Covid-19 has impacted shoppers with 41% saying that they are currently using local shops more often than they used to. 36% say they plan to use local stores more often even once restrictions are lifted1. As we continue to spend more time at home, convenience shopper missions are changing. Main shops and planned top up shops are becoming more important to the channel with shoppers willing to pay more to save time and avoid queues. Therefore, this is leading to higher spends and larger basket sizes. This means it is likely that shoppers will purchase large pack formats2 and so wholesalers should provide these for their customers. These trends can boost wholesalers’ sales if they understand the opportunity to cater for more coffee purchasers.
The NESCAFÉ brand accounts for 31.3% of the total spend in hot beverages across the convenience channel and over 40% of this value generated comes from the top 5 selling products. These products are different pack formats of NESCAFÉ Original, NESCAFÉ Gold Blend and NESCAFÉ Azera Americano making these must stock products for any hot beverages range. Some of these brands have recently launched new product developments including, NESCAFÉ Gold Roastery Collection, ‘3 in 1’ Frothy’Cino and Azera My Way Latte.
NESCAFÉ has released new product developments in 3 of their major brands. NESCAFÉ Gold has launched Roastery Collection, bringing an out of home coffee shop trend in home with a choice of light and dark roast. This new product development is set to bridge the gap between the premium and super-premium coffee segment. NESCAFÉ Azera has launched My Way Latte, which is easy to make in 4 simple steps, offering a coffee shop style latte made with the milk of your choice. In 2021, NESCAFÉ Azera will accelerate its credentials in trendsetting and coffee expertise by launching the UK & Ireland’s first instant craft coffee. Finally, NESCAFÉ Original has extended the ‘3 In 1’ range with Frothy’Cino, Vanilla Latte and Latte. NESCAFÉ has strong performance in the category with the top 2 bestselling products across convenience being NESCAFÉ Gold Blend and NESCAFÉ Original Regular 95g2.
As the hot beverage’s category continues to evolve, lifestyle changes in the category see shoppers choosing dairy alternatives and buying into decaff options to reduce caffeine intake. These changes help the hot beverages category to remain relevant and front of mind for shoppers, which enables hot beverages to maintain its position in the UK with 97.6% of households buying in each year3.
Price mark packs is a way in which wholesalers can boost their sales and build trust with shoppers. 44% of shoppers are more likely to shop in a convenience store that stocks price marked packs4.The prices should be clearly visible and eye catching to encourage impulse purchases. The NESCAFÉ range provides price mark packs across best-selling products under the NESCAFÉ Original, Gold and Azera brands.
Brand Focus
In 2020, we embarked on a journey to boost the love for NESCAFÉ Original. The initial results have been excellent – we saw penetration grow by +8.3%, ahead of the Pure Soluble market at -0.1%5. Our new modernised branding combined with our “Morning Moment” campaign have contributed to Original’s awareness growing to 97% and consideration reaching a whopping 70%6. This year, we’ll continue to strengthen our position as the nation’s favourite coffee. We’re running a ~£2m media campaign across TV and digital from February to July. More excitingly, we are also improving our recipe by making it smoother whilst staying true to the full and bold flavour profile our consumers love! Stay tuned for more to come later in the year – we’ll be helping the community by sponsoring an iconic British charity.
NESCAFÉ Azera will focus on category growth through attracting a new younger, more affluent shopper into instant coffee and driving trade-up with the launch of Craft Coffee. This game-changing innovation will be supported by a heavyweight media campaign across TV, Digital, Social, Shopper & PR, reaching 88% of all 18+ audiences with over 11 opportunities to see.
NESCAFÉ Gold Blend will continue to accelerate its leadership position in premium with brand new communications focused on great taste and quality, supported by £4.5M ATL investment! NESCAFÉ Gold Blend will be unmissable with TV, catch-up TV, digital media, social media and instore activation throughout 2021.
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