Building up steam
Health and wellness, ethical products, indulgence and convenience are the four main trends guiding NPD in hot beverages, with some interesting results this year
14 September 2009
At a glance: HOT BEVERAGES
- Mintel estimates the all-Ireland 2008 hot beverage market to be worth €248.3 million
The Irish tea market is worth an estimated €78 million
Maxwell House enjoys a very strong lead in the powder segment, with 86% market share (Nielsen, July 2009)
Maxwell House is set to launch a new milder tasting, premium coffee product, Velvet
Kenco is Ireland’s number one ethically sourced coffee brand (Nielsen, July 2009, category growth-14%, Kenco 3.1%)
Kenco has seen increased penetration and loyalty since switching to source from 100% Rainforest Alliance Certified farms
Awareness of the Rainforest Alliance in Ireland has doubled in the past year (Ipsos, 2009)
Lavazza is now Ireland’s favourite premium roast and ground espresso coffee brand (Nielsen Scantrack MAT July 2009)
Nescafé is Ireland’s number instant coffee brand
Bewley’s is the market leader in the roast and ground coffee category in Ireland
Lyons Tea is Ireland’s number one tea brand with 42.4% market share (AC Nielsen 17 April 2009)
Mintel estimates the all-Ireland 2008 hot beverage market to be worth €248.3 million, representing a 5% increase from January 2006. Furthermore, while volume sales in the hot beverage industry may have been stinted in the past due to a lack of product differentiation, Mintel wrote last year that “even with the looming credit crunch, the four trends of ethics, health, indulgence and convenience will unlock promising growth opportunities for hot beverages in Ireland.”
Health-enhancing blends, including green and herbal, and new infusions have helped to re-energise the tea category, highlighting the health credentials of the product and bringing new consumers to the category. Teas that detox, relax, invigorate and aid good digestion are examples of the kinds of innovation driving this segment of the hot beverage market, as well as different flavours and improved taste.
The coffee category has also witnessed “lots of new product activity encouraging consumers to trade up into premium sectors,” Mintel’s market analysis reveals. Ethical credentials, such as involvement in Fairtrade and Rainforest Alliance schemes, is an increasingly important consideration for many consumers.
A Globescan survey with a sample size of 14,500 in 15 countries has shown that shoppers increasingly expect companies to be more accountable and fair in dealing with producers in developing countries. Furthermore, independent research firm Ipsos has revealed that awareness of Rainforest Alliance in Ireland has doubled in the past year. Consequently, the country’s leading ethical coffee brand Kenco has seen increased penetration and loyalty (TNS June and Feb ’09 respectively) since switching to source from 100% Rainforest Alliance Certified farms.
Speaking of coffee innovation, Ireland’s leading powder brand (86% market share; Nielsen, July 2009), Maxwell House is set to launch its new product Velvet on the Irish market. The new launch is designed to meet the need for a milder tasting, premium product, which up to now has been a relatively underserved area in coffee generally.
Stirring things up
One of Ireland’s most loved brands (Millward Brown, 2009), Maxwell House is following a year of unprecedented marketing support with a “ground-breaking” new product launch. The brand is excited to introduce a new mild, premium offering, Velvet, designed to meet the need in the Irish market for a milder tasting quality product. Maxwell House Velvet is enriched with a unique velvety layer that gives a deliciously smooth coffee.
The Velvet launch is being supported with a massive marketing campaign including TV sponsorship of the ‘All Ireland Talent Show’, outdoor, press and sampling. Maxwell House expects its ground breaking new innovation and strong support package will have a significant impact on the hot beverage category this autumn/winter. And will reinforce its own very strong position in the powder segment, where it holds 86% market share (Nielsen, July 2009).
Sustainable sales growth
Ireland’s number one ethically sourced coffee brand (Nielsen, July 2009, category growth-14%, Kenco 3.1%), Kenco is continuing to gather pace and momentum with growing sales benefitting both retailers and coffee growing communities.
Since unveiling its plan to source 100% of its beans from Rainforest Alliance Certified farms by 2010, Kenco has seen strong volume growth driven by consumer loyalty and penetration increases (Penetration growth now 25%, TNS June’09, Loyalty: 53% 1+ Repeat / 20% 4+ Repeat, TNS Feb’09).
Awareness of the Rainforest Alliance in Ireland has doubled in the past year (Ipsos, 2009). Kenco has invested in a heavyweight media investment with radio and TV to demonstrate how every jar makes a difference. Irish consumers heard how the Rainforest Alliance certification benefits coffee growing communities and the environment in which they live in from Diarmuid Gavin, following his trip to Rainforest Alliance Certified farms.
Kenco now has a 17% share of the total soluble coffee market and with growth rates outstripping the category (Nielsen, July 2009, category growth 14%, Kenco 3.1%).
Catering for the connoisseur
Only by selecting outstanding quality coffees from the best growing regions around the world, and by individually sorting and roasting them to bring out the individual characteristics, can a manufacturer meet the “sophisticated requirements” of the connoisseur coffee consumer. That is the philosophy of Davidoff Café: “an exquisite masterpiece of coffee composition to which Davidoff’s coffee steward has devoted all of his dedication and expertise,” claims the brand.
Davidoff produces coffee with a unique quality and taste profile, designed to accentuate delicate nuances and complex flavour compositions for those who really appreciate fine coffee. According to the brand, its “unsurpassed” taste/aroma properties make Davidoff Café a unique instant coffee proposition for the Irish market, and capture the essence of its brand philosophy.
Davidoff Instant Coffee is available from BR Marketing in Rich Aroma, Fine Aroma, and Espresso varieties.
Ireland’s number one coffee brand, Nescafé has driven sales and market share through an effective value added, reward strategy: giving consumers a range of very different free gifts with their instant coffee purchases. Over the coming weeks special promotional packs of Nescafé Original 200g will contain two free ‘Mood Mugs.’ with messages such as ‘Are you a morning grumpy?’ and ‘Make your morning smiley.’ Each mug will carry a different design to lighten the mood first thing in the morning and provide a humorous start to the day. Ideal for at home and in the office, there will be four different mugs in total for consumers to collect. The promotion will be communicated via a mix of outdoor and in-store advertising.
Italy’s number one now top in Ireland
Lavazza, from the world’s leading premium roast and ground espresso coffee company, is now Ireland’s favourite roast and ground coffee brand (Nielsen Scantrack MAT July 2009). Building growth by consistently using “only the finest raw materials,” Lavazza has become synonymous with premium espresso coffee innovation; the company pioneered vacuum packing technology which dramatically improves the freshness and taste delivery.
Dating back to 1895 when Luigi Lavazza founded his coffee shop in Turin, the global brand leading coffee is now available in over 90 countries. Enabling consumers to recreate that unique Italian coffee shop taste experience at home, Lavazza premium roast and ground blends consistently drive year on year value growth in the coffee category.
Distributed in Ireland by Batchelors Ltd and suitable for all coffee makers and cafetieres, Lavazza retail packs include: Lavazza Rossa 250g, Lavazza Café Espresso 250g, Lavazza Oro 250g, Lavazza Crema e Gusto 250g, and Lavazza Espresso Coffee Beans 250g.
An Irish original
Bewley’s is a much-loved iconic Irish brand with world class coffee and tea expertise. Beginning in 1885 when Charles Bewley shipped 2,099 chests of tea directly from China, the company then expanded into coffee, first as merchants, then opening its historic Grafton Street Café. Today, guided by the expertise of master roaster Paul O’Toole, Bewley’s is the market leader in the roast and ground coffee category in Ireland.
Bewley’s Tea range includes the classic Bewley’s Original Blend, the signature award-winning Bewley’s Gold Blend, and two newer blends: Bewley’s Special Reserve Fairtrade and Bewley’s Decaf. Bewley’s teas recently won three gold medals at the prestigious international Great Taste Awards 2009.
Lyons takes the gold
Lyons Tea is Ireland’s number one tea brand with 42.4% market share (AC Nielsen 17 April 2009). New research has also revealed that Lyons Gold Blend is the best tasting, most refreshing and revitalising gold blend tea on the Irish market (Synovete Research, Dec 2008). The favourite blend is made from high quality, full-bodied teas to give the golden colour and rich, smooth taste. A new richer colour pack has just been launched to communicate this unique rich taste proposition.
Lyons Tea employs expert blenders and tasters to select the best teas and blends of some of the finest product from Kenya, Assam (India) and Ceylon (Sri Lanka) to produce the highest quality tea. Also included in the range are: Lyons Original Blend, Lyons Gold Blend Reserve, Lyons Kenya Blend, Lyons Decaffeinated Tea, and a range of Lyons Green Teas. Lyons Tea has just launched a 240 pack, making Lyons one of the best value beverages per cup available.
Also from Unilver, the Lipton brand has released a new range of fruit and herbal infusions on the Irish market. Naturally caffeine free and containing real pieces of fruit, herbs and spices, each pyramid bag offers a new taste experience for tea drinkers. This will be supported by a full communications programme, including press and outdoor advertising, TV and radio promotions, PR, digital and sampling activity.
Made for Irish tastes
Barry’s Tea, founded in Cork in 1901, blends the finest tea leaves from Africa and India to create a range made specifically for the Irish palette. Currently, the Irish tea market is worth an estimated €78 million at RSP and Barry’s Tea accounts for 40% of all tea sales.
Barry’s Tea recently joined together with over 25 of Ireland’s leading food and drinks brands to form a new independent organisation called Love Irish Food, established to promote Irish manufactured food and drink brands to consumers, in a bid to help safeguard the future of Ireland’s largest indigenous industry.
Barry’s Tea Gold Blend continues to be the market leader in the premium sector of the tea category while Classic Blend offers the tea connoisseur a blend of tea made from the finest leaves available in the world. In recent years, Barry’s Tea has successfully introduced Decaf, Herbal and Fruit Infusions, and Green teas to its portfolio. This year has seen the brand partner with some of Ireland’s most progressive creative collectives, and the ‘Barrys Tea with…’ series will continue to provide Barry’s Tea consumers and fans with ‘golden moments.’
Through innovative campaigns and sponsorships, Barry’s Tea has also successfully positioned itself towards the lucractive 18 to 35 demographic, engaging with the key audience at events and through social network Facebook. To see Barry’s activity in this space visit: www.facebook.com/barry’stea.
New herbal tea range
Following the successful launch of its English Breakfast variant into the retail sector, cult tea brand, Make Us a Brew! unveiled a new range of herbal-based, organic tea-bag blends at this year’s Big Chill Festival (6 to 9 August 2009). The two new blends are: ‘Big Chill’ (after the festival), an organic roobios-based variant with pear, cinnamon and natural relaxant valerian; and ‘Look Lively,’ containing natural stimulant yerba mate, lemongrass and mint. The new blends will complement the re-launch of the best-selling tea variety Mint and Chilli, also re-launching under the herbal tea range umbrella.
With overall sales of the Make Us a Brew! brand up by well over 50% for the first half of 2009, the new herbal tea range aims to help increase the brand’s presence further within the hot beverages category by appealing to health conscious consumers and tea enthusiasts. The new range will be available in robust, cellophane free, 80% recycled cardboard boxes and will contain chlorine free, fully compostable tea bags.
A little piece of hot chocolate happiness
Butlers Hot Chocolate offers the ultimate in hot chocolate indulgence, presented in a retail pack with a strong on shelf presence. The hot chocolate comes in the form of a novel box containing 10 individually filled Butlers Hot Chocolate ‘cups’ of premium gourmet chocolate, each of which is stirred into warming milk. Inside the box, consumers will also find a special recipe card with inspiring ideas to create different variations of Butlers Hot Chocolate.
Since its launch in late 2008, Butlers Hot Chocolate has received much press and consumer attention, emerging as a star product within the Butlers range. Butlers Hot Chocolate retails at only €3.95 and is distributed through Richmond Marketing. For more information mail email@example.com.