Its All About That Brew

The issue you're holding is headed to the National Automatic Merchandising Association's 2015 Coffee, Tea & Water show in Washington, DC. You might be reading this column as you prepare to travel there, or even at the conference itself. CTW has grown into a first-rate forum for vending and OCS operators, and its evolution continues to parallel the industry itself.

I'm told that we first encountered OCS in 1968, but my own acquaintance with it began after I had grown up a bit (I was one year old in 1968). OCS had always been an interesting industry because the pioneers entered it in so many different ways. The founders of the old National Coffee Service Association, which was formed in 1971 and merged with NAMA in 1999, included at least one bottled-water distributor, a couple of active or retired vending operators and several imaginative entrepreneurs who loved cold-call selling. One of them had found himself in coffee service after building a route by following bottled-water trucks and observing where they made their deliveries. He then approached those locations and offered to provide a one-stop delivery service for soluble coffees, teas, chocolate, soups, hot cups, stir sticks, condiments, etc. His move into the 12-cup pourover brewers, a mainstream offering, was a logical next step.

There were other intriguing precursors to OCS, but we have concluded that the increased sophistication of vending machines and the increased cost of operating them as the postwar boom leveled off had left a void in the small-location segment, a former vending mainstay that had become sub-marginal. The market responded creatively, and the response that succeeded best was Cory's value proposition: the location received a free restaurant-type paper-filter brewer and purchased the coffee in fractional-pound gas-flushed pouches, just as doughnut shops and fast-food restaurants did. The operator would deliver those fraction-packs, along with sugar and creamer and cups and stirrers, and the location would brew the coffee as needed, at a cost of 5¢ per brewed cup. It was an unbeatable deal, and its popularity inspired creative emulation. In short, OCS offered a way for operators to get back into small locations.

Much of the OCS industry did not believe this, regarding itself as distinct from vending; but it certainly is at one end of a workplace refreshment spectrum that extends through pure water, vending, sometimes mobile catering trucks, and now micromarkets.

According to Vending Times' third-party research, nearly 50% of our approximately 8,400 vending operator subscribers make purchasing decisions for hot beverages. Coffee, tea and water -- and their allied products -- have become the components of a staple product offering for most operators and a tremendous area of industry growth. Last year's CTW show in Dallas attracted 750 registrants and 100 exhibitors, and presented a stellar educational program. This year's confab will have a lot to live up to, but it promises to deliver again. Holding the event in the nation's capital also should provide a unique opportunity to network not only with industry peers, but also with elected officials.

Seminars will be dedicated to helping operators evaluate new business opportunities, improving their profitability and sales success, and making better strategic decisions. Business session topics include Internet coffee sales and the state of water in the workplace services industry. There will also be a special session for business owners looking to transition their businesses to family members or other partners.

NAMA again will conduct its two-day Quality Coffee Certification Program, led by Mike Tompkins. The program, developed from a concept launched by the old NCSA 15 years ago, features two interactive workshops (brewing technologies and coffee fundamentals). Participants will experience original and blended coffees through guided tasting exercises and gain a fundamental understanding of coffee production processing and preparation. The course will introduce new topics this year, including cold brew, specialty coffee and the latest equipment and technology.

You can read more about cold brew solutions and this emerging category on Page 28, where we profile New Jersey's Corporate Essentials. This innovative OCS operation has added cold brew coffee and other novel products to its menu. Single-cup cold drinks is another emerging category. See Page 22 to read about Lavit's commercial single-serve cold beverage system and the Keurig Kold home-brew machine. Also in this issue is an exclusive product section dedicated to office coffee service.

The brief historical sketch above reminds us that there is no one right way to do workplace service. And the place to get new ideas is at NAMA's Coffee, Tea & Water show.