Hot Drinks in New Zealand

COVID-19 impact on hot drinks

The emergence of COVID-19 has had a significant impact on hot drinks in New Zealand in 2020. Ahead of a national lockdown, consumers engaged in what was described as panic-buying, with the dominant distribution channel of supermarkets and domestic supply chains struggling to keep up.

COVID-19 country impact

New Zealand acknowledged its first case of COVID-19 on 28 February 2020, due to a traveller returning to the country. Following this, further cases related to travel were also reported.

Company response

Nestlé New Zealand Ltd retained its overall leadership of hot drinks in 2020, with its strong presence in retail and relationship with supermarkets ensuring it was able to capitalise on the changing consumption behaviour caused by COVID-19. The company leads the market through its leading brands, Nescafé in instant coffee, and Milo in malt-based hot drinks, with the latter launching a plant-based variant in 2020.

Retailing shift

Supermarkets remained the dominant distribution channel for hot drinks in 2020, being permitted to remain open during the lockdown as essential businesses. However, the emergence of COVID-19 saw sales through the nascent channel of e-commerce almost double between April and May, compared to the same period in 2019.

Foodservice vs retail split

The emergence of COVID-19 in New Zealand significantly inhibited the ability of foodservice outlets to operate due to government-imposed lockdowns in 2020. They were forced to close at the onset of the Level 4 lockdown on 25 March, with no trading activity allowed.

What next for hot drinks?

The sharp spikes in retail demand, particularly for coffee, driven by the pandemic in 2020 are expected to be followed by declines in 2021 as consumption behaviour begins to normalise and travel and trading restrictions are relaxed. The lasting impact of COVID-19 with respect to its influence on hot drinks is likely to be changes to how New Zealanders work over the forecast period.

Files are delivered directly into your account within a few minutes of purchase.