[ HOT BEVERAGES ]
Out-of-home trends are still key In the convenience channel, the hot beverages category is growing at 19% year on year, which is more than double the rate achieved in the grocery channel (Kantar).
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total of 97.6% of households buy into hot beverages each year and the category as a whole is now worth £2.4 billion (Kantar). One of the biggest trends is for consumers to try to replicate the ‘coffee shop’ experience at home, and suppliers have responded with relevant NPD and marketing activity.
Coffee The Nescafé brand accounts for 31.3% of the total spend in hot beverages across the convenience channel, and over 40% of this value comes from the top five selling products, reports Nestlé. These products are different pack formats of Nescafé Original, Nescafé Gold Blend and Nescafé Azera Americano, making these ‘must stock’ items. Wholesalers can provide extra value for their customers with these products by selling the price-marked variations, advises the company. It is also important to take note of pack preferences: with consumption in-home being far higher than in previous years, shoppers are choosing larger pack sizes (ACS). Wholesalers can maximise profits by providing an offering across all segments of tea and coffee, adds Nestlé. Key segments that are growing include roast & ground coffee, coffee pods and origins instant coffee (IRI). Recent NPD from Nestlé includes Nescafé Azera craft coffee, brought to the market through a collaboration with Grindsmith coffee roasters. Nescafé Gold has also focused on the roasting stage of coffee with the introduction of Roastery Collection in Light and Dark variants. This new product development is designed to bridge the gap between the premium and super-premium coffee segments. Taylors of Harrogate has redesigned the packaging for its core range, which includes its well-known Rich Italian and Lazy Sunday blends. After extensive customer research, the priority for the brand was to ensure easy navigation and recognition on shelf by expressing the brand’s heritage, clearly differentiating ground and beans, and simplifying the messaging on pack. Taylors of Harrogate is now the UK’s No.1 coffee bags brand (IRI) following the introduction of boxes of 80 individuallywrapped Coffee Bags for hotels, travel and workplaces in 2019. Each coffee bag contains fresh roast and ground coffee and works just like a tea bag, brewing in 28
April 2021
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two minutes. The company’s multi-channel advertising campaign is expected to drive further awareness and demand for this product. “We know that there isn’t always the equipment or time to make roast and ground coffee, and our coffee bags offer a convenient solution,” says Natalie King, out of home account manager. Consumers can have a proper coffee no matter where they are and don’t have to compromise by drinking instant.” Caterers know that the foundation of a good coffee is high quality beans, says King. “At Taylors of Harrogate, we only buy speciality grade coffee, which is sourced from the world’s best growers. Our Espresso Coffee Beans are ideal for making popular coffees like lattes, flat whites, espresso shots and Americanos.” Last year, Jacobs Douwe Egberts (JDE) added Barista Editions to the Douwe Egberts out-of-home espresso bean portfolio. There are two products made from 100% Rainforest Alliance Certified Arabica beans. Signature Espresso, described as a “real all-rounder”, is medium dark roasted with notes of dark honey and citrus fruits. Rich Espresso is an “intense and full-bodied blend roasted to pack a punch”. It is dark roasted with notes of sticky treacle and almonds. The packaging features easy to follow barista recommendations for dosage, storage and serving tips, supported by online training videos that give baristas “the confidence to serve incredible coffee”. In addition, the Douwe Egberts seal comes with quality assurance, including how the company sources its beans. 100% Rainforest Alliance Certified means that each bean is grown and picked from farms supported by sustainable farming practices that help to protect forests, improve
