Issue link: https://www.e-digitaleditions.com/i/508347
22 FEDA News & Views Foster Frable The New World of Coffee Equipment By Foster Frable Jr., Clevenger Frable LaVallee fosterf@cfldesign.com F or over 80 years, the coffee brewing process has been simple (hot water drips over a basket of ground cof- fee) and the equipment selection just as simplistic. The only choice consumers had was which pot brewer or urn to choose. In order to sell product, cof- fee roaster companies began providing equipment "free" if there was an agree- ment to use their coffee exclusively. Of course, the rental fee for equipment was built into the price of the coffee. Just a small percentage of the market (such as government agencies that weren't allowed to rent or lease and a few savvy chains) actually purchased their brew- ing equipment—even though ROI audits proved that owning equipment and buy- ing coffee in a competitive marketplace was a better deal. The chains that purchased their own equipment usually did so directly from the coffee equipment manufacturers, so the market for brewing equipment from a FEDA dealer's perspective remained small. At the time, there was very little innovation. Brewers were a commodity and price became the only differentiator. Not a good position for manufacturers or equipment dealers. The Starbucks Effect Espresso drinks gained a foothold in the U.S. market in the 1980s, and coffee- drinking preferences began to change. While espresso machines were twice or three times the price of pot brew- ers and urns, traditional coffee suppliers still tried to control equipment place- ment. Some gave away inexpensive, low- volume machines as "gifts" to operators who had high-brewed coffee volume (in exchange for exclusive agreements of course); this equipment used propri- etary pucks or capsules that locked the customer to the machine. Suppliers who provided better equipment coupled them with lease agreements. With Starbucks leading the way, sales of espresso-based drinks soared and along with it came the need for equipment that could accommodate high-speed and sustained volume. In the 1990s, Italian, Swiss, and German manufacturers intro- duced fully automatic machines that ground, brewed, and steamed milk for lattes and cappuccino drinks with the push of a single button. The price for this equipment commanded $12,000 to well over $20,000. Clearly no coffee vendor gave away these expensive machines, so sales growth in this market began shift- ing to the dealer channel. That said, even though sales of brewed coffee increased (thanks to hot and cold coffee drinks promoted by Starbucks and Dunkin' Donuts), brewing equip- ment basically stayed the same. The only real innovation was the move away from glass decanters to insulated air pots or shuttles. Equipment was primarily "ven- dor supplied" by the roasters. Today, however, we see a major change in brewing equipment as well as how coffee is presented to customers. The industry is evolving from equipment that brews huge batches (volume) to ones that produce coffee freshly brewed one cup at a time. There are two approaches to "by the cup" brewing: Single Serve Pods, Discs, or K-Cups® The leader in the pod segment, Keurig (Green Mountain), introduced pod- brewing for office environments, then moved into the consumer market. The pods are expensive (per cup) and not fresh ground coffee. Still, the vacuum- packed pod or cup provides a good cup of coffee, better than coffee that sits for an hour or two in a decanter or air pot. Since the original K-Cup® Patent has expired, a number of traditional coffee brewer manufacturers, including Bunn and Grindmaster, have introduced single- cup machines using either generic pods or K-Cups®. This market has recently expanded into larger machines that produce up to 64 ounces of coffee. Although the cof- fee cost is higher and brand choices are limited, the benefit is the ability to drop in a pod without the need to grind or measure. Bean-to-Cup This process uses integral bean hoppers and grinders that dispense and pressure- brew fresh coffee by the cup in around 30 seconds from start to delivery. The process is similar to automatic espresso machines and has been used in Europe for coffee brewing more than 25 years. The equipment now being introduced in the U.S. was developed as part of an initiative from two of the largest coffee retailers (Starbucks and Dunkin' Donuts). Their specifications requested development of a fast and more economical bean-to-cup solution, particularly for slow-moving decaf sales and specialty coffees.