US-based Berner Food & Beverage, Inc., a supplier of shelf-stable, dairy-based food and beverage products, has launched a new, state-of-the-art retort beverage line focused on the production of ready-to-drink (RTD) coffee and latte beverages. The move will, according to the company, “more than double its existing beverage capacity.”
According to Berner, this is “the fastest, most technologically advanced retort beverage line in the industry with the broadest set of manufacturing capabilities.” The additional capacity, at its Dakota, Illinois facility, is expected to serve both new and existing customers and will enable the company to supply the fast-growing RTD coffee and latte beverage category as the preferred manufacturing partner.
With coffee clearly trending among Millennial and Generation Z consumers, the taste and experiential associations of coffee is increasingly enjoyed and consumed, on-the-go and at home. Just recently, FrieslandCampina executive Anneke van de Geijn explained how foodservice establishments are offering countless toppings to Millennials to give their on-the-go coffee a personal finishing touch. This is also influencing the way people drink their coffee at home, as seen in the explosion of single-serve capsules offering a variety of coffees for in-home preparation.
Coffee as a whole remains a strong trend, with the notion of going “beyond the coffeehouse” still at play. Coffee culture, particularly among younger consumers, and the growth in both coffee shop chains and artisan coffee shops, has helped to boost interest in both traditional and iced coffees. Coffee has gained share from tea in terms of NPD in hot drinks, while there has been significant activity in iced and RTD coffee. It remains a relatively small sector in soft drinks overall, however, with only around 3 percent of global sales in 2018 and just 5 percent of NPD, according to Innova Market Insights.
Furthermore, the rise in cold-brewed coffee is taking the beverage industry by storm. Innova Market Insights reports 65 percent growth in new iced coffee launches tracked with a “cold brew” claim. (Global, CAGR 2014-2018). According to the market researcher, RTD coffee, especially the cold brew variants, is expected to continue growing strongly as they can meet multiple consumer needs – taste, refreshment and caffeine.
“Over the last several years, Berner has experienced very strong demand from the RTD coffee category, fueled by large CPG companies, emerging beverage brands and private label retailers,” Kurt Seagrist, CEO of Berner explains. “We are excited to further strengthen our partnerships with our customers by delivering significantly expanded beverage capacity and expertise.”
The new beverage line installation comes approximately two years after Berner completed its transformational facility expansion, which tripled the company’s manufacturing space. The company also recently expanded its distribution operations, bringing its total operating footprint to over one million square feet, to serve the growing demand.
“Our significant investments in the business illustrate our continued commitment to serve and partner with our blue-chip customer base. We strive to be innovative leaders with the highest degree of service, technological expertise and R&D capabilities,” Seagrist continues.
