Upscale beverages fit consumers to a tea

Upscale coffee and tea operations are becoming more closely integrated with mainstream food retailing. With foodservice operations springing up alongside and often inside food retailing units, coffee and tea sales can’t help but be more heavily influenced by foodservice developments.

Expect to see more retailers adding cafés.

As with many dynamics related to coffee, Starbucks energized the trend, prompting retailers to covet those dollars consumers were passing to their competitors in foodservice. Some pursue the Starbucks customer directly, and that has helped boost the importance of coffee at Safeway, for example. The Starbucks connection has been a critical element in Safeway’s upscale positioning efforts with its Lifestyle store prototype. “In terms of premium coffee, we are the largest Starbucks licensee with 879 locations,” Steve Burd, Safeway’s chairman and ceo pointed out during a recent analysts meeting.

Of course, Target also hosts a significant number of franchised Starbucks locations as well, but not everyone is building on the Starbucks name. In its expansion of deli into gourmet meals, Publix went a different way and developed a coffee bar that features freshly brewed Van Houtte coffees. At Supervalu’s natural food-oriented Sunflower Market stores, the coffee bar features Green Mountain organic brews.

So, as retailers have become more involved with gourmet grocery, they also have contributed to making gourmet coffee into the norm.

In March, Ahold U.S. rolled out a selection of upscale Peet’s coffee and tea products through the grocery sections in 239 Stop & Shop stores in Boston and Connecticut. Stop & Shop customers now can purchase Peet’s products including French Roast, Major Dickason’s Blend and Sumatra in 12-ounce bags.

The major reason given for the Peet’s addition is the growing demand for distinctive, hand-roasted coffees.

So, Stop & Shop is happy to have Peet’s on its shelves, but that doesn’t mean that a nice café isn’t an attractive additon, too. The chain has rolled out hot coffee operations, with 28 stores mostly on Long Island and in New Jersey, in the form of franchised Starbucks operations, with more coming. Sister banner Giant-Landover is subject to a similar initiative, with 19 units operating Starbucks franchises so far.

“Starbucks’ strong focus on customer service will be a great way for customers to start their shopping trip,” said Stop & Shop spokesman Robert Keane. “Cupholders are added to [shopping carts] to allow customers to enjoy some great Starbucks coffee while they shop. Most stores will have seating areas and access to free WiFi. All of this will enhance the shopping experience at both Stop & Shop and Giant stores.”