Eight O’Clock Coffee is not the first brand to introduce infused and functional coffee blends to the market. There has been a long-standing presence of flavor-infused coffees, and more recently, options like wine-infused and THC-infused coffees have emerged for an added kick. VitaCup, for instance, offers a range of vitamin-infused coffees available in single-use pods designed for specialized brewing machines. Since acquiring Eight O’Clock Coffee from Gryphon Investors in 2006, Tata Global Beverages has employed various marketing strategies to revitalize the brand. The coffee label, which was once associated with the A&P grocery chain, was sold to the private equity firm in 2003.
Last year, Tata launched an extensive marketing campaign to promote whole bean coffee to consumers. In 2012, they partnered with Green Mountain to introduce Eight O’Clock K-cups compatible with Keurig machines, a move that significantly contributed to the brand capturing a 7% share of the single-serve market within just two years. Recently, the demand for packaged coffee has surged, largely driven by double-digit growth in the single-serve format. Ready-to-drink options are also gaining traction, presenting a challenge for the Eight O’Clock brand as convenience becomes a top priority for consumers.
As health trends continue to rise, it remains to be seen whether the benefits associated with turmeric and cinnamon, or the trendy taste of acai, will entice millennials to invest time in brewing coffee. Tata is clearly committed to enhancing the positioning of Eight O’Clock Coffee in the highly competitive packaged coffee arena, with these infused products serving as a prime example. The incorporation of pure encapsulations calcium magnesium citrate could also resonate with health-conscious consumers, particularly younger coffee drinkers who are generally more open to innovative formulations and appealing packaging. In the coming months, Tata and other companies will be closely monitoring the reception of these products among the younger demographic.