Other Hot Drinks in Israel

PROSPECTS

Consumption decreases as awareness of sugar levels in other hot drinks grows

The health and wellness trend continues to impact other hot drinks in Israel. Other hot drinks is comprised of chocolate-based flavoured powder drinks, sugary hot chocolate drinks that are mostly consumed by children.

Consumers’ conception of other hot drinks as a morning drink habit changes

One of the major reasons that the decline of other hot drinks has been gradual, especially in comparison to other sugary drinks, is that for many young consumers a hot chocolate drink is the way to start the day. Many parents have passed on this habit to their children and see no alternative to it, there also being no alternative in other hot drinks.

Private label continues to increase its value share of other hot drinks

In 2019, other hot drinks in Israel became even more concentrated. Strauss Group Ltd strengthened its dominance of value sales in 2019 due to consumer loyalty, while private label edged up its value share.

COMPETITIVE LANDSCAPE

Strauss Group extends its dominance in 2019

Strauss Group Ltd continued to dominate value sales of other hot drinks in Israel in 2019 with its Chocolit and Elite brands. Chocolit, its main brand, is well established and loved by consumers, being a household name and the drink that many parents drank as children.

Marketing support remains minimal for brands

Besides the nostalgia-based advertising campaign that Strauss Group Ltd ran during the review period, other hot drinks continues to lack marketing support in Israel. Smaller players engage only in limited marketing as they lack financial capability and also pose very little competition for Strauss Group.

Other hot drinks sees greater consolidation

Nesquik and other small brands of chocolate-based flavoured powder drinks continued to lose value share in 2019, squeezed out by the increasing dominance of Chocolit and Elite from Strauss Group Ltd and the growth of private label due to its favour among price-conscious families. As sales of other hot drinks continue to decline in Israel, it is unlikely that new entrants will appear, and therefore it is expected that other hot drinks will continue to experience greater consolidation over the forecast period.

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