Value and convenience growing in importance among Australian coffee consumers as supermarket chain Coles highlights its A$1 ($0.69) in-store coffee offer as a key performer in its 2022 results
Coles Group completed a national rollout of barista style self-serve machines in 711 Coles Express outlets in March 2021 | Photo credit: Coles Group
The rising cost of living is influencing Australian coffee consumption according to domestic supermarket chain Coles Group, which has indicated customers are prioritising convenience when it comes to ordering coffee.
Releasing its full-year results, the group said that its A$1 ($0.69) in-store coffee had ‘never been more popular’.
The Melbourne-based supermarket chain operates 711 Coles Express stores across Australia and completed a national rollout of barista style self-serve machines in the outlets in March 2021.
The A$1 ($0.69) Coles Express Urban Coffee Culture coffee offering has developed a loyal consumer base and resulted in increased trading for Coles’ on-the-go division.
Excluding tobacco sales, convenience store trading grew 0.9% in 2022 to reach A$1.1bn ($761m) with Coles citing coffee and hot fast food as driving revenue growth. The convenience store division is now operating 8% higher than in 2019.
“With Australian families facing increased pressure on household budgets, our commitment to delivering trusted value remains more important than ever. As examples, we are beginning to see our customers buying significantly more $1 Coles pasta and our $1 coffee at Coles Express has never been more popular,” said Steven Cain, CEO, Coles Group.
Coles Group is Australia’s second largest supermarket chain, behind Woolworths Group. In April 2022 the retailer launched at-home Coles Urban Coffee Culture compostable coffee capsules – a first for a major Australian retailer.
Australia has long been considered one of the most influential coffee markets in the world. However, the success of quick-service coffee, particularly at service stations and supermarkets, accelerated during the Covid-19 pandemic as traditional brick-and-mortar shops were forced to close.
Meanwhile, in July 2022 Australian restaurant chain Hungry Jack’s announced it would be seeking to capitalise on consumer demand for drive-thru coffee with the national rollout of 410 Jack’s Café outlets to compete with McCafé in the country.