The Coffee Bean & Tea Leaf balances quality and convenience through retail products

It expanded its product range, including a variety of single-origin coffees tailored to different roast preferences.

CONSUMERS today are increasingly curious about the origins of their coffee and how it is made; simultaneously, they demand quicker and more convenient options. To meet these demands, The Coffee Bean & Tea Leaf diversified its product offerings and adopted distinctive packaging strategies.

“There is this trade off on quality versus time of preparation,” Anshul Laroia, chief CPG growth officer at The Coffee Bean & Tea Leaf, told Retail Asia.

He identified this dual trend as shaping consumer behaviour and influencing the at-home coffee and tea market.

“There is an increasing curiosity about the category — where aficionados want to know more about where the coffee comes from, how it is processed and how it should taste. They are brewing it at home using increasingly sophisticated equipment and getting really good at it!” Laroia noted.

“On the other hand, we also observe the need for greater convenience and speed of preparation – not everyone has 15 minutes for a pour over ritual in the morning,” he added.

Data from Mordor Intelligence showed that the Asia Pacific coffee market is forecasted to grow at a CAGR of 5.2% from 2022 to 2027. This growth is driven by increasing coffee consumption amongst the younger population in countries like India, China, Japan, and the Philippines.

Asia is also a significant player in the global coffee industry, producing more than a third of the world’s coffee supply, as per Informa. Vietnam and Indonesia rank amongst the top five coffee producers worldwide.

In places like Singapore and Malaysia, “kopi” is a morning ritual, whilst young urbanites frequent modern cafes for lattes amidst minimalist settings. Independent local cafes and international chains also thrive in major Asian cities. 

Product offerings

Laroia acknowledged the tough competition in the crowded at-home coffee market, noting their late entry into the field.

He emphasised their strategy of first focusing on distinctive packaging to differentiate themselves to disrupt conventional packaging norms and resonate strongly with consumers' preferences.

The coffee and tea chain expanded its product range, including a variety of single-origin coffees tailored to different roast preferences, appealing to aficionados seeking quality and depth in their brews.

“Our approach is to develop a range of products that cater to both the needs – with a wider selection of single origin coffees at different roast levels that should appeal to the first group and then starting with our Nespresso compatibles, a range of CPG products that are designed for convenient preparation and speed without sacrificing quality,” Laroia said.

The company has introduced Nespresso-compatible products designed for quick and convenient preparation, ensuring that consumers can enjoy a premium coffee experience even on busy mornings.

Growth strategies

One of the pillars of The Coffee Bean & Tea Leaf’s growth strategy that sets it apart in the market is its commitment to delivering high-quality products that mirror the café experience, achieved through meticulous sourcing and blending processes, said Laroia.

“We are choosing pack formats and product compositions that are designed to get our consumers as close to the café experience as possible,” he said.

“Whilst this may be stated by many brands – our research leads us to believe that this is often a frustration for many consumers – the difference in quality in the at home products vs what you get in cafes,” he continued.

Laroia noted that the company uses this as a qualification criterion to decide what to launch or set aside.

For instance, their Nespresso-compatible capsules undergo a complex roasting and blending procedure involving multiple single-origin coffees to ensure a nuanced flavour profile comparable to café standards.

“This is a painstaking process and very few in the industry would even consider doing this given the higher costs of production,” Laoria said. “For us, however, there was no other way. This is why when you taste the espresso from our capsules at home, it carries the same flavour complexity that you will find in cafe espressos.”

Recognising the need to differentiate in a crowded market, The Coffee Bean & Tea Leaf also adopts innovative packaging formats that stand out on retail shelves, enhancing visibility and consumer appeal.

“Given that we are entering the at-home business later than most brands, we need to work harder to stand out from the rest of the products on the shelf,” he told Retail Asia.

“For this reason you will see us embrace pack formats that may not conform to the established category codes. We see this as an enabler and a differentiator,” he concluded.