betterHotDrinks

The Hot Beverage Category in the UK Convenience channel is worth almost £200m and in the last year it has shown impressive growth of 5%¹. Soluble Coffee is the largest segment within Hot Beverages with with sales over £91m (+0.4%)².

Key Points

Hot beverage shoppers are vital to convenience outlets

• The average coffee shopper spends almost twice as much per visit compared to the average Convenience shopper (£8.94 v £5.31)³.
• Hot beverage shoppers are also more likely to buy into other categories than the average Convenience shopper – average of 5.1 v 2.7 items per trip³.
• It is essential that stores satisfy these shopper needs and provide the necessary space for products that are so important to their business.

  

  
  

  How to maximise your sales

  Retailers can maximise hot beverage sales by following these three easy steps:

  1. Stock the right range
  Ensure you stock the leading brands from each segment to aid shopper satisfaction and maximise your sales. 78% of shoppers know exactly what brand they want to buy before entering the store⁴. 61% of convenience shoppers have 1 or 2 preferred brands of tea or coffee⁴.

  2. Make it visible
  Over 30% of shoppers fail to purchase in Convenience retailers because they believe the shop doesn’t sell the item they want or they couldn’t find what they wanted in-store⁴.

  Help guide them to the category with clear signage. Use beacon brands such as NESCAFÉ Original for regular coffees to signpost the sub category.

  3. Make it available
  The priority for Convenience retailers is to ensure consistent product availability. 42% of shoppers failed to purchase a product because of out of stocks⁴. 100g jars of Instant Coffee are the core packs for Convenience.

  
  

  Planogram

  

  
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  What to Stock

  RANK	PRODUCT	Avg. Weekly Sales Per Store (£)	Annual Sales Total (£)	Change on previous year (%)
  01	Nescafé Original Coffee Granuales 100Gg	11.87	5620000	4.1
  02	PG Tips Tea Bags 80s	8.55	3170000	4.3
  03	Tetley Tea Bags 80s	9.59	3110000	9.0
  04	Nescafé Gold Blend Coffee Granules 100g	8.66	2810000	8.1
  05	PG Tips Tea Bags 40s	6.60	2240000	26.4
  06	Nescafé Original Coffee Granules 200g	16.97	2120000	-12.7
  07	Nescafé Original Coffee Granules 50g	7.29	2060000	-1.7
  08	Tetley Tea Bags 40s	5.63	2040000	11.1
  09	Kenco Smooth Freeze Dried Coffee Granules 100g	6.39	1900000	30.8
  10	Kenco Rich Freeze Dried Coffee Granules 100g	6.17	1680000	28.4
  11	Nescafé Gold Blend Coffee Granules 200g	33.37	1490000	18.6
  12	Tetley Tea Bags 160s	11.13	1180000	-5.5
  13	Taylors Yorkshire Tea Bags 80s	7.25	1160000	5.8
  14	Typhoo Tea Bags 80s	4.54	910000	45.1
  15	PG Tips Tea Bags 160s	21.60	900000	-34.6
  16	Kenco Rappor Coffee Granules 100g	4.42	870000	-12.0
  17	Cadbury Drinking Chocolate 250g	3.05	740000	20.7
  18	Douwe Egberts Pure Gold Freeze Dried Coffee 100g	6.00	620000	24.4
  19	Nescafé Café Menu Cappuccino & Shaker 10 x 22g	5.28	590000	-27.1
  20	Own-label Coffee Granules 200g	3.03	580000	26.9
  21	Maxwell House Coffee Granules 100g	3.26	580000	-2.9
  22	Kenco Decaf Freeze Dried Coffee 100g	4.22	550000	5.9
  23	Nescafé Original Decaf Coffee Granules 100g	4.08	420000	-6.2
  24	Quick Brew Tea Bags 80s	5.73	400000	46.7
  25	Own-label Rich Roast Coffee Granules 100g	4.82	380000	17.6
  Optional Stock	Red Mountain Coffee Granules 100g	3.08	368000	36.6
  Optional Stock	Twinings Earl Grey Teabags 100g	4.32	320000	15.7
  Optional Stock	Ovaltine Original Malt Drink 125g	3.80	290000	22.6
  Optional Stock	Douwe Egberts Cafetiere Coffee 250g	3.42	230000	12.0
  Optional Stock	Typhoo Teabags 160s	5.62	210000	94.6

  _{Source: SalesOut Data July 2010}

  Use the arrows on the right to scroll through the data, or sort it the way you want by clicking on the column headings.

  _{Sources: 1. IRI, w/e 2 Jan 2010, 2. IRI total convenience 52 w/e 9 October 2010, 3. Him! CTP 2010 4. Him! CTP 2009 TNS}