Other Hot Drinks in South Africa

PROSPECTS

Other hot drinks to post improved performance going forward

Other hot drinks is set to post an improved performance during the forecast period, mostly driving by improved economic conditions. One category to be positively impacted will be other plant-based hot drinks, with brands such as Ricoffy expected to create greater traction amongst health-conscious consumers.

Nestlé to retain leadership due to increasing dominance

Nestlé South Africa will continue to strengthen its leadership of other hot drinks as the company benefits from its long-standing relationship with local retailers. Likewise, by strengthening its supply chain, Nestlé will have better control over its resources, hence enabling it to sell its products at competitive prices.

Pods to emerge across chocolate- and non-chocolate-based flavoured powder drinks

Pods are expected to continue emerging across chocolate- and non-chocolate-based flavoured powder drinks, with Nespresso compatible capsules set to be the most commonly found. The trend will be supported by increasing demand for Nespresso machines, with families increasingly embracing the convenience of such an appliance.

COMPETITIVE LANDSCAPE

War price takes place as competition intensifies in chicory-based drinks

The average unit price remained relatively stable during the review period as competition intensified between leading players in other plant-based hot drinks. The trend was noticeable across retailers, with a series of promotional campaigns taking place, while flexible packaging formats sold at a more affordable price gained shelf space.

Nestlé introduces Ricoffy Cappuccino

Nestlé South Africa consolidated its leadership in other plant-based hot drink with the release of Ricoffy Cappuccino. The innovation came in three flavours namely original, milk tart and biscuit.

New wave of flavoured powder drinks emerges

A new range of products emerged across flavoured powder drinks during the review period, with the most noticeable being the introduction of flavoured hot chocolate pods targeting families who own a pod coffee machine. An example is Secret River Trading, which effectively launched Pod Stars.

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