Iced coffee gaining ground

A Canadean report finds that whilst the once dominant private label juice category continues to fall, private label iced/ready to drink (RTD) coffee is growing well.

Renewed levels of consumer confidence have come as a result of moderate GDP growth across much of East and West Europe.

In West Europe this has drawn consumers back to brands, with private label’s share of the market dropping under 25%. East Europe’s share of private labels however only grew half a per cent.

This is due to the proliferation of discount chains such as Lidl and Aldi, which have helped change the preconceptions of Eastern European consumers around private label products.

Tim Haig, analyst at Canadean, says, “The whole juice category has been marred by the sugar debate, however premium brands such as Innocent (Coca-Cola) and Tropicana (PepsiCo) have been able to limit losses by pursuing innovative products, new flavours and coconut water.

“Consumers are looking to try new, emerging products such as iced/RTD coffee drinks, but whilst they are willing to try the premium product, they want to avoid the premium price tag, so many are opting for private label.”

The report suggests that a Europe of two halves will continue, as private label brands in Western Europe will continue to lose share in the face of an improved economy and discounted brands.

Private label brands in Eastern Europe on the other hand will likely continue to grow, albeit at a lower rate, as brands continue to keep their prices low.

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