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April 20, 2015

Opportunities and Challenges in Specialty Food Ingredients

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Thursday, April 23 | 9 a.m. CDT / 3 p.m. BST

The supply of speciality ingredients to the international food and drinks market presents varied opportunities and challenges.

Adding value is a priority for the global food and beverage industry, with consumers no longer looking for simple nutrition or hydration but demanding far more in terms of taste and quality, health and wellness, naturalness, and convenience. There are also many issues at supply level that are having a significant impact on business strategies, including economic challenges, sustainability, and regulatory issues.  Our presentation will discuss the activities of ingredients companies and their response to the opportunities and challenges in today’s global market.

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April 7, 2015

Diversity Calls for Flexibility in Strategy for Each ASEAN Coffee Market

Hope.LeeAnalyst Insight by Hope Lee - Senior Beverages Analyst

ASEAN’s coffee market is perhaps as complex as its diversity in culture. Multinationals that feel they are missing out on part of China’s growth story, may start setting their sights on The Association of Southeast Asian Nations (ASEAN), which includes Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. China’s economic slowdown and market maturity in first-tier cities may also encourage some multinationals to look elsewhere in Asia for further exploration of the full Asian story. However, it should be noted that this is one of the world’s most diverse and competitive regions in terms of market development and consumption habits. The motto of ASEAN is “One Vision, One Identity, One Community”, but, as the long-awaited ASEAN Economic Community comes into effect in 2015, member countries remain divided along the lines of income and consumer expenditure. In 2013, average household spend in Singapore was US$72,198, compared to US$3,100 in Myanmar, while Indonesia stood out as the largest market in absolute terms. With this in mind, investors should not rely on a “one-size-fits-all” strategy. This article uses Singapore and Indonesia as examples to highlight the disparity of growth patterns and the possible factors to consider for local expansion or market entry.

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March 19, 2015

Chai: The Indulgent Value Driver in US Tea

Howard TelfordAnalyst Insight by Howard Telford - Senior Beverages Analyst

View Howard Telford's profile on LinkedIn

Slowly, but surely, the tea category in the US continues to grow in value terms, even as consumption plateaued in the last year. Retail volume sales of tea in the US were flat in 2014, while value sales increased by 3%. The strong performance of higher priced black specialty tea and the shift towards premium fruit/herbal and green tea brands sustained positive growth despite a failure to increase overall retail tea volumes with US consumers. The mainstream, mass-market appeal of high-end tea remains unclear.

Starbucks – through both its Tazo brand of tea concentrates and through its upscale Teavana café chains and brand – has placed a great deal of focus on ‘chai’ flavour in recent product development. Chai tea – at least as defined by North American consumers – still represents a versatile avenue of value growth in the retail tea segment, particularly for those consumers seeking an indulgent, convenient and full-flavour hot beverage. Brands seeking opportunities in chai tea must focus on flavour and the single-serve product format in chai beverages in order to realize its mass appeal.   

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March 5, 2015

Ethiopia’s Economic Boom Creates an On-Trade Coffee Opportunity

Howard TelfordAnalyst Insight by Howard Telford - Senior Beverages Analyst

View Howard Telford's profile on LinkedIn

Ethiopia is renowned as the producer of some of the world’s highest quality coffee beans. According to the International Coffee Organization, Ethiopia was the world’s fifth largest producer in terms of crop output in 2014. The country has 1.2 million coffee farmers and the government estimates that about 15 million households are either directly or indirectly dependent on coffee for their livelihoods. The reputation of Ethiopia’s large Arabica yield is prominent in the branding of specialty coffee products in North America and Western Europe, in retail and on-trade cafés.

Despite the international reputation of Ethiopian coffee abroad, less attention has been paid to the robust local coffee culture that exists in Ethiopia, where traditional unpackaged domestic consumption and preparation is supplemented (although not supplanted) by a growing subset of premium coffee specialists in Addis Ababa. A thriving retail and on-trade market for local coffee is growing in tandem with the surging Ethiopian economy, with more pressure to retain locally produced coffee to satisfy emerging demand.

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March 4, 2015

The Rising Power of Female Consumers

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The global female population totalled an estimated 3.6 billion in 2014 and is expected to reach 4.2 billion by 2030. Average disposable income amongst women is the highest it's ever been, and women are living longer than men.

What are you doing to reach this growing market?

Recording
View now to learn:

  • The size and distribution of the female consumer market
  • Literacy and education rates
  • Labour participation
  • Purchasing power

 

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February 27, 2015

Euromonitor to Speak at Coffee Fest 2015

CoffeeFestLogoRebuildBKEvent Name: Coffee Fest

Dates: June 05 - 07, 2015

Location: Chicago, IL

Event Description: Fueling your expectation with the experience of more than 300,000 coffee and tea pros that have attended since 1992. Coffee Fest has been serving the specialty coffee and gourmet tea industries since 1992. Viewed by most as the best tradeshow both nationally and internationally, Coffee Fest is specifically for those involved with retailing coffee, tea and related products. Coffee Fest continues to evolve and stay at the forefront of emerging trends.

Speakers: Eric Penicka and Mark Strobel

Presentation Title: The State of the North American Coffee Market

Presentation Time and Date: Sunday, June 7th at 8:00 am

Presentation Description: This session will focus on the top coffee trends and developments in the US, Canada and Mexico using Euromonitor International’s beverages data. Join drinks researchers Mark and Eric as they provide key insights into these fast growing markets and the latest drivers of consumer demand.

Website: http://coffeefest.com/

Starbucks Subscription Reserve Coffee is One More Step in its Third-Wave Evolution

ElizabethFriendAnalyst Insight by Elizabeth Friend - Senior Consumer Foodservice Analyst

Starbucks’ recent performance has been very strong, but that hasn’t prevented the company from seeing the writing on the wall. Scores of super-premium, third-wave coffee competitors are rising up in all of the most important developed markets. To keep them at bay, Starbucks is taking consistent steps toward staying ahead of evolving consumer preferences.

In its most recent move, Starbucks has added a subscription-based service for its small-lot Reserve brand coffee, promising delivery of the rare beans within days of roasting at its new Seattle Roastery and Tasting Room. In one fell swoop, the service provides a small but stable revenue stream, solves a distribution issue, and most importantly, helps to cement Starbucks’ new branding as a purveyor of third-wave coffee—offering the quality of coffee typically found at an independent coffee shop, with the benefits and services of a massive global chain.

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February 26, 2015

Overview of World’s Chocolate Powder Drinks Market and Toddy’s Evolution

Hope.LeeAnalyst Insight by Hope Lee - Senior Beverages Analyst

The global chocolate powder drinks market is forecast to see a net growth of around US$800 million in 2014-2019, contrasting to malt-based drinks’ US$500 million. However, considering the potential growth and compared to the possible sales from coffee and tea anticipated, chocolate powder drinks is definitely a niche category and mostly neglected by major hot drinks manufacturers, despite the fact that they may have a couple of hot chocolate powder drinks brands as a complementary product. Euromonitor International’s latest data show that Nestlé continues to be the world’s market leader in chocolate powder drinks, accounting for over one third of retail value sales in 2014. Mondelez and PepsiCo are placed in second and third position, competing with each other closely.

In terms of geographic growth, Brazil, the largest market for chocolate powder drinks, is predicted to generate around US$340 million sales in 2015-2019, top of all major growth markets. Meanwhile, PepsiCo’s Toddy is evolving to become a major brand in Brazil’s food and beverages market. This article gives an overview of the global market and discusses the state of play of major brands, with particular emphasis on Toddy.

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February 12, 2015

The Emerging Market Divide: Why Global Tea Brands Succeed in India but Struggle in China

JonasFelicianoAnalyst Insight by Jonas Feliciano - Senior Beverages Analyst

View Jonas Feliciano's profile on LinkedIn

China and India account for over 35% of the world’s retail tea volume, and have combined for 68% of retail volume growth from 2009-2014. That said, most comparisons stop there as the two markets have major differences in regard to tea types, branding, and opportunities for premiumisation. As global and regional tea manufacturers eye the strong growth prospects in both markets, a closer examination of the efficacy of branding on Chinese and Indian consumers underscores the high potential in India and the challenges in penetrating China.

Differences in tea brand performance

The competitive landscape for tea brands in China and India differs greatly. In India, global tea manufacturers Unilever and Tata Global Beverages Ltd (TGBL) account for almost 60% of all tea sales. In China, TGBL is not present and Unilever held a mere 0.7% share of the retail market – a decline from 2.0% in 2009. Instead, the category is highly fragmented with local manufacturer Da Yi Tea Group in the top spot with 8.4% thanks to its pu’er tea, followed by instant milk tea manufacturers Zhejiang Xiangpiaopiao Co Ltd (6.9%) and Guangdong Strong Co Ltd (6.8%).

Continue reading "The Emerging Market Divide: Why Global Tea Brands Succeed in India but Struggle in China" »

February 2, 2015

New Nutrition Data Shows Global Calorie Consumption

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We are excited to announce our new research examining the total amount of nutrients purchased per-person per day through packaged food and soft drinks products. Passport: Nutrition is a new research tool that maps the purchase of energy, protein, carbohydrate, sugar, fat, saturated fat, fibre and salt from packaged food and soft drink products sold through retail in 54 countries globally.  Passport: Nutrition allows your organisation to:

  1. Analyse where consumers get their calories. The purchase of eight different nutrients on a per person per day basis is available for 54 countries, regionally and globally. This information is also split by product category to the lowest level.

  2. View the nutrition composition of food and beverage products.  The nutritional information per 100g of product is available for over 50,000 packaged food and soft drink products in 54 countries. The nutritional content of one product can be compared with that of another, as well as comparing the same products in different countries.

  3. Review company and brand contributions. Nutrition brand shares look at how much each packaged food and soft drink brand and company is contributing to the total purchase of each nutrient, by category and country.

Continue reading "New Nutrition Data Shows Global Calorie Consumption" »

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Recent Posts

Opportunities and Challenges in Specialty Food Ingredients

Diversity Calls for Flexibility in Strategy for Each ASEAN Coffee Market

Chai: The Indulgent Value Driver in US Tea

Ethiopia’s Economic Boom Creates an On-Trade Coffee Opportunity

The Rising Power of Female Consumers

Euromonitor to Speak at Coffee Fest 2015

Starbucks Subscription Reserve Coffee is One More Step in its Third-Wave Evolution

Overview of World’s Chocolate Powder Drinks Market and Toddy’s Evolution

The Emerging Market Divide: Why Global Tea Brands Succeed in India but Struggle in China

New Nutrition Data Shows Global Calorie Consumption