Quench December 2013

Every year in late November, I travel to southern Vermont for a weekend to kick off the new winter season. When I cross the border from Massachusetts to Vermont, I travel through many small villages on the way to Stratton Mountain, where I’ve rented a vacation home for years.  I travel this route many times each year. I look hopefully for my favorite stops: delis, restaurants, coffee and tea shops, gift shops, and grocery stores. Each year, some places are gone, often replaced with a new owner and a new name. Sadly, some just go away forever. It’s difficult to survive in rural Vermont without a four-seasons business. This is also true for all specialty beverage retailers, no matter where they are located. What do successful entrepreneurs do to keep their businesses not just surviving, but also thriving year-round?

The good businesses are constantly changing.  A wide variety of retailers sell beverages; the ones with the exact same products, merchandising and atmosphere get stale very quickly. The successful retailers are exciting and fresh each year, and each season. Here are a few trends to embrace and keep your business fresh.

Think healthy hydration. It’s not just sodas fighting for coolers or display space anymore. It’s products like specialty teas, coconut water, juices, smoothies and energy drinks that are growing in popularity. Consumers are looking for healthy alternatives for hydra- tion, not just the convenience of soda op- tions. Take advantage of where the growth is trending now and in the foreseeable future. Healthy beverage options with sustainable packaging are not a fad, they’re a trend that’s growing fast. Energy drinks fit the lifestyle of many consumers today and constitute about a $7-billion-dollar category now. That’s almost a third of the beverage industry by some estimates.

Offer beverages with natural and organic ingredients. Consumers are label readers and making educated choices for beverages that include “Natural and Organic” ingredi- ents. They are also looking for flavoring and preservatives that display these traits, and alternative sweeteners to high-fructose corn syrup such as “beet and cane sugars.”

Choose sustainable packaging that is recyclable. Customers demand grab-and-go, single-serve beverages and are also very aware of the environmental impacts of the packaging. Some studies show consumers are willing to pay slightly more for sustainable packaging that is recyclable.

Take a look at your product mix and see if you are following the trends and growth areas in the industry. Consumers are asking for products that respond to their wants and are ready to buy. As the beverage category gets more crowded each season, smart retailers will heed consumers’ call for more health-conscious drinks, sustainably packaged to meet the needs of their busy, active life- styles.

As we move into 2014, think about the three E’s. Embrace change in your business; Engage with your customers; and Educate your customers on your products’ points of difference, and stay fresh and growing season to season.

I hope you enjoy the latest edition of Quench, and that it helps you change your business for the better in the new year!

All the best,

Brian Igoe

Publisherr

Gourmet Business Quench 

bigoe@gourmetbusiness.com