12.05.11
Freestyling
Michael Szyliowicz

One of the big news items in beverages over the last year has been the introduction of the Coca-Cola Freestyle machine. This soft drink machine creates variations and flavors of many of the different Coke brands, with over 100 different choices and literally thousands of drink combinations. The dispenser allows consumers to mix and match and customize their beverage experience, and equipped with a touch screen, the consumer can choose which variety they prefer.

Coca-Cola, Fanta, Sprite, Iced tea and energy drinks are all available, along with other Coke brands. If choosing Coke, then a sub menu appears with the different flavors available. Options include Regular Coke, Cherry Coke, Lime Coke, Raspberry Coke, and Vanilla Coke. To receive the drink, place your cup below the dispenser and hold the button for the flavor you desire. To stop dispensing, simply lift off the button, and to add another flavor, press the appropriate icon.

I created a Cherry Lime Coke with a splash of Vanilla.

According to operators, the Freestyle machine has generated additional beverage sales—which is no surprise, given how consumers have become accustomed to mass customization of their beverages in coffee shops. No longer is a plain latte a drink of choice; instead, the tall, two pump, extra hot soy latte is a more common order...

Beverages, Diary of a Chocolatier, Innovation
coca-cola, coke, customization, fanta, iced tea, latte, lime, raspberry, sprite, vanilla
10.10.11
Fizzling Out
Michael Szyliowicz

For years fizzy drink sales were the rule—not the exception—when eating out.

QSRs and fast food operators relied on sodas for both easy sales and high profits. Lately, though, that trend is changing. Fewer fizzy drinks are being sold, and there is a simultaneous rise in specialty coffee and tea beverages.

Just check out this recent study by The NPD Group, which examines how soft drink sales have diminished drastically over the years. The chart on the right side of this post shows how iced tea and specialty coffee have really surged in the past year. 

One astute operator I spoke to has showcased different flavors of iced tea next to the soda dispenser and watched sales increase fivefold. Other players are featuring higher ticket and higher margin coffee drinks to accompany their hamburgers and salads. Drive-thrus are no longer the sole province of soda pop. Like drinks that are left out too long, carbonated beverage sales are flat. Consumers have been trained to expect more variety, and successful operators are those introducing the unusual, interesting, and differentiated drinks. Unusual teas. Iced coffees. Flavored lemonades. Energy drinks.

That just scratches the surface, and I’m looking forward to seeing what bubbles up next…

carbonated drinks, iced tea, smoothies, soft drinks, specialty beverages, specialty coffee
09.26.11
Botanicals
Michael Szyliowicz

One of the more recent trends in beverages is botanical infused drinks. One of my favorites is gin, which is alcohol that is often infused with flavors like juniper and citrus. I much prefer it to vodka, the most popular spirit, because to me a great, plain vodka has no flavor. But gin has a lot of complexity due to the flavors that are instilled.

Outside of bars, the same situation is occurring with non-alcoholic beverages. Customers are asking us to create unusually flavored syrups to add to traditional drinks like iced tea and lemonade. Recently, we worked with one customer, developing fruit and botanical combinations like strawberry basil and coconut rosemary.

These simple syrup combinations enhanced the base tea and helped bring forth flavor and complexity in the finished iced drink. Too often, iced tea is like vodka—popular, but uninspired. I hope that these new flavors will allow new drinks that are more interesting and taste different. Like gin. 

Have you noticed the rise of Botanicals, as well? What's been your favorite combination to date? 

Beverages, Diary of a Chocolatier, Innovation
botanicals, coconut rosemary, gin, iced tea, lemonade, strawberry basil, tea, vodka
03.21.11
Soft Drinks. Soft Sales.
Michael Szyliowicz

For the sixth straight year, soft drink sales are down. For some operators, these figures create bottom-line margin pressure because of the inherent profitability of fountain drinks.

Savvy operators, however, are diversifying their beverage offerings to feature an array of new drinks. What’s replacing the ubiquitous soft drink? Coffee brewed hot and served cold, cappuccinos, lattes, mochas, teas served hot and cold, flavored and iced, lemonades, fruit smoothies, and chocolate drinks featured both hot and frozen – to name just a few. Accompanied with higher price points and equally strong profit margins, specialty beverages offer café and QSR operators a strategy to offset the decline in soda sales.

As consumer tastes change, adapting and innovating with new beverages is key to maintaining a successful operation.

Beverages, Innovation
coffee, frozen, iced tea, lemonade, smoothies, soft drinks, specialty beverages