What's Happening?
Kyle Drenon, co-CEO of Supper Co., emphasized the importance of customization in dispensed beverage programs during his presentation at CSP’s Dispensed Beverages Forum in Lombard, Illinois. Drenon highlighted that the experience of creating a personalized
beverage is becoming as significant as the beverage itself. He noted that customization is a growing trend, with companies like Starbucks seeing a high percentage of customized orders, especially through their app. Drenon also mentioned 7-Eleven's successful 'Anything Flows' campaign, which attracted new customers by offering limited-time flavors and a redesigned cup and logo. The campaign, which included a partnership with rapper Flo Milli, resulted in a 20% increase in new-to-brand visitors from Gen Z. Drenon argued that allowing customers to personalize their drinks can transform a convenience store into a 'Gen Z candy store,' where beverages become a form of self-expression and social media content.
Why It's Important?
The emphasis on customization in dispensed beverages reflects a broader trend in consumer behavior, where personalization is increasingly valued. This shift has significant implications for the retail and foodservice industries, as it can drive customer engagement and brand loyalty. By offering customizable options, retailers can attract younger demographics, such as Gen Z, who are known for valuing unique and personalized experiences. This approach not only enhances customer satisfaction but also encourages social media sharing, which can serve as free marketing and increase brand visibility. As companies like Starbucks and 7-Eleven have demonstrated, customization can be a powerful tool for differentiating a brand in a competitive market and driving sales growth.
What's Next?
Retailers are likely to continue expanding their customization options to meet consumer demand and stay competitive. This could involve introducing new flavors, redesigning packaging, or leveraging technology to enhance the customization experience. As more companies adopt this strategy, there may be increased collaboration with influencers and celebrities to boost brand appeal and reach. Additionally, the integration of digital platforms, such as mobile apps, will likely play a crucial role in facilitating and promoting customization. Retailers will need to balance innovation with operational efficiency to ensure that customization options are both appealing and sustainable.
Beyond the Headlines
The trend towards customization in beverages also raises questions about consumer data privacy and the ethical use of personalization technologies. As companies collect more data to offer tailored experiences, they must ensure that customer information is handled responsibly and transparently. Furthermore, the focus on customization could lead to increased waste if not managed properly, as more options may result in higher inventory requirements and potential overproduction. Retailers will need to consider sustainable practices to mitigate environmental impacts while catering to consumer preferences.
