The UK is fairly unique in Europe for having a 15%/85% split in favour of instant coffee. But roast and ground coffee has really kicked in since March, sometimes as much as 20% in any week year-on-year.
Standard tea has inflated since June last year as a reaction to the drought in Kenya in early 2006. At best, tea is now flat, year-on-year, since we have passed the anniversary of the retail increases. Consumers are looking for better quality teas and are starting to look beyond flashy packaging, which has been the hallmark of this area.
There have been a lot of luxury style chocolate drinks in the past year, and the hot chocolate category is a little top-heavy now. We all love hot chocolate, but don't buy it often. Malt is in long-term decline, and it is hard to see this being reversed.
The top three multiples and Waitrose have all relaunched their fixtures with improvements to layouts and new packaging. There have been the inevitable deep-cut promotions that have driven volumes up, and a little bit of price inflation too.