Roundtable: The essential beverage

What are the latest trends in tea and coffee in the region?

Aparna Barretto: Consumers are increasingly interested in authentic high-quality products, leading to a stronger demand for premium coffee and equipment. As the market has already slowly entered the “fourth wave of coffee”, alternative brewing equipment such as chemex, aeropress or V60 are still trendy. The newest one in the UAE being the nitrogen infused coffee.

Robert Jones: As the trend for speciality coffee continues to flourish amongst consumers in the region, it is our responsibility as a local coffee company to meet these demands as well as pioneer new speciality coffee experiences for individuals to try. A trend worth mentioning is the rise in demand for cold brew coffee, which is best experienced as soon as it’s made. Cold brew is suited to speciality coffee as it emphasises the delicate nuances and aromas of the bean, and we expect to see this type of coffee continue to grow in popularity.

Arnd Springer: A few trends we have witnessed in the market are the rise in demand for iced tea and coffee beverages, including flavoured and personalised coffee and cappuccino drinks.

Ahmad Popal: We see a growing trend for variety and customisation, especially when it comes to coffee beverages. Be it in the restaurant, at the breakfast buffet, banqueting, or even in staff offices; offering one type of coffee may not be enough anymore for today’s consumer. For black coffee consumers, it is about allowing them to customise their coffee type and strength. For white coffee consumers, it is about giving options for milk types, from creamy indulgence to fat-free milk. Whereas for consumers with a sweet tooth, offering a range of flavour options is important. Here in the region, the three most popular flavours we see are caramel, vanilla and cardamom. Iced coffee is another hot trend in the region. In parts of the world iced coffee is already a ubiquitous offering in hotels and restaurants. While in the Middle East it has not reached that status yet, we see it as one of the up-and-coming trends and an opportunity for operators to capitalise on quickly.

What is your most requested service or product?

Aparna: In traditional coffee machines, La Marzocco remains a favourite. Our two best sellers are The Linea PB AV, which is designed by, and named in recognition of, Piero Bambi and inspired by the iconic Linea Classic. The other is the Strada MP, which is designed for and by baristas. Strada MP is a technologically advanced traditional espresso machine featuring traditional hydraulics and a barista-friendly design. We also provide our clients with certified barista training courses and menu development programmes, which are much appreciated. On the technical side, Boncafé’s service and maintenance division offers full consultation and professional guidance, with a highly skilled team of technicians.

Robert: Customers are most impressed by our 360-degree approach to coffee solutions, for which we offer a combination of full support and training as well as machine delivery and installations for foodservice, office, retail and vending coffee requirements throughout the UAE. Our extensive range of complete coffee solutions and our ability to produce freshly-roasted 100% Arabica coffee locally allows us to confidently meet demands. One of our most requested coffees is our Professional Series Roast no.70, a full-bodied blend with a natural sweetness and notes of dark chocolate and walnut.

Arnd: Some of our most requested products include the supply of fresh ‘bean-to-cup’ coffee machines, the supply of fresh coffee beans and instant mix products. Finally, we also provide service and maintenance of all types of the coffee machines.

Ahmad: There are three key areas where we see high demand for our solutions. One, operationally simple machines, where our coffee machines are the top requested item. The new Nescafé Milano touch screen technology allows for variety and customisation, yet the machines are fast, simple to clean and maintain in less than five minutes a day and provide online-connected data for a full transparency of usage.

Second, popular consumer products, where Nescafé and Coffee-Mate sticks are the standard of virtually every hotel room in the Middle East. Another fast growing product is Nescafé Arabiana, which lets hotels and restaurants serve an authentic tasting Arabic coffee with operational ease.

Finally, consistent after-sales service, which is critical to keep the beverage operation running. We have an all-inclusive programme called ProCare Beverage Services that provides machine rental, technical service, delivery, and call-centre support under one umbrella without any extra charges. Our dedicated and Nestlé-certified technicians and service personnel cover almost every country in the entire Middle-east under the same consistent ProCare service.

What are some of the main challenges you face as suppliers?

Aparna: Awareness of coffee products is growing rapidly in the region. Consumers are therefore becoming more demanding in terms of prices and quality for their coffee beans and equipment, which translated in our case by a rising demand for high-end products like La Marzocco machines. Boncafé obliges the demands of its clients and work around providing them with customised solutions, answering their individual requirements. Customers are also looking for turnkey coffee solutions and looking for suppliers who can provide them with the coffee beans, equipment, barista training and maintenance all together.

Robert: As the trend for speciality coffee continues to flourish amongst consumers in the region, brands are turning to local coffee companies for freshness and quality at competitive prices. We believe it is also beneficial for brands to work with local suppliers, where appropriate, to help sustainability and this topic is becoming more and more prominent. To ensure we receive the highest-quality speciality-graded Arabica coffee beans, we manage the full traceability by sourcing our coffee directly from Africa, Indonesia, India, Central and South America. Being a local coffee company allows us to achieve delivery of our freshly roasted, 100% Arabica coffee quickly.

Arnd: The major challenge is the price war because of new companies flooding the market with cheap products.

Ahmad: The challenge and opportunity for restaurateurs, hoteliers or suppliers is the dynamic and continuously changing and developing environment in the region. As a supplier we try to ensure our customers can provide quality and consistency in their offering.

How do different cities across the GCC nations differ?

Aparna: The demand for coffee can be quite different depending on the development pace of the region and the evolution of its coffee culture. In general, demand is still focused on mid-range equipment, vending machines, and instant coffee in regions like Saudi or Oman; while the UAE has already shifted to higher end machines such as La Marzocco and Thermoplan. However, the trend for speciality coffee and equipment is on the rise, especially in the UAE, Saudi and Qatar where people are ready to spend more for quality. Therefore the requests for La Marzocco coffee machines and Mahlkonig grinders are on the rise.

Robert: The Middle East is cultivating more and more coffee drinkers, making it one of the fastest growing markets in the world for coffee consumption. We have observed first-hand how consumers’ knowledge and appreciation for good quality coffee is constantly improving. With an increase in knowledge comes an increase in the desire for sophisticated coffee taste profiles, and we have noticed a higher demand, specific to Dubai, for freshly roasted single origin and microlot coffees. This notable trend is coupled with the need for freshness, therefore more and more coffee drinkers in Dubai are turning to brands that roast their coffee locally for a fresh tasting cup, which is great for us.

Arnd: In Dubai the variety of coffee blends used has increased significantly. Meanwhile, in Muscat and Jeddah we see an increasing demand for more coffee blend varieties.

Ahmad: We see differences in the types of travellers across the region, from leisure and family tourism in the popular events’ periods in UAE or holiday seasons in Levant and Oman, to religious tourism in key cities around the region. Ultimately the needs of these consumer groups will drive the offering. For example, leisure travellers may seek a unique and local experience, such as trying Arabic coffee, but still want to enjoy the comfort of having their usual cappuccino at breakfast or Nescafé and Coffee-mate in-room. For business travellers a coffee menu with options, consistency and speed of service may be key, whether at breakfast or as part of their banqueting experience.

Where do you draw the line with price versus quality debates, and how do you ensure that profit margins stay healthy?

Aparna: We find that the customers are less price-conscious when economy is booming. However when times are challenging, budgets are tightened. This is relevant to all the industries and coffee is no exception. We are extremely quality conscious and hence do not compromise. In such cases we do offer a variety of options to the clients on the basis of their price expectation. Each blend or SKU is true to its composition and price; we do not make adjustments for profit margins.

Robert: Our mission is to provide customers with the finest global Arabica coffee, roasted and delivered perfectly every time, therefore we only roast speciality-graded, 100% Arabica coffee beans and our quality is an uncompromised and key attribute. Due to our ability to roast our speciality coffee locally, we are able to offer competitive pricing.

Arnd: We always try to make our customer understand that even a single cup of coffee is beneficial in terms of profit margins a restaurant or a café earns. And, hence, outlets need try to focus on buying only the best possible quality of coffee. Outlets should ensure guests become loyal customers of their brands, returning for a second and third cup of coffee.

Ahmad: We always look at the total value our solutions provide to our customers and the total operational cost of a programme. If our customers win through increased sales, cost control or simplified operations, we both win at the end.