Sustainability, Consumer Trends Take Centre Stage at CAC’s Annual Conference

0
CAC table

TORONTO — The Coffee Association of Canada (CAC) hosted its annual conference recently at Angus Glen Golf Course in Markham, Ont. The sold-out event, which featured a strong focus on sustainability, consumer trends and the evolving coffee industry, brought together industry leaders, researchers and stakeholders to discuss how coffee continues to unite people globally.

CAC president Robert Carter opened the conference by highlighting the trust coffee fosters among consumers worldwide. He emphasized the industry’s role in providing moments of comfort, connection, and joy and celebrated advancements in sustainability, technology, and consumer engagement, urging attendees to embrace innovation and maintain coffee’s reputation as a unifying force.

The day kicked off with a data insights panel, which explored how generational shifts are re-shaping coffee consumption. Seize the Data featured panellists Chris Brugman, director, Foodservice Canada at Circana; Mauricio Viera, vice-president, Food & Beverage Syndicated Studies at Ipsos; and Cheryl Hung, vice-president, Research at Dig Insights. The panel highlighted how millennials and Gen Z are driving growth in specialty and cold coffee, with younger consumers favouring innovative and diverse beverage options, while coffee remains a staple among older generations, particularly Boomers, who focus on traditional brewed coffee and home consumption.

Additional insights from the session included the fact that younger consumers are increasingly interested in coffee with added health benefits, such as adaptogens and probiotics — a trend that aligns with broader shifts toward proactive health and wellness across the beverage industry.

Hung shared that coffee consumption among people of colour is growing, with a significant portion of younger Canadians beginning their coffee journey earlier in life. She noted the role of cultural heritage in shaping preferences, particularly among new immigrants.

Despite economic uncertainties, the panellists agreed that coffee remains a comforting and affordable luxury, citing the rise of beverage-only occasions highlighting how consumers are adjusting their habits to balance value and indulgence.

Next, Niels Haak, director, Sustainable Coffee Partnerships at Conservation International brought sustainability front and centre with a detailed discussion about the Sustainable Coffee Challenge and the need to address carbon emissions in coffee cultivation. Haak highlighted the importance of maintaining biodiversity and promoting re-generative practices to ensure the long-term viability of coffee production.

Following lunch, the CAC celebrated industry leaders through the annual CAC Awards, recognizing those setting new standards in innovation, sustainability and community impact within the coffee industry. This year’s event featured a record number of nominations, underscoring the growing importance of recognizing excellence and purpose-driven initiatives.

The Innovative Achievement Award was presented to &Back Coffee for its transformative approach to coffee production and distribution. As a certified women-owned B Corp, the company excels in responsibly sourcing coffee, environmental stewardship, and social impact. Partnering with the Change Climate Project, they aim to achieve carbon neutrality and utilize Omni-degradable packaging. Their unique QR code platform connects consumers directly to farmers, fostering transparency and community empowerment. By supporting fair trade cooperatives led by women in East Africa and Latin America, &Back Coffee has set a new standard for ethical sourcing and sustainability.

Waves Coffee, with 21 locations across British Columbia, was honoured with the Small Chain Big Impact Award for its ground-breaking work in community inclusion. The company partners with local non-profits to offer certified training programs for individuals on the autism spectrum. Over the past year, it’s guided four cohorts through comprehensive six-week training, including barista skills and job readiness and 70 per cent of graduates have secured meaningful employment within Waves Coffee locations. This initiative exemplifies their commitment to fostering diversity and creating opportunities for marginalized communities.

Fairtrade Canada received the inaugural Sustainability Award for its exceptional contributions to environmental responsibility and ethical sourcing. The organization champions equitable practices, ensuring fair wages and improved working conditions for coffee farmers in economically challenged regions. Its training programs empower farmers to adopt sustainable farming methods, including agroforestry and biodiversity conservation, which combat climate change and protect local ecosystems. Fairtrade Canada’s efforts extend to raising consumer awareness about ethical sourcing, promoting a sustainable future for the coffee supply chain.

View from the Top

The C-Suite Panel featured a diverse group of executives from Starbucks Canada, Kicking Horse Coffee and Atomo Coffee, who unboxed the latest trends, challenges and future opportunities in the coffee industry. The panellists shared their insights on personalization, sustainability, innovation, and the changing coffee consumer demographic.

Starbucks Canada’s senior vice-president and GM, Lori Digulla, emphasized the company’s move to meet consumer demands by eliminating charges for plant-based milk — a significant step toward sustainability and accessibility. She highlighted Starbucks’ ongoing efforts to deliver personalized experiences, such as the iconic cup personalization, while continually evolving offerings based on consumer insights.

Lori Hatcher, CMO of Kicking Horse Coffee, underscored the brand’s steadfast commitment to fair trade and organic sourcing. “Our customers are willing to pay a premium for coffee that aligns with their values,” she said, emphasizing the importance of fostering long-term partnerships with farmers to encourage sustainable practices.

Ed Hoehn, COO of Atomo Coffee, showcased the company’s ground-breaking innovation: coffee crafted without beans. By replicating the molecular profile of coffee through drought-resistant crops and upcycled ingredients such as date seeds, Atomo aims to re-define coffee’s environmental footprint while maintaining affordability.

The panel also addressed demographic shifts, particularly the preferences of younger consumers and newcomers to Canada. Starbucks leverages its global innovation pipeline to adapt to trends such as bubble tea and cold coffee, which resonate strongly with younger audiences, while Kicking Horse Coffee focuses on building emotional connections with its “ass kickers” (dedicated customers) and exploring functional beverage innovations such as adaptogens and protein-infused coffee.

From a sustainability standpoint, Atomo Coffee leads with a radically different model, offering a sustainable alternative with 70-per-cent less land use and a fraction of the carbon footprint of traditional coffee. Hoehn emphasized collaboration rather than competition. “We aim to complement the industry and create sustainable solutions alongside traditional coffee.”

Championing Innovation

Next, industry leaders and experts explored the importance of balancing tradition with modernization, leveraging technology, and responding to the economic pressures shaping consumer behaviour.

Jean-Philippe LeBlanc of Keurig Dr Pepper highlighted how fostering a culture of bold ideas and experimentation is crucial for staying competitive. He noted the company’s strategic framework, which has innovation as a core value, allowing teams to experiment and learn from failures while driving progress through sustainable practices and cutting-edge technologies.

Matt Stiver, creator of Lifestyle Lab, shared how consumer education has evolved, particularly during the pandemic. “Today’s coffee consumer is incredibly knowledgeable,” he explained. “They’re no longer satisfied with generic options; they demand quality and personalization.”

Amit Ashkenazi from Tastewise emphasized the transformative potential of AI in identifying consumer trends and enabling more personalized experiences. “AI lets us move at the speed of the consumer,” he noted, stressing its role in reducing the failure rate of new product launches by predicting preferences and optimizing innovation cycles.

Discussions also delved into sustainability as a key driver of consumer choices. However, panellists agreed that sustainability initiatives must be authentic and clearly communicated to gain traction. The rising cost of living and inflation have re-shaped priorities, with affordability now a leading factor influencing purchase decisions. As a result, brands are compelled to offer accessible solutions without compromising on quality or sustainability.

This site uses Akismet to reduce spam. Learn how your comment data is processed.