Hot Drinks in Finland

Euromonitor International's Hot Drinks in Finland market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.

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Tables: 76  |  Publication date: Apr 2009
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  • Get insight into trends in market performance
  • Pinpoint growth sectors and identify factors driving change
  • Identify market and brand leaders and understand the competitive environment

Product coverage

Coffee; Other hot drinks; Tea

Executive summary

Higher consumer prices curtail volume growth in 2008

Finnish hot drinks witnessed a slightly declining volume development in 2008. This was in contrast to the small, yet positive, review period average volume growth. Increasing maturity and escalating consumer prices led to the modest volume development.

However, demand for premium, ethical, and health and wellness positioned hot drinks increased in Finland. While ethical and health and wellness continued as niche with small volume sales, premium hot drinks became an established trend with substantial volume sales. These trends hindered volume sales from rapid decline and current value sales saw a stronger than usual growth in 2008. Overall, there was an upward movement of average unit prices during the last two years of the review period in the off-trade channel.

Health and wellness continues to be the trend in 2008

Despite being a central aspect of hot drinks over the review period, the health and wellness trend showed no sign of slowing in 2008. On the contrary, this was the most common aspect in terms of new launches and advertising campaigns in all categories of hot drinks. Functional, fortified, light products, or combinations thereof, were common themes in 2008. These developments contributed to increased average unit prices in 2008.

Domestic Gustav Paulig AB Oy leads

Domestic coffee operator, Gustav Paulig AB Oy, dominated hot drinks in Finland in 2008. This position was due to its lead in the huge coffee category with the popular brands of Juhla Mokka and Presidentti. Gustav Paulig AB Oy’s hot drinks share increased slightly in 2008, as well as over the review period as a whole. Improved distribution deals with major retailers S-Group and Tradeka, as well as advertising campaigns boosted the company’s retail value share.

Gustav Paulig AB Oy’s domination was also a result of its having been present in Finland for many years and, therefore, the loyalty of local consumers to its brands. The company also benefited from a strong relationship with leading retailers, particularly chains of supermarkets/hypermarkets.

On-trade sales increase more than off-trade in 2008

Hot drinks in the on-trade channel – both current value and volume sales – increased more profoundly than in the off-trade channel. The booming café culture was central to this development. Finns increasingly dined out and spent a larger proportion of their budgets on restaurant visits, thus driving hot drinks’ sales.

Volume growth turns negative following accelerating consumer prices

Finnish hot drinks is expected to experience declining volume development over the forecast period. This will be a poorer performance than the positive review period growth. Hot drinks in Finland is very mature, and increasing price levels will prevent growth in volume sales. In addition, the financial crisis in the country is expected to hamper on-trade sales. It will also lead consumers to purchasing a lesser volume of hot drinks or choosing cheaper brands, such as private label products.

However, in constant value terms, sales are expected to be at approximately the same level as over the review period. A vigorous demand for health and wellness positioned hot drinks combined with the increasing costs of raw materials, salaries and energy, will contribute to increasing average unit prices and a positive constant value forecast development.

Table of contents

HOT DRINKS IN FINLAND : MARKET INSIGHT

EXECUTIVE SUMMARY

Higher consumer prices curtail volume growth in 2008

Health and wellness continues to be the trend in 2008

Domestic Gustav Paulig AB Oy leads

On-trade sales increase more than off-trade in 2008

Volume growth turns negative following accelerating consumer prices

KEY TRENDS AND DEVELOPMENTS

Global financial crisis disturbs Finland’s strong economic growth

Occupying 92% of volume sales, coffee dominates hot drinks in Finland

Finns embrace ethical coffee

Convenience and innovation are key in attracting consumer interest

Health and wellness becomes mainstream

MARKET DATA

Table 1 Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2003-2008

Table 2 Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2003-2008

Table 3 Retail Sales of Hot Drinks by Sector: Volume 2003-2008

Table 4 Retail Sales of Hot Drinks by Sector: Value 2003-2008

Table 5 Retail Sales of Hot Drinks by Sector: % Volume Growth 2003-2008

Table 6 Retail Sales of Hot Drinks by Sector: % Value Growth 2003-2008

Table 7 Foodservice Sales of Hot Drinks by Sector: Volume 2003-2008

Table 8 Foodservice Sales of Hot Drinks by Sector: % Volume Growth 2003-2008

Table 9 Total Sales of Hot Drinks by Sector: Total Volume 2003-2008

Table 10 Total Sales of Hot Drinks by Sector: % Total Volume Growth 2003-2008

Table 11 Hot Drinks Company Shares by Value 2004-2008

Table 12 Hot Drinks Brand Shares by Value 2005-2008

Table 13 Penetration of Private Label by Sector 2004-2008

Table 14 Sales of Hot Drinks by Distribution Format: % Analysis 2003-2008

Table 15 Sales of Hot Drinks by Sector and Distribution Format: % Analysis 2008

Table 16 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2008-2013

Table 17 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2008-2013

Table 18 Forecast Retail Sales of Hot Drinks by Sector: Volume 2008-2013

Table 19 Forecast Retail Sales of Hot Drinks by Sector: Value 2008-2013

Table 20 Forecast Retail Sales of Hot Drinks by Sector: % Volume Growth 2008-2013

Table 21 Forecast Retail Sales of Hot Drinks by Sector: % Value Growth 2008-2013

Table 22 Forecast Foodservice Sales of Hot Drinks by Sector: Volume 2008-2013

Table 23 Forecast Foodservice Sales of Hot Drinks by Sector: % Volume Growth 2008-2013

Table 24 Forecast Total Sales of Hot Drinks by Sector: Total Volume 2008-2013

Table 25 Forecast Total Sales of Hot Drinks by Sector: % Total Volume Growth 2008-2013

APPENDIX

Published Data Comparisons

Production/Import/Export Data

Table 26 Imports/Exports of Coffee 2005-2007

DEFINITIONS

Summary 1 Research Sources

LOCAL COMPANY PROFILES - FINLAND

CLOETTA FAZER MAKEISET OY - HOT DRINKS - FINLAND

STRATEGIC DIRECTION

KEY FACTS

Summary 2 Cloetta Fazer Makeiset Oy: Key Facts

Summary 3 Cloetta Fazer Makeiset Oy: Operational Indicators

COMPANY BACKGROUND

PRODUCTION

Summary 4 Cloetta Fazer Makeiset Oy: Production Statistics 2007

COMPETITIVE POSITIONING

Summary 5 Cloetta Fazer Makeiset Oy: Competitive Position 2008

GUSTAV PAULIG AB OY - HOT DRINKS - FINLAND

STRATEGIC DIRECTION

KEY FACTS

Summary 6 Gustav Paulig AB Oy: Key Facts

Summary 7 Gustav Paulig AB Oy: Operational Indicators

COMPANY BACKGROUND

PRODUCTION

Summary 8 Gustav Paulig AB Oy: Production Statistics 2007

COMPETITIVE POSITIONING

Summary 9 Gustav Paulig AB Oy: Competitive Position 2008

MEIRA OY - HOT DRINKS - FINLAND

STRATEGIC DIRECTION

KEY FACTS

Summary 10 Meira Oy: Key Facts

Summary 11 Meira Oy: Operational Indicators

COMPANY BACKGROUND

PRODUCTION

Summary 12 Meira Oy: Production Statistics 2007

COMPETITIVE POSITIONING

Summary 13 Meira Oy: Competitive Position 2008

SUOMEN ELINTARVIKETUONTI OY NORDQVIST - HOT DRINKS - FINLAND

STRATEGIC DIRECTION

KEY FACTS

Summary 14 Suomen Elintarviketuonti Oy Nordqvist: Key Facts

Summary 15 Suomen Elintarviketuonti Oy Nordqvist: Operational Indicators

COMPANY BACKGROUND

PRODUCTION

Summary 16 Suomen Elintarviketuonti Oy Nordqvist: Production Statistics 2007

COMPETITIVE POSITIONING

Summary 17 Suomen Elintarviketuonti Oy Nordqvist: Competitive Position 2008

COFFEE IN FINLAND

HEADLINES

TRENDS

COMPETITIVE LANDSCAPE

PROSPECTS

SECTOR DATA

Table 27 Coffee Machine Sales: 2002-2006

Table 28 Instant Coffee by Speciality Type 2004-2008

Table 29 Retail Sales of Coffee by Type: Volume 2003-2008

Table 30 Retail Sales of Coffee by Type: Value 2003-2008

Table 31 Retail Sales of Coffee by Type: % Volume Growth 2003-2008

Table 32 Retail Sales of Coffee by Type: % Value Growth 2003-2008

Table 33 Standard Vs Coffee Pods 2004-2008

Table 34 Coffee Company Shares 2004-2008

Table 35 Coffee Brand Shares 2005-2008

Table 36 Forecast Retail Sales of Coffee by Type: Volume 2008-2013

Table 37 Forecast Retail Sales of Coffee by Type: Value 2008-2013

Table 38 Forecast Retail Sales of Coffee by Type: % Volume Growth 2008-2013

Table 39 Forecast Retail Sales of Coffee by Type: % Value Growth 2008-2013

TEA IN FINLAND

HEADLINES

TRENDS

COMPETITIVE LANDSCAPE

PROSPECTS

SECTOR DATA

Table 40 Retail Sales of Tea by Subsector: Volume 2003-2008

Table 41 Retail Sales of Tea by Subsector: Value 2003-2008

Table 42 Retail Sales of Tea by Subsector: % Volume Growth 2003-2008

Table 43 Retail Sales of Tea by Subsector: % Value Growth 2003-2008

Table 44 Tea Company Shares 2004-2008

Table 45 Tea Brand Shares 2005-2008

Table 46 Forecast Retail Sales of Tea by Subsector: Volume 2008-2013

Table 47 Forecast Retail Sales of Tea by Subsector: Value 2008-2013

Table 48 Forecast Retail Sales of Tea by Subsector: % Volume Growth 2008-2013

Table 49 Forecast Retail Sales of Tea by Subsector: % Value Growth 2008-2013

OTHER HOT DRINKS IN FINLAND

HEADLINES

TRENDS

COMPETITIVE LANDSCAPE

PROSPECTS

SECTOR DATA

Table 50 Retail Sales of Other Hot Drinks by Subsector: Volume 2003-2008

Table 51 Retail Sales of Other Hot Drinks by Subsector: Value 2003-2008

Table 52 Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2003-2008

Table 53 Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2003-2008

Table 54 Other Hot Drinks Company Shares 2004-2008

Table 55 Other Hot Drinks Brand Shares 2005-2008

Table 56 Forecast Retail Sales of Other Hot Drinks by Subsector: Volume 2008-2013

Table 57 Forecast Retail Sales of Other Hot Drinks by Subsector: Value 2008-2013

Table 58 Forecast Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2008-2013

Table 59 Forecast Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2008-2013