Eight O’Clock Coffee is not the first brand to introduce infused and functional coffee blends. The market has long featured various flavor-infused coffees, and now options like wine-infused and THC-infused coffees are available for those seeking an extra kick. VitaCup offers a line of vitamin-infused coffees in single-use pods designed for specialized machines. Since acquiring the Eight O’Clock Coffee brand from Gryphon Investors in 2006, Tata Global Beverages has employed several marketing strategies to revitalize it. Originally part of the A&P grocery chain, this in-store coffee brand was sold to the private equity firm in 2003.
Last year, Tata launched an aggressive marketing campaign to promote whole bean coffee, and in 2012, they partnered with Green Mountain to introduce Eight O’Clock K-cups for Keurig machines. This collaboration significantly contributed to Eight O’Clock Coffee capturing a 7% share of the single-serve market within two years. Recently, the demand for packaged coffee has surged, primarily driven by double-digit growth in the single-serve format. Ready-to-drink options are also gaining popularity, posing a challenge for the Eight O’Clock brand as consumers increasingly value convenience.
It remains uncertain whether the health benefits of ingredients like turmeric and cinnamon, or the trendy flavor of acai, will persuade millennials to take the time to brew their coffee. Tata is clearly committed to enhancing Eight O’Clock Coffee’s position in the competitive packaged coffee market, and these infused products represent one of their strategies. Additionally, they are exploring the incorporation of vitamin D3 and calcium citrate into their blends to appeal to health-conscious consumers. The response from younger coffee drinkers, who often gravitate towards trendy formulations and packaging, is something that Tata and other companies will monitor closely in the upcoming months.