US dairy company Shamrock Farms enters RTD coffee market with line of cold brew

19-Sep-2016 - Last updated on 20-Sep-2016 at 09:35 GMT

Shamrocks Farms will first roll out the cold brew line in Arizona retail stores, then nationwide in 2017.

Shamrock Farms, a US family-owned dairy, is entering the cold brew coffee market with the launch of its own line of refrigerated Cold Brew Coffee and Milk.

The Arizona-based company uses roasted Colombian coffee beans, which are ground and steeped in cold water from more than 10 hours, creating two times the amount of natural caffeine compared to regularly brewed coffee. Each 12-ounce bottle Cold Brew Coffee and Milk includes Shamrock Farms’ milk and a touch of cane sugar.

Shamrock Farms’ line of Cold Brew Coffee and Milk will come in original, mocha, and vanilla flavors for an average MSRP of $3.49. The company will first start distributing the new line of refrigerated cold brew in its homes state of Arizona this fall at it retail stores including QuikTrip, Albertsons, Safeway, Bashas’, Sprouts, and major university campus stores. The product is expected to roll out nationally in early 2017.

Hopping on rising RTD coffee trend

Shamrock Farms is taking advantage of the rapid growth in the ready-to-drink coffee category by pairing its milk with the rising consumer interest in cold brew coffee. In fact, the refrigerated coffee category is up by 48%, according to IRI, with cold brew products category growing by 115% year-over-year, Mintel data shows.

"Refrigerated, ready-to-drink coffee is one of the fastest growing beverage categories," said Shamrock Foods Company Ann Ocaña said.

Cold brew coffee can no longer be considered a niche specialty beverage market with major franchises now selling the RTD beverage including Dunkin Donuts and Starbucks, who sells it at their retail chains as well as a bottle version in grocery stores.

The company said that the innovation was driven by consumer insight that an overwhelming amount of cold brew drinkers prefer the taste when the cold brew coffee is combined with milk.

"Our research revealed the opportunity to pair the smooth taste of cold brew coffee with our farm fresh milk, creating a taste profile that is spot on for both the cold brew fan and those just discovering the trend."

Millennials in particular are driving the growth of cold brew coffee, enjoying the smoother, less acidic taste of cold brew compared to its iced coffee counterpart, the company said.