Hot Chocolate and Other Malted Drinks - UK - May 2008

Table of Contents

• Issues in the Market
• Four key issues
• Definitions
• Abbreviations
• Market in Brief
• Hot chocolate fuels growth
• More consumption opportunities for hot chocolate
• Wide-ranging manufacturer activity
• Outlook for the future
• Internal Market Environment
• Key points
• Health concerns are growing
  • Figure 1: Agreement with selected lifestyle statements, 2003-07
• Because you' re worth it
  • Figure 2: Agreement with selected lifestyle statements, 2003-07
• Demand for more food with more production values
  • Figure 3: Agreement with selected lifestyle statements, 2003-07
• Fair trade leads growth
• Broader Market Environment
• Key points
• Changing demographic profiles
  • Figure 4: Effect of the changing make-up in demographics of the UK population on the market for hot chocolate and malted drinks, 2007
• Resurgence in home cooking
  • Figure 5: Agreement with selected lifestyle statements, 2003-07
• Food labelling -- more of a concern
• Competitive Context
• Key points
• Competing markets
  • Figure 6: Opportunities and threats in competing markets, 2007
• Emotional marketing
• Opportunities for hot chocolate/malted drinks
• Chocolate confectionery activity
• Lessons for hot chocolate/malted drinks players
• Strengths and Weaknesses in the Market
• Strengths
• Weaknesses
• Market Value and Forecast
• Key points
• Volume and value sales
  • Figure 8: Volume and value sales of hot chcolate and other malted drinks, 2003-07
• Mixed fortunes for volume sales
• Hot chocolate market underpins value growth
• Unit price rises
• Hot chocolate -- a sweeter option
  • Figure 9: Sales of hot chocolate and other malted drinks, by value, 2006-07
• Malted drinks perceived as old fashioned
• The future of the market
• Conscience and convenience drive market
• Going green and evolving ethical
• Forecast
• Hot chocolate forging ahead
• Malted hot drinks on the edge of a sharp decline
  • Figure 10: Estimated value of the hot chocolate and malted drinks market, 2008-13
  • Figure 11: Estimated value and volume sales of hot chocolate, 2008-13
  • Figure 12: Estimated value and volume sales of other malted hot drinks, 2008-13
  • Figure 13: Comparison of current value of hot chocolate and malted drinks market, 2003-08 and 2008-13
  • Figure 14: Comparison of real value of hot chocolate and malted drinks market, 2003-08 and 2008-13
• Factors used in the forecast
• Segment Performance
• Key points
• Hot chocolate sales hot up
  • Figure 15: Volume and value sales of hot chocolate, 2003-07
• Indulgence and indignation add value to the market
• Indulging an ethical conscience
  • Figure 16: Value sales of instant and traditional hot chocolate products, 2006-07
• Growth in both non flavoured and flavoured
  • Figure 17: Value sales of flavoured and non-flavoured hot chocolate products, 2006-07
• Sachets satisfy convenience cravings
• Domestic goddesses favour cocoa powder
  • Figure 18: Value sales of cocoa /cocoa powder, 2006-07
• Ready-to-drink products gush forth
• Hot malted drinks
  • Figure 19: Volume and value sales of other malted drinks, 2003-07
• Volume sales suffer
• The future in an instant
  • Figure 20: Value sales of instant and traditional malted drink products, 2006-07
• Flavours favour younger consumers
  • Figure 21: Value for flavoured and non-flavoured malted drink products, 2006-07
• Malted drinks sachets show potential
• Market Share
• Key points
• A variety of manufacturers
  • Figure 22: Brand shares in the hot chocolate drinks market, 2006-07
• Cadbury under pressure
• Success for chocolate confectionery brand extensions
• Organic, fair trade and ethical race ahead
• Own label smoothes the way for growth
• Less room for growth in malted drinks
  • Figure 23: Brand shares in the malted drinks market, 2006-07
• Malted drinks sleep it off
• Companies and Products
• Key points
• Brand map of manufacturers and brands
  • Figure 24: Map of manufacturers and brands in the hot chocolate and malted drinks market, 2008
• Company profiles
• Cadbury Trebor Bassett
• GlaxoSmithKline
• Associated British Foods (ABF)
• Twinings
• Options
• Ovaltine
• Nestlé
• Mars Drinks
• Aimia Foods
• Organic, fair trade and ethical companies
• Green & Blacks
• Clipper
• Cafédirect
• Divine
• Other
• Whittard of Chelsea
• Tassimo -- Suchard
• Charbonnel et Walker
• Drink Me Chai
• Brand Communication and Promotion
• Key points
• Adspend increasing
  • Figure 25: Main monitored media spend on hot chocolate and malted drinks, 2004-07
• Strong brand orientation
  • Figure 26: Main monitored media expenditure on hot chocolate and malted drinks, by top seven brands, 2004-07
• Options and Horlicks dominate spend
• Confectionery brands -- adspend reaps rewards
• The seasonal affect
  • Figure 27: Main monitored advertising spend on key brands, March 2006-February 2008
• Channels to Market
• Key points
• Distribution of hot chocolate and malted drinks
  • Figure 28: Distribution of sales of hot chcolate and other malted drinks, 2006-07
• Multiples strengthen their hold
• Convenience sector remains underdeveloped
• Mail order and online shopping developing
• Future
• Consumption -- Who, Usage and Frequency
• Frequency of usage
• Light users dominate
  • Figure 29: Frequency of consumption of hot milk drinks (including chocolate and cocoa), 2003-07
  • Figure 30: Frequency of consumption of hot milk drinks (including chocolate and cocoa), 2007
• The health and lifestyle of hot milk drink users
  • Figure 31: Hot milk drink users, by frequency of consumption and agreement with lifestyle statements, 2007
• Tapping into opportunities for growth
• Drinks by type
  • Figure 32: Type of Drinking chocolate or other malted chocolate drinks drunk or served in the last 12 months, March 2008
• Hot chocolate favoured over malted drinks
  • Figure 33: Key demographic breakdown and motivating behaviour
• Appealing to younger consumers
• Potential for development and growth
• Children and young adults drinking habits
  • Figure 34: Drinks drunk by 11-25-year-olds once a week, March 2008
• Sit down and a cup of tea
• Keeping men engaged as they age
• Usage Occasions
  • Figure 35: Usage occasions for drinking chocolate or other malted chocolate drinks drunk or served in the last 12 months, March 2008
• And so to bed
• An indulgent digestif
• Home not away
• Appendix -- Internal Market Environment
  • Figure 38: Agreement with selected lifestyle statements, by demographic sub-group, 2007
  • Figure 39: Agreement with selected lifestyle statements, by demographic sub-group, 2007
  • Figure 40: Agreement with selected lifestyle statements, by demographic sub-group, 2007
  • Figure 41: Agreement with selected lifestyle statements, by demographic sub-group, 2007
  • Figure 42: Agreement with selected lifestyle statements, by demographic sub-group, 2007
  • Figure 43: Agreement with selected lifestyle statements, by demographic sub-group, 2007
  • Figure 44: Agreement with selected lifestyle statements, by demographic sub-group, 2007
  • Figure 45: Agreement with the statement ' I like to try out new food products' , by demographic sub-group, 2007
• Appendix -- Broader Market Environment
  • Figure 46: Changes in UK population, by socio-economic status, 2003-13
  • Figure 47: Changes in UK population, by age, 2003-13
  • Figure 48: Changes in UK population, by household size, 2003-13
  • Figure 49: Agreement with selected lifestyle statements, by demographic sub-group, 2007
• Appendix -- Market Value and Forecast
  • Figure 50: Sales of hot chocolate and other malted drinking products, by volume, 2006-07
• Appendix -- Consumption -- Who, Usage and Frequency
• Frequency of purchase
  • Figure 51: Usage and frequency of consumption of milk drinks (including chocolate and cocoa), 2008
• Drinks by type
  • Figure 52: Drinking chocolate or other malted chocolate drinks drunk or served in the last 12 months, March 2008
  • Figure 53: Drinking chocolate or other malted chocolate drinks drunk or served in the last 12 months, March 2008
• Children' s and Young Adults drinking habits
  • Figure 54: Drinks drunk by 11-25-year-olds once a week, March 2008
  • Figure 55: Drinks drunk by 11-25-year-olds once a week, March 2008
  • Figure 56: Drinks drunk by 11-25-year-olds once a week, March 2008
• Appendix -- Usage Occasions
  • Figure 57: Usage occasions for drinking chocolate or other malted chocolate drinks drunk or served in the last 12 months, March 2008