Other Hot Drinks in Denmark

PROSPECTS

Unhealthy image continues to curb demand for other hot drinks

Only chocolate-based flavoured powder drinks are available within other hot drinks in Denmark. These products are widely perceived as being high in sugar and lacking in nutritional value, which puts them at odds with the prevailing trend towards rising health awareness among Danes.

Lack of investment undermines the potential

Another factor contributing to the poor performance of other hot drinks over the review period was the extremely low levels of innovation and promotional activity, which limited its ability to retain the interest of consumers. Given that demand in the category has been falling steadily for several years, it is not expected that investment in new launches and marketing campaigns will improve significantly over the short-to-medium term.

Winter is the peak season for other hot drinks

The period between December and Easter is the peak season for other hot drinks in Denmark. This is because chocolate-based flavoured powder drinks are traditionally regarded as beverages for keeping warm on cold winter days.

COMPETITIVE LANDSCAPE

Nestlé Danmark maintains its strong lead

Nestlé Danmark maintained its strong lead in other hot drinks in retail value terms in 2019. This was mainly due to the commanding lead held by its Nesquik brand, although the company also offers the Nestlé Choco Hot brand.

Private label remains weak in other hot drinks

The aggregate value share of private label in other hot drinks remained low in 2019, despite a minor recovery after the declines of the review period. While the expansion of private label portfolios is a key strategic focus for major retailers in Denmark, their interest in this category is limited due to its relatively small size and poor prospects.

Smaller players could benefit from launching healthier products

Due to the dominant position of Nestlé Danmark and the category’s limited potential for expansion, new product development activity in other hot drinks looks set to remain minimal over the forecast period. Accordingly, no significant changes in the competitive environment are expected.

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