That being said, let’s take a look at some of the key technological innovations in the beverage industry right now.

Flow-though Sortation

To streamline the process of distributing, staging, and sorting their items, beverage companies have taken to using “flow-through” systems. This process entails using robots and automated vehicles to stack and move their products around warehouses. The system also allows machine operators to track every batch, so it’s easier to make sure that every item is accounted for. Most of all, it reduces human error and the need for more manpower, increasing productivity and cost-efficiency in the process.

Voice Technology

Voice technology makes processes more seamless, and this has never been more evident than in warehouse operators. According to IT writer Johnson Thomas, these employees are able to work “hands-free and eyes-free” by simply issuing machines voice commands, and it gets the job done without any problems. This not only increases overall efficiency, but it also decreases the time needed to train new operators and get them up to speed.

IIoT

The Industrial Internet of Things (IIoT) is the use of network-connected devices in an industrial setting. It focuses on machine-to-machine communication, allowing manufacturers to streamline their operations and reduce errors. In the beverage industry, equipment provider Sidel has been providing companies with machines that have built-in sensors and efficiency improvement tools (EIT®).

The EIT® records data and locates defects in production, ensuring that every beverage is produced faster and with consistent quality. These technologies are made possible because of advancements in PCBs, which is an integral part of any gadget. In the past, traditional PCBs were flat, hard, and chip-like, but they have since had to evolve to be compatible with modern IoT sensors. This explains why we’re now seeing more “flex”-type PCBs. Altium’s overview of flex PCB assembly explains that these designs enable multiple PCBs to connect and fit different shapes. It’s a complex procedure, but it’s inevitable for beverage companies who want to refine their manufacturing process.

Cloud Service

Not every beverage company will have the resources to pursue cutting-edge advancements. Luckily, cloud service providers are there to make resources more accessible. These providers rent access to certain software or storage, so that companies can avoid paying the costs for owning and maintaining their own infrastructure.

In a previous article entitled ‘Challenges Faced in Creating Sugar-free Beverages’, we discussed how the industry is under constant pressure to reduce the amount of sugar and artificial sweeteners they put into their drinks for health purposes. So, in 2017, Bayn Europe announced its development of a cloud-based platform that can help food and beverage companies start their own sugar-reduced products. From lab simulation software to product testing, the platform promises a ton of features that will help them throughout the production process. It was initially scheduled to launch early this year, but got delayed due to the health crisis. Other cloud services being used in the industry include Secure 24’s quality validation tool and OneNeck’s centralized database solution.

NFC Tags

Companies are always looking for ways to enhance the user experience, and the beverage industry is no different. To this end, they’ve decided to imprint near field communication (NFC) technology onto their beverages. NFC is what allows the “communication” between two devices, much like tapping your card onto a card reader. Johnnie Walker has started attaching NFC tags onto their Blue Label caps, which are programmed with information that consumers can access with an NFC-enabled smartphone. The label can then tell you some product information, such as its authenticity and history. It can even send you cocktail recipes for spirits and compatible food.

Exclusively for drinkpreneur.com by Jem B.

1. Nutritional benefits

The wellness movement continues to remain trendy, with the majority of brands going back to basics in terms of health. Imbibe predicts how an emphasis on physical and emotional health means that brands will integrate essential nutrients into drinks, such as vitamins and minerals. In addition, Fizziology writes how Gen Z and millennials appreciate “cool” branding with a lower sugar content. Instead, superfruits, vegetables, and herbal-infused drinks will be all the rage.

Alcohol consumption is also on the way down, as members of the public are growing more aware of the dangers of alcoholism. As a result, more low-alcohol and zero-proof drinks are in the process of being developed. When it comes to your brand, ensuring that you gear your marketing towards these trends is key. Minimal designs with a focus on cleanliness and purity, as well as a written emphasis on the health benefits of certain ingredients, will go a long way towards projecting an image of wholesomeness.

2. Exotic flavors

In line with the reduction of overly sweetened drinks, brands are focusing on more high-quality offerings with unique ingredients. Botanical extracts will create novel flavor combinations, such as extracts from basil, cilantro, lavender, elderflower, and orange peel. In addition, bolder flavors from Latin America like guava, chili pepper, and cayenne are becoming more rampant.

This coming year, it’s a toss-up between subtle and sophisticated flavors and ones that are more power-packed in terms of flavor. If you choose to integrate exotic ingredients into your drinks, ensure that your packaging and marketing strategy reflects this. Go with bolder, brighter colors, and vibrant graphics that really pack a punch. Uniquely shaped bottles and cans can also attract more attention, as will ones that are made of eco-friendly ingredients. Also, it is important to avoid using single-use plastics.

3. CBD-infused drinks

According to an article on the cannabis industry by Forbes, “large beverage companies have been among the first movers in developing THC and CBD infused drinks”. Currently, CBD infused beverages include anything from flavored waters by Vybes, cider from Tarukino, tea from Green Roads, lemonade by Honeydrop, and coffee from Eximius Coffee.

However, the legal status of these products is still under debate by the FDA and might become more strictly regulated in the near future. Because of this, integrating these substances into your beverages may be a somewhat risky move, even though it’s certainly trending at the moment. When it comes to including these substances in your drinks, you should ensure that they are clearly labeled and strictly abide by the latest regulations.

Your packaging should also reflect these ingredients, perhaps depicting nature-inspired imagery to appeal to your target market. What’s interesting is that it isn’t just Millennials and Gen Z who seek mood-altering products, but also the elderly who are looking for ways to destress or relieve pain.

4. Functional ingredients

Functional ingredients are becoming even more popular due to recent developments in technology. Adding probiotics to yogurt drinks and fortifying juices with calcium doesn’t interfere with how they taste, even though they come with added benefits. A recent consumer study by Kerry found that 65% of consumers prioritized functional benefits from their food and drink, with the top five ingredients viewed to deliver benefits such as omega-3s, green tea, honey, coffee, and probiotics. Not only do customers prioritize good taste, smell, and packaging, but they care more about feeling good about themselves and preventing disease.

For instance, Jade Leaf Matcha based in Seattle is offering new formulations of the popular matcha latte drink. They have the “Balance” variety, which includes probiotics, prebiotics, and ginger root to support digestive and immune health as well as “Glow”, which contains collagen and biotin that lead to healthy skin, and stronger hair and nails. From this, making solid links between ingredients and their benefits will entice customers to purchase your beverages.

5. Alternative dairy products

Lastly, dairy has always been a popular standby in the beverage market. While alternative forms of dairy were initially popularized to meet diet or allergy issues, the market for this is now growing exceedingly fast. Oat, almond, hem, and soy milk are already extremely high in demand, and the development of alternative milk and yogurt products that have better nutritional properties is sure to become another priority throughout 2020.

Probiotics in particular act as a useful tool for cardiovascular health, weight management, blood sugar maintenance, and bone health. Drinkable yogurt products also contain less sugar and provide a tart flavor that is being more accepted due to globalization.

To stay competitive in the ever-developing beverage industry, it’s always a good idea to ensure that you’re constantly generating new ideas and responding to new trends in the market as soon as they appear. With good reason, 2020 seems to be a year dedicated to preserving and maintaining one’s health. Incorporating healthy ingredients, unique flavors, reducing sugar, and finding ways to cater to everyone’s needs is crucial if you want to stay competitive in this industry.

In line with this, being fully transparent with your marketing campaigns, nutrition information, and using eco-friendly packaging will also go a long way towards ensuring your brand’s longevity and success. Lastly, old trends such as ready-to-consume cold brews, lattes, and cold-pressed juices are still standbys in today’s industry, along with affordability in today’s volatile situation.

Trends in the Coffee Industry

There is an emerging trend in the industry of offering consumers greater varieties of coffee drinks. It seems that coffee drinkers are now open to new coffee tastes. In most coffee shops today, it is not unusual to find different selections of coffee drinks.

They range from coffee shakes to classic coffee, to iced coffee beverages. For 2020, market analysts predict that there will be coffee specialty drinks that will be introduced to consumers. One of them is non-dairy milk coffee in different varieties.

Various types of coffee drinks have recently influenced coffee trends. Almond milk, soy, and lactose-free coffee have already been accepted by consumers. This year, coconut, cashew, macadamia, pew, rice, and oat milk may get the center of attention as substitutes for creamer and dairy milk.

Another coffee trend to watch this year is the promotion of healthy coffee alternatives. Going with the healthy trend and more holistic practices, 2020 will see coffee shops offering coffee with collagen creamers, maca lattes, and mushroom coffee. The tack is: they will not only boost energy, but will improve immunity as well.

Coffee Consumption and Production Statistics

In the fiscal year of 2017/2018, coffee consumption statistics of 60 kilogram bags in the United States was 25.84 million. Consumption of 60 kg coffee bags increased in the following fiscal year 2018/2019 at 26.5 million.

One of the largest coffee producers in the world is South America. More than 81 million 60 kg of coffee bags in the world came from this continent. The majority of these coffee bags came from Brazil.

Moreover, the total production of coffee around the world has reached 158.56 million 60 kg bags in the fiscal year of 2017/2018. A survey conducted in 2018 revealed that the most used coffee preparation methods were single-cup brewers and drip coffee. The survey also showed that although drip coffee is still common, its popularity has waned over the years.

Which Countries Drink the Most Coffee?

While American consumers drink a lot of coffee, they are only ranked 26th among the largest coffee drinking consumers in the world. Even lower is the United Kingdom which is on the 45th rank.

Taking the coveted first place is Finland. Coffee consumption statistics show that the Finns grinded their coffee on their way to the top at the tune of 12 kg. per capita per year. The stats also showed that her Northern European neighbors are hard on her heels in taking up their top ten positions.

These countries are Norway, Iceland, Denmark, and the Netherlands, in that order. Some observers believe that it must be their long winters that induced these Northern Europeans to drink more coffee than any other nation in the world.

The top ten coffee drinking nations in the world and their per person per year consumption are the following:

1. Finland – 12 kg per person per year
2. Norway – 9.9 kg
3. Iceland – 9 kg
4. Denmark – 8.7 kg
5. Netherlands – 8.4 kg
6. Sweden – 8.2 kg
7. Switzerland – 7.9 kg
8. Belgium – 6.8 kg
9. Luxembourg – 6.5 kg
10. Canada – 6.2 kg

Global Companies that Dominate the Coffee Industry

The coffee industry is not only composed of the coffee planters and processors. It includes distributors, wholesalers and retailers. You could say that this industry is a multi-layer and complex industry. That said, the biggest players in the industry include Brands International, JM Smucker Co., Starbucks Corp., and a few more.

This industry could be considered somewhere in between the sectors of consumer staples and consumer discretionary. The top three coffee companies that are regarded as the best selling stocks are JM Smucker Co., Restaurant Brands International Inc., and Dunkin’ Brands Group Inc.

Starbucks got the number one position as the coffee stock with the most momentum. Coffee consumption statistics revealed that in the quarter ending Sept. 29, 2019, Starbucks realized a 14 percent increase in quarterly dividends to $0.41.

How Top Coffee Companies Promote Their Products

Cosca Coffee is one of the top coffee companies in the world. We can get a glimpse of how top coffee companies are promoting their products by the way Cosca Coffee is promoting its coffee products to consumers.

Basically, Cosca promotes its coffee brand by offering its main product in what is called a marketing mix. There are a lot of flavors and variants of Cosca Coffee. The most popular are Espresso, Americano, Latte, Mocha and Flat White.

This coffee company also sells its products to caterers and businesses by selling vending machines to universities and schools and corporate customers using the Costa Express brand name.

New Ideas to Successfully Fight Competitors

One of the ways by which coffee companies fight their competitors is by thinking creative ways to promote their coffee products. Some coffee companies have adapted the following creative marketing strategies to promote their coffee brands:

1. Print and media advertisements to create brand awareness
2. Offering free cups of coffee on the opening day of the company’s coffee shop to enable customers to taste their different coffee variants.
3. Offering free cups of coffee on special days to experience the ambiance of the coffee shop
4. Online marketing through social media posts and online ads

In the 33rd year of Fi Europe & Ni, 1,700 exhibitors presented more than 15,000 ingredients and a wide range of related services – from processing and packaging technology to contract manufacturing. To provide a platform for the growing globalisation of the industry, Fi Europe & Ni this year welcomed 26 country pavilions, including six new ones for suppliers from Japan, India, Georgia, Nigeria, Sri Lanka and Peru. For the next event in Frankfurt, 84 per cent of the available exhibition space has already been booked. This high number of stand reservations for 2020  is once again a proof that Fi Europe & Ni remains a successful and respected business platform for exhibitors.

With 24.415 attendees, this edition of Fi Europe & Ni was the most successful one in France so far. Recent analyses show that mainly representatives of sales, procurement and purchasing, general management and R&D attended the show at Parc des Expositions Paris Nord, Villepinte. 33 per cent of the visitors were managers at C-level or higher, and 71 per cent had budget responsibility.

Rüdiger Schock, Director, Innovation Acceleration EMEA at Ingredion, commented:

“We have been exhibiting our innovative ingredient portfolio at Fi Europe & Ni for more than 20 years, and we will definitely be back. 2019 was another very successful fair for us. It was a great opportunity to meet with customers old and new to discuss global key trends such as clean label, protein enrichment, sugar reduction and plant-based ingredients, and the solutions we have to support them.”

Continuous development

Since its launch in 1986, the event has always had its finger on the industry pulse and has continually expanded. First, Ni (Natural ingredients) joined the exhibition and has established itself as a forum for future-oriented natural ingredients. In addition, an extensive conference and educational programme has been added and this year attracted more than 300 delegates, offering in-depth insights into key trends such as “Healthy & Functional”, “Plant-derived Ingredients”, “Clean Label” and “Reduction & Reformulation”. The Future of Nutrition Summit on the day before the fair proved highly successful, attracting more than 100 participants and showcasing outstanding and game-changing innovations, with a focus on sustainable food systems and new food technologies.

Firmenich’s Global Director Marketing and Communication Ingredients, Virginie Gervason, stated: “As we are involved in flavour ingredients and flavour solutions, Fi Europe & Ni is the best place for us to showcase our innovations and insights, and demonstrate the best use of these solutions. It’s a good opportunity to show the versatility of Firmenich, and how our ingredients embody our purpose ‘For Good Naturally’.”

Within the Expo FoodTec, which was added to the Fi Europe & Ni line-up to mirror the interplay between ingredients and technology, the Expo FoodTec Content Hub presented valuable advice, especially in the field of food safety. In a time where flexitarian and vegan consumers fuel the market, the new Plant-based Experience showed, through panel discussions, how to strike the balance between consumer-expected low price and high quality.

A New Gen trade show: Fi and Hi co-located under one roof

2020 in Frankfurt, Fi Europe and Hi Europe will join forces for the first time. This

co-location is a strategic response to the fact that the health and nutrition economic sectors are merging at a fast pace. Consequently, the boundaries between standard ingredients, functional ingredients with added health benefits, and dietary supplements are blurring.

As many companies also have much shorter innovation cycles than a few years ago, Fi Europe and Hi Europe will take place annually starting next year. Messe Frankfurt will be first to host the largest trade show for the food and beverage industry, from 1 to 3 December.

From a visitor’s point of view, the show is still highly relevant in a digital age: “It’s difficult sometimes when you’re trying to source a new ingredient – yes, you can do a Google search to find the data, but you don’t get that full insight into what each supplier is doing. So this show really brings it all together under one roof,” said Suzanne Salt, Procurement Manager, Symingtons Ltd.

Fi Europe Brand Director Julien Bonvallet was delighted with this year’s event: “Thirty-three years of Fi Europe & Ni are a reason to celebrate! We are grateful that so many visitors made their way to Paris despite the strike warning. But it also shows that Fi Europe & Ni is simply the place to be for the industry’s thought leaders. I am now looking forward to this great new development and can already promise many exciting inclusions for the show in 2020.”

Source: Fi Europe

So what’s in store for the future of drinks trends?

Found on your typical drinks menu and on every off-license shelf, rum is becoming exceedingly well-loved in the UK. In fact, it’s becoming so popular that it now ranks alongside whisky and gin as one of the UK’s favourite spirits! Annual rum sales in Britain topped £1 billion for the first time in 2018, with over 1 billion litres consumed. So let’s look into the future and see what’s in store for the 2020 rum market…

Quality Over Quantity

A key market trend in the drinks industry sees consumers “drinking less, but drinking better quality” and there are no signs of this stopping. As consumers are becoming more interested in age and origin, luxury rum is expected to increase in sales by almost $230 million between 2015 – 2020. With this in mind, and the knowledge that consumers are starting to care more about content over cost, big brands are turning their focuses to launching premium rum.

Innovative Flavours

The UK has experienced a big increase in competition and new product launches thanks to consumers wanting to explore a variety of new flavours. In 2006 there were 50 rum brands in the UK, there are now nearly 200, with that number only looking to escalate in the future.

Consumers are always on the hunt for new, innovative flavours, which is why this is predicted to be a big trend in 2020. Coconut rum is already particularly popular, along with coffee rum like RumJava . According to reports, the flavoured sector will be bigger than white rum in off-trade by 2020.

Rum Cocktails

Daiquiri, Mojito, Piña Colada, it’s hard not to think of cocktails when you’re talking about rum!

The UK’s cocktail culture is booming, and as rum cocktails are growing in popularity, bars are looking for new and innovative recipes to captivate their customers.

Want to find out more? View full article.

If you’re keen to grow and expand your drinks brand, come along to The International Drink Expo on the 19th and 20th of November. With unparalleled networking opportunities over the course of the two unmissable days, make sure your industry connections are stronger than ever before.

Grab your FREE tickets today!

One of Latvia’s most legendary brands – herbal bitter Riga Black Balsam® – has come up with a way to join the ever-growing popularity of the global coffee trend. At the beginning of the summer, the brand launched the fifth version of the ancient beverage – Riga Black Balsam Espresso.

“Including coffee in alcoholic beverages is a very current trend worldwide. In numerous bars, restaurants and cafes, these drinks are among the top five in bartenders’ choice,” says Maris Kalnins, the Global Brand Director of Riga Black Balsam. “With creating the Espresso version of Riga Black Balsam, we have combined two highly valued tastes of consumers: the unique taste of the legendary bitter and the strong, saturated espresso flavor,” says Maris Kalnins.

Riga Black Balsam Espresso is made using the balsam extract found in the basic composition of the original drink. As an upgrade, Arabica coffee bean extract and cinnamon extract are added. The coffee beans used in the beverage have a strong taste, aroma and a pleasant aftertaste that resembles black chocolate.

“We are confident about the success of the new balsam flavor in the domestic, Baltic and world markets, with a particular success in the espresso lover’s capital – Italy, where we have sent the new drink in early July,” says Maris Kalnins. “Riga Black Balsam Espresso is not only a modern drink but also a long-awaited product for Latvian consumers. We’re huge coffee enthusiasts because, for example, at least half of the liqueurs that are consumed in Latvia, are with the taste of coffee. In addition, our own drink Moka is ranked as the sixth most popular drink in the world with a coffee flavor! That is why it is a logical continuation – to add the coffee taste and highlight the unique and specific properties of the balsam,” says the global brand director.

Riga Black Balsam Espresso is priced the same as the original balsam, has a strength of 40% and is filled in 0.5 liter natural clay bottles. The long-standing Riga Black Balsam partner, the graphic design agency BrandBox, took care designing the new and tasteful packaging of the drink.

Source: Riga Black Balsam Espresso

The 2nd edition of Craft Drinks India was inaugurated by Matthias van der Straeten, Deputy Head, Economic Affairs, German Consulate, Bengaluru, Narayan Manepally, the Chairman of Craft Drinks India 2019 Advisory Committee, also the co-owner of Geist Beer, Michael Vachon, Co-founder, Maverick Drinks, Sonia Prashar, Chairperson of the Board & MD, NürnbergMesse India along with Pradeep Deviah, Chairman & CEO, PDA Trade Fairs Pvt Ltd.

The inauguration was followed by Craft Drinks India’s Annual International Conference “Grain to Glass 2.0” where a wealth of experience and expertise was shared on most relevant topics as well as current trends in the industry. Speakers at the conference included some of the prime movers of the Alco Bev segment in India & overseas, drawn from across the beer, wine and spirits sectors.

With financial stability a sine qua non for any business, the conference started with an address on the path to profitability as well as what investors look for in “crafting” goods business. Followed by a challenging topic of maintaining the ethos of craft as you scale up by Michael Vachon, panel discussions also included different means of creating brand identities, new facets of promotion like creating brand experiences, regulatory issues, technical aspects and choosing the right equipment for a successful business. Further, the international conference took a deep dive into Technical Brewing, as we unravel the secrets of the “wheat beer”. With the global borders shrinking, the importance of understanding an export-drivenen strategy from current practitioners was also explored.

All in all, the Annual Conference at Craft Drinks India was a fully immersive day of immense relevance for anyone who is a stakeholder in the Alco Bev industry in India.

Being the only comprehensive platform positioned to convert the sectoral potential to commerce, the 2nd edition saw over a 100 exhibitors displaying cutting edge technologies and expertise for the Alco-Bev industry. The two-day event accommodated spirited networking amidst industry professionals and effectively provided a perfect platform for the craft drinks ecosystem to meet, interact, deliberate and witness cutting-edge global technologies.

There was a mix of new exhibitors as well as returning high-profile brands offering an array of products and services. On the Brewing and Distilling side, CDI2019 hosted Thermax, Lehui, Spectraa Technologies, Prodeb Brewing Equipment, Taurus Engineering, among others. Testing, Lab Equipment’s and Instrumentation section was represented by AV measurement and Control, Mettler Toledo, Anderson Negele, Alfa Laval, Endress Hauser amongst others.

With CDI 2019 attracting newer brands like Krones Packaging, USP Packaging, SSP Packaging, Worldpack, Ningbo HGM Food Machinery, Cask Global, Kitten, Techpac, Kegwerks Janus International among others, the event expanded the canvas to include packaging Technologies in its exhibit profile.

Brands like DVKSP, Zytex, Hambleton Bard, PMV Malting, Fermentis and others represented the raw materials and products for brewing and distilling. Chemicals and Dispensing are other notable categories Craft Drinks India 2019 offered and, brands like Ace Technologies, Sanky consulting, Fosroc, Chembond Calvatis Hygiene Pvt Ltd, Chemline Global demonstrated the best of what the industry has to offer.

The trade show also included products from technologies offering production & process plants, pipework, pumps, valves & associated fittings, cleaning equipment, materials & systems, environmental, effluent and pollution control, fermentation and ageing containers, chemicals, dispensing, etc. You name it & CDI 2019 had it.

Exhibitors at the event also provided scope to customise practical and affordable solutions as per the client requirements. The market reaction was reflected upon the significantly higher visitor registration and the organisers are quite kicked with the traction the event is gaining.

Craft Drinks India 2019 played host to the  IFBA Flair Challenge 2019, for the first time in Bengaluru. The Flair and Mixology Competition saw energetic participation from the bartending community from India. The pub city of Bengaluru was the ideal location to host a dazzling flair event that saw deft manipulation of bar tools (e.g. cocktail shakers) and liquor bottles in tricky techniques.

Addressing Craft Drinks India 2019, Rohan Carvalho, IFBA Flair Challenge 2019 said, “We truly appreciate your support and your contribution will dramatically help us develop and succeed in future endeavours.”

The “IFBA Flair Challenge 2019” is powered by IFBA, a non-profit organisation formed by a group of professional bartenders with a background in Flair Bartending and enormous years of experience in Bar and Beverage industry.

Riding on the overwhelming response from the community, the 2nd edition of Craft Drinks India organised yet another vibrant workshop conducted by Versuchs-und Lehranstalt Für Brauerei (VLB) from Berlin. The technical workshop on “Microbial Quality Assurance Plan and Beer Spoilage Bacteria” consisted of presentations on how to tackle beer spoilage by microorganisms. The session elaborated on how to set up a quality-assurance plan in relation to microbiology in a brewery. Likewise, enabled breweries to effectively address quality questions and uncover potential problems thus incurred.

Returning for the 2nd edition of Craft Drinks India from Berlin was Jan Biering, who conducted the technical workshop with Gayatri Mehta on 4th July 2019 at Craft Drinks India. Jan Biering is currently working as a scientific worker and consultant at VLB- Berlin, a post he has held from 2012.

The event was a big hit with both the exhibitors as well as the visitors, who expressed their satisfaction with the show and unanimously expressed their interest to be part of the next 2020 edition.

Source: Craft Drinks India

Packaging has been transitioning from rigid to flexible in food applications due to factors such as cost- and source-reduction, improvements in barrier qualities, and an improved environmental profile, particularly as they shift from multi-layer to monolayer versions. This shift is even happening in applications like ketchup, barbecue sauce, and other condiments where rigid plastic formats that imitate the look of classic glass have succeeded.

A new spin on a modern classic

A notable example is Glenroy’s inverted squeeze standup pouch with a flip-top cap at its base, which debuted in 2018 after four years of development. The flexible format – which can be rolled like a tube of toothpaste – enhances ease-of-dispensing and helps prevent food waste.

Glass has historically reigned in condiments, but the heavy weight of glass bottles lends to higher packaging and delivery costs, which trickle down to consumers. Additionally, although glass is traditionally a frequently recycled packaging material, many recycling programs are beginning to refuse glass, which hurts glass’ environmental profile.

In more recent years, inverted rigid plastic condiment bottles have become the standard, while glass is used more selectively to reflect a more upscale product image.

Now flexible packaging is stepping in. Generally cheaper to manufacture and transport – since it can be shipped in rolls and filled by the food and beverage firms that buy it. Therefore, while the package may not be eligible for most curb-side recycling programs, its lighter weight allows it to boast a cleaner environmental profile.

The rise of food and beverage e-commerce purchasing has led to greater interest in light weight packaging that won’t break in transit, further boosting interest in pouch packaging.

Machinery requirements may be a turn-off

However, most stand-up pouches require food and beverage customers to purchase additional accessories, if not all new equipment to fill the pouches. Therefore, firms interested in improving package-filling efficiencies may look elsewhere. For example, Semco claims that its Sempack conical-shaped flexible pouch can be filled using equipment that companies already have for conventional bottle filling, without additional investment in costly new production machinery.

Source: The Freedonia Group

What are NOLO beverages?

In the UK, producers can only label a product as “low alcohol” if it has an ABV below 1.2%. Alcohol-free products must be 0.05% ABV or lower, and anything with an ABV of 0.5% should be called “de-alcoholized.” In the EU, Regulation (EU) 1169/2011 (EU 2011) on the provision of food information to consumers requires that the ‘actual alcoholic strength by volume’ of an alcoholic beverage containing more than 1.2 % by volume of alcohol is given.

The same regulation exempts alcoholic beverages containing more than 1.2 % abv from having a nutrition declaration and a mandatory list of ingredients. In the U.S., numerous regulations dictate the labeling of no and low alcohol beverages including dealcoholized wine and malt beverages. Due to the complexity, it is best to have no and low alcohol labels reviewed by a lawyer who specializes in food and beverage labeling compliance.

The trends behind no and low alcohol

Total alcohol volume in America dropped 0.8% in 2018 after a 0.7% decline in 2016, according to the IWSR U.S. Beverage Alcohol Review. UK alcohol consumption also fell from 3.07 units per day in 2003 to 2.57 units per day in 2018, while the number of people in the UK who do not drink at all rose 35% in 2013. It’s a trend that seems likely to continue as 52% of consumer surveyed in the IWSR’s study reported that they are trying to reduce their alcohol intake.

Underneath these statistics are a few driving forces that are gaining momentum. The rise of the wellness movement means that consumers are increasingly aware of the risks of excessive alcohol consumption and more inclined to avoid or reduce their intake as a result. Global campaigns to encourage moderate alcohol consumption are also influencing consumers’ drinking habits. The idea of intentionally lowering or cutting out alcohol consumption has even been marked by new terminology like “sober curious,” and “mindful drinking.”

While consumers are more health conscious, they are also seeking more exceptional experiences, meaning they will pay more for a quality product that is memorable and increases enjoyment and wellbeing.  In fact, two distilled nonalcoholic products, Seedlip and Ish, sell for $36 and $37 respectively, despite neither product being subjected to standard alcoholic export fees.

A YouGov poll revealed that 7% of respondents have already switched some of their alcohol intake with low or no alcohol substitutes. The survey also revealed that 9% of respondents between the ages of 18 and 24 had already switched to low­- or no­-abv alternatives.

The Future of NOLO

The trends supporting the rise of no and low alcohol beverages tend to point towards success with recipe innovation with a focus on quality, enhanced experience, and distinctive ingredients.

Even with all of the recent entrants, there is plenty of room for growth in the NOLO category. In the UK, low-/no-alcohol brands represent only 1.3% of the country’s total beverage alcohol market. In the US that number is even smaller at 0.5%.

Fitch Solutions projects that global non-alcoholic drink spending will expand by 4.0% year-over-year in 2019, up from 3.9% year-over-year in 2018 and that the category will gain steam over its medium-term forecast to 2023.

As the NOLO space gains more attention and momentum, we are sure to see beverage entrepreneurs rise to the challenge, growing the demand for these products with a steady stream passion and innovation.

Original article was published in Beverage Industry Blog.

“We couldn’t be more excited to enter California. It’s the home state for three of Riff’s co-founders,” said Steve Barham, Riff’s Co-founder, and President. “It feels like a homecoming.”

California is the second expansion state for Riff this month. Earlier in April, Riff announced availability throughout the state of Arizona.

Some of the retailers participating in Riff’s Bay Area launch:

• Bi-Rite Market – Named one of the “25 Best Small Companies in America” by Forbes
• Berkeley Bowl – The East Bay’s renowned fresh food institution
• The Market – SF’s 50,000 sq. ft. food mecca located in the Twitter Building
• Sigonas’ Farmers Market – The popular family-owned Peninsula hub

Sam Mogannam, Founder of the Bi-Rite, first tasted Riff at San Francisco’s Good Food Mercantile in January. “I was very impressed, from the very first sip,” explained Mogannam. “Celebrating the natural flavors already available in the coffee bean was something that appealed to me as a chef. Our customers will appreciate Riff’s artisanal approach, as well as the transparency offered regarding caffeine levels, and empowering them to choose what’s right for them.”

The initial phase of Riff’s UNFI partnership provides availability via two west coast distribution centers. UNFI’s Rocklin Distribution Center will serve customers in Northern California, while their Ridgefield Distribution Center will serve customers in Southern Washington and Oregon.

As part of the partnership launch, Riff will be presenting at UNFI’s Autumn Buying Showcase May 8-9th at the Long Beach Convention Center. Riff’s ready-to-drink cold brewed coffees are available in 10.5 oz bottles, 20L kegs (nitro and regular) and 96 oz bag-in-box formats.

Source: Riff Cold Brewed