Hot Beverages Category Snapshot
TAKE HOME SHARE | | | | |
Kantar Worldpanel: 52 w/e 21 May 2017 |
|
|
|
TOTAL |
|
|
|
|
|
Value this year (£m) |
% y-o-y |
Volume this year kg (m) |
% y-o-y |
Total Coffee |
1137.6 |
-0.3 |
72.7 |
-1.4 |
Premium |
235.4 |
-4.1 |
6,256.5 |
-5.8 |
Regular |
190.7 |
-11.3 |
7,814.9 |
-11.5 |
R&G excl Pods |
171.7 |
2.8 |
2,625.3 |
2.6 |
Pods |
149.0 |
8.4 |
475.5 |
10.0 |
Cafe Style |
140.4 |
5.9 |
782.5 |
5.1 |
Super Premium |
86.8 |
5.6 |
1,741.1 |
6.2 |
Decaffeinated |
80.2 |
4.9 |
2,273.5 |
7.6 |
Specialist |
38.8 |
-8.0 |
799.5 |
-10.4 |
Non Foaming Mix |
19.4 |
-3.1 |
164.4 |
7.8 |
Economy |
8.1 |
-3.1 |
729.2 |
-13.6 |
Powder |
6.3 |
-9.6 |
252.5 |
-8.2 |
To Go |
5.2 |
182.8 |
7.1 |
135.3 |
Organic |
3.1 |
-9.0 |
50.2 |
-11.7 |
Total Tea |
641.7 |
3.5 |
90.2 |
-1.1 |
Normal |
445.0 |
2.2 |
79.7 |
-1.6 |
Speciality |
60.5 |
7.8 |
4.4 |
6.4 |
Herbal Tea |
58.5 |
6.4 |
2.2 |
0.8 |
Green |
44.3 |
4.6 |
2.1 |
2.9 |
Fruit Teas |
33.5 |
8.6 |
1.8 |
-3.0 |
Hot Choc |
117.6 |
-6.6 |
18.6 |
-6.9 |
Malted |
46.3 |
-10.6 |
6.9 |
-13.0 |
Cocoa |
18.0 |
-7.2 |
2.0 |
-4.1 |
Total Hot Beverages |
3738.1 |
0.2 |
24252.8 |
-2.3 |
|
|
|
|
|
RETAIL SHARE |
|
|
|
|
Kantar Worldpanel: 52 w/e 21 May 2017 |
|
|
|
|
TRADING |
|
|
VALUE |
retailers |
grocery |
category |
index |
y-o-y% |
Bargain Stores |
3.2 |
5.4 |
168.8 |
10.2 |
Waitrose |
4.9 |
6.1 |
124.5 |
1.7 |
The Co-Operative |
5.2 |
6.4 |
123.1 |
-1.5 |
Sainsbury's |
14.1 |
15.5 |
109.9 |
-0.6 |
Asda |
13.1 |
13.8 |
105.3 |
-4.8 |
Morrisons |
9.9 |
10.4 |
105.1 |
-4.6 |
Tesco |
25.1 |
25.3 |
100.8 |
-0.8 |
Iceland |
2.2 |
1.9 |
86.4 |
11.8 |
Independents & Symbols |
1.1 |
0.9 |
81.8 |
0.0 |
Aldi |
5.5 |
4.1 |
74.5 |
10.8 |
Lidl |
4.1 |
3.0 |
73.2 |
0.0 |
Marks & Spencer |
3.5 |
1.3 |
37.1 |
8.3 |
Shoppers bought 4.6 million fewer kilograms of hot beverages this year. However, premiumisation and price rises have caused value to inch up by 0.2%. Tea is the main driver of this, and the only category in value growth - adding £21m worth of sales.
Premium innovation inspired by coffee shops has helped drive 5.6% growth for super-premium coffee. Fruit, herbal, green and speciality teas have been the only growth areas in tea for some time, despite average price/kg being almost three times that of normal tea.
Currency fluctuations, inflation and increasing commodity prices have led hot beverage prices to rise 2.5% on average at category level, resulting in black tea returning to growth.
Increased financial pressure on manufacturers, and a move away from promotions by retailers have led to overall levels of volume sold on deal declining for all hot beverage sectors.
Own label drives growth in hot beverages, while brands overall see a slight value decline.
As for future key trends, Starbucks is offering a range of cold brew coffees, and it is surely only a matter of time until we start to see this being brought into grocery. It is possible this trend will translate further into tea.