My recent conversations with operators and suppliers point to two clearly emerging trends in the OCS business. The predominance of bean-to-cup brewers and a desire to elevate the OCS amenity are trending upward, affecting the choices that operators are making with regard to equipment and products.
Perhaps the best news about these trends: They do not lend themselves to low-ball pricing, and they generally eliminate our primary predatory competitors such as office supply companies (pretending to be in the OCS business) and online sellers (trying to get a piece of the OCS pie).
The predominance of single-cup brewers
“Bean to cup is cemented in as a key OCS offering right now,” said Arthur Siller, SVP of operations and business development at Evergreen Refreshments in Seattle, Washington. “It is no longer an elevated offering – it is an essential offering in most locations.”
Louis Baresh, sales manager at Executive Refreshments in Dallas, Texas, has seen a more equitable distribution of refreshment amenities as employers seek to bring workers back and retain them. “We have a client who has a distribution center with a corporate office next to it,” said Baresh. “The office area was enjoying bean-to-cup brewers, while the warehouse was getting drip coffee. I was recently contacted by the account, and they asked me to install bean-to-cup brewers in the warehouse as well.”
A desire to elevate the amenity
Employers are turning to equipment and products to elevate the office refreshment amenity in an effort to keep employees happy. Dave Mandella, VP of sales at American Food and Vending, said there are so many positive developments in our industry right now as employers seek to elevate the office refreshment amenity – from the strong return of cold brew, to the appeal of new brewer technology, to the demand for flavored sparkling water.
Clients are asking for more
Siller said he sees the same positive trend when it comes to client needs. “Today, it is unusual if a client does not order a brewer, allied products, a water machine, often with flavored sparkling water – and even an ice machine,” he said.
Supplier opportunity
Employer enthusiasm has opened the door for suppliers to provide products that offer a little something extra to elevate the OCS amenity. Here are some examples and what the suppliers feel is driving interest in their products:
Alliant’s sweet solution
Marina Cappagli, marketing director at Alliant Coffee Solutions, said that the company’s Flavor Singles flavored sweetener packets are a great way for coffee drinkers to have their coffee the way they want it – on the go. Flavor Singles packets allow them to enjoy the perfect amount of flavor and sweetness in their coffee with just one packet.
Lavit’s plug-and-play machine
Matt Van Orden, head of sales at Lavit, said his company’s success is being driven by a strong upward trend favoring still and sparkling water machines. “Lavit requires no special drilling, just a counter, access to a water line and an electrical outlet. It is truly a plug-and-play machine. Lavit boasts 23 different flavors including big brands like Arizona and Celsius that come in 100% aluminum and fully recyclable Eco-capsules,” said Van Orden.
Easy Ice hands-free ice machines
Angela Cook, marketing director at Easy Ice, said they have seen a notable trend toward touchless ice and water dispensers. “Hands-free ice machines, such as the Scotsman Meridian HID540, dispense popular chewable nugget ice and water directly into drinkware using sensors to ensure the ice supply is safe and users won’t expose themselves to a contaminated surface,” she said. “These are self-contained units that deliver between 260-500 lbs. of ice per day. Measuring 21 inches wide by 42 inches tall, this machine has a small footprint that is great for any office or breakroom.” They can also be installed on a stand, so a business can install a hands-free ice nugget ice dispenser, even without free countertop space.
Waterlogic’s touch-free unit
Lisa Vanwyngarden, director of marketing at Waterlogic, said her company is also seeing an increase in customers wanting touch-free solutions to help employees feel safe returning to the office amid COVID-19 concerns. “Our new WL3 Firewall unit has been really popular to meet that demand since it has an infrared sensor to dispense cold, ambient and sparkling water,” she said.
Pods are picking up steam
Ryan Barrett of White Bear Coffee Company is seeing opportunity in the pod market. “The strongest growth area for us right now is our biodegradable single-cup coffee pods, brewed on the Newco CX Touch.”
Ratio Six – double-digit growth
Mark Hellweg, founder and CEO of Ratio, said his company is seeing double-digit growth in its Ratio Six coffee machine. “We are seeing lots of offices reopening and upgrading coffee equipment so that employees coming back to work find an elevated experience. They want to taste coffee that is similar to the coffee they’re paying for at a specialty café,” said Hellweg.
Sustainable solutions that elevate the amenity
Three companies that recently co-sponsored a Vending Market Watch webinar, “How operators can earn more through sustainable solutions,” are surging because their products can instantly elevate a refreshment program, as a sustainable solution.
With its on-demand micro roaster, ansā coffee is seeing huge interest from operators around the country.
Faced with scrutiny from clients about their own level of sustainability, operators can turn to Marco Beverage Systems for POUR’D – a bag-in-box cold brew system that significantly lowers an operator’s carbon footprint while offering an easy cold brew solution.
As the world seeks sustainable alternatives to their favorite products, Güdpod Coffee has rolled out a line of 100% compostable, Keurig-compatible pods.
“When we visit workplaces with our clients, the HR directors and facility managers tell us that our type of product checks off all their boxes by elevating the amenity and providing a sustainable solution at the same time,” said Miguel Gonzalez, chief sales officer at Güdpod. “That combination is what clients want to see today.” ■
ABOUT THE AUTHOR
Industry consultant and Vending Market Watch contributing editor Bob Tullio is a content specialist who advises operators in the convenience services industry on how to build a successful business from the ground up and advises suppliers on how to successfully connect with operators. Tullio’s YouTube channel, b2b Perspective, is designed to “elevate your business in two minutes.”
At the 2022 NAMA Show in Chicago, Tullio presented a pre-conference session entitled, “Selling Convenience Services: Strategies of Elite Performers.”
For more information on the services that Tullio offers to operators and suppliers, visit his website at www.tulliob2b.com or contact him at [email protected].
