Other Hot Drinks in the United Kingdom

PROSPECTS

Innovation in chocolate-based powder

Chocolate-based flavoured powder sales were negatively affected by the health and wellness trend due to their high content of sugar and because of their artificial ingredients. Consequently, main producers began to launch reduced sugar variants and new appealing flavours to revive the category but without success.

Malt-based hot drinks struggling

Malt-based hot drinks have always been used as a substitute for coffee. Instant coffee has been part of the UK culture for years, with malt-based hot drinks perceived as offering only a marginal difference in quality.

Chocolate-based powder set to benefit from vending

The increasing number of vending machines around the UK allowed a higher number of consumers to access quick solutions, maintaining the same quality and experience of a traditional coffee shop. In 2018, chocolate-based powder drinks benefitted from growth in on-the-go consumption, with Britons given the possibility of purchasing their favourite coffee shop chocolate in vending machines.

COMPETITIVE LANDSCAPE

Aimia Foods Ltd adds hot chocolate pods range

Aimia Foods Ltd continued to gain value share in 2018, when it introduced a new range to its chocolate-based flavoured powder drinks portfolio with the launch of Galaxy Hot Chocolate and Maltesers Hot Chocolate Pods to capitalise on the growing hot chocolate pods trend, which is led by Tassimo.

Mondelez UK Ltd leads other hot drinks

Mondelez UK Ltd retained its leadership of other hot drinks in 2018 with its Cadbury brand, due to its strong distribution network in the UK and its wide range of products. In 2018, Mondelez launched a new Oreo chocolate dairy milk flavour to its chocolate-based powder range.

Foodservice can positively influence chocolate-based powder

The great success of foodservice can also positively influence retail sales. As foodservice sales increase in importance for the growth of other hot drinks, manufacturers are expected to increase their focus on this channel.

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