social media Archives - Tea & Coffee Trade Journal https://www.teaandcoffee.net/topic/social-media/ Fri, 22 Nov 2024 09:26:30 +0000 en-GB hourly 1 Brewing success in omnichannel sales https://www.teaandcoffee.net/blog/35533/brewing-success-in-omnichannel-sales/ https://www.teaandcoffee.net/blog/35533/brewing-success-in-omnichannel-sales/#respond Fri, 22 Nov 2024 09:25:36 +0000 https://www.teaandcoffee.net/?post_type=blog&p=35533 With food prices remaining high, shoppers are not only buying less, they are actively managing their spend by changing how they shop to save money and employing various strategies to curtail costs. To find success, it is vital for manufacturers to have an omnichannel strategy.

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“It’s no longer just about what’s on the shelf — it’s about where and how consumers engage. The old retail playbook is dead. Omnichannel is the new battleground, and social commerce is where your customer is discovering their new favourite brand. If you are not showing up online, optimizing for mobile, or partnering with influencers, you’re already behind. Success in today’s market will come to those brands that meet their consumers where they are with bold moves to lead in this digital-first word.”

The above quote is from Chris Costagli, vice president of food insights lead at Nielsen IQ (NIQ), during his recent National Coffee Association (NCA) webinar, “Mastering Omnichannel Sales in the Coffee Industry” in which he informed attendees that more than half of all food and beverage unit sales originate in the food channel, but in the past year, 3.6 billion units disappeared from the in-store food channel, 67% of which was due to lost sales. Furthermore, the in-store food channel lost 2.41 billion units that completely disappeared from the FMCG industry altogether.

The lost sales can be attributed to consumers:

• Scaling back to reduce spending
• Buying less due to GLP-1s (weight loss drugs)
• More away-from-home consumption

Rising food prices remain top of mind for shoppers so they are buying less. Costagli said the F&B sales in the food channel have trended negatively over the past few years, falling 1.8% in the last year. As such, consumers are taking action to manage spend, and most shoppers have made changes to how they shop to save money — 87% have changed how they shop to save money, and they are using an average 3.9 strategies to do so (such as switching to lower-priced options, buying their favourite brands only when on sale, buying the brand that is on sale, buying essential items only, etc.).

And while 67% of in-store food channel unit loss is due to discontinued purchases, 34% of in-store food channel lost units are unaccounted for. Costagli explained that the ‘lost units’ shifted to other channels, the majority of which were purchased online. “Those shifting trends plus online growth underscore the importance of an omni strategy,” he said, adding that online sales grew 17% over the past year, driven by growth in every department across the store.

Consumers are shopping online – 85% order from pure play online retailers for home delivery and 69% order delivery from hypermarket, supermarket, mass stores – and they are experimenting with emerging retailers like TikTok. “The power of social media is significant and is something that should be used in omnichannel marketing,” Costagli said, adding that consumers using TikTok Shop are being introduced to new brands they did not already know, creating opportunity for some manufacturers and more competition for others. He shared that 62% of TikTok users are familiar with the TikTok shop experience and another 62% of TikTok users are open to making a purchase through TikTok Shop.

In online outlets like TikTok, influencers can have a huge impact, so Costagli suggested brands/manufacturers should lean into social platforms to drive awareness and capitalize on viral opportunities. During the webinar, he highlighted several ‘coffee influencers’ such as Morgan, the 2022 U.S. Barista Championship winner who is teaching 6.2 million TikTokers how to create the best coffee, while Cosette, a TikTok creator who has grown her page to 781.7K followers by sharing how she makes barista-style lattes at home for a fraction of the price.

Social shopping is in its infancy but already its showing strong signs of growth. NIQ revealed that shopping on TikTok generated >$2 billion in CPG sales over the past year. Health and performance food products account for nearly a quarter of TikTok food sales, driven by influencers showcasing health and wellness products.

Gen Z shoppers are more likely to be using third party apps to shop online and they believe AI-enabled tools provide helpful benefits that support their shopping needs. Hence, the smartphone’s role in shopping is evolving and influencing decision making more than ever. “Shoppers are turning to AI for everything from meal planning to diet advice and party inspiration. AI has the potential to influence what consumers buy and where they shop. Within seconds ChatGPT can give consumers product recommendations, suggestions on where to shop and much more,” Costagli explained, adding, “that has real implications for retailers and manufacturers: is AI recommending your brand or your stores?”

Simplicity and trust are paramount when it comes to shopping online. And with only eight seconds to engage online shoppers, it is critical that product information is accurate with the most important callouts. “Above all else, the online shopping experience must be optimized for a ‘Mobile First’ consumer,” said Costagli. NIQ research found that when shopping online:

• 77% of shoppers expect the online product titles to be more specific and transparent,
• 76% of shoppers prefer to have enhanced product content available when purchasing online,
• 90% of online buyers say that primary image quality is the most important factor in an online sale.

Costagli advised brands/manufacturers to create the perfect online store by partnering closely with retail partners and to drive online performance through availability, visibility, and content attractiveness. “Getting the online experience right for shoppers translates into growth.”

Coffee benefitting from the omni space — in fact, a quarter of coffee is sold online. Costagli shared that retailers sold nearly $6 billion worth of coffee online over the past year, up approximately 13%.

“The limits are endless, there are so many options online,” he said. “An omni strategy for coffee can tap into subscription services and direct-to-consumer and can benefit from a strong social media presence. Social media platforms like TikTok Shop are exposing consumers to brands and varieties not found in traditional retailers. This means that the competition for manufacturers is even stronger, including competitors that might not be on your radar.”

Meeting consumers online is a valuable proposition for retailers and manufacturers alike. Consumers are spending more online for coffee than they do in-store and they are buying more. Furthermore, online coffee shoppers are buying more units per occasion which suggests more variety seeking. Costagli advises retailers and manufacturers to promote incremental unit purchasing with wider selection and with purchase incentives.

According to NIQ, non-traditional channels are showing 31% growth in units per shopping occasion. Like TikTok Shop, non-traditional online channels are giving shoppers variety. For coffee drinkers, this means new experiences and flavours. For manufacturers this underscores the importance of innovation, especially in traditional retail both online and off.

Online coffee buyers are more affluent than those who buy coffee in brick ‘n mortar stores. Gen X, millennial and Gen Z consumers all engage differently so it’s essential to know your customer base, said Costagli and asked, “are your brands optimized online to reach coffee buyers where they are?”

No matter the type of site, it’s a fact that consumers are buying coffee online. To find success online, Costagli stressed that manufacturers must prioritize optimizing their search engine visibility and strengthening their social media presence to stay competitive and drive sales. “Navigating today’s market requires a relentless focus on the consumer.”

Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
Keep in touch via email: vanessa@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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The impact of ‘digital tastemakers’ on F&B products https://www.teaandcoffee.net/blog/34218/the-impact-of-digital-tastemakers-on-fb-products/ https://www.teaandcoffee.net/blog/34218/the-impact-of-digital-tastemakers-on-fb-products/#comments Thu, 09 May 2024 11:06:36 +0000 https://www.teaandcoffee.net/?post_type=blog&p=34218 A new survey from Packaged Facts reports that food brands cannot ignore ‘digital tastemakers’ (aka influencers) in the innovation process.

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Social media, social media influencers and bloggers wield immense power over consumer behaviour. From fashion to beauty to consumer technology to entertainment and music, the impact is formidable.

But what about the food and beverage category? Can ‘digital tastemakers’ (aka influencers) actually shape attitudes and purchasing decisions around new F&B products? The short answer is, absolutely. Market research firm Packaged Facts reports that food brands cannot ignore digital tastemakers in the innovation process.

According to the September-October 2023 edition of the Packaged Facts National Online Consumer Survey and subsequent report, Food Market Outlook 2024: Opportunities & Challenges With Pricing, Convenience, Sustainability & More, the impact of social media and so called digital tastemakers is highest among younger consumers, which is unsurprising. Overall, consumers report many factors affecting their decision to try new foods and beverages. Recommendations from family and friends and sales or promotions are the most impactful factors influencing consumers to try new foods. Additionally, many consumers may be enticed to try a new food if it is a new version of something they already like or if the item is seasonal or limited time offering (consider the enormous popularity of pumpkin spice lattes and teas in the fall and peppermint mochas and teas during the holidays, while the winter months brings turmeric and cardamom coffees and teas to foodservice menus).

Social media posts rank in the top five factors enticing the Gen Z generation to try a new food. In fact, per Packaged Facts’ survey, 30% of adult Gen Z respondents reported that social media posts – whether from food brands, chefs, restaurants, influencers, or friends – strongly impact decisions to try new foods. Food bloggers/influencers in general weren’t far behind with 24% of adult Gen Z respondents saying they strongly impact new food decisions.

Also not surprising is that the influence of these factors drops off dramatically beyond millennials. Younger consumers, of course, spend more time online (especially on social media) and are, therefore, more likely to watch videos and cooking programmes via these channels, especially TikTok and Instagram. Thus, they tend to consume more content of this type that influences their food purchases. (See How TikTok is driving the at-home coffee and tea revolution by Sían Edwards on our website for further examples.)

We have only to look back at the Dalgona coffee craze during Covid lockdowns as an example — it started on TikTok by a South Korea-based influencer and moved to Instagram with users competing to show their most aesthetically pleasing whipped coffee results.(See Is Dalgona coffee just a quarantine craze? on our website for more information.) Furthermore, Starbucks introduced its Pumpkin Spice Chai Latte in autumn 2023 in response to consumer demands for the beverage after seeing it created on social media posts in the prior year.

I recently spoke with baristas about the sudden popularity of “lavender” coffee and tea beverages, and they said that while there are both lavender lattes and lavender matchas that appeal to a variety of consumers, the latter is doing incredibly well because of its ‘Instagramability’ (and the same rings true for TikTok). The purple on top of the green is much more visually appealing than the lavender latte, which is still brown. Either way, consumers are curious about both beverages and are heading to coffee shops to try them, leading many to believe that lavender could be spring’s answer to autumn’s pumpkin spice.

Another example is the sudden popularity and growth of bubble tea, which is not actually a new creation (it originated in Taiwan in the 1980s). In the West, for many years bubble tea was a fad that would come and go every several years — before social media. Enter the Instagram and TikTok era, and Gen Zers like the sweet drinks that can be customised and are ‘postable’ because of their visual appeal. (See the Bubbles on the Rise feature by Kathryn Brand in our March 2023 issue for more information.) Hence, bubble tea is no longer a fad but a fast-growing category in both foodservice and retail channels.

However, Gen Z and millennials are not the only consumers online. Therefore, Packaged Facts notes that there is potential to use social media to better understand or to reach Gen X and Baby Boomer consumers as well. Of course, not all food influencers resonate equally across age groups. An influencer’s ability to affect changes in consumer interest, and drive awareness and purchase intent does tend to be stronger when demographics align. For instance, older consumers report that they are more enticed to try new foods based on recommendations from health professionals and chefs than from social media overall. However, even chefs and health advocates appear on social media, discussing food, power ingredients, and new cooking techniques and recipes. This creates an opportunity to address food concerns among Gen X who are less attracted to more general influencers or home cook food bloggers.

More and more food brands are mining social media for trends, ideas and new flavour combinations, and are tapping into digital influencer strategies. And as Packaged Facts notes, those that don’t are missing a crucial piece of the modern product development and marketing puzzle.

Per Packaged Facts, “navigating social media trends and partnerships is complex but innovators who crack that code gain a powerful edge to more efficiently maximize awareness and adoption of new product releases. That differentiator could be the key to separating the passing food fads from the true disrupters and market movers of tomorrow.”

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Chris Olsen launches coffee brand Flight Fuel https://www.teaandcoffee.net/news/31370/chris-olsen-launches-coffee-brand-flight-fuel/ https://www.teaandcoffee.net/news/31370/chris-olsen-launches-coffee-brand-flight-fuel/#respond Wed, 15 Feb 2023 09:57:35 +0000 https://www.teaandcoffee.net/?post_type=news&p=31370 TikToker Chris Olsen has launched his sustainable coffee brand Flight Fuel with three original blends of coffee and two coffee concentrates available.

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TikToker Chris Olsen has launched his sustainable coffee brand Flight Fuel. The brand launches with three blends of whole beans (LHR – Cowboy, SFO – Caramel & DCA – Hazelnut) and two coffee concentrates (LAX – Vanilla & JFK – Caramel), with each product named after one of the major airports across the globe. All of Flight Fuel’s flavoured coffees are priced between $20-$22 and are specialty grade, single origin coffee, roasted in small batches to a smooth medium. Flight Fuel is available direct to consumer at flightfuelcoffee.com, with subscription options available for frequent flyers.

Flight Fuel’s name is inspired by Chris’s celebrated “Flying for Coffee” series. What first began with a video of Chris flying across the country to bring coffee to a friend quickly grew into a viral phenomenon with over 140+ million views of the series on TikTok alone. Chris has since delivered coffee to the likes of Vice President Kamala Harris, Austin Butler, Drew Barrymore, Meghan Trainor, Sabrina Carpenter, Noah Centineo, Ashley Tisdale and many more.

Speaking about the launch, Chris said “Coffee has been a passion of mine for years, so launching Flight Fuel is a dream come true. This brand is over a year in the making, from taste testing to developing the brand identity, and I’m so excited to finally deliver this first-class coffee to the world!”

Sustainability is at the forefront of the brand’s mission. All of Flight Fuel’s shipping partners are 100% carbon neutral across the entire supply chain, with an offset carbon footprint across its fulfilment network. The brand has also partnered with Ecologi, who will plant a tree with every sale made through the website. Flight Fuel also offers stainless steel travel mugs and a reusable cup to encourage consumers to reduce their use of single-use paper and plastic cups.

 

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Mitigating the risk of cancel culture https://www.teaandcoffee.net/feature/30136/mitigating-the-risk-of-cancel-culture/ https://www.teaandcoffee.net/feature/30136/mitigating-the-risk-of-cancel-culture/#respond Sat, 16 Apr 2022 14:18:06 +0000 https://www.teaandcoffee.net/?post_type=feature&p=30136 The digital world in which we live has given rise to ‘cancel culture’. Holding brands/companies accountable for their words or actions is nothing new but doing so has never been easier than it is today, making the risks greater and the recovery – which is not always possible – more challenging.

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The digital world in which we live has given rise to ‘cancel culture’. Holding brands/companies accountable for their words or actions is nothing new but doing so has never been easier than it is today, making the risks greater and the recovery – which is not always possible – more challenging. By Anne-Marie Hardie

Social media has become an essential marketing tool to attract new consumers and foster relationships with existing ones, however, there is a dark side to social media: the ‘cancel culture’. Cancel culture or call-out culture is a contemporary phrase used to refer to a form of ostracism in which a person, brand/company, or organisation, is thrust out of social or professional circles — whether it be online, on social media, or in person. Those subject to this ostracism are said to have been ‘cancelled’. The concept of holding companies accountable for their actions is not a new thing, but the internet has provided anonymity, increasing the risk of smear campaigns that target both the company and the personal lives of the founders.

On 15 December 2020, coffee brand Ristretto Roasters, based in Portland, Oregon, ceased all operations reeling from the backlash of cancel culture.The company had gained attention, when journalist Nancy Rommelmann, the spouse of Ristretto owner, Din Johnson, began a YouTube series called #MeNeither. Ristretto Roasters was initially called out in January 2019, when thirty current and former employees issued a letter condemning the views expressed by Johnson’s wife. The backlash escalated, resulting in the loss of several wholesale accounts, customer boycotts, and eventually forcing the brand to close the doors of their four cafés and roasting operation.

Social media, both in its anonymity and speed of transmission, has accelerated the impact of ‘calls to action’, placing pressure on individuals and businesses to either respond to their demand or risk being cancelled themselves. “Cancel culture is consequence culture, so basically, if you don’t like who I am, there could be consequences,” said Eric Yaverbaum, CEO, Ericho Communications, New York.

Although every company is at risk of being cancelled, some hot buttons increase a brand’s vulnerability, including Covid-19, race, sexual orientation, and privilege. “What we’re seeing right now is that a group of consumers, which tend to be younger, demand organisations and their leaders to take a stand on certain topics,”said Sara Christensen, Cancel Culture Consultant. “The challenge is if they don’t take a stand, they can risk getting attacked, and if they take a stand that the consumer group doesn’t agree with, they are also at risk.”

Christensen works with businesses to identify what she calls “the intersectionality trip wires” to help determine whether it makes sense for a company to take a stand on a particular topic; this includes reviewing the benefits and potential downfalls of taking a stand. “It’s very important to go into these situations with your eyes wide open, including having a clear communication strategy.”

As a cancel culture consultant, Christensen helps organisations identify their vulnerabilities, including reviewing the business assets, banking, websites, and social media accounts, to ensure that they are secure.“The other thing they can do to protect themselves is to really look at the vulnerability of their personal information,” said Christensen. “I always recommend that people go online, figure out what type of personal information about them is out there, including addresses, vehicle information, bank accounts, cell phone accounts, and identifying details about their family, and then invest the time to remove that data.” These proactive actions can help reduce the risk of cancel culture entering a brand owner’s private space.

Focusing on core values

Recovery from cancel culture, although challenging, is possible. However, brands need to be able to flip the script with a clearly defined long-term strategy, in order for them to come back stronger than they were before.

On 29 May 2018, Starbucks Coffee made headlines when it closed more than 8000 of its stores for racial bias training. The training was prompted by an incident in a Philadelphia, Pennsylvania store, where two African American men were refused access to a bathroom, resulting in the police being called to the café to remove the individuals. The company, which prides itself in being the ‘third place’ for people, adopted a new restroom policy that allowed access without a purchase. Since 2018, the company has adopted several initiatives to address bias, inclusion, and equity, including hiring commitments, a new leadership accelerator programme for BIPOC (Black, indigenous, and people of colour) partners, and a commitment to increase Starbucks’ business with diverse suppliers to 1.5 billion by 2030.

“If you’ve made a mistake, an apology is warranted, but don’t just say I’m sorry, layout exactly how you’re going to address the shortcomings,” said Yaverbaum. “We all make mistakes, it’s called being human, but it’s when we refuse to do better that it’s the most damaging.”

Black Rifle Coffee Company, a veteran-owned company known for its love of coffee and guns, was almost ‘cancelled’ by its consumer base following a 2021 article in the The New York Times. Image: Black Rifle Coffee

Black Rifle Coffee Company, based in Salt Lake City, Utah, is a veteran-owned company known for its love of coffee and guns. This past July, the company became at risk of being cancelled by its customer base after being interviewed by The New York Times. The resulting article included controversial statements against bigotry, including calling out extremists, which some of the company’s followers interpreted as going against their brand’s culture, resulting in a social media frenzy, boycotts and hate mail from their customer base. Shortly thereafter, Evan Hafer went to social media to clarify several aspects of the article, including that he was a proud conservative, whose statements were against anti-Semitism and racism, not conservatives. In November 2021 Black Rifle Coffee signed a deal with Silver Box Engaged Merger Corp, becoming a publicly owned company. The merger will allow the brand to obtain its growth objective, including bringing it closer to its goal of hiring 10,000 veterans.

Protecting your brand

Although it is impossible to become immune to cancel culture, there are a few strategies that companies can do to provide an additional layer of insulation. “If you want to build an authentic cancel proof company, the brand requires some soul searching on what its core values are,” said Yaverbaum. “It’s about considering what you believe in and what you want to champion.”

Batch Coffee is a UK-based subscription company that is committed to maintaining strong lines of communication and in turn, transparency with their customers. This includes sending out a thank you video file when customers make a purchase. By fostering this relationship early, co founder Tom Saxon, hopes that if an issue does arise, the consumer would be more likely to approach the company directly instead of heading online with the complaint.

Batch Coffee actively engages with its consumers, even sending a ‘thank you’ video file when they make a purchase. Image: Batch Coffee

“Because we started small, we were able to develop almost a personal relationship with a lot of our customers, and we’ve kept that going as we continued to grow,” said Saxon. “The best way for companies to build and maintain those consumer connections, is to personally reach out to customers to check in with them, it’s about showing up to the conversation and asking for their honest opinions.” Batch Coffee is also proactive about its business, including maintaining close contact with its entire supply chain so that it can respond to any potential challenge, with minimal (if any) disruption to their end customer.

Once those values are identified, the brand/company needs to ensure that all decisions and actions are aligned with those belief and values. Failing to do so could potentially put the brand/company at risk of being cancelled. Yaverbaum explained that if a company’s values are centred around environmental sustainability, then it cannot partner with a supplier that is supporting fossil fuels.

Don’t jump onto the hashtag band wagon

Participating in social movements should not be automatic, as this approach could become misinterpreted as tokenism. “It can’t be about following the latest trend, movement or hashtag,” said Yaverbaum. “Instead, it should be about identifying the culture that you want to have and being authentic about it.” This includes investing the time to listen and understand the conversations that surround you, so that you can determine if they are the ones that you want to participate in. “Being called out sometimes isn’t bad; brands are learning from their actions and the importance of aligning their words and actions with their values and culture, instead of tokenising.”

Although, cancel culture is no longer obtaining as many headlines as in the past, it does not mean that its faded. Christensen shared that she is continually made aware of companies that have been impacted by cancel culture, from either their customer base, current or past employees, or even competitors.“You need to go into situations with your eyes wide open, thinking if I’m going to share this information with my employees or on my social media feed, would I also be okay if it was shared on the front page of The New York Times,”she said. “It’s about being aware of the potential threat and having a plan for it.”

  • Anne-Marie Hardie is a freelance writer, professor and speaker based in Barrie, Ontario. She may be reached at: annemariehardie1@gmail.com.

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Recognising the power and potential in Generation Z https://www.teaandcoffee.net/feature/31191/recognising-the-power-and-potential-in-generation-z/ https://www.teaandcoffee.net/feature/31191/recognising-the-power-and-potential-in-generation-z/#respond Sun, 09 Jan 2022 17:08:29 +0000 https://www.teaandcoffee.net/?post_type=feature&p=31191 It is the most diverse generation to date and holds billions in buying power and they are poised to spend even more as they age, Generation Z is the future. Brands across all industries have no choice but to get to know these consumers.

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It is the most diverse generation to date and holds billions in buying power. Poised to spend even more as they age, Generation Z is the future. Brands across all industries have no choice but to get to know these consumers because they hold strong beliefs and convictions, have specific likes and dislikes, are tech and social media savvy, and they manifest their activism and passions in many ways. By Anne-Marie Hardie

There is a new and upcoming beverage consumer in the tea and coffee landscape, Generation Z. These individuals are passionate advocates guided by their values and actively seek brands to which they can relate. Currently, between 11 and 25 years old, they are cautious explorers eager to try new flavours and beverage experiences. However, they expect a lot from their favourite brands, including strong sustainability platforms, authenticity, and transparency.

Although still young, they are beginning to develop their beverage habits, making it a critical time for tea and coffee brands to connect with them. “For tea and coffee companies, it’s about recruiting the next generation and bringing them into the next pipeline of customers,” said Vanessa Toperczer, vice president, brand and product integration, IMI, Toronto, Canada.

The future of coffee and tea

Born between 1996 and 2010, this demographic is genuinely unlike any previous cohorts. Generation Z – ‘Gen Z’ or ‘i-Gen’ – is the first truly digital natives, resulting in an extremely internet savvy demographic, including the ability to delve deeper into brand claims to confirm that they are authentic.

“Generation Z are different than other generations before them. They are more individualistic and true digital natives,” said Mary Dusenbury, senior director of Away From Home Marketing, Peet’s Coffee. Digital technology is not just something that they access, but it is simply a way of life. “This is a generation that doesn’t understand the phrase “before the internet existed,” said Shabnam Weber, president, Tea and Herbal Association Canada. “It is a show me, not tell me, generation.” When it comes to social media, they prefer visual platforms like TikTok, Snapchat and Instagram, preferring to see their brand stories than read about them.

Gen Zers like sweet and spicy profiles and prefer cold coffee beverages over hot ones.

Gen Z has grown up amid several global crises, including global warming, the 2008 recession and the pandemic, creating a generation that is often defined as thrifty and practical.

They are financially minded with a focus on the future, including wanting to own a home, start a family, and have a significant savings account. Generation Z are both dreamers and doers and are looking for brands that invest the time to understand who they are and reflect their values.

The impact of the pandemic

Although, Gen Z is the least likely to become severely ill during the pandemic, all aspects of their lives were, and continue to be, disrupted. This cohort has missed many monumental events over the past two years, including in-person graduations, proms, birthdays, classroom trips, and events. Education was either put on hold or moved to an online format, and there was a spike in unemployment directly impacting service and entry-level positions, both which have a significant proportion of Gen Z employees. Their mental health is at risk, with high levels of depression, anxiety, and feelings of social isolation, as this younger generation is confronted with several global and national challenges including climate change, violence, and a pandemic.

“They interact differently than previous generations; the last few years have been transformational, they socialise differently,” said Sylvain Charlebois, professor and senior director, Agri-Food Analytics, Dalhousie University, Nova Scotia, Canada. “It’s going to have an effect on everything, their food choices, how they drink coffee, where they drink coffee, and with whom.”

When communicating with Gen Zers, tea and coffee companies need to acknowledge the pandemic’s impact and meet them where they are today. This includes developing an online community, including using platforms like TikTok and Instagram, to showcase brand values and develop authentic connections.

“For this generation, everything is new, and everything is possible; however, they are also faced with the challenge of skyrocketing housing prices and an extremely high cost of living,” said Charlebois. As a direct result, it has created a generation that is a bit more domesticated. “Drinking beverages from home is going to continue to be a driver for the next little while, especially for the younger generation,” said Charlebois.

Tapping into wellness

The values that this generation embodies hold lots of potential for tea and coffee companies to tap into. “There is certainly a more educated, informed and passionate tea drinker emerging and Generation Z are really leading the way,” said Louise Cheadle, Teapigs co-founder and tea taster. “We know that Generation Z is thirsty for information and often keep up to date by using social media, so we make sure we’ve got plenty of up-to-date information online and on our social to keep the conversations about these important topics relevant.”

Physical and mental health are extremely important, and they recognise the role that their diet and lifestyle play in supporting this. “Any drink that is low in sugar, big in taste and that has a function or positive benefit towards your health or wellness, such as our matcha, kombucha or feel-good tea range, is going to go down really well with Generation Z,” said Cheadle.

This is a cohort that is intrigued by functional foods and are eager to explore ingredients that support their wellbeing, including a variety of spices, botanicals, and superfoods, like chaga, acai, and blueberries. At the same time, they embrace customisation, creating the beverage that responds to both their wellness and flavour needs including blending products, adding syrups, or natural spices and botanicals. “Gen Z won’t put up with substandard drinks out of home, especially since people have been spending more money trying new flavours and interesting products during lockdowns,” said Cheadle. Demonstrating how beverages can support the mental and physical wellness will resonate well with these consumers, including providing research that confirms these claims. The health benefits of green tea and herbal tisanes, specifically, resonate strongly with this demographic; however, there is still room to strengthen these messages and add to them.

Functional beverages or beverages that positively benefit mental or physical wellness appeal to Gen Zers.

“The pandemic has accelerated the values that were already important for this demographic, specifically self-care and societal care,” said Weber. “Although, societal care and wellness are important elements of their beverages, it cannot be at the expense of flavour and quality of the product,” said Weber.

When it comes to coffee, they like both sweet and spicy profiles, and show a preference for cold beverages, over hot options. Peet’s Coffee responds to this audience’s need by creating seasonal menus and adapting to demand. This includes adding in features, like their upcoming Churro campaign, which cater to the sweet profiles that Gen Z craves. “Gen Z doesn’t want the same coffee that their parents and grandparents drink and they don’t want the same exact coffee their friends order,” said Dusenbury. “They want their coffee to be specialised for their unique tastes, while having a positive impact on people and our planet.”

Health for themselves and the planet

Sustainability has always been an incredibly important value for them; however, the pandemic has accelerated it. They also are very aware about the role of the supply chain with consumers connecting dots, looking at each step, including who is involved, how much they are paid, and if their needs are being responded to. “You have to be authentic and it’s not just about transparency but understanding, and sharing, the role of your entire supply chain,” said Charlebois.

This generation is extremely conscious of the brands that they align with and are looking for companies that support their values. They are not driven to purchase an item because it is on social media, but they might be driven to purchase because the message resonates with them, and they feel connected to the product.

“Talking about the good that you do isn’t enough, brands need to show what they’ve been doing,” said Weber. It is about connecting the consumer to the stories behind the product and sharing these stories through a visual platform. “Tea has so many incredible stories. “Stories that relate to the values that this demographic holds dearly including sustainability, societal values, and the individuals along the supply chain will help foster that authentic connection.

The reality is that this is a demographic that believes that they can make an impact, are not afraid to voice their opinion, and will urge others to follow suit. They are advocates and change-makers and seek out brands that align with their values, whether its diversity, inclusivity, wellness, or sustainability.

“Gen Z is willing to purchase premium coffee when they know the brand they support is promoting responsible sourcing, helping the planet and the communities where their drinks come from,” said Dusenbury. For brands, it is about understanding where the interactions with this demographic will occur, whether its in the café, online or at a college campus, and use these opportunities to discuss your brand’s story, including your social responsibility efforts.

“We believe it is a requirement in these settings to talk about the work we are doing for the greater good.”

  • Anne-Marie Hardie is a freelance writer, professor and speaker based in Barrie, Ontario. She may be reached at: annemariehardie1@gmail.com.

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