Brewing For Success: How Innovation and Sustainability Are Shaping the Future of the Coffee Industry
Robert Carter, President, Coffee Association of Canada
In Canada, coffee reigns supreme as the nation’s most consumed beverage, surpassing even tap water. Foodbuy Canada connected with Robert Carter, President, Coffee Association of Canada, who explained the efforts the Coffee Industry is undertaking to respond to shifting consumer demands.
Shaped by a shift in demographics, with younger consumers driving a significant portion, foodservice operators, manufacturers are reinventing their portfolios. Beyond traditional brewed coffee, innovative options including ready-to-drink varieties, specialty blends, iced coffees, and nitro brews are growing in popularity and driving growth across the category.
As alcohol consumption continues to decline, more guests are replacing the bartender with a barista. This is making it key for venues to serve an appealing coffee selection. Coffee is not just a staple anymore. It is crucial to stay competitive and meet consumer demands. Carter states:
Operators who neglect the importance of an innovative and high-quality coffee program are leaving money on the table. By focusing on the quality, transparency, and uniqueness of their coffee offerings—including details such as country of origin —establishments can attract a more discerning clientele. This can drive profitability and customer satisfaction.
Modern consumers are increasingly driven by premium and authentic experiences. Carter adds, “For example, hotels in particular, could impress patrons by investing in compact, more sophisticated, brewers with a selection of coffee pods in guestrooms.” The emphasis on the quality of coffee offered and how it is prepared can encourage greater consumer satisfaction and boost sales.
Specialty drinks like cold brews and natural coffee products are a game changer for the industry, clearing a path for other related product-lines like plant-based sweeteners and creamers. Cold brew coffee, known for its smooth and less acidic taste, is now common in cafés and homes. These preferences are driven by environmental and health-conscious options.
Utilizing micro-roasters is another way for establishments to stand out by providing unique, artisanal products. Forming partnerships with these micro-roasters not only supports local businesses but also introduces exclusive coffee options that can enhance the customer experience resulting in higher sales volume.
As more people crave these premium drinks, manufacturers are constantly improving their technologies to keep up with the demand and stay competitive in the home and foodservice industry. The old traditional glass coffee pots are a thing of the past. They are being replaced by state-of-the art brewers, for both quality and ease at home as well as an authentic experience when dining out. These days, precision brewing equipment incorporates features like temperature control, automated grinding and milk frothing, and smart coffee makers that can be controlled via smartphone apps—gone are the days of fumbling with flimsy coffee filters.
Carter touches on a few barriers faced in the industry, “The coffee industry faces a multifaceted set of challenges that range from sourcing and pricing pressures to labour laws, packaging regulations, and climate change.” Each possessing unique hurdles for producers, operators, and consumers alike, they influence everything from the cost of a cup of coffee to the ethical standards of production.
Sourcing coffee beans from diverse countries can lead to challenging geographical and socio-political issues. Hosting events like Coffee Day at Parliament Hill, in Ottawa, where Coffee Association of Canada advocated for better conditions, brings awareness and comradery to other nations. Last year the association met with the ambassador of Brazil, as well as ambassadors for every growing nation at their prestigious event. The diplomatic and logistical coordination required in the process can impact bean quality and availability. This raises consumers’ demand for greater visibility into the journey of their coffee from farm to cup.
Pricing has become increasingly volatile due to a combination of factors such as transportation costs, adverse weather conditions like droughts, and fluctuations in bean quality, particularly Arabica beans. In some cases, keeping costs down means compromising the quality of the bean. Currently, consumers are accepting higher prices as the new norm; however, if prices continue to rise, this could change.
Child labour laws have also presented complications. When international labour standards differ from domestic regulations, it creates several grey areas making it difficult to ensure ethical labour practices are met. Minimum age employment requirements vary among countries causing a ripple in the flow of supply chain. Consumers are less inclined to enjoy a coffee-based product if it has been handled by a minor.
Packaging and labeling are ongoing concerns. The idea of implementing the labeling of naturally occurring sources of caffeine in products could complicate the packaging processes and impact consumer perceptions. The need for clear packaging policies is crucial to maintain transparency and provide consumers with the desired information. Labeling each cup of coffee would significantly drive costs.
Climate change and deforestation have become critical issues affecting coffee production. Sustainability initiatives are increasingly important, as they address the environmental impact of coffee cultivation and promote practices that protect both the planet and the livelihoods of those involved in coffee production. As climate change worsens, the industry’s commitment to sustainable practices will be essential for the future of coffee production.
Despite the ongoing challenges with coffee production and sourcing regulations, Carter is optimistic about the future of the coffee industry. As technology continues to advance and consumers continue to embrace the coffee culture, the landscape of the coffee industry promises even more exciting developments. There is a strong emphasis on quality, convenience, and ethical sourcing becoming central to the industry’s progress. Carter concludes, “As a category, coffee continues to be very robust and continues to grow.”