Other hot drinks recorded steep retail volume declines over the early part of the review period, as chocolate-based flavoured powder drinks were considered to be unhealthy due to the high sugar content. Parents opted to purchase fewer of these drinks for their children.
Many players are finding it difficult to gain momentum in other hot drinks. The exceptions are those which offered their whole range from the very beginning only in organic variants, such as Kung Markatta, or with an emphasis on no added sugar, such as N!CK'S.
Retail volume sales of other hot drinks grew somewhat slower than foodservice volume sales in 2018, as eating out and visiting cafés when meeting friends, working or studying have been gaining in popularity among Swedes over the last decade. The trend is expected to remain strong, which could be jeopardised only by another financial crisis, as Swedish households are rather indebted due to housing loans.
Mondelez Sverige remained the clear leader in other hot drinks with its O’Boy brand in 2018. The brand is a synonym for chocolate-based flavoured powder drinks for many Swedes.
In percentage terms, organic or no added sugar products recorded the strongest retail value growth in 2018, including Kung Markatta’s Kung Markatta Chokladdryck and Coop Sverige’s Änglamark organic private label other hot drinks. Luthman Backlund Foods’ N!CK'S with no added sugar and Lantmännen Cerealia’s Ögonblink in convenient portion pouches also performed well, although N!CK'S developed from a lower base.
Off-trade unit prices of other hot drinks continued to increase in 2018, although growth slowed in comparison to 2017, as the leading brand, O'Boy’s, maintained its pricing. Sales of more expensive products, such as Kung Markatta and N!CK'S, increased, albeit from low bases, and had little impact on total unit price development.
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