Coffee and Tea Fuel Creativity in Food and Beverage Consumers’ Insatiable Curiosity for ﬂ Avor Adventure Attracts Them to the Familiar in a New Format

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Brewing Innovation: Coffee and Tea Fuel Creativity in Food and Beverage Consumers’ insatiable curiosity for ﬂ avor adventure attracts them to the familiar in a new format. It’s no wonder that while coffee and tea are trending in the ready-to-drink beverage category, these brewed botanicals are ﬁ nding their way into all types of packaged food and menu applications

ven in a consumer packaged beverages. They have become coffee and tea ingredients bring goods environment changing platforms driving innovation in an many of the plant’s healthful E at a dizzying pace, the ever-growing array of applications. benefits to the application, beverage category is an outlier. It’s Thanks to advancements by extract namely an array of antioxidants fair to say no product sector has and ingredient suppliers such with varied functions and natural undergone more wrenching change, as S&D Coffee & Tea, Concord, energy in the form of caffeine. and in 2018 the beverage business is N.C., both are available as dynamic and exciting as ever. in premium extract form for use in varied Numerous forces have propelled applications, everything Inside: radical shifts, none more important from baked goods to than consumers’ steady march from frozen desserts to sweet 2-3 Beyond Basic Beverages: carbonated soft drinks made with and savory sauces, and of Opportunities in cold brew, lattes, nutritive sweeteners. In addition course, RTD beverages. energy, nitro and more to fueling growth in demand for sugar-free soft drinks, this exodus The current upswing 4-5 Out-of-the-Cup Innovation: From created an opening for other in plant-based foods desserts to sauces, coffee and categories such as bottled water further solidifies coffee tea contribute color, ﬂ avor and a and, increasingly, ready-to-drink and tea as being an healthful halo (RTD) coffee and tea beverages. on-trend component of 6 The Better-for-You Beneﬁ ts of foods and beverages, as Coffee and Tea In recent years, coffee and tea both are derived from have become more than just plants. High-quality Beyond basic beverages: Opportunities in cold brew, lattes, energy, nitro and more

he burgeoning RTD coffee and of adding nitrogen—a colorless, tea category has many retailers odorless gas—to chilled coffee or T frantic for shelf space. Refrigerated tea. The nitrogen creates a smooth, varieties are squeezing out juices and fruit almost foamy texture that also gives a drinks, while ambient products replace perception of sweetness and creaminess carbonated beverages and isotonics. The without anything being added. category shows no signs of abating, with formulators developing signature spins to These techniques premiumize differentiate. RTD coffee and tea, qualifying these beverages to be specialty foods. Many Marketers, in particular smaller of these innovations include value- entrepreneurs who are telling a hand- added ingredients. Carbonation can be crafted story about their innovations, added to both coffee and tea to further are positioning both brewed beverage differentiate. concepts as healthful alternatives to traditional sugar-laden drinks. Sales data Among coffee creations, what’s shows consumers are buying into it. gaining traction is the addition of protein, butter, probiotics and specialty One of the hottest trends in the category oils. New on the horizon is mushroom is cold brew. This is coffee or tea brewed coffee, which is powdered dried without heat. mushrooms mixed with coffee for a purported synergistic health boost. In the RTD coffee category, cold brewing involves steeping beans in ambient- to In RTD tea, herbs and spices are cold-temperature water for up to 24 hours. common additions. Formulas are often The type of beans, the ratio of beans to designed to calm, build immunity water, the temperature of the water and or revitalize the consumer. Tea is the steeping time all impact the final also being combined with fruit juice, product. Cold-brew coffee extracts enable beverage attracting new users to the category. manufacturers to get creative without investing in this time-consuming process. A concept catching on in Asian communities is The concept of cold brewing applies to tea, too. cheese tea, a beverage Leaves are steeped without heat. This is not to be suggestive of a savory confused with sun tea, where leaves are submerged in milkshake. It’s iced tea water and warmly brewed by sunshine. topped with a foam of whipped cheese The slow cold-brewing process reduces the extraction (everything from cheddar of bitter compounds. This yields a smoother beverage to gorgonzola), cream that is more palatable for many consumers. The reduced and seasoning. bitterness allows formulators to reduce the amount of sugar/sweetener added to the final beverages, which There’s also kombucha, appeals to today’s added-sugar-conscious consumers. a fermented tea The cold-brewed base further serves as a canvas to get consumed more for its creative with the layering of flavors. health benefits than as refreshment. The Riding the coattails of cold brew is nitro, the process inclusion of special microorganisms yields an effervescent beverage with probiotic function.

Protein-enriched RTD coffees and teas typically rely on dairy ingredients, usually whey; however, a growing number of innovators are exploring the inclusion of vegan sources, most notably pea protein. Some are positioned as refuel beverages, while others are breakfast-in-a-bottle or a satiating afternoon pick-me-up drink.

When energy is a selling point, stimulants are added to the naturally caffeinated beverage. This may include guarana, taurine, B vitamins or coffee fruit extract.

Coffee fruit extract, or cascara, is the by-product of coffee bean harvesting. Coffee beans are the seed of a fruit commonly referred to as a coffee cherry. Pulping removes the seed from its cherry. The pulp is used to make cascara. When the seeds are roasted, you get coffee.

Cascara is now being used to top off coffee beverages for extra caffeine and a layer of flavor. It is often described as having a sweet, fruity taste with notes of rose hip, hibiscus, cherry, red currant, mango or even tobacco. RTD Coffee and Tea Milk and cream have long been used to Leads in Specialty mellow the flavor of coffee and tea. Now butter is being used. Butter is said to add an extra Beverage Sales layer of richness that also satiates. Grass- Sixty-five percent of U.S. consumers fed butter, in particular, is often used. That’s purchase specialty foods, according to because grass-fed cows have been shown to the State of the Specialty Foods Industry produce milk containing a more Report 2018, with retail sales growth nine nutritionally dense milkfat times greater than that of all food. Foods component. Many butter coffee and beverages of the highest grade, beverages are also including style, and/or quality in their respective medium-chain triglyceride oils, categories are considered specialty items which are associated with health by the Specialty Food Association. benefits such as a cognitive boost, fat burning and balancing Among all beverages, refrigerated RTD mood and hormone levels. coffee and tea showed the highest dollar growth from 2015 to 2017, increasing From refreshment to meal 63.2%. The specialty nature of these replacement, the RTD coffee beverages comes from a combination of and tea category will continue qualities, including uniqueness, origin, to evolve as consumers demand processing method, design, limited supply, more from their beverages. unusual application or use, extraordinary Product developers have a packaging or channel of distribution. toolbox of ingredients available to innovate and deliver. Out-of-the-Cup Innovation hardonnay vinaigrette. Bourbon barbecue sauce. antioxidants, along with color, fl avor and even texture Beer-brined chicken. Beverages have long been and mouthfeel. C used to add excitement to food preparation. Coffee and tea are no exception. Coffee has an affi nity for meat and poultry, making it an ideal ingredient for marinades, rubs and sauces. Culinary professionals welcome the varied fl avors Coffee pairs well with allspice, cinnamon, citrus and and colors associated with coffee and tea. From garlic, as well as tomatoes and vinegar. ground dark roast arabica beans blended with spices and rubbed onto a roast to smooth matcha baked Heat-brewed coffee is naturally acidic, and thus helps into cheesecake, coffee and tea can be characterizing tenderize meat. When cooked downed in the presence fl avors in both sweet and savory dishes. of sugars, the thickened coffee caramelizes, producing a bittersweet syrup that adds an often indescribable, They can also be non-characterizing ingredients. yet craveable layer of fl avor to marinades and sauces. Coffee extract, for example, may replace caramel color in sauces. It also functions as a browning agent in Ground coffee beans marry well with sweet viscous hearty soups and casserole-style meals such as chili. syrups such as honey and maple. This can be used Green tea extract may serve as a fl avorless source of as a glaze on bacon, ham and pork loin. The unique caffeine in sports bars and refuel cookies. combination strikes a balance of sweet, smoky, salty and meaty, with the coffee adding an earthy depth of fl avor. In the packaged foods space, product developers are exploring ways to capitalize on the healthful halo Riff’s Smokehouse, a Minneapolis-based meat of coffee and tea. Depending on the application, the processor, recently rolled out a line of candied bacon benefi ts may include providing natural energy and strips on a stick, with one variety fl avored with coffee. upcycled coffee fruit and fits into the sustainable positioning of the bars.

The Cookie Department, San Francisco, markets a line of functional cookies, which are classic recipes fortiﬁed with innovative ingredients to provide consumers extra beneﬁts. One example is Awaken Baked, a cookie infused with 40 milligrams of fair trade coffee and chocolate.

The snack is designed to be microwaved for 15 seconds And, much like how milk or cream is often added and consumed warm. to coffee and tea beverages, coffee and tea is getting added to dairy products. The smooth, neutral-taste Austin, Texas-based High Brew Coffee, a manufacturer of dairy serves as a very welcoming base to these two of RTD canned coffee beverages, uses brewed coffee to get creative with chocolate. The company partnered with Vosges Haut-Chocolat, Chicago, to offer Wild Ophelia Chocolate Coffee Bites. The confections feature a liquid cold-brew coffee center encased in a chocolate shell. The caffeinated chocolate edibles come in Jet Black, Mexican Vanilla, Sea Salt Caramel Latte and White Mocha varieties.

New Grounds Food, Boston, was founded by a couple of coffee- deprived college students at Northeastern University. The duo developed Eat Your Coffee, a line of caffeinated snack somewhat bitter ingredients. Misha LLC, New York, for bars made with the company’s proprietary blend of example, uses grass-fed whole milk to make its new fair-trade coffee beans and green coffee bean extract. Wünder Creamery Superdairy Quark, which includes The bars are designed to deliver the wake-me up you coffee and matcha tea flavors. get with a coffee drink plus the nutrition you need to jumpstart the day. Flavors are Caramel Macchiato, Tillamook Creamery, Tillamook, Ore., offers a cold- Coconut Mocha and Mocha Latte. brew coffee whole milk Greek yogurt. Powerful Food LLC, Miami, is rolling out Greek yogurt high-protein smoothie ReGrained Sustainable Supergrain Bars were also pouches, with one of the three flavors being coffee. developed by two college students who enjoyed home brewing beer. The San Francisco- Both coffee and tea are also finding based team realized that throwing their way into ice cream. My/Mo Mochi out all of the spent grain was a Ice Cream, Vernon, Calif., offers its waste. They started baking bread traditional mochi (ice cream balls with it, but it was too time consuming wrapped in soft, sweetened rice dough) and they wanted something more and its new pint product in a green practical. They came up with a recipe tea flavor. Three Twins, San Francisco, for small-batch granola bars. The offers an organic higher-protein ice bars are high in protein and fiber, cream branded Slim Twin in a coffee and low in sugar. The line includes flavor. Non-dairy frozen desserts want Chocolate Coffee Stout, which in on the action, too. Canadian-based includes coffee, coffee extract and Daiya has a new espresso coffee coffee flour. The latter is made from variety. The Better-for-You Benefits of Coffee and Tea

offee has a complex botanical proﬁle, with at least 1,000 natural compounds in the C bean—including caffeine—and another 300 created in the roasting process. These compounds, including inherent antioxidants, are associated with a number of health beneﬁts.

Research has shown that moderate coffee consumption (three to ﬁve cups daily) may be associated with many positive effects, including:

• Liver disease prevention • Improved cognitive function in older adults • Sharper memory • Increased athletic endurance • Reduced risk of type 2 diabetes • Longevity

ea leaves contain hundreds of bioactive compounds, including amino acids, caffeine, lignins, proteins, T xanthines and flavonoids. Tea flavonoids and the related polyphenols account for more than one-third of the weight of tea leaves; the health benefits of tea are most often attributed to tea flavonoids.

Flavonoids are bioactive compounds with speciﬁc cellular targets related to cardiovascular, chemopreventive, metabolic, neuroprotective and other health beneﬁts, such as improved cognitive function, sharper memory, increased athletic endurance and reduced risk of type 2 diabetes.

Human population studies have found that people who regularly consume three or more cups of black tea per day have a reduced risk of heart disease and stroke.

private enterprise. In August 2016, S&D was acquired by Cott Corporation, a Canadian company headquartered in Tampa, Fla., one of the world’s largest producers of S&D Coffee & Tea, Concord, N.C., is the largest coffee beverages on behalf of retailers, brand owners and and tea manufacturer and supplier to restaurants and distributors and one of the leading providers in the convenience stores in the U.S. S&D started out in 1927 direct-to-consumer beverage services industry. as a company providing fresh roasted coffee to local and regional grocery stores. In 1965, the company In addition to its foodservice coffee and tea shifted its efforts toward independent restaurants business, S&D develops and formulates custom coffee, trying to capitalize on the growing demand for quality tea, and botanical extracts for use as ingredients coffee and iced tea. Over the years, through the skillful in consumer products and concentrated for use in efforts, hard work and sacriﬁce of many, S&D grew innovative foodservice beverage applications. For more from a small, family-owned business to a formidable information, visit www.sdcoffeetea.com.