MustStocks 2021: Coffee

MustStocks 2021: Coffee

The nation’s growing taste for coffee compared with more traditional beverages is now well established – and convenience retailers are benefiting from this new era of drinking.

Coffee business in convenience stores was worth £81.7m in the year to March 2021 – an 11.5% rise on the previous year, which shows that Britain’s burgeoning coffee-bar culture is now working its magic in the impulse sector.

The renewed buoyancy of the category is evident from the strong sales performances of the majority of the top 10 brands, with just one own-label failing to increase business over the past year.

The category leader, Nescafé, has spearheaded the development of coffee for decades and continues to set the pace with sales growth of 6.8% in the most recent year, when it generated revenue of £42.2m for impulse retailers. That makes is a must-stock for stores looking to build their coffee sales.

It is more than three times the size of its nearest challenger, Kenco, which achieved a faster growth rate of 11.3% but remains smaller, being worth £13.8m to retailers every year.

Douwe Egberts was the fastest mover among the top three, with sales up by 18.5%, but there were even higher rises among brands lower down the rankings.

Taylors of Harrogate moves up two places to fourth on the back of a 54.4% impulse sales surge, ending the year with business worth £3m.

Lavazza is another brand on the rise, moving up two places to fifth thanks to a 23.9% increase in business. That pushes it ahead of L’Or, which is down from fourth position last time around, having increased impulse revenue by just 1.2% during the year.

Euro Shopper is the only brand to lose ground in terms of sales and drops to seventh place as a result. The final three brands in the table, Café Classic, Tassimo and Cafédirect, all achieved double-digit sales growth that was well ahead of the rate of category development in the impulse sector as a whole.

There were few marketing developments within the coffee category during the 12-month period under revue, but more recent activity has included the introduction at the end of March this year of a new packaging design for Taylors of Harrogate.

The design features a new “distinctive and unique” logo, as well as colour variations to “differentiate packs on-shelf”.

In April, Nescafé introduced a “barista-style” instant range called The Roastery Collection in a move designed to give consumers “the flavour of the artisan coffee they would expect from a coffee shop, all from the comfort of their kitchen”. It was made available in two variants – Light Roast and Dark Roast – in 100g tins.

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