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In 2011, the UK hot drinks market saw several new products.Euromonitor explains, “While Nestlé retained its lead due to thestrong position of Nescafé in instant coffee, the environment looksset to change as consumers are becoming increasingly aware ofquality and provenance and are moving from instant to fresh groundcoffee as the coffee culture in the UK strengthens.”

The report concludes that growth in hot drinks is expected to besteady over the forecast period, driven by fresh coffee and freeze-dried instant coffee, with consumers focusing on quality and flavour.Within tea, sales are expected to be driven by niche products, withgreen tea, fruit/herbal tea and other tea likely to see strong growthdue to these products’ healthy image. Other hot drinks, meanwhile, isset to benefit from players targeting younger consumers andadopting an indulgent positioning, particularly chocolate-basedflavoured powder drinks.

Whether you enjoy a strong coffee on the way to work, a cup of tea late morning as an excuse to get away from the computer or anindulgent hot chocolate in the afternoon to boost your flagging energy levels, there is always a reason to ‘take five’ at the vending machine.The only question is, “Which button do you press when there are so many choices?” Vending International explores the changing face of the hot drinks market...

Would anyone like a cuppa?

Hot drinks put in a reasonable performance in 2011 as consumerswere attracted by new variants and products and continued toenjoy ‘a good cuppa!’ says Euromonitor International in itsmost recent report. However, the trend in 2011 was for better

quality and products other than black tea, it adds. “Black teacontinued to face strong competition from other drinks, includingcoffee. Nevertheless, despite the market’s good prospects, manycash-strapped consumers continued to carefully watch their spending,thus benefiting products on promotion and private label lines.”

Whether in other hot drinks, coffee or tea, the report reveals thatinnovation generally focused on premiumisation. “Coffee saw thedevelopment of pods and the new Kenco Millicano in instant coffeeas well as other new products. In tea, PG Tips launched The NewOnes, also counting on the premiumisation trend whilst creatingfurther drinking occasions. Other hot drinks saw the entrance ofMontezuma’s, a company known for its quality credentials.”

Hot Drinks

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Hot Drinks

www.barrycallebautvending.co.uk

Barry Callebaut, the world’s leading supplier of high quality cocoa and chocolate products,

have for some years also provided similar quality products for the vending industry in Europe.

To extend the company vending enterprise in the United Kingdom, Barry Callebaut Vending

UK was established in 2008 following the aquisition of Eurogran UK. They now supply a

range of not only cocoa powder based beverage ingredients, but a whole extended innovative

choice of coffees, cappuccinos, toppings and milk powders.

These products are available in vending

packs and also in In-cup format and include

the brands: Van Houten, Caprimo, Le Royal

and Classic.

The 2012 BeverageStandards Awards

BEST HOT CHOCOLATE

Barry Callebaut Vending UK Ltd4 St Michaels Road,Lea Green Ind, Est.St. Helens WA9 4WZ

T: 44 (0)1744 817606F: 44 (0)1744 818743E: Vending_uk@barry-callebaut.com

Commenting on the hot chocolate market, Susan Nash, TradeCommunications Manager at Kraft Foods said: “The hot chocolateand malted drinks category has had a successful year, growing invalue by 2.6% since this time last year. Cadbury branded hotchocolate drinks are now worth £44.5m in the UK.

“Despite the tough economic climate, we are seeing a trend forconsumers spending on quality, trusted brands, even if they aremore expensive. Recognisable brands drive incremental sales, whichis why a huge 56% of all hot chocolate drinks sold in away fromhome outlets are Cadbury branded. Overall, the hot chocolatecategory accounts for 89.5% of away from home hot chocolate andmalted drink purchases. Within this, 54% of all hot chocolate soldaway from home is vended.

“Despite the strong performance of the category to date, there isalways room for improvement. To maintain category growth in theyear to come, it is important for operators to encourage consumerswho may have lapsed from the category, back into buying hotchocolate when they are away from home.”

As one of the world’s leading chocolate producers Barry Callebauthas over 25 years of experience in the UK, and with the productionfacility in St.Helens supported by a manufacturing plant and R & Dlaboratories in Sweden, it claims to be the company to follow in HotChocolate. With a wide range of products to meet all tastes andbudgets they have something for all Vending Operators.

From the established brands of Van Houten and Le Royal, to theirUK range of Classic chocolates Barry Callebaut Vending cover allrequirements, including Fairtrade and Organic options. In additionthey have the capability to produce to specific recipes or to matchexisting customer products. Their Hot Chocolates come in Vendingand sachet sizes, with options for adding hot water or milk.

COFFEE OR TEA?The single serve offering from Mars Drinks UK, which specialises in

providing premium hot drinks to the workplace, is rebranding asMARS DRINKS OFFICE CONNECTIONS, in recognition of the everevolving working environment.

Mars Drinks UK’s single serve offering has always been focused onthe office environment, looking at ways employers can maintain ahappy and productive workforce by ensuring that they are able toenjoy great tasting, hassle-free drinks in comfortable surroundings.

The newly named MARS DRINKS OFFICE CONNECTIONS willcontinue to provide the same popular brands ALTERRA COFFEEROASTERS and THE BRIGHT TEA CO. through the FLAVI FRESHRELEASE SYSTEM, and even further encourage employees to take abreak, therefore increasing interactions between colleagues,enhancing productivity and improving concentration.

“With changing work patterns and advances in technology, thetypical office space is becoming much more than simply rows ofdesks and chairs. Increasingly, a visit to the coffee machine to enjoya hot beverage is considered the perfect opportunity to step awayfrom the computer and take the time to think, collaborate andexchange ideas,” comments Jenni Morgan, Trade Marketing Managerfor MARS DRINKS OFFICE CONNECTIONS.

“The rebrand of MARS DRINKS OFFICE CONNECTIONS,accompanied by our new strapline, ‘drink, think, link’, betteracknowledges how our unique hot beverage system brings officestogether to enjoy a speciality coffee, tea or hot chocolate and join indiscussions, share ideas and build relationships with colleagues.”

Associated Vending Services (AVS) meanwhile, is pleased toannounce that Douwe Egberts Coffee Systems Limited will be joiningits Key Supplier scheme as a strategic partner.

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Hot Drinks

Douwe Egberts will be at the forefront of developing the shape ofits vending offer for the AVS Group.

Widely acknowledged as the leading branded roast and ground andespresso supplier to the vending market, Douwe Egberts iscommitted to providing the highest quality for its customers.

With more than 250 years’ experience of roasting high qualityespresso beans, Douwe Egberts’ objective is to help operators addvalue to their offer, by providing a range of high quality ingredientsand concepts – ensuring operators provide the very best vendedcoffee possible.

Douwe Egberts is at the forefront of innovation within the vendingsector, demonstrated through its award-winning Espresso Barconcept – which when launched, was the industry’s first gourmetvending option fully endorsed by a major branded coffee roaster.

The Espresso Bar concept has since defined a new qualitybenchmark for vendingmachines, taking theDouwe Egberts ethos ofimproving in-cup qualityto the next level.

Tony Smith NationalSales Manager atDouwe Egberts said:“We are hugelypassionate aboutquality coffee and arededicated to helping thevending industry moveforward in line withchanging consumerexpectations. Ever sincewe entered the industryin 2009 our newproduct developmentstrategy has beenaimed at continuallypushing the qualityagenda forward, andbringing innovativeproducts to the marketfrom a brand thatconsumers trust.

“We are delighted to have joined the AVS Key Supplier scheme asa strategic partner and look forward to working together to fulfil ourvision for the vending industry.”

Rob Cowley of AVS said: “This is a fantastic opportunity for bothDouwe Egberts and AVS and I look forward to working with TonySmith and his team in developing our business relationship further.”

The latest addition to the Douwe Egberts vending range is CaféBlanco – a high quality milk granule – which has been introduced tomove the brand’s strategy of offering high quality vendingingredients forwards, while at the same time satisfying consumers’ever increasing expectations.

Once a cup of builder’s tea was enough to drown the nation’ssorrows, but research from leading market research company Mintelhas found that Brits are increasingly turning to alternative varieties,as sales of green tea bags have shot up an impressive 83% in thepast two years alone.

Alex Beckett, Senior Food Analyst at Mintel, said: “While EnglishBreakfast tea is fondly regarded, the expansion of coffee chains andthe exotic flavours of fruit, herbal and green teas are encouragingconsumers to diversify their consumption habits, prompting fewercups of standard tea to be drunk. Though the segment continues toplay only a niche role in the market, Green tea, like Fruit and Herbalteas, has benefited from positive associations with health. Green teaextracts are increasingly found in cosmetic beauty products, raisingthe profile of Green tea among women in particular.”

Overall, retail value sales of tea in the UK jumped by 22% to£655 million between 2006 and 2011. Annual sales growth hadrapidly accelerated to 11.9% in 2009 when the market was valued at£610 million. This was largely fuelled by price inflation, which alsoremained high in 2010 when the total value hit £660 million. The teamarket then declined in 2011, when value fell 1% to £655 million.Today, tea is drunk by almost nine in ten (87%) Brits.

Despite the strain of the wider economic climate, continuous productand machine development will ensure that vending benefits fromcontinued growth in this market. Sleek styling, cool branding, greattasting products and convenience; vending is the perfect platform fornew and established companies in the out-of-home market.

Caption L-R Tony Smith National Sales Manager at Douwe Egberts with Rob Cowley of AVS.

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