Portugal is a country with a strong and profound coffee culture centred on espresso coffee, with the very high penetration of coffee pod systems in consumers’ homes. It has been difficult for RTD coffee to affirm itself in such a market.
Sales of RTD coffee have been led by the dynamism of the foodservice channel; starting with the introduction of other types of coffee beverages than espresso coffee, particularly through the Starbucks chain. The channel has also been relevant for distributing RTD tea in foodservice outlets.
Thanks to its popularity in foodservice and on-trade, RTD coffee has been spreading to off-trade channels, with modern grocery retailers introducing some product references in their portfolios in most outlets; therefore, making RTD coffee increasingly available, which is a first step to boosting consumption.
The narrow range of available brands, based mainly on Starbucks and Nescafé, poses difficulties for the RTD coffee category. Starbucks benefits from high levels of recognition and popularity amongst consumers, particularly millennials.
Starbucks and Nescafé regularly launch new flavours, often substituting existing ones. Starbucks has been advertising the introduction of Starbucks Doubleshot Espresso in Portugal, particularly via social media.
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This industry report originates from Passport, our Soft Drinks market research database.