• PepsiCo and Lavazza are introducing new Vanilla Latte and Cold Brew flavours to its range of ready-to-drink iced coffees
  • The launches follow the successful introduction of Lavazza Cappuccino last year, which capitalised on the brand’s heritage and premium credentials to exceed expectations
  • Lavazza’s long-standing heritage and coffee expertise has helped the brand to successfully enter the UK ready-to-drink coffee market

PepsiCo is introducing two new iced coffee flavours as part of its partnership with Italian coffee brand Lavazza, as it builds upon the previous success of its ready-to-drink (RTD) launches while targeting the top performing flavours in the coffee market. The arrival of Vanilla Latte and Cold Brew follow the introduction of Lavazza’s two milk-based products into the UK market over the last 12 months; Iced Cappuccino (June 2019) and recently introduced Double Espresso & Milk (May 2020).

As the fastest-growing flavour segment in the market at +314% YOY[1], the Vanilla flavoured coffee segment has played an important role in providing shoppers with their favourite coffee shop flavours (beyond with or without milk) in a ready-to-drink format.

While the more indulgent RTD coffee flavours continue to lead the market, the new trend for Cold Brew coffee is driving the growth in black coffee flavours (+86% YOY[2]). Lavazza’s Cold Brew coffee is created by slowly steeping the beans in cool water, extracting the coffee’s natural sweetness and more delicate flavours – ideal for those shoppers looking for a rich and refreshing iced coffee.

Cathy Graham, Senior Marketing Director at PepsiCo, comments: “Four in five adults in the UK drink coffee, yet just 17% have tried chilled ready-to-drink variants[3]. We recognise that consumers are keen to enjoy the flavours from their favourite coffee shops in a more convenient, ready-to-drink format. With the launch of Lavazza Vanilla Latte and Lavazza Cold Brew, we hope to tap into this huge market, by combining premium Italian roast coffee and the segment’s fastest-growing flavours.”

“Since partnering with Lavazza, we’ve seen great success from the launch of our Iced Cappuccino and Double Espresso & Milk products, both of which have helped establish Lavazza as a credible player in the market and exceeded expectations. As we continue to explore the consumer trends that help shape new innovations, we’re really excited with what the next stage of our RTD iced coffee range holds over the coming months and years.”

Lavazza entered the UK ready-to-drink category last summer with its Iced Cappuccino SKU. Within the first eight months of launching, the Iced Cappuccino saw strong repeat rates, as well as above average contribution to category growth[4]. As the third largest branded player in the UK coffee market[5], Lavazza enjoys a high level of brand awareness, with 76% of UK consumers recognising the brand[6].

The Ready-to-Drink Coffee category is part of a strategic collaboration between Lavazza and PepsiCo, aimed at innovating in this rapidly growing segment. Following the 2019 UK launch, both companies have worked together to broaden the offering with new products, as well as expand into new markets, extending their ready-to-drink range into Germany, France, and Poland in 2020.

[1] Nielsen UK RTD – Total Coverage – 22.01.2020

[2] Nielsen UK RTD – Total Coverage – 22.01.2020

[3] Mintel coffee report September 2018; Kantar WPO

[4] Retailer X L26wks data up to 18th Jan 2020

[5] Nielsen ScanTrack, MAT data up to 16th May 2020

[6] Lavazza Brand tracking – Prompted awareness – January 2020 data

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