How do retailers make more money selling decaffeinated coffee? That’s simple–by using many of the marketing tactics, tools and promotional techniques for boosting sales across the coffee category. In addition, improving the brewing process while reducing waste is important. While decaf may be thought of as a substitute or secondary offering to regular coffee, the advantages of having a high quality decaf program are every bit as important as regular coffee.
First, decaf drinkers drink more java. StudyLogic custom data on behalf of Swiss Water from July 2017 says 37% of decaf drinkers consume three or more cups a day, compared with only 18% of regular-coffee drinkers. Second, most convenience store retailers are only beginning to focus on decaf quality and offerings, which presents opportunity for gaining a competitive edge. Third, retailers have a receptive audience with 62% of coffee drinkers believing it is important to limit their caffeine intake.
All these are reasons are why there was a 26% increase in decaf cups per person per day over the last two years. That’s especially true with Gen Z and millennials According to the National Coffee Association’s 2018 US Coffee Drinking Trends report, 15% of those generations reported an increase in their decaf consumption—making them the age group that currently drinks more decaf coffee than any other age group. Since decaf consumers are looking for quality and great taste—not just caffeine—improving decaf offerings is especially important.
Not all decaf is the same
Appeal to customers’ health consciousness. Most coffees are decaffeinated using chemicals such as methylene chloride or ethyl acetate. But the proprietary Swiss Water Process is chemical-free, employing all-natural, water-based diffusion process to decaffeinate beans while leaving the body, acidity, sweetness, character and flavor intact.
Display the Swiss Water Process logo prominently, as it can be persuasive to consumers. In fact, according to the IPSOS Process Awareness Study, May 2015 and February 2016, 79% of decaf drinkers say they are more likely to buy a particular brand of coffee if they see the Swiss Water logo.
Coffee drinkers know beans
Coffee drinkers of all stripes are savvy about beans and demand high quality options. That’s especially true of decaf drinkers—according to StudyLogic’s U.S. Coffee Habits Study, commissioned by Swiss Water, July 2017, 61% say they seek better quality, great-tasting coffee, and they are willing to pay for it. Expand offerings to include decaf selections of specialty-grade, single-estate, sustainably farmed and organically grown beans to sell more cups. That’s easy to do, because Swiss Water Process decaffeinated coffees are available in a wide variety of beans from all major roasting partners.
Upgrade brewing equipment
The changes in consumer preference, quality and beverage customization create an opportunity to consider equipment solutions outside of the standard coffee pot, which can help drive sales while improving margins. There are now a variety of superior bean-to-cup machines on the market that produce the freshest cup possible while eliminating the waste in drip programs. Offering better quality conventional and decaf coffees becomes easier with waste taken out of the equation. The same strategy goes for specialty beverages, where high quality conventional and decaf versions of espresso-based lattes, cappuccinos and mochas can be offered without the risk of decreased margins due to waste.
Iced and frozen blended drinks are a natural option for appealing to decaf lovers, too. Because customers might see these drinks as more of a sweet treat than a pick-me-up anyway, it’s easy to market them as treats.
Retailers can also consider offering cold-brew coffees prepared either in house with a specialized brewer, or with other simplified dispensed solutions. This helps retailers keep up with the changing coffee consumer demand and is another way to add both conventional and decaf offerings to a program to improve overall coffee sales.
Play up promotions
Consider featuring a “coffee of the month” or rotating single origin or specialty blend program, and make at least one of those options decaf.
Bundling helps make more money, too. Offer a limited-time combo of a cup of decaf and a pastry. Retailers stand to garner a bigger check on that than by selling just a cup of coffee alone.
Retailers can also set up a decaf coffee club. Punch cards are easy and straightforward. For instance, try offering a promotion for customers to accumulate 10 punches for buying 10 cups, and then give them the 11th decaf for free. Retailers can also highlight an afternoon coffee option, such as decaf cold-brew, as a promotion for driving afternoon traffic. Not only do coffee clubs boost business, but they also help retain customer loyalty and can drive visit frequency as well.
A similar but more elaborate promotion could involve giving or selling a logoed mug that comes with discounted refills of decaf. The reusable mug reduces paper and plastic waste and adds an environmentally friendly halo to the store’s program.
Last year, sales of specialty decaf coffee increased 3.7%, which was stronger than overall coffee growth, according to StudyLogic Panel Data, 2017 & 2018. Using some simple techniques, sales of decaf can grow as well. To learn more about how to offer the best available decaf to customers, ask your roaster supplier about their Swiss Water offerings.
This post is sponsored by Swiss Water Decaffeinated Coffee Inc.