Energy boost for coffee
Author: Jeanette Bengtsson
Date published: 17 Aug 2007
Coffee has a reputation for acting as a stimulant. There should be no surprise, therefore, that these properties look to fit well with the strong growth in energy-enhancing products, such as Red Bull, in the wider food and beverage arena.
Energy-enhancing products have really taken off in the past few years, as illustrated by the phenomenal growth of energy drinks. Indeed with annual global volume growth averaging 17% and average volume growth in the US of 43% over the past five years this is a sector on the move. Coffee brands have the opportunity to follow up on the needs of people seeking a sustained increase in alertness and energy. Not only does this represent a new (or at least more extreme) positioning for coffee, but also the main target audience for energy drinks is made up of those consumers that coffee brands have found hardest to attract - the young - so potentially a double benefit for industry players taking a good look at this opportunity.
The growth in both the acceptance and prevalence of energy drinks bodes well for coffee brands aiming at this market. Witness the unabashed positioning taken by the US brand Shock Coffee. A young and irreverent image embraces all parts of the portfolio – the range includes ground coffee, whole beans, Shock-A-Cino, Shock-A-Lots (chocolate-covered hyper caffeinated coffee beans) – all with 50% more caffeine than standard coffee.
Elsewhere, such as with the Elite Café brand in Poland, products have been introduced with functional ingredients normally limited to energy drinks. Guarana, which contains caffeine and other alkaloids associated with stimulating the central nervous system, has been added to one of the lines of this Polish operator. However, it is not only smaller players getting in on the act. Douwe Egberts also markets its 3-in-1 Active instant coffee with guarana in Eastern Europe.
Merely noting that there is a chance to piggyback on the success of energy drinks by harnessing the natural high of coffee and adding the latest energy-boosting ingredient is not enough. It is important to remember that coffee is not ready-to-drink (unlike other energy drinks); as a result it does not necessarily fit with the faster lifestyles of today's young. Coffee manufacturers could, however, benefit from taking their brands into the RTD sector, adding their own 'natural' touch to these products (prepared and sourced in a natural way) alongside the addition of functional ingredients. On the other hand, manufacturers must also face the competition from Starbucks, so sales would need to be aimed at “non-Starbucks” areas or have a great and refreshing taste, and perhaps be positioned as an alternative to a juice or Coca-Cola, for example.
Any manufacturer considering a move to this sort of product needs to consider the type of promotional support required. The very attractiveness of the younger, free spending consumer means that these consumers are bombarded with advertising. They are demanding and require a confident knowing approach. Mass individuality that keeps consumers closely linked to their peers is a difficult tone to strike, but rewarding for those who succeed.