Modern and exclusive messages from coffee brands

Private labels are attacking on the coffee market too, but they are successful mainly in the instant segment where functionality prevails over the formality of drinking a good ground-roasted espresso. Branded products come out with coffee selections and limited editions; another field of innovation is coffee machines. Coffee volume sales were going down for quite a while, but this trend seems to change now. It is difficult to increase sales because coffee is primarily a functional drink and energy drinks have become fashionable in the past few years, with sales increasing robustly. – Nevertheless, energy drinks are not competitors of coffee, apart form their activating and refreshing effect, because coffee is made from natural ingredients and has several hundred years of history – says Ágnes Szijjártó, Tchibo Budapest Kft.’s PR coordinator. – In the long run, consumers are not likely to quit the joy of drinking coffee and hopefully we can turn this negative trend around. This is our main task – says Sara Lee Hungary Zrt.’s corporate and brand communications manager, Judit Tőzsér. This year, private labels reached a 17-percent share in coffee sales. According to Judit Tőzsér, consumers think brands are less important with instant products than with ground-roasted coffees. A survey by Nielsen indicates that in August 2008-July 2009 private labels had a 6.5 percent share in ground-roasted coffee sales but represented 32 percent in the instant category. – Product innovation and brand promotions are the means for competing with private labels in the long run. We launch prize games, competitions and in-store promotion campaigns to support our La Festa Cappuccino and 3in1 product groups – says Ildikó Ottó, Maspex Olympos Kft.’s trade marketing manager. The appearance of premium brands on the market indicates that the culture of coffee consumption is improving. The leading brand in the ground-roasted segment, in terms of value sales, is a premium product Omnia. Judit Tőzsér says that with their Senseo brand, in cooperation with Philips, they are present on the market of coffee machines and capsules. Tchibo is also represented in this segment with its Cafissimo capsule coffee machine, sold in their own shops. Ágnes Szijjártó told us that their latest products, Tchibo Espresso Sizilianer Art and Tchibo Epresso Mailänder Art would target those who like Italian-type flavours. The limited edition Tchibo Exclusive Extra Virgin will be available in food stores at the end of September as whole bean coffee in a 500-gram format. Tchibo celebrates its 60th birthday by starting the “Together for kindergartens” campaign. Ildikó Ottó informs us that Maspex Olympos is going to launch a prize game, promoting their complete instant assortment: all La Festa, Coffeeta, Brumi and Ekland products will participate.