Prior to the entry of Tirta Frisendo Jaya’s Kopiko 78, much of the sales of RTD coffee came from modern channels. The price leadership of the top-selling brand has encouraged sari-sari stores and other traditional retailers to carry RTD coffee,.
Leading companies in RTD coffee, such as Asia Brewery, Nestlé Philippines and Tirta Frisendo Jaya, recognise the importance of appealing to young professionals with busy lives. This informs their marketing campaigns and below-the-line strategies, encouraging this age group to consume RTD coffee.
Over the forecast period, the outlook for RTD coffee remains dynamic, although it is anticipated to grow at a slower pace than in the review period. As the category’s penetration of sari-sari store increases, it will begin to mature, causing growth to slow down.
Kopiko 78C has benefited from the Kopiko brand’s success in coffee mixes, owing to the Kopiko brand’s considerable equity, marketing support and wide distribution network. While Kopiko 78C remains prominent through television advertising, local distributor Vuono Trade and Marketing Services has been aggressive in below-the-line efforts for the brand.
Despite the dominance of Tirta Frisendo Jaya in the category, other players are making efforts to compete more strongly with the leading player’s strong distribution in modern and traditional retailers. For example, Nestlé Philippines has been more active in increasing its presence in convenience stores, a retail channel that is increasingly relevant to young consumers seeking products for on-the-go consumption.
Over the forecast period, RTD coffee is set to attract new players, as the growth prospects remain positive. It is thus important for smaller players to leverage the retail channels that the category leader, Tirta Frisendo Jaya, has not fully tapped, so as to unlock new sources of growth.
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This industry report originates from Passport, our Soft Drinks market research database.