Cold coffee is the rising star of the star of the drinks category, according to Lauren Cooper, Brand Manager at Nescafé Azera, with over 6.4 million cups now sold every week! Already a huge coffee shop trend, there can be no doubt it is the future of coffee consumption, with <35 year olds now drinking more cold coffee than hot.1 It unlocks distinct consumer benefits vs. hot coffee, perceived as a refreshing drink, perfectly suited to fun and relaxing occasions.2 It taps into the growing on-the-go food & drink trend, with 67% of consumption out and about.3
The Ready to Drink (RTD) Cold Coffee segment is the largest coffee category growth opportunity. In 2019, it was the fastest growing segment within soft drinks at +28.7%.4 Fuelled by the momentum of the cold coffee trend, it is expected to more than double in size by 2025 to £270m becoming bigger than smoothies. Convenience stores will account for a third of the growth, representing a £45m opportunity. With its refreshing taste, RTD coffee’s popularity accelerates in summer, with sales double the Winter period.4
NESCAFÉ Azera® Nitro is already a key player within RTD coffee, as the 2nd largest brand in Independents and 3rd largest in Symbols.5 The NESCAFÉ Azera® brand is perfectly positioned to recruit the cold coffee shopper, with awareness of almost 70% among <35s and strong trend-setting and coffee-shop-style credentials.6
In spring 2020, NESCAFÉ Azera® Nitro is taking its offering to the next level by launching a NEW range: Latte, Salted Caramel Latte and Double Shot Flat White. Each variant offers the guilt-free treat shoppers are looking for, providing an indulgent taste at under 100 Calories, with lower levels of sugar and fat vs. other alternatives on the market. They are available in a 250ml can at an RRP of £1.49.7 The launch is being supported by an exciting £2m through-the-line campaign, including activation, TV and sampling.
To maximise the NESCAFÉ Azera® Nitro RTD Coffee opportunity, wholesalers should create an RTD coffee destination within depots, listing all product ranges together. They should support maximum retail sales by encouraging store-owners to:
• Over-space RTD coffee to drive above average growth and future proof the segment
• Stock and promote7 the full range to encourage choice and trial
• Position at eye-level to increase awareness and drive conversion
• Place adjacent to energy drinks (stimulation) and flavoured milks (pleasure) for ease-of-shop
• Keep it cold, as 96% of consumers want their RTD coffee chilled for immediate consumption3
• Merchandise adjacent to food-to-go ranges to leverage key meal-time consumption occasion3
In the current COVID19 climate, RTD coffee’s growth is expected to slow, due to its high level of on-the-go consumption. However, the growth of cold coffee is built on a long-term emerging trend, and research suggests these areas will bounce-back quickly after lockdown eases.8 Moreover, now is a great time for coffee sales within convenience stores, which are growing their share of the total coffee market.9
During these unprecedented times, NESCAFÉ are working hard to ensure the key brands retailers and their customers love are readily available on shelf. This will allow them to keep a sense of normality and serve their local communities effectively during the crisis. Availability is particularly important for RTD coffee, as we approach the peak summer period. NESCAFÉ will support retailers in seizing this growth opportunity through reliable supply of the new NESCAFÉ Azera® Nitro range.
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