Cold is king: For OCS, the message from Gen Z is clear

For the last eight years, my Best of OCS column for December has focused on the year in review. This year, let’s look forward to the evolving OCS business.

A recent webinar examined the evolving OCS business and explored strategies for OCS operators to enhance coffee programs, adapt to changing client expectations, and identify new revenue opportunities. I had the privilege of engaging with the expert panel, which included:

• Dora Márquez Lema, director of brand marketing at Nestlé Professional Solutions
• Pasquale LaRocca, senior brand manager at Nestlé Professional Solutions
• Marc Hubble, national sales manager at G&J Marketing and Sales, overseeing the Nestlé Coffee relationship
• Arthur Siller, senior vice president, business development for Evergreen Refreshments

During a candid one-hour conversation, the panelists discussed the trends affecting OCS business and how operators can better position themselves to serve their clients.

Factors driving the change

As Gen Z enters the workforce, their expectations are expanding what workplace coffee programs must deliver.

Cold is king

Márquez Lema noted that 10 years ago, most people were drinking coffee just to wake up: It was a functional driver for the category.

Today, that is changing as younger consumers enter the workforce. For those consumers, the experience is all about cold coffee. “If there is one thing you remember from this webinar, it is that cold is king, and that will completely change the OCS category in the years to come,” she added.

An emotional component

As an operator, Arthur Siller said he agrees that expectations of today’s OCS customers — particularly younger coffee drinkers — have changed.

“They want personalization, customization, from something completely functional to something where there is a real emotional component and a real experimental component,” he said. “They experience it in their everyday lives, and they want that same experience replicated in the workplace.

“We are fortunate as an industry because employers are very keen to this now, and very tuned into what their employees feel about the workplace, the experience they have, what it says about them as an employer,” Siller said. “We’re seeing the same trends, patterns and I would say the same thing for cold coffee solutions — from probably a ‘nice to have’ to a ‘need to have’ as time goes on.”

A connection through coffee

As a broker, Mark Hubbell deals with plenty of operators. He said the circumstances around office coffee have evolved.

“In OCS, the true decision makers are the end clients, not the operators. The operator's role is to understand what the clients value most and translate those needs to suppliers so the right solutions can be brought forward. Consumers have always been passionate about coffee. They are passionate about the origin, how it's roasted and the overall flavor experience. In recent years, we've seen a stronger desire for connection through coffee,” noted Hubbell.

“Whether that's supporting local roasters, aligning with community-focused brands, or choosing products tied to meaningful causes, operators are looking for solutions that provide value across all dimensions. A trusted brand, a compelling origin story and the ability to deliver consistent results day after day — operators need to be prepared with product portfolios that check those boxes, because that is what end users now expect from the OCS experience,” he added.

Personalization

Pasquale LaRocca pointed to the importance of personalization in OCS — giving end users exactly what they want when it comes to coffee. Along those lines, Coffee mate creamers go a long way toward providing consumers with a personalized experience.

During the webinar, LaRocca “spilled the beans” on the newest creamer, coming soon. It hits every flavor trend all at once. “Caramel, Maple, Waffle, Bacon, Oat milk creamer.” Yes — that is one creamer flavor.

While this new flavor is a fun addition to the Coffee mate lineup, the top-selling flavors remain Regular, French Vanilla and Hazelnut. LaRocca acknowledged that zero-sugar and plant-based creamers are growing as well — further signs of demand for variety and personalization. He added that while flavored creamers were once a specialty item, they have become a necessity today.

“As an operator, you need to be thinking about your audience — who you are serving coffee to — and tailor the solution around them,” LaRocca said. “Are there opportunities for bean-to-cup? Is there an opportunity for brewed coffee? Is cold coffee an option? We just need to look at things differently based on the demographics of a location.”