The Hot Beverages category continues to evolve with new products and trends emerging. Lifestyle changes in the category sees many shoppers choosing Dairy Alternatives or buying into decaff to control their caffeine intake, with the introduction of new flavours. These changes help the category to continue to stay relevant and front of mind for shoppers, thereby enabling the Hot Beverages to maintain its position in the UK with 97.6% of households buying in each year1.
Nescafé Azera has introduced crafted coffee to the market. Through a collaboration with Grindsmith coffee roasters to introduce the UK and Ireland’s first instant craft coffee. Nescafé Gold has also focused on the roasting stage of coffee and introduce Roastery Collections Light and Dark. This New Product Development is set to bridge the gap between the premium coffee segment and the super-premium. With some shoppers trading up to Roastery Collections the category shall grow in value and keep coffee drinkers moving up the pence per cup journey.
However, it is important to maintain focus on the established Nescafé products in range as well as these new products. 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 5 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. Wholesalers can provide extra value for their customers with these products by selling the Price Mark Pack (PMP) variations.
PMPs can be used to build trust with shoppers while also utilising brand strength and value to increase appeal to shoppers. Prices should be clearly displayed to ensure a simple shopper experience and eye catching to encourage impulse purchases. 44% of shoppers are more likely to shop in a Convenience store that stocks Price Mark Packs2, making it an obvious choice for wholesalers to sell PMPs.
Additionally to Price Mark Packs, Wholesalers can maximise profits by providing a product offering across all the segments of tea and coffee to ensure no sales are lost. Key segments that are growing and should be stocked as part of any Hot Beverages range are Roast & Ground coffee, Coffee Pods and Origins Instant Coffee as well as speciality teas, fruit and herbal teas and green tea3.
However, on top of stocking the correct products it is important to understand in what format consumers want to purchase the products in. Lately with consumption in-home being far higher than in recent years, shoppers are deciding to choose larger pack sizes4. Therefore, Wholesalers should consider stocking larger packs of the Top Selling Hot Beverages products if they are not doing so already.