Iced coffee

Focus On: Dairy Drinks by Carina Perkins

Download the synopsis here

Publishing: 9 March

Advertising deadline: 22 February

Submissions deadline: 15 February


The Story

Iced coffee is booming. Boosted by the scorching summer of 2018, sales totalled over £4m in the four peak weeks in July. The explosion in sales has inspired a number of innovations. However, sales of iced coffee in the UK remain heavily influenced by the weather. Experts believe there is potential for the market to mirror the US, where it is a year-round beverage. So what is the potential to extend the iced coffee sales beyond summer? What role is innovation playing? And who stands to win big?

Key themes:

Seasonality: How can dairy drinks make the most of summer this year? And what is the potential for them to expand their sales all year round?

Cold brew vs iced latte: Which iced coffees are experiencing the most growth? Cold brew has attracted a few listings but lattes and flavoured brews still dominate the aisles. Which are proving most popular with consumers? What will be the next big thing?

Innovation: Higher-priced innovation has led growth in dairy drinks this year. In flavoured milk, for example, price rises have driven the rise in value sales. What are the innovations driving this? What makes consumers willing to part with more of their cash?

Consumer perceptions: Kantar Worldpanel shows dairy drinks are a purchased as a treat or reward, which makes consumers particularly open to new and exciting options. How can brands/retailers capitalise on these attitudes? Are more negative perceptions – e.g. few consumers associate dairy drinks with health – limiting the category?

Kefir: Kefir sales are booming. Which brands are behind this? To what extent are innovations such as new flavours attracting consumers? Is it stealing share from the traditional ‘active health’ drinks market? And what is the potential for the market to grow further?

The sugar levy: Campaigners are calling for the sugar levy to be extended to dairy drinks. What are the chances of this happening and, if it the levy were to be applied, how would it change the market?

Kantar data: Using Kantar commentary, we explain the reasons behind the rise and fall of the different sub-categories.

Nielsen data: Using Nielsen commentary, we explain the reasons behind the rise and fall of the top 10 brands.

Innovations: We identify four new products that ideally have not appeared in The Grocer before. including launch date, image and RSP.

Online Listicle to go live on 8 March: What are the main innovations & how are they shaping the market