October 2011 Issue

This month we focus on an important category of prod- uct that arguably has a direct impact on the efficiency of our work force ... coffee. If there was ever a recession-proof business, it has to be the products that are an absolute necessity for the enjoyment of coffee. The Coffee Statistics Report states that Americans consume 400 million cups of coffee per day, which add up to a whopping 146 billion cups over the course of a year. That makes the caffeine-crazed U.S.A. the leading consumer of coffee in the world.

Even though 75 percent of the total caffeine consumed in our country comes from coffee, let’s not forget about the importance of tea. American tea drinkers have become quite sophisticated, and as a result, the variety of loose-leaf teas available in our country is becoming astounding, and the purchase of specialized equipment necessary to care- fully prepare specialty teas has steadily grown. Much of the growth in demand of loose-leaf tea can be attributed to the gradual understanding of the health benefits of tea drinking by American consumers.

The gradual awareness amongst Americans of the health benefits of various foods, in fact, has led to an explosion of growth in the natural products industry, evident during our recent visit to the Natural Products Expo East held in Baltimore. Let me tell you, being healthy has never tasted so good. While many Americans, until recently, turned their noses up at the thought of sacrificing taste for health, the taste barriers are slowly fading away. There are many natu- ral food producers who are dedicated to proving that eating healthy doesn’t require us to ignore our taste buds any lon- ger, and they are winning me over. The important take-away for retailers is that all products that have an easily explained and direct impact on healthy living are hot right now.

I wish I could be as optimistic about the health of our economy. I have heard from a number of people that there seemed to be a summer slump in sales this year, but everyone is still optimistic that we will have a good holi- day season. The NASFT just released a report that found that 59 percent of consumers report buying specialty food this year, which was a slight decline from last year. The report also found that half of the consumers surveyed were buying smaller portions of spe- cialty foods to keep expenditures down. Even more interesting to me was that 81 percent of those surveyed indicated that they were cooking more at home to conserve money, which bodes well for housewares demand in the coming months.

I urge retailers not to get caught out in the cold this holiday season by waiting until the last minute to stock up for the season. I think there are enough posi- tive signs to indicate our industries will fare quite well. With suppliers keeping inventories tight, you may find that if you sell through your inventory quicker than you anticipate, there will not be sufficient supply left when you return to buy more. Plan early and stock up on the items that you have the most confidence in selling to ensure that you don’t find your shelves bare before the holidays are over and done.