Pinpoint growth sectors and identify factors driving change
Identify market and brand leaders and understand the competitive
environment
Product coverage
Coffee; Other hot drinks; Tea
Executive summary
Hot drinks value growth driven by product development and rising prices
Hot drinks in Greece witnessed high value growth rates in 2008. Growth was
driven primarily in the off-trade channel with 6% volume growth due to strong
product development and the on-trade had a steady increase of 2%. The average
unit price of hot drinks increased by 6% due to the rising cost of raw
materials, this factor pushed value growth. A media focus on the health
benefits of tea provided it a further boost, spearheaded by the recently
introduced green tea.
Rising raw material cost drove up the price of hot drinks
Due to a poor coffee harvest, coffee beans rose in price steeply which
impacted the retail price of ground and instant coffee. In tea there was a
rise of 3% in the average unit price in 2008. Chocolate-based flavoured drinks
and malt-based drinks also had a price increase above the annual inflation
rate (10% and 12% respectively) because of the rise in the cost of cocoa and
wheat prices. Production costs were further affected by the rise in fuel
prices which affected all hot drinks categories.
Multinationals lead sales
Multinational companies continued to control the lion' s share of the Greek hot
drinks segment and are focused mostly on chocolate-based flavoured powder
drinks and coffee. Nestlé Hellas SA was the leader of hot drinks with a 46%
value-share because of the high penetration of its instant coffee ' frappé' .
Kraft Foods Hellas SA was ranked second with a 13% value-share that saw a
minor decline due to the withdrawal of Kiss Strawberry. Kafea SA was ranked
third position with a7% valley-share due to the high consumption of its
espresso.
Specialist retailers gaining ground
Supermarkets/hypermarkets continue to dominate sales in off-trade distribution
channels although their share has fallen over the review period. Food and
drinks specialists in the other grocery retailers category have increased
their penetration levels. Off-trade specialty shops have played an
increasingly dynamic role in coffee, chocolate-based flavoured powder drinks
and tea, following the example of the successful chained coffee shops in the
on-trade channel.
Smoking ban expected in 2010 and will change consumer behaviour
The introduction of the smoking ban that will be applied in 2010 will affect
the consumption of hot drinks in Greece, as they are associated with the
smoking habit in numerous café. Coffee sales are not forecast to go down
substantially, due to the strong coffee culture in Greece as well as the good
weather in the country that allows for people to stay outdoors. Since smoking
and coffee are strongly linked in the consumers mind, sales of chocolate
powdered drinks and tea will benefit, as a proportion of the consumers will be
replace one of their on-trade coffees with an alternative beverage.
HOT DRINKS IN GREECE : MARKET INSIGHT
EXECUTIVE SUMMARY
Hot drinks value growth driven by product development and rising prices
Rising raw material cost drove up the price of hot drinks
Multinationals lead sales
Specialist retailers gaining ground
Smoking ban expected in 2010 and will change consumer behaviour
KEY TRENDS AND DEVELOPMENTS
Raw material rising costs driving up unit prices
Smoking Ban to be enforced in Greece by 2010
Flavour Sophistication continues being a growth driver
Health and wellness remains a key driver for sales
Specialists Coffee Merchants contribute to the premiumisation of coffee
MARKET DATA
Table 1 Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown
2003-2008
Table 2 Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth
2003-2008
Table 3 Retail Sales of Hot Drinks by Sector: Volume 2003-2008
Table 4 Retail Sales of Hot Drinks by Sector: Value 2003-2008
Table 5 Retail Sales of Hot Drinks by Sector: % Volume Growth 2003-2008
Table 6 Retail Sales of Hot Drinks by Sector: % Value Growth 2003-2008
Table 7 Foodservice Sales of Hot Drinks by Sector: Volume 2003-2008
Table 8 Foodservice Sales of Hot Drinks by Sector: % Volume Growth
2003-2008
Table 9 Total Sales of Hot Drinks by Sector: Total Volume 2003-2008
Table 10 Total Sales of Hot Drinks by Sector: % Total Volume Growth
2003-2008
Table 11 Hot Drinks Company Shares by Value 2004-2008
Table 12 Hot Drinks Brand Shares by Value 2005-2008
Table 13 Penetration of Private Label by Sector 2004-2008
Table 14 Sales of Hot Drinks by Distribution Format: % Analysis 2003-2008
Table 15 Sales of Hot Drinks by Sector and Distribution Format: %
Analysis 2008
Table 16 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume
Breakdown 2008-2013
Table 17 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume
Growth 2008-2013
Table 18 Forecast Retail Sales of Hot Drinks by Sector: Volume 2008-2013
Table 19 Forecast Retail Sales of Hot Drinks by Sector: Value 2008-2013
Table 20 Forecast Retail Sales of Hot Drinks by Sector: % Volume Growth
2008-2013
Table 21 Forecast Retail Sales of Hot Drinks by Sector: % Value Growth
2008-2013
Table 22 Forecast Foodservice Sales of Hot Drinks by Sector: Volume
2008-2013
Table 23 Forecast Foodservice Sales of Hot Drinks by Sector: % Volume
Growth 2008-2013
Table 24 Forecast Total Sales of Hot Drinks by Sector: Total Volume
2008-2013
Table 25 Forecast Total Sales of Hot Drinks by Sector: % Total Volume
Growth 2008-2013
APPENDIX
Published Data Comparisons
Import/Export Data
Table 26 Imports/Exports of Hot Drinks by Sector 2005-2007
Table 27 Exports of Hot Drinks by Sector 2005-2007
