Abstract
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive
environment
Product coverage
Coffee; Other hot drinks; Tea
Executive summary
Coffee continues to perform strongly
In 2008, hot drinks continued the good performance experienced over the review
period, driven by coffee, which accounted for the majority of retail volume
and value sales. According to ABIC (Brazilian Coffee Industry Association),
the percentage of coffee drinkers, including adults and teenagers, remained
high at 91% in 2007. According to ABIC, coffee prices for consumers have not
increased in the last 14 months (2007-2008), despite the rising cost of raw
material, such as packages, labour, and the cost of public tariffs. In order
to safeguard volume sales despite an increase in price, companies offer higher
quality products to remain competitive, thereby adding value.
Specialist coffee shops boosts the demand for gourmet coffee
The away-from-home consumption of coffee continued to grow in 2008. The
opening of many specialist coffee shops by new and world-famous companies (as
well as the expansion of traditional outlets) stimulated the consumption of
gourmet coffee, especially among consumers who want to savour the differences
in taste and aroma offered by various coffee beans in the on-trade and
off-trade channels. In 2008, ABIC started to promote "Círculo do Café de
Qualidade" (Quality Coffee Circle, CCQ), a programme aimed at differentiating
outlets, promoting certification for coffee shops, restaurants, hotels and
other locations. This activity will favour the dissemination of gourmet coffee
and speciality coffee in general.
Fragmentation in coffee while flavoured powder drinks welcomes new brands
Coffee is a highly fragmented category in Brazil with over 1,000 companies
producing over 2,500 brands. Since 2003, other hot drinks, especially
chocolate-based flavoured powder drinks, observed an increase in the number
brands and private label products. As chocolate-based flavoured powder drinks
are widely consumed, companies have produced a large range of products at a
variety of prices. The top five hot drinks manufacturers, Sara Lee Cafés do
Brasil Ltda, Melitta do Brasil Indústria e Comércio Ltda, Quaker Brasil Ltda,
and Cia Cacique de Café Solúvel continued to increase their value shares, with
some fluctuation, over the review period, as a result of strong nationwide
distribution, new product developments and advertising support.
Large grocery retailers expand shelf space for private label
The positive overall performance of the industry has stimulated retailers to
make more shelf space available for hot drinks, including private label
products. Some chained supermarkets/hypermarkets, the most important retail
distribution channel for hot drinks, have customised their coffee sections
with banners and others ways to provide more information about the varieties
of coffee on offer and attract the attention of consumers. Private label was
previously seen as a way of offering alternatives to combat the rising prices
for brands, but these products are increasingly perceived as quality items. To
this end, in 2008, ABMAPRO (Brazilian Association of Own Brands and
Outsourcing) launched the ABMAPRO certification, which guarantees the quality
of private label products in Brazil. Private label enjoyed a bigger presence
in hot drinks and slowly increased its retail value share over the review
period.
Health and wellness trends continue to drive innovation
Products positioned as healthy alternatives have attracted the attention of
consumers concerned about their diet and they are expected to drive retail
value sales over the forecast period. The key consumers of coffee in Brazil
are 36-years-old-and-over, while attracting 15-19-year-old consumers will
remain to a key challenge for coffee manufacturers. Tea manufacturers benefit
from publicity about the health benefits of green tea and white tea in health
magazines. Green, and/or white tea are perceived to offer a range of important
health benefits such as anti-oxidants, and to lower cholesterol, fight free
radicals, strengthen the immune system and accelerate the metabolism.
Manufacturers have launched new blends to offer a wider variety of flavours to
consumers. Flavoured powder drink manufacturers are also promoting the
diversification of their product ranges, in "light", high-fibre, honey, and
added vitamin versions to attract consumers concerned about health and
wellness.
| 
View Cart
