Strong Beverage Offering Ramps Up Operator Revenues

There is great opportunity in the beverage segment and Middleby has been committed to growing this part of its business to best customers and their evolving needs in this area, according to Korey Kohl, President of Middleby Beverage.

The beverage segment can bring substantial value-add to operators, both in terms of high margin beverage products and complementary product sales driven by attraction to a strong beverage program.

Synesso’s Semi-Automatic EspressoSynesso’s Semi-Automatic Espresso

There is great opportunity in the beverage segment and Middleby has been committed to growing this part of its business to best customers and their evolving needs in this area, according to Korey Kohl, President of Middleby Beverage. Over the next five years, the coffee sector is expected to enter a period of explosive growth that will make high-end craft coffee more mainstream. While it was a $35 billion industry in 2018, it is expected to grow to $85 billion in 2025.

Concordia XpressConcordia Xpress

The Middleby bean to cup Concordia Accent Touch is continuing to see excellent acceptance in the c-store market, while the company’s Synesso’s semi-automatic equipment is a perfect fit for the many types of cafés and coffee houses springing up across the country.

Coffee isn’t the only burgeoning beverage segment. From 2014-2019 the spirits industry experienced a 145% growth rate, increasing from 906 distilleries to 2,265. Ready-to-Drink cocktails and spirits also are growing in popularity and accounted for 34% of all alcohol sold in 2019.

Increased numbers of winemakers selling canned wines and available products contributed to the canned wine segment’s overall approximate 68% growth to about $200 million in 2020. There are at least 580 winemakers (up 35% from 2019) offering more than 1,450 (up 25% from 2019) canned wine SKUs.

Wunder-Bar Mustang soda dispensingWunder-Bar Mustang soda dispensing

Both canned and draught seltzers continue to be areas of incremental growth for established brewery operators. Middleby is currently developing a purpose-built seltzer “brewhouse” to support the growing list of tap room and to-go offerings without disrupting or reducing the amount of beer production at the same facility.

Because consumers love their beverages and want more choices, operators can impact their profits in this segment by adopting a more robust program that drives sales. In addition, fountain and other on-site produced beverages provide higher margins than pre-canned or bottled products. And packaged craft beverages for to-go or direct-to-consumer sales generate three to four times the revenue per ounce relative to selling canned and bottled equivalents from large distribution.

Zamboozy (frozen alcohol)Zamboozy (frozen alcohol)

An in-house crafted beverage program can expand an operator’s customer base, offer better alternatives that suit the customer’s taste and foster greater loyalty and support for the operator.

Looking to update your Beverage program? Look to Middleby for the newest innovations in coffee, brewery, cocktail and other beverage equipment solutions, such as these:

Follett ice machineFollett Chewblet® nugget ice with RIDE in the bar area