Small segments are showing the big ones how to perform well

Last year coffee’s retail sales had finally grown once again, but by the beginning of this year this momentum was lost. NESCAFÉ’s brand manager Róbert Szuhai explained to our magazine that raw material prices were rising most of last year and this trend translated into higher consumer prices this year. As for retail channels, hypermarkets’ share from sales continued to decrease; mainly discount supermarkets stepped into their place. Private label products’ market share is rather high in the instant coffee market, but NESCAFÉ managed to turn the trend around. According to Péter Szabó, Mocca Negra Zrt.’s key account manager, capsule coffee is conquering the Hungarian market too. Despite this trend, most Hungarians are still buying 250g ground coffee, although consumers seem to become more sophisticated, putting higher-quality varieties in their baskets. Promotional periods are very important as the majority of sales is realised at these times. In the last few years Nestlé Hungária put successful products on the market such as NESCAFÉ 3in1 with brown sugar, NESCAFÉ Classic Crema or at the end of last year premium-category NESCAFÉ Gold Barista Style. These product launches had to do with becoming the market leader in 2014 in terms of value share. NESCAFÉ Dolce Gusto capsules also contributed to this triumph. Krisztina Kovács, NESCAFÉ Dolce Gusto’s brand manager told our magazine that single-portion products are gaining ground in Hungary too. One of NESCAFÉ® Dolce Gusto®’s biggest advantages is that it can also be used to make tea or hot chocolate. E-commerce plays a vital role in selling products under this brand. At the same time selling online also brings many new challenges: several groups have to work in close cooperation and communication is vital as well. NESCAFÉ’s communication took a new direction at a global level last year, adopting the slogan ‘It all starts with NESCAFÉ’ and introducing a new logo and a new packaging design. The brand plans to push forward in the digital domain in its communication. From July shoppers come across NESCAFÉ Alegria coffee machines in 286 Spar Hungary shops. These new-generation machines not only make a top brew but they are stylish as well. What is more, they can even satisfy ‘To Go’ demand, using special paper cups with a lid – we were informed by Boglárka Tóth, Nestlé Hungária’s channel brand manager. Mocca Negra underwent major changes this year. In May the Bravos roasted coffee portfolio got a new packaging. Bravos 3in1 instant was backed with a prize game this summer and reached many young consumers. In the last months of 2015 the company plans to come out with the Bravos Premium 250g ground coffee, a 100-percent Arabica product. Last year saw the launch of Bravos Espresso and this step meant that the brand entered the upper-medium category of the market. Bravos’ next nationwide campaign will also feature Olympic champion water polo player Tamás Kásás. n