‘We can grow through the credit crunch' - Susan Nash

Published: 30 September, 2008

The credit crunch has already had an impact on the foodservice market. While eating out occasions are not generally thought to have declined, it is agreed by industry experts that consumers have tended to move their purchases to mid and low-priced outlets. While in the workplace any employment decline is likely to affect vending consumption.

So what can the vending operator do to protect and develop business?

Firstly there is quality to focus on: The consumer's requirement for quality has not declined. Improved quality vending in the workplace can prevent retail purchases creeping onto sites by helping clients better satisfy staff. This is particularly relevant in coffee vending, where a very attractive ‘value for money' offer can be achieved versus the high street coffee shop with the introduction of bean-to-cup or high quality freeze dried coffee, high quality whitener and large paper cups together with an extended menu of vended drinks.

Secondly, there is the growing consumer desire for ethically-sourced products. According to Nielsen Homescan Survey 2007, the number of consumers who agree in principle that it is worth paying extra for ethically produced goods has gone up to 65 per cent, a rise of 19 per cent compared to just six months ago. However independent research conducted on behalf of The Kenco Coffee Company has revealed that almost half (46 per cent) of consumers are less likely to buy more expensive ethically-produced goods should the current credit crisis continue.

Understanding the pressures

I believe brands can really help the trade by understanding the pressures consumers are under and deliver quality ethically-produced goods at a reasonable cost.

At Kenco we recently announced a major expansion of our collaboration with the Rainforest Alliance, which by the end of 2008 will see 75 per cent of the beans in our entire freeze-dried coffee range sourced from Rainforest Alliance Certified farms. The price of its Really Rich, Really Smooth and Decaffeinated ranges will not change as a result of Rainforest Alliance Certification. In addition Suchard hot chocolate, from The Kenco Coffee Company, now contains cocoa sourced from Rainforest Alliance Certified farms, while our PG tips vending range contains tea of which at least 50 per cent is sourced form Rainforest Alliance Certified farms.

Initiatives such as these can only help the operator deliver a more desirable package to clients - offering a combination of quality and ethically-sourced products during this particularly difficult trading time is certainly a win-win as far as the consumer is concerned.

Printer friendly version

Email this article to a friend

Bookmark this