Companies are churning out new chilled ready-to-drink (RTD) or iced coffee products with global launches trebling in just one year, according to Innova Market Insights.
It says the category is seeing a period of strong product and market activity in recent years. It remains one of the smallest sectors in terms of new product activity, but the actual number of launches has nearly trebled in the 12 months to the end of July 2014.
Asia continues to dominate in terms of RTD coffee introductions, accounting for over half of the global total, ahead of Europe with 30 per cent and North America with 11.5 per cent.
Lu Ann Williams, director of innovation at Innova Market Insights, says the market is changing.
“Although ambient canned and bottled coffee drinks continue to dominate globally, particularly in well-established markets such as those in parts of Asia and the USA, it is the chilled milk-based variants in lidded cups for on-the-go consumption that have been leading growth, particularly in the relatively undeveloped European market.”
According to Innova, the dairy industry has been driving activity, with companies such as Emmi of Switzerland with its Caffe Latte range, Starbucks Discoveries' range of RTD iced coffees from Arla, and German dairy companies, J Bauer with the premium Mövenpick line and the Landliebe range from FrieslandCampina.
More recently, says Innova, leading hot coffee brands such as Mondelez's Jacobs coffee brand and Nescafe's Shakissimo range, have entered the sector.
In Australia, Coca-Cola South Pacific launched Barista Bros iced coffee in June, but according to AdNews, the drink is getting panned on social media.
Marketed as a “smooth and irresistible flavour”, numerous Facebook comments on the brand's page claim that it's “disgusting” and the “worst tasting iced coffee by far”.
A Coca-Cola spokesperson, however, says that sales were actually ahead of target, as were repeat purchases. She also said that on social media, the negative comments tend to be from a “small but vocal minority” and are therefore unlikely to be representative, AdNews reported.
Barista Bros, a premium flavoured milk brand, marks Coke’s first entry into the flavoured milk category in Australia.
Barista Bros has launched with two flavours: Iced Coffee and Double Strength Iced Coffee flavoured milk. Coca-Cola South Pacific said the products are made with 100 per cent Arabica coffee.
Barista Bros launched across major channels in Queensland in June and has since been rolling out nationally.