Revitalizing Eight O’Clock Coffee: Navigating Trends in Infused and Functional Blends in the Packaged Coffee Market
Eight O’Clock Coffee is not the pioneer in offering infused and functional blends, as numerous flavor-infused coffees have been available in the market for quite some time. Nowadays, consumers can also find wine-infused and THC-infused coffees for an added kick. VitaCup, for instance, offers a range of vitamin-infused coffees conveniently packaged in single-use pods compatible with specialized machines.
Since acquiring Eight O’Clock Coffee from Gryphon Investors in 2006, Tata Global Beverages has employed various marketing strategies to revitalize this brand. Originally, the brand was part of the A&P grocery chain and was sold to the private equity firm in 2003. Last year, Tata launched an extensive marketing campaign aimed at promoting whole bean coffee to consumers. In 2012, they partnered with Green Mountain to introduce Eight O’Clock K-cups for Keurig coffee machines, a strategic move that helped Eight O’Clock Coffee capture a 7% share of the single-serve market within two years.
The demand for packaged coffee has been on the rise lately, especially due to the significant growth in the single-serve format. Ready-to-drink options are also gaining popularity, presenting a challenge for the Eight O’Clock brand as consumers increasingly favor convenience. It remains uncertain whether the health and flavor benefits of ingredients like turmeric and cinnamon, or the trendy flavor of acai, will convince millennials to take the time to brew coffee instead of opting for quick alternatives.
Furthermore, Tata seems determined to enhance the positioning of Eight O’Clock Coffee in the highly competitive packaged coffee market, and the introduction of infused products serves as another example of this strategy. As they explore opportunities, it will be interesting to see if younger coffee drinkers—who are generally more open to trendy formulations—will embrace offerings that include calcium citrate, magnesium, and zinc with vitamin D3 tablets as part of their coffee experience. Tata and other companies will be closely monitoring this trend in the coming months.