The Ready to Drink (RTD) Cold Coffee segment is the largest coffee category growth opportunity, according to Vasileios Karalis, Marketing Manager at Nescafé Azera. In 2019 across the grocery and convenience retail market it was the fastest growing segment within the Soft Drinks category, with +28.7% value growth (IRI FY 2019). This performance reflects the coffee shop trends being driven by younger consumers buying into cold coffee and coffee on the go formats. These younger consumers (under 35) now drink more cold coffee than hot. This big and growing trend is seeing over 6.4 million cups of cold coffee sold per week (Source: Allegra ‘Project Iced UK 2019).
1. What is Nitro: The Independent retail channel has benefitted from this growing trend and Nescafé Azera Nitro, the most ‘trend setting’ brand with strong ‘coffee shop’ credentials, is the 2nd largest brand in Independents and the 3rd largest in Symbols (IRI FY 2019). What is Nescafé Azera Nitro, and why is if different from ordinary cold coffee? Nitro stands for nitrogenated coffee; it is a style which begins by taking cold brew coffee, and is then chilled further before being infused with nitrogen, and usually a small proportion of carbon dioxide under high pressure. This brewing process creates a much smoother, creamier coffee texture for the consumer.
2. Capitalise on the Trend with NPD: In April 2020 there will be NEW Nescafé Azera Nitro RTD innovation hitting the shelves. There will be a new range of three indulgent flavours – Latte, Salted Caramel Latte and Double Shot Flat White. All 3 NEW recipes will be under 100 Calories, with lower levels of sugar and fat vs other RTD alternatives on the market. The Nescafé Azera Nitro RTD New Product Development will be available in a 250ml can at an RRP of £1.49.
3. Keep it Cold: 67% of RTD coffee is consumed on the go, and 96% of consumers want their RTD coffee chilled for immediate consumption (Project CAKE 2017). To maximise your sales, ensure your fridges are fully stocked to capitalise on this growing trend this summer.
4. Merchandising to Maximise your sales: Highlight the Segment; drive standout vs other soft drinks. Visibility; ensure a prominent location in your chiller for Nescafé Azera Nitro RTD. Choice; ensure sure you stock the full range to drive standout and choice. And finally, Promote; to encourage trial.
5. Drive Your Basket Size: 66% of millennials will drink cold RTD coffee over hot coffee with the biggest consumption occasion being meal times. If you can, ensure you merchandise your Nescafé Azera Nitro RTD adjacent to your food-to-go range to really maximise cross category pick-up and sales.