Snack Food & Wholesale Bakery’s Post

What's good for the goose isn't always good for the gander as Keurig and Starbucks have discovered. Promotions to lure customers plastered their apps and in online ads, but those discounts in a coffee price war dented their sales. The all-you-can-eat-shrimp strategy has left the industry gasping for revenue. Red Lobster has quickly become the poster sea creature for how not let a promotion go too far. While customers were stuffing themselves full of cheap shellfish, the eat until you drop buffet offering created a shipwreck of earnings and drove the company into bankruptcy. Fast forward to Starbucks, and we're seeing an emerging vente shrimp phenomenon. This past summer, half-off Friday frappes became as synonymous as Taco Tuesdays. By ordering through the app, customers basically got a frappe or whatever beverage the coffee giant's marketing team seemingly pulled out of a hat the day before for almost nothing (not accounting for inflation, etc.). Unfortunately, while those promotions to caffeine and sugar addicts boosted traffic and provided customers with a high, they literally ate into the company's profits. Price wars are cropping up across the board. From retail to restaurants, the days of jacking up prices on customers are over as customers cut back. That's driven many to start cutting back prices and focus on those whiz bang marketing terms like 'value' and 'loyalty'. Look no further than the fast food industry's growing roster of '5 buck, Chuck' value meals from McDonald's, Burger King and Wendy's. It's been a summer of discount regret. But as Red Lobster, Starbucks and Keurig show, those promotions are overdone or even over-the-top for too long, the result is a decline in revenue and profits. The strategy becomes even more unsustainable if everyone else is doing it, which then turns your company from a leader into a loss leader. For Starbucks and Keurig, discounting the price of beverages became a double whammy on the bottom line due to coffee bean shortages which sent prices skyrocketing 30 percent this year. It goes without saying that these companies are dialing back many of their promotion strategies. Unfortunately, they're also facing an onslaught of discounts and incentives from other companies and industries as many work to lure back customers. Food manufacturers, for example, are cutting prices on items. As always, it'll be interesting to see how this plays out with Starbucks and Keurig customers who have grown accustomed to the nectar of caffeine discounts https://lnkd.in/gmSzFBR2 #starbucks #keurig #coffee #beverages #discounts #promotions #marketing #supplychain #culture

Discounting is a downward spiral and deflates brand value. Especially when in response to a competitor's discount. Sure, consumers may win for the short term: "I only buy that when it's on sale, which is it every week!" But brands lose. I'm happy to see from this coverage in The Wall Street Journal that Starbucks and Keurig are moving past their "discount war" (because it's not working: overall sales are down) and focusing on added value, services, and loyalty rewards. That is the way to connect with people! <snip> Coffee companies have been competing for customers with discounts and coupons. That price war has dented sales for K-Cup maker Keurig and for Starbucks, both of which say they are now reversing strategies. </snip> (subscription required) #marketingstrategy #customerengagement https://lnkd.in/gsHVjzmy

Despite the recent setback of Boisson, the alcohol-free cocktail market is booming! With over $162B in revenue, it's clear that the demand is there. https://bit.ly/3UFvvRj #RetailStrategies #BusinessLessons #MarketTrends #AlcoholFree #Mocktails #BeverageIndustry #Boisson

Coffee has long been a convenience store staple, and with rapid growth in whole bean sales and increased popularity of coffee bags there’s huge opportunity for further growth in the sector. Insight Manager, Richard Milner discusses with Scottish Grocer how operators can meet growing consumer demand when it comes to a convenient caffeine kick. Read the full article below. #Coffee #CoffeeMarket #CoffeeInsight

Since Q1 2023, Luckin Coffee has tripled its store count, growing by 19,399 new stores in just over 1.5 years 📈 By Q3 2024, Luckin Coffee had reached 28,750 stores—with a mix of self-operated locations (21,343) and partnership stores (7,407)! As Luckin redefines competition in the coffee market, what lessons can other food and beverage brands take from this explosive growth? Let us know your thoughts below! 👇 #LuckinCoffee #ConsumerTrends #BusinessGrowth

The total coffee & sandwich segment is forecast to total £12.1bn in 2024F, +26.6% ahead of its 2019 value, according to Lumina Intelligence's Operator Data Index. The branded bakery-led segment is expected to see the strongest growth year-on-year underpinned by market leader, Greggs and growth brand GAIL's Bakery. Learn more about Lumina Intelligence's Operator Data Index: https://lnkd.in/d8HbWyY #coffee #coffeeandsandwich #foodanddrink #foodandbeverage #marketinsights #marketresearch

📣 📊 Our latest report unveils shifts in assortment sizes across various segments. 🍕 From pizza chains leading with over 320 items to ☕ coffee shops showcasing around 190 options, and 🍔 🍗 burger/chicken outlets hovering at approximately 160 items, the dynamics are captivating. 📈 We've observed a 6% increase in overall assortment sizes, with 🥤 drink offerings experiencing an impressive 8% surge. Maria Vanifatova, CEO of Meaningful Vision LTD, underscores the importance of agility in responding to consumer demands amidst economic challenges. ✔ Read the full article 👉 https://bit.ly/3y61Jxk #MeaningfulVision #FastFoodIndustry #ResearchInsights #MarketAnaysis

J.M. Smucker Co.’s sales rise 17% with boost from Hostess acquisition Food giant cites “strong” second quarter performance of brands such as Uncrustables, Meow Mix, Café Bustelo and Jif.

#Coffee is a key driver of foot traffic and profitability in convenience stores, with the potential to boost cross-category sales. Whether it’s a pastry, sandwich, or cake, pairing coffee with food options creates temptation and encourages impulse purchases. Retailers are also innovating with advanced coffee kiosks, enhancing the in-store experience and making it easier for consumers to indulge. As highlighted by Flora Zwolinski, Senior Insight Manager at Lumina Intelligence, during the recent webinar The Now and Next of the Convenience Market, coffee is evolving beyond a simple morning pick-me-up. Consumers now seek quality, health-conscious options, and indulgent, treat-like offerings. From specialty blends to unique formats, coffee remains a cornerstone of convenience retail’s future. #marketinsights #consumerinsights #consumerbehaviour #marketgrowth #retail #convenience #coffee #hotdrinks #treat #coffeebreak

Hidden Catalysts In Key QSR Trends? In today's Beats Roundtable, Berna Barshay discusses the importance of monitoring fast food (QSR) promotions and how they could signal future trends. She highlights the lack of promotions around fries compared to burgers and chicken sandwiches, suggesting that a return of deals like dollar fries at McDonald’s could be a catalyst to watch for $LW. For more stock analysis and insights from the Beats Roundtable #subscribe! Visit www.wallstreetbeats.com for exclusive access to our pros. #stocks #stockstobuy #stockstobuynow #stockstosell #BeatsRoundtable #StockMarket #QSR #McDonalds #FastFoodTrends