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July 30, 2015

New Tea Concept in England Aims to Change Consumption Habits

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“Brew” is a new concept currently undergoing crowd funding in England that could potentially change the way consumers drink tea. Although tea is heavily consumed in the country, much of that consumption is done in-home with tea bags. Brew aims to create a pub-like environment that puts the tea front and center, looking at new methods to brew loose-leaf tea.

Michael SchaeferPodcast features Michael Schaefer - Head of Beverages and Foodservice Research

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July 29, 2015

Coffee a New Area of Focus for Australian Pubs

Julia-IlleraAnalyst Insight by Julia Illera - Research Analyst

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Once anathema to drinkers, useful only for its supposed – now thoroughly disproven – sobering abilities, coffee has long moved in different circles to pubs in Australia.

Given the cross-category competition rife within the foodservice industry – fast food positioning itself against restaurants through the premium fast casual trend, specialist coffee shops branching out into breakfast and unexpected foodservice players looking to take market share from bars and pubs by selling alcohol – it shouldn’t come as a surprise that pubs in Australia would be considering diversifying their menus and appeal by offering an in-house and/or takeaway coffee option.

Indeed the lines between pubs and cafés, and even pubs and restaurants, are blurring as Australian pubs are increasingly embracing high-quality menus with a gourmet-yet-casual “cheap eat” theme. This is not restricted to midday and evening dining either; however, the real stumbling block for pubs hoping to attract the morning trade is that the brew of choice for early risers these days is more likely to be coffee rather than beer or a Bloody Mary.

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July 28, 2015

Q&A: The State of the Coffee Market in North America

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Analyst Insight by Eric Penicka and Mark Strobel - Research Analyst

These are the questions posed to us following our recent webinar "The State of the Coffee Market in North America." We responded to the original questions via email; you can view our responses below. You can also watch the full webinar on-demand for complete insights.

Q: ­Is there any preference in terms of coffee exporting country for USA, Canada and Mexico? For example, do they prefer mostly coffee from Brazil, Africa, Costa Rica etc or there is no preference?­

A: As a whole, I would say the vast majority of American consumers aren’t aware of differences in coffee by origin, although they may be able to rattle off a few coffee producing nations like Costa Rica, Brazil, Colombia, Ethiopia, etc. When speaking about the sophisticated, high-end coffee consumer, there may very well be some who have a preference to origin, however I believe these consumers are oftentimes more concerned about ethically sourced coffee which may play into geographical preference.

Q: ­Who are the main players in the pod category in the US and what are their market shares?­

A: Coffee pods in the US are dominated by Keurig Green Mountain, who has licensing agreements with nearly all other coffee companies. At a more specific brand name level, Green Mountain Coffee, Private Label, and Starbucks lead, with 16%, 14% and 11%, respectively. Nespresso has only 5% share.

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July 26, 2015

Pour Over Coffee in the US: Trend or Fad?

Virginia LeeAnalyst Insight by Virginia Lee - Senior Research Analyst

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At the March 2015 International Housewares Show in Chicago, multiple vendors featured electric kettles with adjustable temperature controls, filtered coffee systems, and electric coffee makers offering barista-quality coffee. One of the most promising products at the show was the KitchenAid Pour Over Coffee Brewer that claims to marry the benefits of pour over with the ease and consistency of an electric drip coffee maker. Pour over coffee is undergoing a resurgence in the US, as this manual brewing method expands beyond speciality coffee shops in big cities such as Chicago, New York, and Portland, Oregon into smaller cities, housewares retailers, and speciality supermarkets. Coffee shops, appliance makers, and retailers are tapping into Americans’ desire for better tasting coffee by promoting the pour over method. This trend is expected to intensify in the at-home market in the years to come.

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July 20, 2015

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July 5, 2015

Major Italian Coffee Players Facing Crossroads

Hope.LeeAnalyst Insight by Hope Lee - Senior Beverages Analyst

As Massimo Zanetti Beverage Group SpA (MZBG, the owner of Segafredo) is listed in Milan, investors are perhaps eyeing other privately-owned Italian foods and beverages companies. Italian entrepreneurs are traditionally known to keep things within the family and public listing is often not considered a favourable option for the continuity of their businesses. However, the this mind-set is likely to change as many of these companies have started exploring international markets more aggressively to mitigate domestic slowdown. Here is a quick glance at the global growth markets which they could explore, and the state of play regarding the major Italian coffee players. 

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June 23, 2015

Coffee Fest: A Review of the North American Market and Key Hot Drinks Trends

The Coffee Fest trade show took place on Navy Pier in Chicago from June 5 to June 7, hosting a wide range of players in the coffee and hot drinks industry, including coffee shop owners, baristas, roasters, distributors, manufacturers and more. Here, Euromonitor International’s drinks research analysts Mark Strobel and Eric Penicka presented on ‘The State of the North American Coffee Market’. Below are some key points from the presentation as well as other notable trends from Coffee Fest.

Euromonitor’s Presentation on the State of the North American Coffee Market

CoffeeFestGlobally, retail coffee is a US$85 billion dollar industry and North America is among the largest and fastest growing of all regions worldwide. In the US, coffee pods have dominated conversations as its value share of the market has grown from nearly negligible a decade ago, to a US$4 billion industry in 2014. However, their growth spurred on by the Great Recession is expected to taper off in the next five years. Pod’s stalling growth will in part be a result of increased consumer appreciation of coffee in the US, where third-wave, independent coffee shops have gained ground. Furthermore, specialty coffee shop growth can largely be attributed to the millennial age group which has changed consumer trends across industries and will only grow in importance in the years to come as their purchasing power advances.

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May 29, 2015

Top 5 Beverage Trends at NRA Show 2015

The National Restaurant Association (NRA) Show took place in Chicago from May 16 to 20. The show and its BAR event hosted attendees from around the world who saw the latest in packaged foods, hot and soft drinks, alcoholic drinks, cooking equipment, and software for the restaurant industry. Below are the top 5 beverage trends that the Euromonitor research team of Eric Penicka, Mark Strobel, and Virginia Lee observed.

Dry-Cider1. Dry Cider: As cider continues to have staggering growth in the US, cider companies are attempting to appeal to a wider group of consumers. In a bid to disprove common perception that ciders are for women, cider companies have focused on dry and bitter product development. Ciders featuring craft beer’s beloved hops were featured in Angry Orchard’s Hop’n Mad Apple and the Colorado Cider Company’s Grassho-ah. Beyond hops, semi-dry and dry ciders are being formulated to increase session-ability. Woodchuck’s Gumption blends American sweet eating apples and British dry cider apples to create a semi-sweet cider to assist consumers in transitioning to dry ciders. At the Demo Lounge, Wirtz Beverage Group used Seattle Cider Co’s gin botanical cider to create a Seattle “75” cocktail.

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May 22, 2015

World Green Tea Growth Prospects

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The global green tea market is highly fragmented; the leaders Ito En and Unilever are close rivals, with just 4% value shares each in 2014. The potential for growth is huge, thanks to green tea’s health benefits. Unilever should look to address its weaknesses in Asia Pacific, particularly in China and Indonesia, in order to seize growth opportunities, thus defending its future global status.

May 17, 2015

Adapting Hot Drinks Brands to Fit Multi-Channel African Retailing

Howard TelfordAnalyst Insight by Howard Telford - Senior Beverages Analyst

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The dual development of modern retail channels and sustained prominence of traditional points of sale are important variables influencing packaged hot drinks in Africa. As the chart below demonstrates, there is a great disparity among African markets in the development of modern outlets in hot drinks retailing, which include supermarkets and convenience stores. Small, independent and informal retailers that serve low-income consumers still constitute the majority of drinks retailing volume in the continent, particularly in sub-Saharan Africa. This traditional channel of sale demands flexibility in terms of price, package size, promotion and delivery in order to reach the vast majority of low-income African consumers. However the uneven but significant growth of modern channels in urban hubs must also play into the complex multichannel strategy of hot drinks brands in Africa.  Big and small, multipack and single-serve, affordable and premium: is it possible for new, foreign entrants to build mass appeal in such a disparate retailing environment?

Hot-Drinks-Retail-in-Africa

Source: Euromonitor International

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Recent Posts

New Tea Concept in England Aims to Change Consumption Habits

Coffee a New Area of Focus for Australian Pubs

Q&A: The State of the Coffee Market in North America

Pour Over Coffee in the US: Trend or Fad?

Introducing Passport Institutional Channels

Major Italian Coffee Players Facing Crossroads

Coffee Fest: A Review of the North American Market and Key Hot Drinks Trends

Top 5 Beverage Trends at NRA Show 2015

World Green Tea Growth Prospects

Adapting Hot Drinks Brands to Fit Multi-Channel African Retailing