Milling & Baking News Corporate Profiles - 2019 - 32

INDUSTRY REVIEW: BEVERAGES

Beverages
Coffee evolves, enters other categories; bottled water growing
offee drinks, both hot and cold-brew varieties, spilled over into other
beverage categories in 2019. The year also saw sales of bottled water
continue to increase and Coca-Cola Co. and PepsiCo, Inc. become more
active in the energy drink category.
Data from The Nielsen Co., New York, showed dollar sales in the U.S. readyto-drink coffee category rose 16% to $3 billion in the 52-week period ended
July 27. Coffee even has entered the alcohol category through Pabst Blue Ribbon hard coffee and Jäegermeister's cold-brew coffee. The Nielsen Co. anticipates cannabis-infused coffee in the future.
Coffee is being integrated into sparkling beverages, energy drinks and juices,
according to Packaged Facts, Rockville, Md.
"The carbonated soft drink or soda category is challenged, but many consumers moving away from soda still want flavored drinks that have bubbles,"
said David Sprinkle, research director for Packaged Facts. "They also want
healthier, more natural versions with less or no sugar. One of these soda alternatives is ready-to-drink coffee, which has seen a spate of sparkling versions on
store shelves. Even more interesting is when we see coffee and sodas converge
into an amalgamation that satisfies multiple tastes with a single beverage."
New York-based CB Insights, a tech market intelligence platform, listed coffee as one of 12 industries that will thrive thanks to millennials. Instead of
store-bought and pre-packaged coffee, millennials seek cold-brew and other
specially prepared beverages. They also show interest in ethically sourced, sustainable and gourmet products.
While premium coffee sales surged, more traditional coffee brands struggled. U.S. retail sales of ground coffee slipped 1.8% to $3,925.9 million in the
52-week period ended Aug. 11, according to Chicago-based market research
firm Information Resources, Inc. Sales for brand leader Folgers dipped 7% to
$1,003.1 million. Starbucks moved into second place as sales increased 2.6%
to $460.5 million. Sales for No. 3 Maxwell House fell 10% to $459.7 million.

Like coffee, tea is being incorporated into sparkling beverages, energy drinks
and juices, according to Packaged Facts.Tea merged into the energy drink space
with stimulants like guayusa, green tea and matcha as well as yerba mate. Lipton Pure Leaf was the brand leader in canned and bottled tea with U.S. retail
sales of $395.6 million over the 52-week period ended Aug. 11, up 4.7% from
the previous 52-week period, according to I.R.I.
Bottled water sales continue to outpace carbonated soft drink sales. Total
U.S. bottled water volume grew to 13,846.8 million gallons in 2018 from
8,534.3 million gallons in 2008, according to Beverage Marketing Corp.,
New York. Dollar sales over that time increased to $18,357.8 million from
$11,426.8 million. Per capita consumption in 2018 was 42.3 gallons for
bottled water and 37.2 gallons for carbonated soft drinks, which compared

LEADING GROUND

coffee vendors
1
2
3
4
5
6
7
8
9

J.M. Smucker Co.
Kraft Heinz Co.
Starbucks Coffee Co.
The J.M. Smucker Co.
Peet's Coffee & Tea
Rowland Coffee Roasters
Community Coffee Co., Inc.
Massimo Zanetti Beverage USA
Seattle's Best Coffee L.L.C.
Private label
Total

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coffee brands
Dollar sales
$1,045,669,927
$659,987,097
$474,171,374
$300,710,709
$163,752,013
$119,510,616
$95,613,615
$80,704,948
$73,091,944
$425,156,895
$3,925,872,456

% change
from
year ago
-5.5%
-7.5%
2.6%
2.8%
11.3%
7.2%
-1.9%
-10.4%
-7.5%
-1.2%
-1.8%

1
2
3
4
5
6
7
8
9

Folgers
Starbucks
Maxwell House
Dunkin' Donuts
Peet's Coffee
Café Bustelo
Community
Gevalia
McCafé
Private label
Total

Dollar sales
$1,003,167,836
$460,493,975
$459,712,725
$299,855,455
$163,752,013
$103,031,594
$95,222,575
$84,441,097
$83,637,666
$425,156,895
$3,925,872,456

% change
from
year ago
-6.5%
2.6%
-9.8%
2.8%
11.3%
10.0%
-1.0%
-1.7%
4.2%
-1.2%
-1.8%

Data for 52 weeks ended Aug. 11, 2019
Total U.S. - Multi-outlet with C-Store (Supermarkets, Drugstores and Mass Market Retailers, Gas/C-Stores, Military Commissaries and Select Club & Dollar Retail Chains)
Source: Information Resources, Inc.

32 \ November 2019

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