Bulk Beans

Dec 17, 2007 12:00 PM, By LIZ PARKS

Cultivated by exotic coffeehouse blends, discerning palates have developed a taste for home-brewed coffee made from freshly ground beans


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Demand for specialty whole-bean bulk coffee is percolating.

Although sales remain flat in mainstream supermarket channels, specialty food outlets are reporting aggressive category growth.

Bethesda, Md.-based Balducci's, for instance, is experiencing double-digit sales gains, noted John Coleman, its wine, cheese, coffee and tea buyer.

The 12-store specialty chain carries over 45 stockkeeping units of whole-bean bulk coffee, including locally roasted beans and 20 store-brand varieties.

Single-origin coffee is its fastest-growing category.

“Today, it [comprises] about 40% of our private-label coffee bean sales,” Coleman said. “Three years ago, it was 1% to 2%. Back then we carried four or five single-origins, and now we carry three times that.”

At Balducci's, blended bulk coffee is merchandised together, as are single-origin coffees, which are broken down by country of origin or region.

The retailer uses point-of-sale aids to describe the flavor profiles of coffees from various regions.

“Beans from Africa and Arabia tend to be very fruity, citrusy and floral, and those would all be together, because they have a similar flavor profile,” said Coleman. “Coffees from India and the Pacific are very heavy and full-bodied.”

Retail prices range from $7.99 a pound up to $50 a pound for such exotic coffees as Jamaica Blue Mountain, which can be subject to limited availability. Most of Balducci's offerings fall into the $7.99 to $12.99 range.

At a minimum, Balducci's bulk coffee is given a 4-linear-foot inline presentation, but in some of the stores it can occupy as much as 12 linear feet and may include endcaps or other freestanding displays.

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“We model the presentation according to each store's footprint,” said Coleman.

At Seattle-based PCC Natural Markets, sales of bulk coffee “are consistently strong and at pace with overall sales in our stores,” said Stephanie Steiner, grocery merchandiser for the eight-store retailer.



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