Research report on hot drinks in germany

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Hot drinks in Germany registered strong value growth in 2011 as commodity prices reached an all-time high. Following poor harvests in Vietnam and Central America in 2010, a fall in global coffee supply led to a spike in raw coffee prices. Similarly, tea faced significant price increases for raw materials, caused by poor harvests in India and China and a general supply shortage as tea producing countries are increasingly switching to the cultivation of soya and other more profitable crops. These increases in cost were inevitably passed on to some extent in 2011, thus driving value growth.

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Research report on hot drinks in germany

  1. 1. Research Report on Hot Drinks in GermanyOverviewDiscover the latest market trends and uncover sources of future market growth for the Hot Drinksindustry in Germany with research from Euromonitors team of in-country analysts.Find hidden opportunities in the most current research data available, understand competitivethreats with our detailed market analysis, and plan your corporate strategy with our expertqualitative analysis and growth projections.Buy Your Copy of Report: http://www.reportsnreports.com/reports/181600-hot-drink-in-germany.htmlReport Details:Published: July 2012Price Single User License: US $ 1900If youre in the Hot Drinks industry in Germany, our research will save you time and money whileempowering you to make informed, profitable decisions.When you purchase this report, you also get the data and the content from these category reports inGermany for free:CoffeeTeaOther hot drinksThe Hot Drinks in Germany market research report includes:Analysis of key supply-side and demand trendsDetailed segmentation of international and local productsHistoric volumes and values, company and brand market sharesFive year forecasts of market trends and market growth
  2. 2. Robust and transparent market research methodology, conducted in-countryOur market research reports answer questions such as:What is the market size of Hot Drinks in Germany?What are the major brands in Germany?How has an increasing desire for heart healthy or fiber-added drinks affected the hot drinksindustry in Germany?Are manufacturers changing packaging sizes and formats to fit an on-the-go lifestyle?How have changing demographics (for example an aging population) affected the hot drinks marketin Germany?Why buy this report?Gain competitive intelligence about market leadersTrack key industry trends, opportunities and threatsInform your marketing, brand, strategy and market development, sales and supply functionsThis industry report originates from Passport, our Hot Drinks market research database.Sample AnalysisEXECUTIVE SUMMARYSharp rise in commodity prices drives steep value growthHot drinks in Germany registered strong value growth in 2011 as commodity prices reached an all-time high. Following poor harvests in Vietnam and Central America in 2010, a fall in global coffeesupply led to a spike in raw coffee prices. Similarly, tea faced significant price increases for rawmaterials, caused by poor harvests in India and China and a general supply shortage as teaproducing countries are increasingly switching to the cultivation of soya and other more profitablecrops. These increases in cost were inevitably passed on to some extent in 2011, thus driving valuegrowth.
  3. 3. Uncertain economic outlook impacts volume salesGermans’ spending habits were dampened once again in 2011, this time by the unpredictabledevelopments of the EuroZone crisis. In combination with unit price increases, the uncertaineconomic outlook had a negative impact on volume sales of coffee, the largest category in hot drinksand also the category with the highest unit price increases. While volume sales of tea did notdecline, a slowdown in growth was noticeable. The biggest impact, however, was on branded freshcoffee manufacturers, many of which faced steep volume declines as cheaper private label productsgained share.Traditional domestic brands lead salesLocal companies still have a strong presence in the German hot drinks market. The leading brandsin the industry are primarily domestic coffee brands Jacobs, Melitta, Dallmayr and Tchibo. All fourhave a long-standing history in Germany and enjoy high levels of consumer awareness. Except forJacobs, which is owned by multinational company Kraft Foods, all the leading brands aredomestically owned. This also applies to the leading brands in tea, where traditional Germanbrands Teekanne and Messmer are the biggest players. While multinational companies and theirbrands also have a strong presence, up to 2011 their sales were still not as significant as those oftraditional local brands.On-trade unaffected by volume declinesUnlike retail sales of hot drinks, foodservice sales registered a positive performance in volumeterms in 2011. This was largely the result of the strong growth registered by chained specialistcoffee shops, which continued to gain in popularity not least due to the expansion of McCafé up to2011. Modern coffee specialities such as Latte Macchiato and Frappés have grown hugely inpopularity in Germany and most consumers regard them as an affordable but special treatconsumed away from home. In tea, the growing popularity of trendy chai latte, widely available inmost specialist coffee shops by 2011, helped a positive on-trade performance.Growth in value sales to be driven by higher coffee prices
  4. 4. The forecast period is expected to register a similar performance to that seen in 2011. Pricespeculation and raw material shortages are expected to drive commodity prices up, givingmanufacturers the choice of either raising unit prices further, and probably losing market share tocheaper competitors, or absorbing costs by accepting smaller profit margins. As profit margins havebeen squeezed already, unit price increases especially for coffee are expected, keeping value salesgrowth positive but resulting in volume sales declinesTable of ContentsHot Drinks in Germany - Industry OverviewEXECUTIVE SUMMARYSharp rise in commodity prices drives steep value growthUncertain economic outlook impacts volume salesTraditional domestic brands lead salesOn-trade unaffected by volume declinesGrowth in value sales to be driven by higher coffee pricesKEY TRENDS AND DEVELOPMENTSEconomic uncertainty and high commodity prices boost private label salesHealth and wellness trend and demographic changes benefit tea consumptionConvenience trend drives drinks-to-go formatEco and sustainability concerns grow amidst difficult economic situationSpeciality hot drinks take share from traditional typesMARKET DATATable 1 Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2006-2011Table 2 Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2006-2011Table 3 Retail Sales of Hot Drinks by Category: Volume 2006-2011Table 4 Retail Sales of Hot Drinks by Category: Value 2006-2011Table 5 Retail Sales of Hot Drinks by Category: % Volume Growth 2006-2011Table 6 Retail Sales of Hot Drinks by Category: % Value Growth 2006-2011Table 7 Foodservice Sales of Hot Drinks by Category: Volume 2006-2011Table 8 Foodservice Sales of Hot Drinks by Category: % Volume Growth 2006-2011Table 9 Total Sales of Hot Drinks by Category: Total Volume 2006-2011Table 10 Total Sales of Hot Drinks by Category: % Total Volume Growth 2006-2011Table 11 Hot Drinks Company Shares by Retail Value 2007-2011Table 12 Hot Drinks Brand Shares by Retail Value 2008-2011
  5. 5. Table 13 Penetration of Private Label by Category 2006-2011Table 14 Sales of Hot Drinks by Distribution Format: % Analysis 2006-2011Table 15 Sales of Hot Drinks by Category and Distribution Format: % Analysis 2011Table 16 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2011-2016Table 17 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2011-2016Table 18 Forecast Retail Sales of Hot Drinks by Category: Volume 2011-2016Table 19 Forecast Retail Sales of Hot Drinks by Category: Value 2011-2016Table 20 Forecast Retail Sales of Hot Drinks by Category: % Volume Growth 2011-2016Table 21 Forecast Retail Sales of Hot Drinks by Category: % Value Growth 2011-2016Table 22 Forecast Foodservice Sales of Hot Drinks by Category: Volume 2011-2016Table 23 Forecast Foodservice Sales of Hot Drinks by Category: % Volume Growth 2011-2016Table 24 Forecast Total Sales of Hot Drinks by Category: Total Volume 2011-2016Table 25 Forecast Total Sales of Hot Drinks by Category: % Total Volume Growth 2011-2016APPENDIXProduction/Import/Export DataTable 26 Imports/Exports/Apparent Consumption of Hot Drinks by Category 2006-2010DEFINITIONSSOURCESSummary 1 Research SourcesHot Drinks in Germany - Company ProfilesKraft Foods Deutschland GmbH in Hot Drinks (Germany)STRATEGIC DIRECTIONKEY FACTSCOMPANY BACKGROUNDPRODUCTIONSummary 3 Kraft Foods Deutschland GmbH: Production Statistics 2011COMPETITIVE POSITIONINGSummary 4 Kraft Foods Deutschland GmbH: Competitive Position 2011Krüger GmbH & Co KG in Hot Drinks (Germany)STRATEGIC DIRECTIONKEY FACTSCOMPANY BACKGROUNDPRODUCTION
  6. 6. Summary 7 Krüger GmbH & Co KG: Production Statistics 2011COMPETITIVE POSITIONINGSummary 8 Krüger GmbH & Co KG: Competitive Position 2011Melitta Kaffee GmbH in Hot Drinks (Germany)STRATEGIC DIRECTIONKEY FACTSCOMPANY BACKGROUNDPRODUCTIONSummary 11 Melitta Kaffee GmbH: Production Statistics 2011COMPETITIVE POSITIONINGSummary 12 Melitta Kaffee GmbH: Competitive Position 2011Nestlé Deutschland AG in Hot Drinks (Germany)STRATEGIC DIRECTIONKEY FACTSCOMPANY BACKGROUNDPRODUCTIONSummary 15 Nestlé Deutschland AG: Production Statistics 2011COMPETITIVE POSITIONINGSummary 16 Nestlé Deutschland AG: Competitive Position 2011Ostfriesische Tee Gesellschaft in Hot Drinks (Germany)STRATEGIC DIRECTIONKEY FACTSCOMPANY BACKGROUNDPRODUCTIONCOMPETITIVE POSITIONINGSummary 19 Ostfriesische Tee Gesellschaft: Competitive Position 2011Röstfein Kaffee GmbH in Hot Drinks (Germany)STRATEGIC DIRECTIONKEY FACTSCOMPANY BACKGROUNDPRODUCTIONCOMPETITIVE POSITIONINGSummary 22 Röstfein Kaffee GmbH: Competitive Position 2011Tchibo Frisch-Röst-Kaffee GmbH in Hot Drinks (Germany)STRATEGIC DIRECTIONKEY FACTSCOMPANY BACKGROUND
  7. 7. PRODUCTIONCOMPETITIVE POSITIONINGSummary 25 Tchibo Frisch-Röst-Kaffee GmbH: Competitive Position 2011Teekanne GmbH in Hot Drinks (Germany)STRATEGIC DIRECTIONKEY FACTSCOMPANY BACKGROUNDPRODUCTIONCOMPETITIVE POSITIONINGSummary 28 Teekanne GmbH: Competitive Position 2011Coffee in Germany - Category AnalysisHEADLINESTRENDSThe price of Arabica coffee, the most important coffee type, soared from around US$1.50 per poundat the beginning of 2010 to US$3.00 in April 2011. This price spike did not greatly affect Germanretail selling prices of coffee products in 2010 because most competitors kept prices low for as longas possible due to the strong level of competition in the marketplace. In particular, standard freshground coffee is very price-sensitive. However, in January 2011, when raw coffee prices continuedto climb, most players found themselves unable to sustain low retail prices.COMPETITIVE LANDSCAPEHaving neglected coffee pods for a long time, domestic manufacturer Krüger GmbH & Co KGintroduced its own pod system to the market in November 2010. The system is called K-Fee andwas promoted in the popular Bild newspaper with the nickname “Volks - Kaffeemaschine”, meaning“people’s coffee machine”. The brand claims to offer decent quality at a cheap price. However, theshare of the system in coffee pods remained low in 2011 at less than 2% in value terms and 1% involume terms. Apparently, the simple design of the machine was not liked by consumers and theprice of the pods was not attractive as it was a little cheaper than Tassimo and Nescafé Dolce Gustohard pods, but much higher than soft pods.PROSPECTSOne main factor driving the coffee category is the consumer preference for convenience, which isexpected to intensify over the forecast period. Germans today like to have many activities in theirspare time, although spare time is rare for the working population. This lifestyle is not expected tochange over the forecast period. Condensed work flows along with relatively low unemployment
  8. 8. will drive the need for coffee products that are quick and easy to prepare. Even curricula inuniversities have become more condensed over the past few years.CATEGORY DATATable 27 Retail Sales of Coffee by Category: Volume 2006-2011Table 28 Retail Sales of Coffee by Category: Value 2006-2011Table 29 Retail Sales of Coffee by Category: % Volume Growth 2006-2011Table 30 Retail Sales of Coffee by Category: % Value Growth 2006-2011Table 31 Fresh Ground Coffee: Standard Vs Pods 2006-2011Table 32 Instant Coffee by Type: % Value Breakdown 2007-2011Table 33 Coffee Company Shares by Retail Value 2007-2011Table 34 Coffee Brand Shares by Retail Value 2008-2011Table 35 Forecast Retail Sales of Coffee by Category: Volume 2011-2016Table 36 Forecast Retail Sales of Coffee by Category: Value 2011-2016Table 37 Forecast Retail Sales of Coffee by Category: % Volume Growth 2011-2016Table 38 Forecast Retail Sales of Coffee by Category: % Value Growth 2011-2016Table 39 Fresh Ground Coffee: Forecast Standard Vs Pods 2011-2016Other Hot Drinks in Germany - Category AnalysisHEADLINESTRENDSTotal volume sales of other hot drinks grew by 2% in 2011, generally in line with the review periodaverage. Most of this growth derived from chocolate-based flavoured powder drinks, which areusually consumed by children, and malt-based hot drinks. Malt-based hot drinks are usuallyconsumed by older generations, but with Ovomaltine the Swiss company Wander AG hasestablished a malt drink that is being consumed by a growing number of young Germans as anenergy drink.COMPETITIVE LANDSCAPENestlé saw a strong performance from its brands in chocolate-based flavoured powder drinks andmalt-based hot drinks in 2011, thus extending its lead in other hot drinks to a 33% value share.Nestlé’s position can be attributed to several variants of its brand Nesquik in chocolate-basedflavoured powder drinks and the Caro brand in malt-based hot drinks.PROSPECTSOther hot drinks is projected a 2% off-trade constant value CAGR and a 1% total volume CAGR to
  9. 9. reach €260 million and 62,637 tonnes in 2016. Demand for other hot drinks will be limited by thefalling number of children, the main consumers of hot chocolate drinks. Moreover, a lack ofinnovation will negatively impact the sales performance of this hot drinks category.CATEGORY DATATable 40 Retail Sales of Other Hot Drinks by Category: Volume 2006-2011Table 41 Retail Sales of Other Hot Drinks by Category: Value 2006-2011Table 42 Retail Sales of Other Hot Drinks by Category: % Volume Growth 2006-2011Table 43 Retail Sales of Other Hot Drinks by Category: % Value Growth 2006-2011Table 44 Other Hot Drinks: Standard Vs Pods 2006-2011Table 45 Other Hot Drinks Company Shares by Retail Value 2007-2011Table 46 Other Hot Drinks Brand Shares by Retail Value 2008-2011Table 47 Forecast Retail Sales of Other Hot Drinks by Category: Volume 2011-2016Table 48 Forecast Retail Sales of Other Hot Drinks by Category: Value 2011-2016Table 49 Forecast Retail Sales of Other Hot Drinks by Category: % Volume Growth 2011-2016Table 50 Forecast Retail Sales of Other Hot Drinks by Category: % Value Growth 2011-2016Table 51 Other Hot Drinks: Forecast Standard Vs Pods 2011-2016Tea in Germany - Category AnalysisHEADLINESTRENDSTea registered a modest performance during the first months of 2011 because the temperature wasrelatively warm for the time of year. But over the year as a whole tea put in a good performance,recording total volume growth of 1%. Tea achieved positive growth in every year of the reviewperiod except 2009. This enduring growth can be generally attributed to the health and wellnesstrend and the fact that tea is seen as a lifestyle drink.COMPETITIVE LANDSCAPEThe presence of international tea brands has always been weak in Germany. However, in late 2010,Unilever made a second attempt to establish its Lipton tea brand in the German market. The brandis now available in 15 variants at Rewe and Toom supermarkets and through Amazon. The brand ispositioned as premium and offers pyramid tea bags. The brand’s variants include many fruit/herbaltea blends and green tea as the company’s first attempt to enter the German market failed severalyears ago because it had been overly focused on black tea.PROSPECTS
  10. 10. The health and wellness trend benefits tea more than coffee and cocoa drinks as the positive effectsof many kinds of tea are more trusted than any positive effects of coffee or cocoa. So, while coffeewill remain the most popular type of hot drink in Germany in terms of flavour and thus alsolifestyle, tea will benefit the most from its supposed effects on health and wellbeing. The increasingpopularity of tea shops in Germany will also boost sales. Total tea volume sales are thus projectedto increase by 5% over the forecast period to reach 58,000 tonnes. Both the on-trade and off-tradeare expected to see positive growth.CATEGORY DATATable 52 Retail Sales of Tea by Category: Volume 2006-2011Table 53 Retail Sales of Tea by Category: Value 2006-2011Table 54 Retail Sales of Tea by Category: % Volume Growth 2006-2011Table 55 Retail Sales of Tea by Category: % Value Growth 2006-2011Table 56 Tea: Standard Vs Pods 2006-2011Table 57 Tea Company Shares by Retail Value 2007-2011Table 58 Tea Brand Shares by Retail Value 2008-2011Table 59 Forecast Retail Sales of Tea by Category: Volume 2011-2016Table 60 Forecast Retail Sales of Tea by Category: Value 2011-2016Table 61 Forecast Retail Sales of Tea by Category: % Volume Growth 2011-2016Table 62 Forecast Retail Sales of Tea by Category: % Value Growth 2011-2016Table 63 Tea: Forecast Standard Vs Pods 2011-2016Browse more Research Reports @ http://www.reportsnreports.com/market-research/food-and-beverages/Contact Us:TX, Dallas North - Dominion Plaza,17304, Preston Road,Suite 800, Dallas 75252.+ 1 888 391 5441Email: sales@reportsandreports.comConnect With Us:

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