Future in capsules

Coffee is still in the top 5 food categories but according to Nielsen volume sales dropped by a couple of percent. Value sales did not change because increased raw coffee prices on the world market influenced consumer prices. Good news for producers: coffee drinking is a strong tradition and probably there will be no lasting and drastic market contraction. For instance there are dynamically developing segments on the coffee market. Ágnes Szijjártó, Tchibo Budapest Kft.’s PR coordinator told our magazine that one of the main development directions is single serve coffees, which segment expanded by 169 percent in the last 12 months, from the previous comparable period; the other such direction is identified by the great increase in whole bean coffee consumption. Each manufacturer contributed to the advancement of single serve or capsule coffees, with their strong marketing activities. The popularity of NESCAFÉ Dolce Gusto keeps growing, to the extent that Nestlé introduced seven new flavours to the domestic market in the past few months – now 15 different types of capsule are available. Andrea Princz, Nestlé Hungária Kft.’s group brand manager informed Trade magazin that they try to please children too, as one of their novelties is the capsule version of Nesquik cocoa drink, while hot chocolate is also very popular. A new type of coffee maker will hit the shops in September, a limited edition series called NESCAFÉ Dolce Gusto Prada from Spanish designer Agatha Ruiz. Tchibo entered the Hungarian market with their Cafissimo capsule coffee maker in 2008, which they sell through their own network of shops. From time to time they add limited edition capsules to their standard selection, e.g. Mocca D’Ethiopia is being sold since August. We can say that capsules have a great future but the present still belongs to ground-roasted and instant coffees. In these categories private labels pushed forward after the price increase, indicating that rather brand-loyal coffee lovers are turning increasingly price sensitive these days. A recent Nielsen survey revealed that the majority of consumers are of the opinion that elevated prices can be best compensated for by introducing larger packaging units – because of a more favourable unit price. Ágnes Chvojka, Maspex Olympos Kft.’s (La Festa’s distributor) junior brand manager told us about the coffee specialties segment that larger packaging units are not characteristic because of the several-thousand-Forint/kg prices. Instead of these the company focuses on sales activities, e.g. ‘Incredible price!’ was launched early this year for LaFesta Cappuccino. Coffee specialty sales increased in terms of value in the hypermarket and traditional channels last year. Cappuccino sales remained stable, 2in1 grew but 3in1 moderately diminished from the previous year; ‘single portion’ sales strengthened considerably. Private labels’ market share keeps growing: in the cappuccino segment it is 60 percent and in the 3in1 category it is 31 percent but grows faster. Novelties: this year Tchibo put Tchibo Espresso Sicilia Style and Milano Style on the market and plans a limited edition Davidoff series for the Advent season. Nestlé’s NESCAFÉ Green blend (65 percent roasted coffee blended with 35 percent green coffee) earned an outstanding market share already in its first month in the premium instant segment; the 3in1 version came out in June. In the second half of the year the NESCAFÉ Gold product range will be reborn. Maspex Olympos organises a prize game for the third time this year for all their instant brands. An exciting main prize, weekly and daily prizes will be used to generate consumer attention.