that suits their tastebuds best and Milner believes that retailers should use this to their advantage.
He said: “Research conducted by Lincoln & York found that almost 60% of Scottish consumers ranked taste as one of their top three most important considerations when choosing a coffee, which is significantly higher than the UK average of 46%.
“This indicates that they are less likely to trade down to a cheaper alternative, instead sticking with brands and outlets that they know can offer consistently great tasting coffee.
“For retailers, one of the best ways to convince shoppers to consider more premium in-store options is by investing in a reliable, easy to use machine.
“This can be a great way to deliver reliable coffee to go formats, as well as presenting the opportunity to drive margins by introducing flavoured syrups.”
