Seeking a point of differentiation in the crowded cold brew coffee set, Boston-based Back Bay Roasters is shifting its focus from its single-serve line to its bag-in-box format, beginning with a rollout to 200 Walmart stores on the East Coast next month.
The company, founded in 2017, will still produce and market its 12 oz. single-serve RTD coffee and tea lines, according to Back Bay Roasters co-founder Doug Caplan. But by focusing on multi-serve he believes the brand has a stronger opportunity to compete nationally. The company introduced an unsweetened black coffee bag-in-box option for consumers last year, which retails for $12.99 per 3 liter unit (an estimated 17 servings).
“Instead of competing with other cold brew coffee companies, we see it as competing with cafes and Starbucks and Dunkin’ Donuts,” Caplan said in a phone call. “Instead of going to spend $3 or $4 on a cold brew coffee in the morning, we’re trying to get people to buy it at the grocery store for way less cost per serving basis.”
The move comes as a number of rising cold brew startups, including Bizzy and Kitu Super Coffee, have embraced multiserve packaging as a means of competing in the grocery channel in coolers and on ambient shelves. Though less common than bottles, other brands, such as New York-based Wandering Bear, have also introduced bag-in-box formats in the past for home and office use occasions. Caplan said he believes the format offers consumers extra convenience by allowing them to leave the box in their fridge.
As well, the shift to multi-serve comes as the COVID-19 pandemic has shuttered many on-premise accounts and led to reduced grab-and-go purchases in grocery stores. Although Caplan said Back Bay Roasters will continue to position its single serve products “where it makes sense” in grocery front-of-store displays and food service accounts, the shift towards multi-serve comes as consumers are stockpiling for their fridges and pantries in efforts to reduce the number of weekly shopping trips.
“Single serve bottles really get lost in the main dairy set in the back of the store,” he said. “So we’re trying to be smart with where we merchandise the different products that we carry, so that they kind of follow buyers habits throughout the store.”
The bag-in-box format will roll out to 200 Walmart stores along the East Coast next month, covering from Maine to Florida with locations as far west as West Virginia, Caplan said. Due to coronavirus, the company will support the launch through digital and social media marketing campaigns, including targeted ads based on geography.
The Walmart expansion also comes as the retailer broadens its better-for-you beverage set with the addition of brands such as Dirty Lemon, Kuli Kuli, Kill Cliff, WellWell and CELSIUS. Last year, the chain also added cold brew coffee brand RISE Brewing Co. to 2,000 locations nationwide.
While Back Bay Roasters does aim to expand nationally, its immediate goal is to own its home base in the Northeast. Currently available in retailers such as Stop and Shop and Market Basket, Caplan said expansion plans have been halted by COVID-19 as buyers have cancelled meetings and anticipated rollouts to some stores such as Roche Bros. and Big Y have been paused. However, Walmart will provide the brand with an important testing ground to refine its strategy once new accounts become available.
Caplan also remains optimistic that the brand will get to deploy its field marketing team in August at the Pan Mass Challenge, an annual cross-state bike ride in Massachusetts which raises money for cancer research. Last year, Back Bay Roasters replaced Dunkin’ as the event’s official coffee sponsor.
“That was big for us, it draws people from all over the world to it,” he said. “So it’s an interesting time to try and build and grow a brand with everything that’s happening. So we’re just trying to really support our retailers and do the best we can to make sure that consumers have the products they need.”