Skyline in Blue

Hot Drinks add new Benefits to Existing Products

September 29th, 2010
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Richard Haffner and Brian Morgan, the global beverage team at Euromonitor International, take a look at recent product developments in hot drinks. One response to change is offering added benefits to existing products. Such benefits are mostly health-related. Haffner explains how Nestle's Nescafeline of coffee has begun to do this with products such as 3-in-1 with added collagen, which claims to help bones and skin and is targeted mostly at women. Another similar product is Nescafe Protect Prosilm with is found in Thailand. In China, Nescafe breakfast coffee boasts energizing ingredients that help keep the consumer alert throughout the day.

Haffner explains how these added benefits might work for Nescafe, mainly because they already have a strong consumer base. Consumers probably won't switch to a new coffee brand simply because it comes along and claims to have health benefits. These benefits are usually added to well-established brands.

Morgan goes on to say that Nescafe was the first brand to market coffee with health benefits to women in other countries. Whereas tea and soft drinks with health benefits had been marketed to women before, coffee was a new item with these added benefits.

However, Morgan states that if a new company has something truly unique to offer, such as Bistrotea's perforated stick packaging, it has the potential to do fairly well on the market due to distinctiveness. There is a danger in new technology for smaller companies – larger companies may use the same ideas and market them; causing consumers to shift back to well-established brand.

For more on hot drinks, watch the second part of this video.

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