Barnie's Thinks Small for Big Growth

Orlando, Fla. — Specialty coffee retailer Barnie’s CoffeeKitchen is experiencing unprecedented retail expansion by thinking small with a focus on single-serve convenience. The approach represents a major shift for the 34-year-old company, which once operated more than 120 cafes in malls throughout the Southeast U.S.“About 10 years ago, it became apparent that the mall strategy wasn’t going to work any longer – from the way consumers were buying product to the fact that being in a mall wasn’t convenient at all for them,” says Sonya Hardy, Barnie’s CoffeeKitchen senior vice president of marketing and strategic brand relations. “So we started to scale back that part of the business and grew the CPG side.”Barnie’s started with bagged coffee. Then, after Keurig Green Mountain’s K-Cup patent expired in 2012, Barnie’s got a single-cup-brewed patent of its own. “We were able to get into some new patented technologies for our cups, which allowed us to put more coffee in the cup than our competitors,” Hardy says. The technology permits 13.5 grams of coffee in a standard single-serve cup vs. the typical 9 to 11 ounces. According to Hardy, it also features a channel design that extracts the coffee in a way that more closely resembles a normal brewing process.In addition to the new CupUp single-serve products, which debuted in June 2014, the company further emphasized on-the-go convenience with the simultaneous launch of its Brewsticks line of single-serve liquid instant coffee. Barnie’s introduced a new company website in June along with the new products.The brand also ramped up activity on its social media sites, initially with a focus on Southeastern states where it had existing brand awareness. Focused on retail expansion, the company had a major presence at the Summer Fancy Food Show in New York, where thousands of buyers sampled the new products.A partnership with Delhaize America to carry the new products has already nearly doubled the company’s store count, according to Hardy. “We’re probably in about 2,700 stores now, and have expanded from the Southeast into the Northeast,” she says.To promote the new products in Delhaize’s Food Lion and Hannaford stores, Barnie’s offered instant redeemable coupons (IRCs) to encourage trial on all the products, as well as a complimentary Brewstick and CupUp box in certain locations. On shelves, the packaging for the new products focuses on consumer awareness and education. The entire back panel of the CupUp boxes is used to describe the patented channel design. Likewise, the Brewsticks box also focuses on consumer benefits; the various panels illustrating the different ways the product can be used on the go.Building on an existing relationship with Publix, Barnie’s is also scheduled to launch its first “buy one, get one” program with the chain. It will be advertised in circulars as well as through front-of-store secondary placement. Barnie’s also participates in Publix Advantage Buy flyers and is working on a digital coupon with the grocer.The brand also increased its investment in pay-per-click advertising and search banners to drive customers to stores. In stores, seasonal floor displays feature both the CupUp and the bag coffee formats. Promoting the brand’s Santa’s White Christmas flavor – its year-round bestseller – one display features a nostalgic design based on the Bing Crosby “White Christmas” album cover.In addition to Publix and Delhaize stores, the brand is also available in H-E-B, Walmart and Winn-Dixie locations. Barnie’s is focused on continuing its growth nationally by using a flexible, customized approach to retail partnerships. “We are definitely aware that getting on the shelf is just the first step,” says Hardy. “Our immediate emphasis for the next six months is on an impactful, trial, branding element to the campaign where we’ll be heavy on the IRCs, complimentary products and brand awareness.”The company will ultimately define success for the campaign based on sales data and ongoing retail expansion. The campaign’s creative elements were handled in-house.

Barnie's Thinks Small for Big Growth

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