Hot Drinks in Colombia

Hot drinks see moderate growth

During 2018 hot drinks recorded moderate growth, with tea and coffee being the best performers. Increasing premiumisation in coffee continues attracting consumers willing to try new things, along with more convenient ways of preparation, such as instant coffee and pods, which although remaining small continue displaying interesting rates.

Foodservice continues seeing strong growth in hot drinks

Hot drinks continues to see foodservice volume growth, with a continued expansion of specialist coffee shops, not only through traditional brands Juan Valdez and Oma, but also from banners like Tostao. Inaugurated in 2015, Tostao offers a new model of low-priced coffee and bakery products that has surpassed the 300 stores in few years, broadening the scope of specialist coffee shops to all income segments and thus driving coffee consumption.

Grupo Nutresa remains a leading player in hot drinks

During 2018, the competitive landscape did not see any significant changes; companies belonging to Grupo Nutresa (Colcafé and Cía Nacional de Chocolates) and Nestlé de Colombia remained the most important players. The strength of the first two companies relies on their innovation capacity and robust distribution network, through retail channels and direct selling as well.

Premiumisation, convenience and health trends drive innovation

Launches of premium lines continue to occur in coffee, with Lukafe entering to compete in origin coffees and premium instant coffee, which are recording rapid growth rates. Colcafé, for its part, has taken a different direction, and launched a functional coffee, Café Sello Rojo Vive, which contains more antioxidants than regular coffee.

Volume and value sales expected to continue to rise in the forecast period

Over the 2018-2023 forecast period, hot drinks will continue growing at steady rates, similar to the performance registered in the review period and in 2018. Coffee will be amongst the best- performing categories, with premium lines and instant coffee driving growth.

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