Hot Drinks in New Zealand
Euromonitor International's Hot Drinks in New Zealand 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.
Buy online to access strategic market analysis and an interactive statistical database of duty paid retail volume and value sales, illicit trade volume, company and brand shares, pricing, distribution and production data
Tables: 72 | Publication date: Jul 2009
Why buy this report
- 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
Consumers continue to trade up in hot drinks
Boosted by consumers trading up to premium product offerings, off-trade current value sales of hot drinks demonstrated an impressive increase in 2008. Manufacturers propelled this wave of trading-up through the introduction of new hot drinks products. Cerebos Gregg’s Ltd actively refreshed the coffee scene by launching new variants such as Robert Harris Cookies & Cream and Robert Harris After Dinner Mint. Premium hot drink products introduced across 2006 and 2007 also remained strong contributors to the robust performance of hot drinks in 2008. Premium chocolate-based flavoured powder drinks such as Nestlé New Zealand Ltd’s Nestlé Double Blend and Heaven, launched in 2006 and 2007 respectively, still reflected healthy off-trade current value growth in 2008.
Booming café culture and rising health concerns shape consumer preferences
The increasingly widespread café culture has prompted a gradual shift among consumers towards hot drinks of higher qualities and grades. Exposed to the wide variety available in the on-trade environment, particularly in specialist coffee shops, consumers have begun to develop a preference for variants such as flat white in the case of coffee. In 2008, Nestlé New Zealand Ltd continued to expand the portfolio of Nescafé Café Menu, its range of premium instant standard coffee, via the launch of new variants. As the level of health consciousness rises among consumers in New Zealand, the healthier hot drinks product offerings such as green tea and fruit/herbal are becoming increasingly popular. Green tea, known for its antioxidant content, reported robust off-trade current value growth in 2008.
Multinationals retain stronghold in hot drinks
With a stronghold in coffee and other hot drinks, Nestlé New Zealand Ltd retained its leadership position in hot drinks in 2008. Its continuous product innovation and strong brand portfolio, including Nescafé and Milo, proved to be its key elements of success. Similarly, with established brands such as Robert Harris and Gregg’s, Cerebos Gregg’s Ltd takes the second position. In New Zealand’s hot drinks scene, The Bell Tea Co Ltd is the strongest domestic manufacturer and is ranked third in terms of off-trade current value sales in 2008. In contrast to Nestlé New Zealand and Cerebos Gregg’s Ltd, the core focus of The Bell Tea Co Ltd lies in tea, rather than coffee.
Grocery retailers remain the dominant distribution channel
Supermarkets/hypermarkets continued to be the key distribution channel for hot drinks in 2008. A rise in the outlet numbers of supermarkets/hypermarkets was a contributing factor. Additionally, while on-trade volume growth in 2008 slowed down as compared to 2007, off-trade volume growth in 2008 was faster than 2007, giving grocery retailers a chance to gain growth in its performance. As the economy slows down, more consumers begin to cut down on consumption through on-trade channels such as specialist coffee shops as a cost-saving method. Consequently, the consumption level of hot drinks at home rises, boosting the performance of hot drinks in supermarkets/hypermarkets. This phenomenon also enabled other distribution channels, such as independent small grocers, to post a positive performance in 2008.
Consumers’ dependency on hot drinks encourages positive forecast
Despite the economic recession, which is likely to persist into the forecast period, a positive outlook is anticipated for hot drinks. The consumption of hot drinks, particularly coffee, is a longstanding habit for many consumers in New Zealand. Therefore, even in the face of the economic recession, consumers are unlikely to quit this habit. Interestingly, forecast period development is expected to be propelled by consumers bringing their on-trade consumption preferences into their households, with many beginning to consume increasingly sophisticated hot drinks product offerings within the comfort of their own homes.
Table of contents
HOT DRINKS IN NEW ZEALAND : MARKET INSIGHT
EXECUTIVE SUMMARY
Consumers continue to trade up in hot drinks
Booming café culture and rising health concerns shape consumer preferences
Multinationals retain stronghold in hot drinks
Grocery retailers remain the dominant distribution channel
Consumers’ dependency on hot drinks encourages positive forecast
KEY TRENDS AND DEVELOPMENTS
Premiumisation continues in hot drinks in 2008
Supermarkets/hypermarkets remain the dominant distribution channel
Café culture encourages adoption of more sophisticated products at home
Ethical consumerism rises across New Zealand
Concerns over health and wellness drive hot drinks in 2008
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
DEFINITIONS
Summary 1 Research Sources
LOCAL COMPANY PROFILES - NEW ZEALAND
BELL TEA CO LTD, THE - HOT DRINKS - NEW ZEALAND
STRATEGIC DIRECTION
KEY FACTS
Summary 2 The Bell Tea Co Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 3 The Bell Tea Co Ltd: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 4 The Bell Tea Co Ltd: Competitive Position 2008
CEREBOS GREGG'S LTD - HOT DRINKS - NEW ZEALAND
STRATEGIC DIRECTION
KEY FACTS
Summary 5 Cerebos Gregg’s Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 6 Cerebos Gregg’s Ltd: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 7 Cerebos Gregg’s Ltd: Competitive Position 2008
DILMAH NEW ZEALAND PTY LTD - HOT DRINKS - NEW ZEALAND
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Dilmah New Zealand Pty Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 9 Dilmah New Zealand Pty Ltd: Competitive Position 2008
HEALTHERIES OF NEW ZEALAND LTD - HOT DRINKS - NEW ZEALAND
STRATEGIC DIRECTION
KEY FACTS
Summary 10 Healtheries of New Zealand Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 11 Healtheries of New Zealand Ltd: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 12 Healtheries of New Zealand Ltd: Competitive Position 2008
COFFEE IN NEW ZEALAND
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 26 Coffee Machine Sales: 2002-2006
Table 27 Instant Coffee by Speciality Type 2004-2008 Off-trade volume
Table 28 Instant Coffee by Speciality Type 2004-2008 Off-trade value
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 NEW ZEALAND
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 40 Fruit/Herbal Tea by Type: % Off-trade Volume 2005-2008
Table 41 Retail Sales of Tea by Subsector: Volume 2003-2008
Table 42 Retail Sales of Tea by Subsector: Value 2003-2008
Table 43 Retail Sales of Tea by Subsector: % Volume Growth 2003-2008
Table 44 Retail Sales of Tea by Subsector: % Value Growth 2003-2008
Table 45 Tea Company Shares 2004-2008
Table 46 Tea Brand Shares 2005-2008
Table 47 Forecast Retail Sales of Tea by Subsector: Volume 2008-2013
Table 48 Forecast Retail Sales of Tea by Subsector: Value 2008-2013
Table 49 Forecast Retail Sales of Tea by Subsector: % Volume Growth 2008-2013
Table 50 Forecast Retail Sales of Tea by Subsector: % Value Growth 2008-2013
OTHER HOT DRINKS IN NEW ZEALAND
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 51 Retail Sales of Other Hot Drinks by Subsector: Volume 2003-2008
Table 52 Retail Sales of Other Hot Drinks by Subsector: Value 2003-2008
Table 53 Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2003-2008
Table 54 Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2003-2008
Table 55 Other Hot Drinks Company Shares 2004-2008
Table 56 Other Hot Drinks Brand Shares 2005-2008
Table 57 Forecast Retail Sales of Other Hot Drinks by Subsector: Volume 2008-2013
Table 58 Forecast Retail Sales of Other Hot Drinks by Subsector: Value 2008-2013
Table 59 Forecast Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2008-2013
Table 60 Forecast Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2008-2013