RTD Coffee in Australia

PROSPECTS

Despite competition from hot coffee, RTD coffee sees growth though category is maturing

Australian consumers perceive RTD coffee more as an indulgence and an occasional treat, rather than a daily habit. However, new flavour launches such as caramel and hazelnut are helping to stimulate interest.

Consumers increasingly seek high quality RTD coffee, in line with trends in hot coffee

Brands that are able to deliver diverse flavour profiles and a variety of RTD coffee strengths will be well positioned to capitalise on capturing share among consumers who are keen to experiment and try out new flavour profiles and product variants. While much of this trend will be stimulated by growth in the café culture in Australia, consumers are also becoming increasingly demanding in terms of the quality of their RTD coffee beverages.

Future growth dependent on promotional frequency and new product development

Growth of the RTD coffee category is also closely linked with promotional frequency. For instance, consumers tend to be motivated to try well-known brands that achieve top of mind positioning through advertising as well as price promotional campaigns.

COMPETITIVE LANDSCAPE

Lion remains outright leader in RTD coffee in 2019

Lion Pty is present with the leading brand Dare in the category as well as third-ranking brand Farmers Union Ice Coffee. Dare did not benefit from any significant new product developments or innovation in 2019.

Parmalat Australia ranks second in RTD coffee

Parmalat Australia ranked second with its Ice Break and Rush brands and benefited from the recent launch of its new Ice Break Bold Espresso extension, which contains three shots of coffee. According to the company’s Marketing Director Angela Burr, “Ice Break Bold Espresso will bring an authentic, bold and smooth coffee taste to iced coffee drinkers, at a mainstream price point.

Califia Farms stimulates consumer interest with new healthy RTD coffee options

Califia Farms launched its almond cold brew coffee towards the end of the review period claiming it to be 100% plant based, low in sugar and free from soy, dairy, gluten and is vegan. This brand is available in a number of flavour varieties including: Triple shot cold brew coffee in 30ml; and Coca Noir in 310ml size, targeting dark chocolate lovers and containing a mix of coffee, double dark chocolate and almond milk.

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