Abstract
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive
environment
Product coverage
Coffee; Other hot drinks; Tea
Executive summary
Premiumisation trend is most evident in coffee
Coffee remained the largest sector in the US hot drinks market by a large
margin in 2007. Supply shortages coupled with steep increases in energy and
transportation costs drove most coffee manufacturers to raise their unit
prices during the year. This supported healthy growth in retail current value
sales but limited growth in volume terms. Strong growth in current value sales
was also attributable to a general trend towards premium products, especially
more novel organic, fair-trade, and Rainforest Alliance brands. Standard
mid-priced coffee brands like Folgers and Maxwell House struggled to maintain
their sector positions as competition from smaller premium brands intensified.
The launch of Folgers Gourmet in 2007 signals that the premiumisation trend is
even filtering down to brands that have traditionally had a mass-market
positioning.
Rising awareness of health benefits drives the positive development of tea
In 2007, increasing health concerns among US consumers spurred new interest in
tea, particularly antioxidant-rich green, white and red tea products. During
the review period, several studies reinforced consumer awareness of the health
benefits of certain types of tea. Manufacturers sought to capitalise on this
trend by launching new tea products containing antioxidant-rich ' superfoods'
such as pomegranate, blueberry, and acai. While white, rooibos and oolong tea
products have long lined the shelves of specialist tea outlets in the US,
growing consumer interest allowed them to penetrate mainstream retail outlets
towards the end of the review period. In 2007, most major grocery retailers
chains carried a wide range of green, white, red, rooibos and oolong tea
products.
Functional products aim to stem decline in other hot drinks consumption
Chocolate-based flavoured powder drinks and malt-based hot drinks continued to
suffer from a lack of interest among US consumers in 2007. During the review
period, both categories showed consistent declines in retail volume sales, as
the traditionally high sugar and calorie content of products did not sit well
with the wider trend towards healthier lifestyles. ConAgra Foods Inc tried a
new approach in 2007 with the launch of its Great Start and Pick Me Up Swiss
Miss variants, both of which contain added functional ingredients: the former
contains added vitamins and minerals, while the latter contains added
caffeine. While products fortified with calcium and vitamins have been
launched by flavoured powder drinks manufacturers in the past, these have
usually been targeted at parents seeking healthier alternatives for their
children. The new Swiss Miss products launched in 2007 are targeted at adults,
primarily women. If successful, this new approach should help to slow the
decline in chocolate-based flavoured powder drinks consumption over the
forecast period.
Diverse on-trade offerings drive consumer interest in coffee
Specialist coffee shops outlets like those in the Starbucks chain remained the
most popular on-trade locations for US consumers to buy coffee during the
review period. Other foodservice chains like 7-Eleven, Dunkin Donuts, Burger
King and McDonald' s took note and invested heavily in upgrading the quality of
their coffee offerings in an attempt to win over consumers. McDonald' s
announced perhaps the most ambitious strategy to date, with the rollout of
café complete with lattes, mochas and trained baristas planned for its US
outlets in 2008. Looking to replicate the success of the Starbucks brand at
the retail level, in 2007 Dunkin Donuts and Caribou Coffee became the latest
on-trade operators to launch fresh ground coffee and fresh coffee beans
products in supermarkets/hypermarkets and other off-trade channels. On-trade
outlets were also the source of several innovations in coffee towards the end
of the review period, from functional coffee with added guarana to new flavour
variants adaptable to regional preferences. Over the forecast period, on-trade
outlets are poised to play an increasingly important role in shaping consumer
tastes for hot drinks products of all kinds in the US.
Table of Contents
- HOT DRINKS IN THE US : MARKET INSIGHT
- EXECUTIVE SUMMARY
- Premiumisation trend is most evident in coffee
- Rising awareness of health benefits drives the
- positive development of tea
- Functional products aim to stem decline in other hot drinks consumption
- Diverse on-trade offerings drive consumer interest in coffee
- KEY TRENDS AND DEVELOPMENTS
- US consumers develop a taste for premium hot drinks products
- On-the-go lifestyles boost on-trade hot drinks
- consumption in the US
- Trend towards healthier hot drinks products gains
- momentum
- MARKET DATA
- Table 1 Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown
2002-2007
- Table 2 Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth
2002-2007
- Table 3 Retail Sales of Hot Drinks by Sector: Volume 2002-2007
- Table 4 Retail Sales of Hot Drinks by Sector: Value 2002-2007
- Table 5 Retail Sales of Hot Drinks by Sector: % Volume Growth 2002-2007
- Table 6 Retail Sales of Hot Drinks by Sector: % Value Growth 2002-2007
- Table 7 Foodservice Sales of Hot Drinks by Sector: Volume 2002-2007
- Table 8 Foodservice Sales of Hot Drinks by Sector: % Volume Growth
2002-2007
- Table 9 Total Sales of Hot Drinks by Sector: Total Volume 2002-2007
- Table 10 Total Sales of Hot Drinks by Sector: % Total Volume Growth
2002-2007
- Table 11 Hot Drinks Company Shares by Value 2003-2007
- Table 12 Hot Drinks Brand Shares by Value 2004-2007
- Table 13 Penetration of Private Label by Sector 2003-2007
- Table 14 Sales of Hot Drinks by Distribution Format: % Analysis 2002/2007
- Table 15 Sales of Hot Drinks by Sector and Distribution Format: %
Analysis 2007
- Table 16 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume
Breakdown 2007-2012
- Table 17 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume
Growth 2007-2012
- Table 18 Forecast Retail Sales of Hot Drinks by Sector: Volume 2007-2012
- Table 19 Forecast Retail Sales of Hot Drinks by Sector: Value 2007-2012
- Table 20 Forecast Retail Sales of Hot Drinks by Sector: % Volume Growth
2007-2012
- Table 21 Forecast Retail Sales of Hot Drinks by Sector: % Value Growth
2007-2012
- Table 22 Forecast Foodservice Sales of Hot Drinks by Sector: Volume
2007-2012
- Table 23 Forecast Foodservice Sales of Hot Drinks by Sector: % Volume
Growth 2007-2012
- Table 24 Forecast Total Sales of Hot Drinks by Sector: Total Volume
2007-2012
- Table 25 Forecast Total Sales of Hot Drinks by Sector: %
- Total Volume Growth 2007-2012
- APPENDIX
- Production/Import/Export Data
- Table 26 Manufacturer' s Shipments of Hot Drinks by Sector 2001-2006
- DEFINITIONS
- Sources
- Summary 1 Research Sources
- LOCAL COMPANY PROFILES - USA
- CONAGRA FOODS INC - HOT DRINKS - USA
- STRATEGIC DIRECTION
- KEY FACTS
- Summary 2 ConAgra Foods Inc: Key Facts
- Summary 3 ConAgra Foods Inc: Operational Indicators 2005-2007
- COMPANY BACKGROUND
- PRODUCTION
- COMPETITIVE POSITIONING
- Summary 4 ConAgra Foods Inc: Competitive Position 2007
- KRAFT FOODS INC - HOT DRINKS - USA
- STRATEGIC DIRECTION
- KEY FACTS
- Summary 5 Kraft Foods Inc: Key Facts
- Summary 6 Kraft Foods Inc: Operational Indicators 2004-2006
- COMPANY BACKGROUND
- PRODUCTION
- COMPETITIVE POSITIONING
- Summary 7 Kraft Foods Inc: Competitive Position 2007
- MASSIMO ZANETTI BEVERAGE USA - HOT DRINKS - USA
- STRATEGIC DIRECTION
- KEY FACTS
- Summary 8 Massimo Zanetti Beverage USA: Key Facts
- COMPANY BACKGROUND
- PRODUCTION
- COMPETITIVE POSITIONING
- Summary 9 Massimo Zanetti Beverage USA: Competitive Position 2007
- PROCTER & GAMBLE CO, THE - HOT DRINKS - USA
- STRATEGIC DIRECTION
- KEY FACTS
- Summary 10 The Procter & Gamble Co: Key Facts
- COMPANY BACKGROUND
- PRODUCTION
- COMPETITIVE POSITIONING
- Summary 11 The Procter & Gamble Co: Competitive Position 2007
- RC BIGELOW INC - HOT DRINKS - USA
- STRATEGIC DIRECTION
- KEY FACTS
- Summary 12 RC Bigelow Inc: Key Facts
- COMPANY BACKGROUND
- PRODUCTION
- COMPETITIVE POSITIONING
- Summary 13 RC Bigelow Inc: Competitive Position 2007
- UNILEVER UNITED STATES INC - HOT DRINKS - USA
- STRATEGIC DIRECTION
- KEY FACTS
- Summary 14 Unilever United States Inc Key Facts
- COMPANY BACKGROUND
- PRODUCTION
- COMPETITIVE POSITIONING
- Summary 15 Unilever United States Inc: Competitive Position 2007
- COFFEE IN THE US
- HEADLINES
- TRENDS
- COMPETITIVE LANDSCAPE
- PROSPECTS
- SECTOR DATA
- Table 27 Sales of Coffee by Type: Volume 2002-2007
- Table 28 Sales of Coffee by Type: Value 2002-2007
- Table 29 Sales of Coffee by Type: % Volume Growth 2002-2007
- Table 30 Sales of Coffee by Type: % Value Growth 2002-2007
- Table 31 Coffee Company Shares 2003-2007
- Table 32 Coffee Brand Shares 2004-2007
- Table 33 Foodservice Sales of Coffee by Distribution Format 2002/2007
- Table 34 Forecast Sales of Coffee by Type: Volume 2007-2012
- Table 35 Forecast Sales of Coffee by Type: Value 2007-2012
- Table 36 Forecast Sales of Coffee by Type: % Volume Growth 2007-2012
- Table 37 Forecast Sales of Coffee by Type: % Value Growth 2007-2012
- Table 38 Coffee Machine Sales: 2002-2006
- Table 39 Instant Coffee by Speciality Type: Instant coffee (total) -
off-trade volume 2004-2007
- Table 40 Instant Coffee by Speciality Type: Instant coffee (total) -
off-trade value 2004-2007
- TEA IN THE US
- HEADLINES
- TRENDS
- COMPETITIVE LANDSCAPE
- PROSPECTS
- SECTOR DATA
- Table 41 Sales of Tea by Subsector: Volume 2002-2007
- Table 42 Sales of Tea by Subsector: Value 2002-2007
- Table 43 Sales of Tea by Subsector: % Volume Growth 2002-2007
- Table 44 Sales of Tea by Subsector: % Value Growth 2002-2007
- Table 45 Tea Company Shares 2003-2007
- Table 46 Tea Brand Shares 2004-2007
- Table 47 Forecast Sales of Tea by Subsector: Volume 2007-2012
- Table 48 Forecast Sales of Tea by Subsector: Value 2007-2012
- Table 49 Forecast Sales of Tea by Subsector: % Volume Growth 2007-2012
- Table 50 Forecast Sales of Tea by Subsector: % Value Growth 2007-2012
- Table 51 Fruit/Herbal Tea by Type: % Off-trade Volume 2005-2007
- Table 52 Other Tea by Type: % Off-trade Volume 2005-2007
- OTHER HOT DRINKS IN THE US
- HEADLINES
- TRENDS
- COMPETITIVE LANDSCAPE
- PROSPECTS
- SECTOR DATA
- Table 53 Sales of Other Hot Drinks by Subsector: Volume 2002-2007
- Table 54 Sales of Other Hot Drinks by Subsector: Value 2002-2007
- Table 55 Sales of Other Hot Drinks by Subsector: % Volume Growth
2002-2007
- Table 56 Sales of Other Hot Drinks by Subsector: % Value Growth 2002-2007
- Table 57 Other Hot Drinks Company Shares 2003-2007
- Table 58 Other Hot Drinks Brand Shares 2004-2007
- Table 59 Forecast Sales of Other Hot Drinks by Subsector: Volume
2007-2012
- Table 60 Forecast Sales of Other Hot Drinks by Subsector: Value 2007-2012
- Table 61 Forecast Sales of Other Hot Drinks by Subsector: % Volume
Growth 2007-2012
- Table 62 Forecast Sales of Other Hot Drinks by Subsector: % Value Growth
2007-2012