Coffee in Canada

PROSPECTS

Fresh coffee beans is the most dynamic in 2018

After the rush of coffee pods, consumers are returning to more traditional offerings with additional benefits. Fresh coffee beans is benefiting greatly from this change.

Major investments by Keurig and Nestlé help coffee pods return to growth

In response to the slowdown in consumption of fresh ground coffee pods, key suppliers including Keurig Canada Inc and Nestlé Canada Inc have started to allocate significant budgets to make coffee pods dynamic again. Advertisements on social networks and activities such as free sampling are targeted to recruit new consumers by increasing the penetration of pod machines.

Different patterns exist in consumption of coffee at home and out of home

Consumption of coffee in on-trade channels such as restaurants and coffee shops is more popular among millennials, while baby boomers are more likely to prepare coffee at home. This has important implications for different coffee categories.

COMPETITIVE LANDSCAPE

Sustainability remains one of the key initiatives of advertising campaigns

There have been growing environmental concerns over coffee pods, from both consumers and government regulatory forces. This resulted in major changes in 2018.

Brands with on-trade visibility are performing very well especially in coffee pods

On-trade brands including Tim Hortons and McCafé gained ground in 2018 thanks to their increased in-store visibility, retail promotions and product innovations. Tim Hortons has become widely available not only in mainstream off-trade channels such as supermarkets and hypermarkets but also in alternative points of purchase such as warehouse clubs.

Nescafé shapes the faith in instant coffee in 2018

Instant coffee sales were strongly influenced by Nestlé Canada Inc’s massive advertisement campaign for Nescafé Gold in 2018. The brand has witnessed major changes in its quality and packaging as well as a nationwide campaign with pop-up cafés.

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