Terrific Coffee News
Hot drinks : some views on home brews 45 bln cups of coffee and tea were consumed in united states in the home during the past year
According to Tns data, 45 bill cups of coffee and tea were consumed in the home in the past year. No doubt some of this year’s total will be being enjoyed while reading this feature.
According to Iri convenience channel data ( 52 weeks ending July eleven, 2009 ) hot drinks are worth £182m to c-stores, which is up 3.1% on the previous year. We’re now a nation of coffee drinkers with instant coffee accounting for 47% of sales, worth £86m and up 5.6%, while tea trails a little behind with a 38% share, worth £69m and down 0.5%. Maybe incredibly, hot choc has 6% of the market and is worth just over £10m, with sales up 8.3%. This beats roast and ground coffee which claims five percent of the market and is worth less than £10m. it’s showing healthy growth with a 6% rise. Malted drinks are not faring so well with 1.7% of the market, worth £3m and down 11.9%. Fruit and herbal teas have a similarly small proportion of the market and are worth the same as malted but are up 11.8%. Eventually, while green tea is a little player with 0.4% of the market and worth £800,000, it is showing fantastic expansion up by 20.6%.
‘However once you’ve got those sectors nailed you can develop others. Caf-style coffees like Nescaf cappuccino and latte in sachets are selling well. He reckons it’s cash-strapped shoppers who are using high street coffee bars less who are driving those sales as they attempt to replicate the cafe experience at home.
According to Tns Worldpanel figures for winter 2008/09, coffee consumption in the home has increased by 8% while out of home consumption has shrunk by 2.3%.
For example, sales of Alta Rica in c-stores are up 41%, something walker puts down to increased distribution.
She is saying this makes Kenco freeze-dried coffee a good choice for c-stores. ‘Our work with the rain-forest Alliance helps to ensure a better standard of living for coffee farming communities, so helping protect the environment and the wildlife that depend on it. Kenco is one of the first premium coffee brands to have such strong ethical certifications and it’s an important message to hold thru to customers’ she asserts.
Fairtrade According to Nielsen info, sales of Fairtrade hot drinks are showing worth growth of 8.3%. ‘We know that the moral consumer tends to have a larger expendable earnings. These buyers aren’t just price driven, but interested in values like provenance and the livelihoods of the farmers and they’ll pay extra for that reassurance. If they can’t get Fairtrade in their local store there’s a strong chance that they will shop elsewhere’. He promote, as a minimum, merchandising a Fairtrade alternative alongside standard hot drinks. This suggests offering a recognised Fairtrade brand of instant coffee, roast & ground tea and coffee bags. Joe Hale, account director at brand consultancy Dragon Rouge, reckons there will be a continued push towards moral products so long as it’s not at the compromise of quality. He also believes Fairtrade will become the standard. We’ve reached the tipping point on this now and we would expect to see brands committing to Fairtrade or equivalent practices across their portfolio, not just inside a slot or range.’
a nice cuppa
When it comes to tea, Tetley GB customer promoting controller Simon Attfield reckons the product should be more obvious in c-stores. It is a staple of daily life folk will go out and get it if they have run out. But unless you hunt it out you won’t find it it needs better visibility in c-stores.’
Attfield asserts tea buyers are valuable shoppers, and he is’s right. Him Convenience Tracking Programme research has revealed that tea clients will generally have a basket of products worth more than £10 because they buy other products too. It’s a similar story for coffee buyers. ‘If you’ve got a true grocery offer and you get it right, folks will spend lots of money in your shop,’ asserts Attfield.
A typical family would get thru 160 teabags in 2 weeks.’
For example, health is an crucial main driver in Jan when tons of customers are either on diets or on a healthy eating kick. ‘That’s when you need your green and decaf teas and maybe a redbush on your aisle ends and on promotion,’ endorses Attfield. ‘Many outlets offer the main line teas and small in the way of premium teas. I’d like to see them extend the choice to include speciality teas, infusions and green teas,’ he is saying. Manders adds that health is still a key sales driver so he endorses c-stores stock a green tea. Twinings Pure Green Light & delicate could be the answer as Manders describes it as an’easier entry point into the class for non-green tea consumers’. For any retailer wanting to stock more fruit and herbal teas, there are plenty to choose between.
Unilever According to Unilever, its Lipton Fruit & Herbal Infusions range has gone down well with customers.
meanwhile, a premium brand with a growing presence in the market is Dr Stuarts Botanical Teas, that has just launched a new identity. The new design is alleged to give the product’a fresh and completely different look’.
Natural products Keith Garden, handling director of Dr Stuart’s brand owner Only Natural Products, claims [*CO]’Having built the brand’s success on the standard of the herbs we demanded on using, we were finding phrases like ‘Pharmacopoeial Grade Dab 10 herbal’ extracts a little bit of a mouthful to explain to customers. We also felt that, even though we’d enjoyed consistent growth and built up a staunch following, it was time for a completely new look to set the brand apart from the mainstream.’
next to the redesign come 3 new arrivals : a wild nettle tea and 2 new additions to the functional range liver detox and throat relief.
finally, no hot beverages fixture would be complete without hot chocolate and for many consumers the sole hot chocolate they’ll even contemplate purchasing is Cadbury’s.
The new recipe is said to have an even ‘more chocolatey taste’. The relaunch also saw the café latte and fudge variants renamed as chocolate mocha and chocolate fudge. Cadbury has identified two growth opportunities for its hot chocolate. The first is to appeal to a younger shopper from age 25 plus in addition to existing shoppers. The company reckons this can be achieved by ensuring leading hot chocolate brands such as Cadbury are always available in store, so that consumers can find the product they want immediately.
Galaxy Another hot chocolate brand that’s doing well is Galaxy. Carys Delve, category marketing manager (hot drinks) at Aimia Foods reckons the huge awareness of the brand can be used to help drive sales. “Whether customers are choosing a cup of hot chocolate to enjoy as part of some ‘me time’, or as an alternative to tea and coffee, it is important that convenience store operators are able to offer products that meet these needs.”