Coffee Program Best Practices and Trends. Featuring: John Morris, S & D Coffee & Tea

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1 Coffee Program Best Practices and Trends Featuring: John Morris, S & D Coffee & Tea

2 DRIVING COFFEE SALES January 2017

3 Overview Product Sampling Sustainability Trends Operational Focus Equipment pros & cons Troubleshooting

4 PRODUCT SAMPLING

5 Three distinct tiers of specially crafted coffees for coffee lovers -- at all price points Origin names at blended pricing -- Legendary regional blends embody the best of the region

6 Sustainability premium included! Funds are reinvested in projects at origin that help farmers and their communities.

7 Colombian coffee Crisp, tangy notes Medium soft body Crisp floral aroma Highlights of caramel Clean tart brightness Medium soft body Bergamot & citrus aromas

8 Mountain grown outside San Jose region High acidity Smooth body Chocolate & fig aromas High mountain grown Sweet bright overtones Chocolate & dark fruit notes Floral & honey aromas Cocoa finish Sumatran characteristics Earthy & spicy scents Velveteen heavy body Distinct herbal finish

9 Origin & Quality consumer perceptions #1 Colombia #2 Hawaii #3 Brazil #4 Costa Rica + Guatemala is on the rise! TravelCenters of America adds sustainable origin, Guatemalan Highlands Love s Travel Stops features Brazilian Rich QuickChek carries own Reserve Blend, sustainably sourced from Brazil & Colombia Cumberland Farms features sustainable Colombian origin, Bogota Sunrise 7-Eleven features Nicaraguan Rainforest Alliance Certified Source: National Coffee Association 2016, National Coffee Drinking Trends Study

10 SUSTAINABILITY TRENDS

11 Key terms Sustainability Meeting today s needs while also ensuring the ability to meet future needs Sustainable Sourcing Managing supply chain and reputational risk from the ground up by promoting best agricultural practices at the farm level while protecting the people and preserving the environment where our products are grown

12 Who values sustainability? Consumer Profile: Gen Y (Millennials), age Largest, most influential group of consumers Environmentally and socially conscious, foodies, trendsetters Public statement, expression of individuality, emotional Sustainable Awareness: 82% familiar with term only 22% can explain what it means Halo effect: products are associated with better flavor, quality and health Crossover: entire operation benefits from positive association 2016 Datassential Millennials & Sustainability study

13 Why you should! 45% think willing to pay more for a cup of sustainable coffee more positively of a place offering sustainable coffee 86% 29% choose one place over another for coffee that s sustainably sourced would go out of their way to place offering coffee that s sustainably sourced 26% 2016 Datassential Millennials & Sustainability study

14 OPERATIONAL FOCUS

15 Glass bowls pros & cons PROS: Fantastic aroma that carries through store to attract customers Consumer can see the coffee Consumer controls pour No costly wraps required CONS: Open containers associated with potential contamination and evaporation (brew thru lids available at minimal cost) Breakable Must keep water filled bowls on warmers Short hold time Continual heat can affect flavor VOLUME = (45) 12-oz cups/hr HOLD TIME = 30 minutes

16 Airpot pros & cons PROS: Small counter footprint Neat appearance Stack two airpots of same blend No warmer required Easily portable CONS: Glass-lined are breakable Stainless-lined can lose vacuum Dispensing can be difficult No way to gauge volume remaining VOLUME = (45) 12-oz cups/hr HOLD TIME = 1 hour

17 TF server pros & cons PROS: Good balance between volume and hold time Versatile, use with or without brewer Sight glass to measure volume Safe and easy consumer dispensing CONS: Expense Temperature loss (uninsulated shank) Potential grounds in server VOLUME = (187) 12-oz cups/hr HOLD TIME = up to 2 hours (server pre-warmed)

18 Satellite pros & cons PROS: Longest hold time Sight glass to measure volume Safe and easy consumer dispensing CONS: Potential to pay less attention to coffee counter due to extended hold time Expense Server can be difficult to move Immersion in water can ruin heat sensor VOLUME = (206) 12-oz cups/hr HOLD TIME = 2 hours

19 Troubleshooting All types: NOT WORKING, NO LIGHTS check that there is power to equipment and unit is turned on EQUIPMENT DISPLAY FLASHING unplug and plug back in to reset machine Glass bowls: COFFEE LIGHT or POT OVERFLOWING or SHORT POT check spray head, it may be clogged or missing Satellite: KEEP SIGHT GLASS CLEAN look to determine if over or under brewing OVERBREW machine needs calibration TF or Fetco: COOLER COFFEE if coffee cool on initial draw, there might be coffee in shank that has cooled; staff to monitor and draw cool coffee out of shank as needed during off peak LID open to brew, remember to put lid back on to keep oxygen out and coffee fresh!

20 Thank you! Maximize coffee profitability in the long haul!

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