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.
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.
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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