Zenith Global 2018 RTD Coffee Innovation Report

Zenith Insight report

January 2018

2018 RTD coffee innovation A review of recent trends and new product development in the global RTD coffee market

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contents section

page

1. introduction and scope

4

2. category overview

7

3. brand profiles

23

3.1 brand profiles: Asia Pacific

24

3.2 brand profiles: North America

39

3.3 brand profiles: Europe

83

3.4 brand profiles: Africa & Middle East

103

3.5 brand profiles: Latin America

108

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1. introduction and scope

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1. introduction and scope ready-to-drink coffee innovation overview

scope

The aim of this report is to assess developments in the ready-todrink (RTD) coffee sector, identifying and summarising trends and new innovations in order to understand what opportunities exist for new product development.

Global and regional level coverage of the RTD coffee market, including the current and future outlook of the market including market size and growth, as well as key trends, developments and themes driving new product launches. regions covered in this report: • • • • •

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Asia Pacific North America Europe Latin America Africa & Middle East

1. introduction and scope ready-to-drink coffee innovation

definition: ready-to-drink coffee For the purpose of this report, Zenith has limited its research scope using the following definition: •

Any coffee-based or coffee-flavoured beverage in a ready to drink format.

coverage Innovation and new product development shaping the global market for ready-to-drink coffee from 2014 through to January 2018 inclusive.

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2. category overview

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2. category overview global ready-to-drink coffee market •

Commentary

Global sales of RTD coffee, 2017

20% 20%

20%

20%

20%

Asia Pacific N America Europe Africa & M East Latin America

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2. category overview trends in global ready-to-drink coffee innovation •

Commentary

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2. category overview Asia Pacific market overview •

Commentary

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2. category overview Asia Pacific trends in innovation •

Commentary

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2. category overview challenges and barriers challenges and barriers

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2. category overview challenges and barriers insights and opportunities

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3. brand profiles

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3.1 brand profiles Asia Pacific

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3.1 brand profiles - Asia Pacific cold brew; new launch

Georgia (ジョージア) Cold Brew The Coca-Cola Company, Japan

www.georgia.jp

Product information: Originally launched in 1975 in Tokyo, Japan’s leading RTD coffee brand, Georgia, reportedly sells around twice as much as carbonated soft drink brand Coca-Cola in the country.

Constantly innovating to stay ahead of the curve, the company released Georgia Cold Brew Coffee in two variants, Black and Caffe Latte, in 2016. This ‘craft roasted and cold brewed’ beverage is sold in 265ml bottles and claims to have drawn inspiration from the cold brew coffee trend in the US. The Black variant is zero-calories, and the Caffe Latte variant delivers 27 calories per 100ml, thanks to the inclusion of domestic milk. The complete Georgia range includes a wide choice of coffee flavours and variants including Emerald Mountain Blend, European and The Premium, sold a variety of pack sizes, from both short and tall PET bottles to aluminium bottles and cans, and most are sold predominantly from vending machines.

Launch date: May 2016 Variants: Black; Caffe Latte Ingredients: Milk, coffee, sugar, fragrance, casein, emulsifier, silicone (Caffe Latte variant) Pack size & type: Aluminium bottles: 265ml Price: JPY 167 for 265ml bottle

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3.2 brand profiles North America

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3.2 brand profiles - North America cold brew; new variants

Starbucks Cold Brew Coffee Starbucks Coffee Co., USA

www.starbucks.com

Product information: Starbucks launched its Cold Brew RTD coffee range in 2016, jumping on board the cold brew bandwagon many years after smaller companies have been developing and building the category. Starbucks’ version was previously only available in coffeehouses, but its bottled ready-to-drink brew is shelf-stable, 15 calories per serving and widely available through retail outlets, capitalising on the company’s vast distribution network through the North American Coffee Partnership, a joint venture between Starbucks and PepsiCo, endeavouring to gain loyal consumers where some of its niche rivals struggle to penetrate. In 2018, a further two variants - Sweetened Black, and Vanilla & Fig - are set for release, joining the existing Unsweetened Black and Coca & Honey with Cream, variants.

Launch date: February 2018 (new variants); July 2016 (original launch) Variants: Unsweetened Black; Cocoa & Honey with Cream; Sweetened Black; Vanilla & Fig Ingredients: Unsweetened Black: Cold brewed Starbucks coffee; water Channels: Initial rollout at select company-owned cafes nationwide and select grocery stores regionally in Western Washington, Western Oregon and Denver; available nationwide from 2017 Pack size & type: Glass bottle: 11 fl oz Price: US$2.98 for 11 fl oz bottle

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3.3 brand profiles Europe

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3.4 brand profiles Africa & Middle East

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3.5 brand profiles Latin America

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