The big four upshots from Velocity Conference 2022  

June 15, 2022
Cold Brew Coffee as an Ingredient in Ready to Drink (RTD) Beverages

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Trends for the private label and retail industry

A few days ago we traveled from the Colombian coffee region directly to Charlotte, North Carolina, United States to attend the Velocity 2022 Conference. For more than 15 years Buencafé has been actively immersed in the segment of private labels because of our premium 100% Colombian coffee products and tailor made scheme, which allowed us to generate value for private brands that were seeking a differentiator factor. Therefore, having first-hand insights about the retail industry, its challenges and trends permit us to accompany our clients and continue strengthening their premiumization goal. Key findings on the conference were: the challenge for private brands in maintaining their value proposition in crucial times, connecting customers  with a purpose, seeking sustainable solutions, and shifting to more sustainable packaging alternatives.

1.Maintaining value proposition in crucial times 

Facing supply chain disruptions and inflation. According to Daymon research in 2021, National brands were compared to Private ones´ and 82% of consumers say private brands now have a better value, 55% of consumers say private brands meet their needs better and 86% say private brand quality is just as good if not even better. This means that private label suppliers have been doing an excellent job with product quality and reliability.  However, keeping up the positive perception 2022 is challenging. Supply chain disruptions, inflation, and plateauing online sales may trigger product shortage, price increases and selling channels adjustments. Consequently, customers could be more prone to switching behaviors – brand switching triggered by more affordable options leading to substitutions. These market circumstances push reinvention, evaluation and implementation of internal processes to keep operating as smoothly as possible despite the challenges. 

 

2.Connecting with a purpose 

Customers want to feel inspired by true stories. Customers want connection, they want the full story and feel emotions towards the product they are purchasing. Hence private brands are challenged to go beyond the product itself: transform, inspire, and reconnect with a purpose, expose how the product interacts and improves people’s lives. Starting from the origin, involving the people who planted the seeds, harvested the crops and picked up the product. Then, the transformation process it had, transportation to the supermarket, until it arrived in their hands. How to communicate their impact by buying the product is essential. For example, Buencafé has been working on strategies to share what makes it unique. Being the only company in the world whose owners are the coffee growers of a country, Colombia and 100% of the profits invested in 540,000 coffee farmer families. This is our purpose and we are in the process of communicating to our stakeholders, however articulating this communication requires re-thinking traditional. In conclusion, all actors of the supply chain must work towards not only to offer an excellent product, but to have an impact on people’s lives connecting among a common purpose.

3.Seeking sustainable options

Consumers want to #BeConscientious. As consumers care about health and sustainability increases, brands are challenged to choose between different raw materials, packaging alternatives and supplies used to produce their goods. Purchasing departments and buyers themselves have to make decisions based on these hopes on helping to make this planet a better world. However, price and availability are still on the table. Alternatives such as product certifications (Organic, Fairtrade, Rainforest, UTZ among others) have become a must for consumers, but it is just one step along the supply chain. Coffee and cocoa industries are leading environmental and social responsibility models that may be transferred to other sectors. Learn more about our sustainability initiative here. Still the challenge is aligning of all actors in the design of attractive and competitive products and strategies to solve the customer’s concerns and unite on taking actions that promote planet awareness. 

4.Shifting to more sustainable packaging alternatives 

From functionality to environmental friendliness. For several years, Private Brands have participated in packaging design competitions where judges evaluate concept, color combination and functional designs. Although, during the past few years, packaging concerns have arised, this means R+D teams are facing the challenge of combining traditional packaging criteria with environmentally friendly alternatives. Using a single color, playing around with a few shades, incorporating recyclable materials, adopting second use packages, among others, have become popular in packaging design teams. In this sense, Buencafé has been working on single-material packaging, paper labels, and advanced prototypes on natural fiber lids, gradually adapting to new challenges. However there is a long way to go in terms of packaging innovations and the use of new materials; a very interesting and motivating challenge for the Private label industry.

 

Acquiring first-hand insight of the industry translates into better preparation to accompany our clients to navigate in a fast paced and a changing world. In Buencafé we are committed to the strengthening of our premiumization differential and we will be working optimistically on the four main trends which is where the Private Brands Industry is heading. Concluding there are four big actions to prioritize: maintaining value proposition in crucial times, connecting customers with a purpose, seeking sustainable solutions, and shifting to more sustainable packaging alternatives.

 

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Colombian Coffee

The Colombian Coffee logo with its distinctive triangle is symbolic of the Colombian coffee producer who works hard, produces a quality product, does things right, and brings an authentic product to market.

Halal

We satisfy the needs of Muslim consumers with the continuous and consistent production of Halal products.

BASC

With the BASC certification, we assure our clients and control entities of the confidence and security in our production chain, and in our overseeing and controlling of the production, packaging, and transportation processes of our product against illicit trafficking.

BRC British Retail Consortium

Supported in GFSI systems, recognized internationally, we produce safe, authentic and high-quality food products satisfying the needs of our clients and markets.

IFS

Our risk-based focus allows production of safe and high-quality products offering confidence and recognition for our clients.

ISO 22000

Our safety system is based on the analysis of hazards and critical control points (APPCC), always incorporating Good Manufacturing Practices.

ISO 9001

We offer reliable products to our clients, complying with the highest quality standards with which our products are processed by committed, responsible and highly trained personnel.

ISO 14001

We guarantee that our product is processed with ecological conscientiousness, conserving the environment and natural resources.

ISO 45001

At Buencafé we utilize work practices that continually reduce risks, always taking into account the safety of those we work with.

Fairtrade

At Buencafé we produce socially responsible products contributing to the improvement of the quality of life for coffee producers, guaranteeing fair prices, good working conditions and a sustainable environment.

Rainforest

We support sustainable agriculture via sourcing and the transformation of Rainforest certified coffee.

NONGMO

With the NON GMO Project certificate, we offer our clients the guarantee that our products are not genetically modified at any point during processing from seed to market.

United States Organic

At Buencafé we are aware of the environment. That’s why we’re aligned with the most rigorous organic agricultural standards which allows us to reach our different international markets, including the United States market.

European Organic

At Buencafé we are aware of the environment. That’s why we’re aligned with the most rigorous organic agricultural standards which allows us to reach our different international markets, including the European market.

Taiwanese Organic

At Buencafé we are aware of the environment. That’s why we’re aligned with the most rigorous organic agricultural standards which allows us to reach our different international markets, including the Taiwanese market.

South Korean Organic

At Buencafé we are aware of the environment. That’s why we’re aligned with the most rigorous organic agricultural standards which allows us to reach our different international markets, including the South Korean market.

Mexican Organic

At Buencafé we are aware of the environment. That’s why we’re aligned with the most rigorous organic agricultural standards which allows us to reach our different international markets, including the Mexican market.

Colombian Organic

At Buencafé we are aware of the environment. That’s why we’re aligned with the most rigorous organic agricultural standards which allows us to reach our different international markets, including the Colombian market. At Buencafé we utilize green coffee which complies with the productive practices that protect the environment in accordance with Colombian regulations.

Colombian Coffee

We utilize the geographic indication as a guaranty of origin guaranteeing the authenticity of the product and complying with the quality standards of Colombian coffee. In 2007, Colombian coffee was recognized by the European Union Commission as a protected geographical product. In 2013 the Swiss government conferred that same protection to Colombian Coffee.

Denomination of origin

We utilize a certificate of origin for 100% Colombian coffee. This seal is used to highlight the quality recognized in Colombian coffee

Kosher

We satisfy the needs of the Jewish community with the continuous and consistent production of Kosher products.

Japanese Organic

At Buencafé we are aware of the environment. That’s why we’re aligned with the most rigorous organic agricultural standards which allows us to reach our different international markets, including the Japanese market.

Letter from our Director

At Buencafé we have been conscious of sustainability since our beginning, when the term had just begun to be mentioned in the world.  

Over our 49-year history, the factory has had four expansions (1983, 1997, 2008 and 2019). The technology behind production processes has been updated and perfected. Production has increased, diversifying and innovating the product portfolio andour commercial scope has expanded. We’ve achieved national and international certifications for our products and for our quality, safety, environmental management, and occupational health and safety management systems, among others. Buencafé was the first Colombian business certified in ISO 14001 and nowadays has 25 different certifications.

The commitment today is consolidating sustainability in each and every initiative we propose, tackling the creation of sustainable value in the three essential pillars: economic, social and environmental.

“Living optimism as a transformative force to create sustainable value in the world of coffee” is the highest goal that guides our daily actions. Is the center of our culture, our decisions, our strategy, our style, our conversations and relationships. Is how we  inspire others and multiply the impact of everything we do.

I invite you to learn about our sustainability path.