Other Hot Drinks in Austria

PROSPECTS

Demographic appeal limited by perception as children’s drink

Retail sales of other hot drinks recorded a negative performance in both current value and volume terms in 2018. A major obstacle for strengthening demand for other hot drinks remains the fact that this type of beverage is widely perceived among Austrian consumers as primarily a children’s drink.

Health concerns over sugar remains major stumbling block

In addition to failing to reach consumer segments, the second major stumbling block for other hot drinks in Austria is the increasing health consciousness of local consumers. This has translated into growing concerns over consumption of sugar-rich food and beverages, which also affects many types of other hot drinks.

Labelling increasingly key to adding value

As volume sales levels trend downward, manufacturers will have to focus on boosting top lines by adding value to products. An encouraging sign in this respect is that the share of other hot drinks featuring ethical labels (Fairtrade, UTZ, Rainforest Alliance) has been steadily increasing.

COMPETITIVE LANDSCAPE

Nestlé Österreich GmbH retains leadership due to Caro and Nesquik

Nestlé Österreich remained leader of Austrian other hot drinks in 2018, due to the strong presence of two of its brands: Caro and Nesquik. The both enjoy a long-standing tradition in Austrian hot drinks and are trusted consumer brands.

Mondelez Österreich GmbH remains main challenger

Nestlé Österreich’s main challenger continued to be Mondelez Österreich with its flagship brand Benco. This is a chocolate-based flavoured powder drink, which enjoys great popularity amongst Austrian children.

Ovomaltine brand still virtually synonymous with malt-based hot drinks

Vivatis Holding AG remained the country’s third leading player in other hot drinks in 2018. The company’s main brand in other hot drinks continued to be Ovomaltine, which enjoys similarly high levels of consumer awareness and loyalty as Caro; it has been gaining in popularity among Austrian consumers as a healthier alternative to coffee.

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