RTD coffee sector heats up: Berner launches state-of-the-art retort beverage line

08 Oct 2019 --- US-based Berner Food & Beverage, Inc., a supplier of shelf-stable, dairy-based food and beverage products, has launched a new, state-of-the-art retort beverage line focused on the production of ready-to-drink (RTD) coffee and latte beverages. The move will, according to the company, “more than double its existing beverage capacity.”

According to Berner, this is “the fastest, most technologically advanced retort beverage line in the industry with the broadest set of manufacturing capabilities.” The additional capacity, at its Dakota, Illinois facility, is expected to serve both new and existing customers and will enable the company to supply the fast-growing RTD coffee and latte beverage category as the preferred manufacturing partner.

RTD coffee is one of the fastest growing segments in the beverage industry, according to a Berner spokesperson. “It is growing at 16 percent historical growth rates, driven by consumers switching away from soda consumption and toward products that better align with key consumer health and convenience trends.” 

Berner’s internal R&D and innovation team has partnered with customers to drive innovation across numerous new product launches over the last 24 months, including: Cold Brew, Organic, Almond Milk, Oat Milk, and numerous flavored coffee lattes. 

“The RTD coffee market is estimated to be more than US$3 billion in size and is growing rapidly,” the spokesperson tells FoodIngredientsFirst. Berner expects product innovation and expansion, as well as continued consumer adoption, to drive further market growth.

The new beverage line installation comes approximately two years after Berner completed its transformational facility expansion, which tripled the company’s manufacturing space. The company also recently expanded its distribution operations, bringing its total operating footprint to over one million square feet, to serve the growing demand. The overall Berner expansion project size was in excess of US$250 million. Berner expects these growth trends to accelerate, and is looking to further expand internal capacity, while also evaluating additional facility locations. 

With coffee clearly trending among Millennial and Generation Z consumers, the taste and experiential associations of coffee is increasingly enjoyed and consumed, on-the-go and at home. Just recently, FrieslandCampina executive Anneke van de Geijn explained how foodservice establishments are offering countless toppings to Millennials to give their on-the-go coffee a personal finishing touch. This is also influencing the way people drink their coffee at home, as seen in the explosion of single-serve capsules offering a variety of coffees for in-home preparation, according to FrieslandCampina. 

Click to EnlargeBerner has launched a new, state-of-the-art retort beverage line focused on the production of RTD coffee and latte beverages.Coffee as a whole remains a strong trend, with the notion of going “beyond the coffeehouse” still at play. Coffee culture, particularly among younger consumers, and the growth in both coffee shop chains and artisan coffee shops, has helped to boost interest in both traditional and iced coffees. Coffee has gained share from tea in terms of NPD in hot drinks, while there has been significant activity in iced and RTD coffee. It remains a relatively small sector in soft drinks overall, however, with only around 3 percent of global sales in 2018 and just 5 percent of NPD, according to Innova Market Insights. 

Furthermore, the rise in cold-brewed coffee is taking the beverage industry by storm. Innova Market Insights reports 65 percent growth in new iced coffee launches tracked with a “cold brew” claim. (Global, CAGR 2014-2018). According to the market researcher, RTD coffee, especially the cold brew variants, is expected to continue growing strongly as they can meet multiple consumer needs – taste, refreshment and caffeine.

“Over the last several years, Berner has experienced very strong demand from the RTD coffee category, fueled by large CPG companies, emerging beverage brands and private label retailers,” Kurt Seagrist, CEO of Berner explains. “We are excited to further strengthen our partnerships with our customers by delivering significantly expanded beverage capacity and expertise.” 

“Our significant investments in the business illustrate our continued commitment to serve and partner with our blue-chip customer base. We strive to be innovative leaders with the highest degree of service, technological expertise and R&D capabilities,” Seagrist continues.  

By Elizabeth Green

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