SCHAUMBURG, Ill. -- Although blending drinks at a convenience store's fountain area may be part of the fun, panelists discussing fountain and coffee trends in the "Pouring Profits: Maximizing the Highest Profit Categories in Foodservice" session at CSP's 2009 Foodservice at Retail Expo (FARE) conference yesterday advised retailers to make clear choices in order to make the most of these categories.
One of the challenges put forth by Corey Schiff, vice president of sales and marketing for Tone Products Inc., Melrose Park, Ill., was to consider private-label options for fountain drinks. [image-nocss] Noting that private label has evolved, he told the approximately 75 attendees in the session that private-label products were of lesser quality in the past.
"Today, you can have products that are equal to or of even better quality than national brands," he said, adding that companies who specialize in offering private label can provide data and advice to help shape a chain's program.
Schiff noted how two college-area chains he worked with paired soda and isotonic flavors at the fountain with school colorsin one case yellow and green with a lemonade and a green sports drink, and another being orange and blue with an orange soda and a blue frozen drink.
In terms of coffee developments, John Ludwig, executive vice president of White Wave Foods/CreaMiser, Broomfield, Colo., said the trend towards "theater" presentations are gaining ground. Creating upscale-looking areas where people can add condiments and not fight for space was becoming more important to consumers, he noted.[Pictured (ledt to right): Margaret Heery, Corey Schiff, Dean Landeche, John Ludwig, Joseph Chiovera.]
Panelists talked of other trends in these categories as well: Beverage as a treat. Another trend that panelist Dean Landeche, vice president of marketing for Manitowoc Foodservice, New Port Richey, Fla., noted was how some chains are positioning beverages as a "fourth meal." He noted Oak Brook, Ill.-based McDonald's and its yogurt-based drinks being positioned as meal replacements. Location of the ice for iced coffee. Retailers brought up the question of locating the ice dispenser next to the iced-coffee station. Panelists agreed that is was something to consider, especially when customers expect to simply turn around and get their ice vs. having to walk to the fountain. Competing with drive-throughs. While quick-serve restaurants may have an edge on providing hot coffee via their drive-through windows, Margaret Heery, who handles strategic marketing for BUNN, Russellville, Tenn., said that providing a quality brand and a great experience is key. As moderator Joe Chiovera, senior director of fresh foods for Dallas-based 7-Eleven said, "Hospitality is the key to attracting and keeping new customers." Fountain growth. Panelists noted areas of fountain growth being in iced teas, lemonades, functional beverages and draft-style root beer. Energy drinks still increasing. But panelists said that its increases are slowing.
When is innovation too much? One attendee asked the panelist a question about wading through all the new flavors and equipment options and when enough was enough. Schiff responded by saying, "It doesn't end when the manufacturer's says it ends."
As the only multi-channel conference and trade show entirely dedicated to food on the go, FARE provides focused learning, a trade show featuring the latest foodservice products, programs, equipment and technology as well as networking with industry peers. It is geared especially for retailers and operators that provide food for immediate consumption or prepared food to be consumed later. FARE and Fare magazine target those responsible for foodservice in c-stores, truckstops/travel centers, universities/college campuses, discount, mass merchandise, drug chains, military bases, supermarkets/grocery stores, airports/newspaper stands, movie theaters, theme parks, bowling alleys and quick-serve restaurants (QSRs).
FARE runs through Wednesday in Schaumburg, Ill., at the Renaissance Hotel & Convention Center.Click here for details.
Andclick here for the Fare magazine website.
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