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149 posts categorized "Hot Drinks"

October 20, 2014

Can Tea Take Occasions Away From Coffee?

JonasFelicianoAnalyst Insight by Jonas Feliciano - Senior Beverages Analyst

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As reported in Drinks Business Review, Bigelow Tea will introduce a new “American Breakfast” line of black tea that contains 50% more caffeine than the average tea serving. Is the tea manufacturer purposefully targeting American coffee drinkers? And is this really the best way to grow tea sales in the US?

New Bigelow American Breakfast Teas are specially formulated with natural black tea extract -- a concentrated form of brewed black tea -- to deliver 60-90mg of caffeine per cup, versus the typical 30-60mg in regular black tea. Yet despite the significantly higher caffeine content, drinkers will not experience the 'rush and crash' effect typical of coffee thanks to L-Theanine, the naturally occurring compound found almost exclusively in tea.

By highlighting this blend’s superiority to sustained energy due to the usage of L-Theanine, the answer to the first question is resoundingly affirmative. Tea has long trailed coffee as America’s preferred morning beverage – a tradition that can goes back to separatists dumping British teas into the Boston Harbor. The recent acquisition of Teavana by coffee giant Starbucks led many to speculate about a “tea boom” in the states, but it has yet to occur despite increased spending on coffee.  With this launch, Bigelow is firmly targeting coffee drinkers to consider tea as an alternative.

In the words of third generation president and CEO, Cindi Bigelow, "I invite you to sip a cup of our beautiful American Breakfast Tea; made in America, by an American family, for the American consumer. And as always, we hope our teas delight you.

Gaining a small piece of the US’s US$12 billion retail coffee industry would undoubtedly buoy tea’s US$2.4 billion retail figure. But asking consumers to make the switch, rather than complimenting their morning routines with an occasional earl grey or oolong, seems a bridge too far. Morning rituals are one of the hardest routines to break. Simply fortifying tea with caffeine seems like a good plan, when considering the economic opportunity, but several challenges remain.


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September 11, 2014

The Impact of the Indian Budget on Consumer Goods and Services

Euroindia_Shreyansh.Kocheri_LThumbHosted by Shreyansh Kocheri, Research Analyst

The Union Budget of India for 2014-2015, presented on July 10 has an impact on almost every area of consumer goods and services in the country. Research analysts from Euromonitor International’s office in Bangalore, India respond to the budget in this podcast series.



 Featuring:  Shabori Das - Research Analyst, Ina Dawer, - Senior Research Analyst, Manjunath Reddy - Research Analyst and Priyanshu Rana - Reseach Analyst

Introduction to the Big Indian Budget (mp3)

The Indian Budget's Impact on the Tobacco Market (mp3)

The Indian Budget's Impact on Internet Retailing (mp3)

The Indian Budget's Impact on Consumer Electronics (mp3)

The Indian Budget's Impact on Consumer Finance (mp3

The Indian Budget's Impact on Food and Beverages (mp3)

The Indian Budget's Impact on Travel and Tourism (mp3)

The Indian Budget's Impact on Apparel and Footwear (mp3)

September 4, 2014

Snapshots of GlaxoSmithKline’s Consumer Healthcare Division and Horlicks’ Sales

Hope.LeeAnalyst Insight by Hope Lee - Senior Beverages Analsyt

The bribery case in China and disappointing second-quarter results have put GlaxoSmithKline (GSK) in the headlines again. The pharmaceutical giant was initially reported to be looking to spin off its Consumer Healthcare division and make it a stand-alone company – but GSK quickly denied any such plans. Simon Steel, GSK’s spokesman, later stated that GSK would not rule out the possibility of one day divesting the unit, but that it is not currently being considered, at least in the short term. The quick denial raised interest in the media and among analysts as to what exactly GSK plans to do with the consumer unit and a decision about the future of Horlicks in the long term.


Horlicks JPEG.jpg


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August 22, 2014

Kraft Licenses Coffee Brands for use in Green Mountain's Keurig

6a01310fa9a669970c01a511f73ed7970c-800wi 6a01310f54565d970c01a3fce3cf1a970b-800wiWith Jonas Feliciano, Beverages Industry Analyst and Dana LaMendola, Beverages Industry Analyst

The recent deal between Kraft and Green Mountain gives liscensing rights to Green Mountain to distribute Kraft's brand of products in pod form for use in Keurig machines. Kraft's brands are a large gain for Green Mountain, who's main strategy is to obtain liscenses from large coffee players. Kraft's Maxwell House brand is the second largest coffee brand in the US, and given the success of Starbucks and Folger's pods, Kraft's larger-known brands are expected to perform well in pod format.

Download as an MP3

August 17, 2014

Tata’s State of Play in Global Coffee and Earth Rules Acquisition

Hope.LeeAnalyst Insight by Hope Lee, Senior Beverages Analyst

Tata Global Beverages Ltd’s (TGBL) global ambitions are clear and well laid out. The company is aggressively acquiring and building a comprehensive beverages portfolio through both the extension of existing core brands and new brand acquisitions. Geographical expansion was also a priority from previous acquisitions. The company aims to achieve revenues of US$5 billion by 2015. This is achievable if it sustains its rapid expansion. TGBL’s long-term corporate goal is to become a major player in tea, coffee and bottled water. While the company is already a leading player in tea globally, it would take many years to replicate that position in coffee if relying solely on organic growth over the medium term. Its recent acquisition of Australian company Earth Rules is a positive move in this direction. Bronski Eleven Pty Ltd Australia was the holding company of Earth Rules Pty Ltd. However, the country’s limited growth potential may have an insignificant impact on TGBL’s global coffee position unless it expands its newly acquired business to other countries.

Continue reading "Tata’s State of Play in Global Coffee and Earth Rules Acquisition" »

August 7, 2014

Lipton: Hot Tea and RTD Tea Major Market Sales

Lipton market share sales

Lipton is the world’s leading hot tea and RTD tea brand, with around US$6 billion rsp in 2013. It is significant in both hot tea and RTD tea and has truly global coverage, helping to secure its overall position. It also has no close rivals in terms of category and geographic profile. Major markets for hot tea and RTD tea are likely to see far higher growth in RTD tea than hot tea in future, meaning Lipton RTD tea has much growth potential. It does need to address its weakness in Indonesia.

Continue reading "Lipton: Hot Tea and RTD Tea Major Market Sales" »

August 2, 2014

Can the Bkon Craft Brewer Steal Customers from the Coffee Pod Market?

There are two major contributing factors to market growth in hot drinks: the growing market for coffee pods and the health and wellness trend existing in the tea market. The recent launch of the Bkon Craft Brewer addresses both of these factors as it can create any loose-leaf tea beverage or coffee blend in a 60-second time frame. Currently the machine carries a hefty price tag and is not feasible for use outside of larger tea houses, but if the creation proves successful and the company manufactures a version intended for home use, it may steal away customers from the coffee pod market.

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July 21, 2014

Shopper Insights in Action Conference 2014 – IIR – Event Recap

Howard TelfordAnalyst Insight by Howard Telford - Beverages Analyst

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This past Wednesday, the 14th annual Shopper Insights in Action conference concluded in Chicago, Illinois. As always, the event focused on strategies to improve shopper activation across all kinds of consumer retail categories and channels, providing the shopper side of consumer marketing (and its research suppliers) an engaging forum to share ideas and success stories.

From a beverages and food service perspective, the three-day event at Navy Pier left me considering the need to address three, macro-level organizational challenges in the drinks industry:

1.       Using ‘big data’ more effectively

As the event’s exhibit hall demonstrated, there are a myriad of methodologically different ways to collect, measure and interpret the in-store responses of consumers to your products and shelves. As an industry that frequently delivers and merchandises its products through a two-tier bottling system (or other independent direct delivery partners), measuring the effectiveness of in-store activity - displays and product location - is vital. How can marketing and channel management teams demonstrate that ‘soft’ information on shopper response, preference or opinion is robust and indicative of volume growth or incremental revenue? Brands and their retail partners must work harder to interpret and contextualise data and insights in order to effectively advocate for change within their businesses.

Research focused and data literate leadership certainly helps. Keynote speaker Sir Terry Leahy, former CEO of Tesco plc, spoke about the need to improve the dissemination and understanding of data within large retailers and other organizations. As research tools become more powerful and useful – from generating understanding of potentially new, developing markets, to specific, localised consumer segments and their behaviours – it remains important that these insights are clear and actionable while reaching the right pairs of eyes.   

Continue reading "Shopper Insights in Action Conference 2014 – IIR – Event Recap " »

July 19, 2014

Function and Local Ingredients Drive Hot Drinks Sales in Peru

Dana LaMendolaAnalyst Insight by Dana LaMendola - Beverages Analyst

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Our research indicates that Peru will be the fastest-growing hot drinks market in Latin America increasing by 36% to reach US$ 818 million  by 2018. The Peruvian economy has skyrocketed in recent years, with Peru recording the fastest growth in total GDP in the region between 2008 and 2013, a trend that is expected to continue in the forecast. Rising disposable incomes are not only increasing consumer expenditure on food and non-alcoholic beverages, but are also creating more demanding Peruvian consumers. Hot drinks that are having the most success are those like fruit/herbal teas that have a functional position and other plant based hot drinks that appeal to local Peruvian traditions through the use of local ingredients


Demand for Health and Wellness Benefits

Peru is expected to be the fast growing tea market in Latin America over the forecast, increasing by 59% in retail value to record the second highest absolute value growth after Brazil. In Peru, tea is already nearly as popular as coffee in terms of at-home consumption. In 2013, per capita retail brewed volume was 6 litres, just slightly below coffee which was 6.8 litres. Although black tea (both standard and speciality) is the most traditional type of tea consumed in Peru, health and wellness trends are causing less mature categories like fruit/herbal tea and green tea to attract increasing consumer interest because of their perceived health benefits. These alternative tea types also carry a higher price tag, particularly fruit/herbal which in 2013 retailed at more than five times the unit price of black tea.

Continue reading "Function and Local Ingredients Drive Hot Drinks Sales in Peru" »

July 12, 2014

Coffee Shops are Best Positioned to Benefit from Mobile Payments

Dana LaMendolaAnalyst Insight by Dana LaMendola - Beverages Analyst

View Dana LaMendola's profile on LinkedIn

Starbucks is the reigning poster-child for mobile payment implementation in US consumer foodservice. While its popular loyalty programme and early move into mobile payments contribute to Starbucks’s celebrity status, the company’s success is also reflective of the particular compatibility of specialist coffee shops and mobile payments. In fact, coffee shops might be the best positioned for mobile payments out of all consumer foodservice operators.

The reason that specialist coffee shops are so well positioned is that their primary offering – coffee – is an everyday and oft-repeat purchase. Indeed, in 2013 US consumers averaged over one cup of coffee per day. A large number of coffee shops purchases are made by commuters looking for their morning jolt on the way to the work.  The high frequency of purchases by coffee shops patrons make these consumers prime candidates for the streamlined payment methods and loyalty benefits afforded by mobile payment technologies. Furthermore, coffee shops are most attractive to demographics that have both access to and interest in mobile technology: affluent consumers, and younger tech-savvy consumers like students.

Continue reading "Coffee Shops are Best Positioned to Benefit from Mobile Payments" »


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Recent Posts

Can Tea Take Occasions Away From Coffee?

The Impact of the Indian Budget on Consumer Goods and Services

Snapshots of GlaxoSmithKline’s Consumer Healthcare Division and Horlicks’ Sales

Kraft Licenses Coffee Brands for use in Green Mountain's Keurig

Tata’s State of Play in Global Coffee and Earth Rules Acquisition

Lipton: Hot Tea and RTD Tea Major Market Sales

Can the Bkon Craft Brewer Steal Customers from the Coffee Pod Market?

Shopper Insights in Action Conference 2014 – IIR – Event Recap

Function and Local Ingredients Drive Hot Drinks Sales in Peru

Coffee Shops are Best Positioned to Benefit from Mobile Payments