Heartland Food Products is launching a new type of coffee pod. Timed well for summer, they are releasing JAVA HOUSE Authentic Cold Brew Coffee. This pod will differ from traditional pods, allowing consumers to make both hot and cold coffee. It can also be diluted in over 8 ounces to be served chilled or prepared in a K-Cup machine for a hot brew.
The product will be available in 3, 6, and 12-packs; the suggested retail price will range from $4.99 to $8.99 and $15.99. Colombian, Sumatran, Decaf and Ethiopian are the four varieties the pods will be available in.
What manufacturers need to ask is, is there a demand for cold brew? According to Mintel, the trend for cold coffee amongst American consumers is strong. Between 2011 and 2016, the cold brew sub-segment rose 580 percent. 2016 was the strongest year for cold brew sales yet.
Reuters recently conducted a survey that revealed drinking coffee at home was preferred. In fact, 79 percent of the survey takers claimed they had drank a homemade brew the day prior; 41 percent from that percentage said they owned a coffee machine at home. A lot of the coffee drinking demographic is made up of millennial’s and generation Z. It is said that more than one in five millennial’s are interested in specialty roasts for cold brewed coffee at home. In addition, it was found that the fastest growing demographic of consumers were aged from 13 to 18. Unlike soda and juice industries, the coffee market seems to remain strong.
“We see the cola industry is declining, (but) coffee is in the front row,” head of the Colombian Coffee Growers Federation, Roberto Velez, told Reuters.
With soda sales declining, manufacturers are eager to release coffee products, as they are still on the rise. Heartland is not the only company that has released a cold brew product this year. In May, 7 Eleven launched a line of sparking cold brew beverages that come in self-chilling cans. The main selling featured of this product it that it uses 100 percent arabica beans and contains 10 grams or less of sugar.
The demand for healthier drinks is on the rise, hence the decline of sugary beverages. This is why coffee is currently dominating the market. Both products contain caffeine but coffee does have health benefits whereas sodas have none. If consumed in moderation, coffee can reduce the risk of cardiovascular disease, lower the risk of stroke, lower the risk of Parkinson’s disease, and might even protect against Alzheimer’s disease.
One of the main selling factors for this product is the convenience and preference of drinking coffee at home by consumers. However, a concern is how consumers will react to the taste considering cold brewed and hot brewed coffee have different flavor profiles.
This product might change the way coffee is marketed, maybe sparking a new trend in dual coffee products. With declining juice and soda sales, manufacturers might want to look into investing in coffee products.