Hot Drinks in Australia: Euromonitor International March 2019

Hot Drinks in Australia
Euromonitor International
March 2019
HOT DRINKS IN AUSTRALIA Passport I
LIST OF CONTENTS AND TABLES

Hot Drinks in Australia - Industry Overview .................................................................................. 1
Executive Summary ..................................................................................................................... 1
Café Culture Continues To Support the Growth of Hot Drinks in Australia ............................... 1
Premiumisation and Health and Wellness Key Trends in Hot Drinks ....................................... 1
Nestlé Australia the Leading Player in Hot Drinks 2018 ........................................................... 1
New Product Developments Focus on Premiumisation, Indulgence and Health and Wellness 1
Hot Drinks To See Recovery in Volume Growth ....................................................................... 1
Market Data .................................................................................................................................. 2
Table 1 Sales of Hot Drinks by Retail vs Foodservice: % Volume Breakdown
2013-2018 .................................................................................................... 2
Table 2 Sales of Hot Drinks by Retail vs Foodservice: % Volume Growth
2013-2018 .................................................................................................... 2
Table 3 Retail Sales of Hot Drinks by Category: Volume 2013-2018 ........................ 2
Table 4 Retail Sales of Hot Drinks by Category: Value 2013-2018 ........................... 2
Table 5 Retail Sales of Hot Drinks by Category: % Volume Growth 2013-2018 ....... 3
Table 6 Retail Sales of Hot Drinks by Category: % Value Growth 2013-2018 .......... 3
Table 7 Foodservice Sales of Hot Drinks by Category: Volume 2013-2018 .............. 3
Table 8 Foodservice Sales of Hot Drinks by Category: % Volume Growth
2013-2018 .................................................................................................... 3
Table 9 Total Sales of Hot Drinks by Category: Total Volume 2013-2018 ................ 3
Table 10 Total Sales of Hot Drinks by Category: % Total Volume Growth 2013-
2018 ............................................................................................................. 4
Table 11 NBO Company Shares of Hot Drinks: % Retail Value 2014-2018................ 4
Table 12 LBN Brand Shares of Hot Drinks: % Retail Value 2015-2018 ...................... 5
Table 13 Penetration of Private Label in Hot Drinks by Category: % Retail
Value 2013-2018 .......................................................................................... 6
Table 14 Retail Distribution of Hot Drinks by Format: % Volume 2013-2018 .............. 6
Table 15 Retail Distribution of Hot Drinks by Format and Category: % Volume
2018 ............................................................................................................. 7
Table 16 Forecast Sales of Hot Drinks by Retail vs Foodservice: % Volume
Breakdown 2018-2023 ................................................................................. 7
Table 17 Forecast Sales of Hot Drinks by Retail vs Foodservice: % Volume
Growth 2018-2023 ....................................................................................... 8
Table 18 Forecast Retail Sales of Hot Drinks by Category: Volume 2018-2023 ......... 8
Table 19 Forecast Retail Sales of Hot Drinks by Category: Value 2018-2023 ............ 8
Table 20 Forecast Retail Sales of Hot Drinks by Category: % Volume Growth
2018-2023 .................................................................................................... 8
Table 21 Forecast Retail Sales of Hot Drinks by Category: % Value Growth
2018-2023 .................................................................................................... 9
Table 22 Forecast Foodservice Sales of Hot Drinks by Category: Volume 2018-
2023 ............................................................................................................. 9
Table 23 Forecast Foodservice Sales of Hot Drinks by Category: % Volume
Growth 2018-2023 ....................................................................................... 9
Table 24 Forecast Total Sales of Hot Drinks by Category: Total Volume 2018-
2023 ............................................................................................................. 9
Table 25 Forecast Total Sales of Hot Drinks by Category: % Total Volume
Growth 2018-2023 ....................................................................................... 9
© Euromonitor International
HOT DRINKS IN AUSTRALIA Passport II
Sources ...................................................................................................................................... 10
Summary 1 Research Sources ...................................................................................... 10
Coffee in Australia - Category analysis ...................................................................................... 14
Headlines ................................................................................................................................... 14
Prospects ................................................................................................................................... 14
Australia’s Growing Café Culture Impacts Instant Coffee ....................................................... 14
Consumer Demand for Ethical and Sustainable Coffee Continues To Grow .......................... 14
Slowing Growth for Fresh Ground Coffee Pods ...................................................................... 15
Competitive Landscape .............................................................................................................. 15
Nestlé Australia Remains the Leader in Coffee in Australia ................................................... 15
Cantarella Bros Sees Its Share Within Coffee Increase in 2018 ............................................. 15
De Master Blenders 1753 NV Records Significant Share Growth in Fresh Ground Coffee
Pods........................................................................................................................................ 15
Category Data ............................................................................................................................ 15
Table 26 Retail Sales of Coffee by Category: Volume 2013-2018 ............................ 15
Table 27 Retail Sales of Coffee by Category: Value 2013-2018 ............................... 16
Table 28 Retail Sales of Coffee by Category: % Volume Growth 2013-2018 ........... 16
Table 29 Retail Sales of Coffee by Category: % Value Growth 2013-2018 .............. 17
Table 30 Retail Sales of Fresh Coffee by Regular vs Decaffeinated: % Volume
2013-2018 .................................................................................................. 17
Table 31 Retail Sales of Fresh Ground Coffee Pods by Hard vs Soft: % Volume
2013-2018 .................................................................................................. 17
Table 32 NBO Company Shares of Coffee: % Retail Value 2014-2018 .................... 17
Table 33 LBN Brand Shares of Coffee: % Retail Value 2015-2018 .......................... 18
Table 34 Forecast Retail Sales of Coffee by Category: Volume 2018-2023 ............. 19
Table 35 Forecast Retail Sales of Coffee by Category: Value 2018-2023 ................ 20
Table 36 Forecast Retail Sales of Coffee by Category: % Volume Growth 2018-
2023 ........................................................................................................... 20
Table 37 Forecast Retail Sales of Coffee by Category: % Value Growth 2018-
2023 ........................................................................................................... 21
Table 38 Forecast Retail Sales of Fresh Coffee by Regular vs Decaffeinated: %
Volume 2018-2023 ..................................................................................... 21
Tea in Australia - Category analysis ........................................................................................... 22
Headlines ................................................................................................................................... 22
Prospects ................................................................................................................................... 22
Lack of Innovation Impacting Traditional Teas ....................................................................... 22
Health Advantages of Tea and Novel Flavours To Draw in Consumers ................................. 22
On-trade Sales Encouraged by Widening Product Variety ..................................................... 22
Unilever Australia Ltd Leads Tea in Australia ......................................................................... 23
Ab Food & Beverages Australia Continues To Gain Share in Tea ......................................... 23
Madura Tea Estates Australia Sees Growth Over the Review Period, However This Stagnates
in 2018 .................................................................................................................................... 23
Category Data ............................................................................................................................ 23
Table 39 Retail Sales of Tea by Category: Volume 2013-2018................................. 23
Table 40 Retail Sales of Tea by Category: Value 2013-2018 ................................... 24
Table 41 Retail Sales of Tea by Category: % Volume Growth 2013-2018 ................ 24
Table 42 Retail Sales of Tea by Category: % Value Growth 2013-2018 ................... 24
HOT DRINKS IN AUSTRALIA Passport III
Table 43 NBO Company Shares of Tea: % Retail Value 2014-2018 ........................ 24

Table 44 LBN Brand Shares of Tea: % Retail Value 2015-2018 ............................... 25
Table 45 Forecast Retail Sales of Tea by Category: Volume 2018-2023.................. 26
Table 46 Forecast Retail Sales of Tea by Category: Value 2018-2023..................... 26
Table 47 Forecast Retail Sales of Tea by Category: % Volume Growth 2018-
2023 ........................................................................................................... 26
Table 48 Forecast Retail Sales of Tea by Category: % Value Growth 2018-
2023 ........................................................................................................... 27
Other Hot Drinks in Australia - Category analysis ...................................................................... 28
Headlines ................................................................................................................................... 28
Prospects ................................................................................................................................... 28
New Product Developments in Other Hot Drinks in 2018 ....................................................... 28
Café Culture Encourages Growth of Other Hot Drinks in the On-trade................................... 28
Influence of Demographic Factors on Other Hot Drinks ......................................................... 28
Nestlé Australia Remains the Leader in Other Hot Drinks ...................................................... 29
Aldi Stores Supermarkets Increases Its Share Within Other Hot Drinks ................................. 29
Vitarium Experiences Share Growth Due To Growing Health Consciousness ....................... 29
Category Data ............................................................................................................................ 29
Table 49 Retail Sales of Other Hot Drinks by Category: Volume 2013-2018 ............ 29
Table 50 Retail Sales of Other Hot Drinks by Category: Value 2013-2018 ............... 30
Table 51 Retail Sales of Other Hot Drinks by Category: % Volume Growth
2013-2018 .................................................................................................. 30
Table 52 Retail Sales of Other Hot Drinks by Category: % Value Growth 2013-
2018 ........................................................................................................... 30
Table 53 NBO Company Shares of Other Hot Drinks: % Retail Value 2014-
2018 ........................................................................................................... 30
Table 54 LBN Brand Shares of Other Hot Drinks: % Retail Value 2015-2018 .......... 31
Table 55 Forecast Retail Sales of Other Hot Drinks by Category: Volume 2018-
2023 ........................................................................................................... 32
Table 56 Forecast Retail Sales of Other Hot Drinks by Category: Value 2018-
2023 ........................................................................................................... 32
Table 57 Forecast Retail Sales of Other Hot Drinks by Category: % Volume
Growth 2018-2023 ..................................................................................... 33
Table 58 Forecast Retail Sales of Other Hot Drinks by Category: % Value
Growth 2018-2023 ..................................................................................... 33
HOT DRINKS IN AUSTRALIA Passport 1
HOT DRINKS IN AUSTRALIA -

INDUSTRY OVERVIEW
EXECUTIVE SUMMARY
Café Culture Continues To Support the Growth of Hot Drinks in Australia

Australia’s growing café culture remained a positive driver of hot drinks in Australia in 2018.
This culture is not only seeing consumers enjoy coffee and other hot drinks in cafés, but also
looking to recreate the café experience at home. This trend is supported by the growth of
products that allow consumers to create café-quality drinks conveniently at home.
Premiumisation and Health and Wellness Key Trends in Hot Drinks

Café culture is having a direct impact on hot drinks by encouraging the growth of more
premium products. Health and wellness is a trend that is often intertwined with premiumisation,
with products that are positioned as healthier alternatives often using more premium or natural
ingredients. Growth in premiumisation is also being encouraged by the growing maturity of the
hot drinks industry. Within coffee, this is seen in the decline of instant coffee and the growth of
more premium coffee products, such as fresh ground coffee pods and organic fresh coffee.
Within tea, the premiumisation and health and wellness trends are reflected in the strong growth
of other fruit/herbal tea.
Nestlé Australia the Leading Player in Hot Drinks 2018

Nestlé Australia continues to be the largest player in hot drinks by value share in Australia,
with the company seeing its largest share within other hot drinks and coffee. Within coffee, the
company remains the leader in fresh ground coffee pods and instant coffee, with both of these
categories supported by the trend of Australians seeking to make coffee conveniently and
quickly at home. Within other hot drinks, the company dominates malt-based hot drinks with its
Milo brand. This iconic Australian brand was used as inspiration for the launch of the Milo
Frothycino in June 2018.
New Product Developments Focus on Premiumisation, Indulgence and

Health and Wellness
New product developments within hot drinks were influenced by inter-related trends, namely
consumers searching for more premium products in the form of healthier alternatives for
everyday consumption and more indulgent drinks that can serve as a treat. Other hot drinks saw
new product developments in 2018 after not experiencing new product developments for a
number of years. New product developments that focused on indulgence included Nestlé
Australia’s Fantales and Jaffas hot drink powders, while those that focused on health and
wellness included Avalanche 99% sugar free drinking chocolate with coconut. These trends are
expected to endure and influence new product developments in the future.
Hot Drinks To See Recovery in Volume Growth

Hot drinks will see recovery in off-trade volume growth over the forecast period. While coffee
will see relatively stagnant growth in the off-trade, on-trade volume sales of coffee are expected
to see strong growth as café culture becomes further ingrained into everyday life. In off-trade
value, coffee will see an improved performance over the forecast period as unit prices edge up
despite the continuation of promotional pricing. Tea will see a slower volume decline over the
forecast period than over the review period and much healthier off-trade value growth as
premiumisation continues to impact tea in Australia. Other hot drinks will see growth, likely
driven by the growing premiumisation and new product developments.
MARKET DATA
Table 1 Sales of Hot Drinks by Retail vs Foodservice: % Volume Breakdown 2013-2018
% volume analysis
2013 2014 2015 2016 2017 2018
Retail 55.9 54.8 53.7 52.6 51.5 50.5

Foodservice 44.1 45.2 46.3 47.4 48.5 49.5
Total 100.0 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 2 Sales of Hot Drinks by Retail vs Foodservice: % Volume Growth 2013-2018
% volume growth
2017/18 2013-18 CAGR 2013/18 Total
Retail 0.4 -0.1 -0.3

Foodservice 4.6 4.4 23.8
Total 2.4 2.0 10.3
Table 3 Retail Sales of Hot Drinks by Category: Volume 2013-2018
Tonnes
2013 2014 2015 2016 2017 2018
Coffee 25,234.6 25,389.3 25,522.2 25,642.3 25,781.9 25,928.2

Tea 13,261.9 13,082.6 12,892.6 12,673.6 12,550.4 12,480.1
Other Hot Drinks 12,479.2 12,348.0 12,254.2 12,237.0 12,300.6 12,418.3
Hot Drinks 50,975.7 50,819.9 50,669.0 50,552.9 50,633.0 50,826.6
Table 4 Retail Sales of Hot Drinks by Category: Value 2013-2018
AUD million
2013 2014 2015 2016 2017 2018
Coffee 1,151.5 1,206.7 1,261.6 1,311.2 1,326.3 1,349.8

Tea 396.3 402.3 403.7 407.1 416.8 429.4
Other Hot Drinks 185.4 186.3 186.4 187.7 191.2 194.6
Hot Drinks 1,733.2 1,795.3 1,851.7 1,906.0 1,934.3 1,973.9
Table 5 Retail Sales of Hot Drinks by Category: % Volume Growth 2013-2018
% volume growth
2017/18 2013-18 CAGR 2013/18 Total
Coffee 0.6 0.5 2.7

Tea -0.6 -1.2 -5.9
Other Hot Drinks 1.0 -0.1 -0.5
Hot Drinks 0.4 -0.1 -0.3
Table 6 Retail Sales of Hot Drinks by Category: % Value Growth 2013-2018
% current value growth

2017/18 2013-18 CAGR 2013/18 Total
Coffee 1.8 3.2 17.2

Tea 3.0 1.6 8.4
Other Hot Drinks 1.8 1.0 5.0
Hot Drinks 2.0 2.6 13.9
Table 7 Foodservice Sales of Hot Drinks by Category: Volume 2013-2018
Tonnes
2013 2014 2015 2016 2017 2018
Coffee 34,318.2 35,890.9 37,439.3 39,168.6 41,011.5 43,036.4

Tea 3,452.9 3,537.5 3,630.5 3,727.8 3,824.7 3,935.7
Other Hot Drinks 2,441.4 2,513.2 2,594.0 2,672.9 2,755.1 2,826.5
Hot Drinks 40,212.5 41,941.6 43,663.8 45,569.4 47,591.3 49,798.6
Table 8 Foodservice Sales of Hot Drinks by Category: % Volume Growth 2013-2018
% volume growth
2017/18 2013-18 CAGR 2013/18 Total
Coffee 4.9 4.6 25.4

Tea 2.9 2.7 14.0
Hot Drinks 4.6 4.4 23.8
Table 9 Total Sales of Hot Drinks by Category: Total Volume 2013-2018
Tonnes
2013 2014 2015 2016 2017 2018
Coffee 59,552.8 61,280.2 62,961.4 64,810.9 66,793.4 68,964.6

Tea 16,714.8 16,620.1 16,523.1 16,401.5 16,375.2 16,415.8
Other Hot Drinks 14,920.7 14,861.2 14,848.3 14,909.9 15,055.8 15,244.8
Hot Drinks 91,188.2 92,761.6 94,332.9 96,122.2 98,224.3 100,625.2
Table 10 Total Sales of Hot Drinks by Category: % Total Volume Growth 2013-2018
% total volume growth

2017/18 2013-18 CAGR 2013/18 Total
Coffee 3.3 3.0 15.8

Tea 0.2 -0.4 -1.8
Hot Drinks 2.4 2.0 10.3
Table 11 NBO Company Shares of Hot Drinks: % Retail Value 2014-2018
% retail value rsp

Company 2014 2015 2016 2017 2018
Nestlé Australia Ltd 43.3 43.0 41.9 39.9 38.1

Jacobs Douwe Egberts - 13.3 14.2 14.6 14.5
AB Food & Beverages 6.8 6.6 6.6 6.7 6.8
Australia Pty Ltd
Cantarella Bros Pty Ltd 4.1 4.1 4.5 4.9 5.6
Unilever Australia Ltd 6.3 6.0 5.8 5.6 5.6
DE Master Blenders 1753 14.4 2.1 2.5 3.3 3.9
NV
Dilmah Australia Pty Ltd 2.5 2.4 2.3 2.2 2.2
Freshfood Services Pty 2.3 2.4 2.4 2.3 2.2
Ltd
Lavazza Australia Pty Ltd - - 2.0 2.1 2.1
Tetley Australia Pty Ltd 2.3 2.2 2.1 2.0 2.0
Aldi Stores 0.8 0.9 1.0 1.1 1.3
Supermarkets Pty Ltd
Cadbury Pty Ltd 1.3 1.3 1.3 1.3 1.3
Madura Tea Estates 1.0 1.0 1.0 1.0 1.0
Australia Pty Ltd
Nerada Tea Pty Ltd 0.8 0.7 0.7 0.7 0.7
Club Trading & 0.5 0.5 0.5 0.5 0.5
Distribution Pty Ltd
Coca-Cola Amatil Ltd 0.2 0.2 0.2 0.3 0.3
Maranatha Import Export 0.3 0.3 0.2 0.3 0.3
Pty Ltd
John Frisco & 0.2 0.2 0.2 0.2 0.2
Associates Pty Ltd
Stuart Alexander & Co 0.2 0.2 0.2 0.2 0.2
Pty Ltd
Vitarium Pty Ltd 0.1 0.2 0.1 0.1 0.1
Lindt & Sprüngli 0.1 0.1 0.1 0.1 0.1

(Australia) Pty Ltd
Mondelez Australia Pty 0.1 0.1 0.1 0.1 0.1
Ltd
SmithKline Beecham 0.1 0.1 0.1 0.1 0.1
(Australia) Pty Ltd
Valcorp Fine Foods Pty 2.1 2.0 - - -
Ltd
Cerebos Australia Ltd - - - - -
Cadbury Schweppes - - - - -
Australia Ltd
Unistraw International - - - - -
Ltd
Premier Food & - - - - -
Beverages Pty Ltd
Sara Lee Coffee & Tea - - - - -
Australia Pty Ltd
Other Private Label 2.7 3.0 3.1 3.3 3.5
Others 7.4 7.2 7.1 7.0 7.1
Total 100.0 100.0 100.0 100.0 100.0
Table 12 LBN Brand Shares of Hot Drinks: % Retail Value 2015-2018
% retail value rsp

Brand (GBO) Company (NBO) 2015 2016 2017 2018
Moccona Jacobs Douwe Egberts 13.3 14.2 14.6 14.5

Nescafé (Nestlé SA) Nestlé Australia Ltd 13.2 12.2 10.7 9.7
Nespresso (Nestlé SA) Nestlé Australia Ltd 8.9 9.6 9.0 8.3
Nescafé Gold Nestlé Australia Ltd 5.8 5.6 5.6 5.6
(Nestlé SA)
Twinings AB Food & Beverages 5.0 5.1 5.3 5.4
(Associated British Australia Pty Ltd
Foods Plc)
Vittoria Cantarella Bros Pty Ltd 3.4 3.8 4.3 5.0
Milo (Nestlé SA) Nestlé Australia Ltd 5.1 4.9 4.8 4.7
Lipton (Unilever Unilever Australia Ltd 2.6 2.6 2.6 2.6
Group)
L'Or Espresso DE Master Blenders 1753 0.5 1.0 1.8 2.3
(Jacobs Douwe NV
Egberts)
Dilmah (MJF Group) Dilmah Australia Pty Ltd 2.4 2.3 2.2 2.2
Lavazza (Lavazza Lavazza Australia Pty Ltd - 2.0 2.1 2.1
SpA, Luigi)
Robert Timms Freshfood Services Pty 2.2 2.2 2.1 2.1
(FreshFood Holdings Ltd
Pte Ltd)
International Roast Nestlé Australia Ltd 2.3 2.2 2.1 2.0
(Nestlé SA)
Lipton Yellow Label Unilever Australia Ltd 2.0 1.9 1.8 1.8
(Unilever Group)
Tetley (Tata Global Tetley Australia Pty Ltd 1.8 1.8 1.7 1.7
Beverages Ltd)
Harris (Jacobs DE Master Blenders 1753 1.6 1.6 1.6 1.6
Douwe Egberts) NV
Cadbury Drinking Cadbury Pty Ltd 1.3 1.3 1.3 1.3
Chocolate (Mondelez
International Inc)
Jarrah (Associated AB Food & Beverages 1.4 1.3 1.2 1.2
British Foods Plc) Australia Pty Ltd
Nescafé Dolce Gusto Nestlé Australia Ltd 0.8 0.7 0.9 1.1
(Nestlé SA)
Bushells (Unilever Unilever Australia Ltd 1.3 1.2 1.1 1.1
Group)
Madura Madura Tea Estates 1.0 1.0 1.0 1.0
Australia Pty Ltd
Expressi (Private Aldi Stores 0.5 0.6 0.7 0.9
Label) Supermarkets Pty Ltd
Nesquik (Nestlé SA) Nestlé Australia Ltd 0.7 0.7 0.7 0.7
Nerada (Boh Nerada Tea Pty Ltd 0.7 0.7 0.7 0.7
Plantations Sdn Bhd)
Aurora Cantarella Bros Pty Ltd 0.6 0.6 0.6 0.6
Sipahh (Unistraw Club Trading & 0.5 0.5 0.5 0.5
International Ltd) Distribution Pty Ltd
Sustagen (Reckitt Nestlé Australia Ltd - - 0.4 0.4
Benckiser Group Plc
(RB))
Grinders Coffee Coca-Cola Amatil Ltd 0.2 0.2 0.3 0.3
(Coca-Cola Co, The)
Gloria Jean's Coffee Maranatha Import Export 0.3 0.2 0.3 0.3
Pty Ltd
Diplomat (Private Aldi Stores 0.2 0.2 0.3 0.3
Sustagen (Mead Nestlé Australia Ltd 0.4 0.4 - -
Johnson Nutrition Co)
Lavazza (Lavazza Valcorp Fine Foods Pty 2.0 - - -
SpA, Luigi) Ltd
Other Private Label Other Private Label 3.0 3.1 3.3 3.5
(Private Label)
Others Others 15.1 14.6 14.5 14.5
Total Total 100.0 100.0 100.0 100.0
Table 13 Penetration of Private Label in Hot Drinks by Category: % Retail Value 2013-2018
% retail value rsp

2013 2014 2015 2016 2017 2018
Coffee 3.4 3.9 4.4 4.6 5.0 5.6

Hot Drinks 3.1 3.5 3.9 4.1 4.4 4.8
Other Hot Drinks 0.7 1.2 1.6 1.8 2.0 2.1
Tea 3.4 3.5 3.5 3.6 3.6 3.7
Table 14 Retail Distribution of Hot Drinks by Format: % Volume 2013-2018
% retail volume
2013 2014 2015 2016 2017 2018
Store-Based Retailing 98.8 98.6 98.5 98.4 98.3 98.2

- Grocery Retailers 97.7 97.5 97.3 97.3 97.2 97.2
-- Modern Grocery 93.6 93.5 93.5 93.4 93.1 92.7
Retailers
--- Convenience Stores 0.3 0.4 0.4 0.4 0.4 0.4
--- Discounters 1.7 1.8 1.8 1.9 1.9 2.0
--- Forecourt Retailers 1.2 1.2 1.1 1.1 1.2 1.2
--- Hypermarkets - - - - - -
--- Supermarkets 90.4 90.2 90.2 90.0 89.6 89.2
-- Traditional Grocery 4.1 4.0 3.8 3.9 4.1 4.4
Retailers
--- Food/drink/tobacco - - - - - -
specialists
--- Independent Small 2.7 2.6 2.5 2.4 2.4 2.4
Grocers
--- Other Grocery 1.4 1.4 1.3 1.5 1.7 2.1
Retailers
- Mixed Retailers - - - - - -
- Non-Grocery Specialists 1.2 1.2 1.1 1.1 1.1 1.1
Non-Store Retailing 1.2 1.4 1.5 1.6 1.7 1.8
- Vending - - - - - -
- Homeshopping - - - - - -
- Internet Retailing 1.2 1.4 1.5 1.6 1.7 1.8
- Direct Selling 0.0 0.0 0.0 0.0 0.0 0.0
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 15 Retail Distribution of Hot Drinks by Format and Category: % Volume 2018
% retail volume
C T OHD
Store-Based Retailing 97.7 98.8 98.8

- Grocery Retailers 96.3 98.1 98.1
-- Modern Grocery Retailers 93.3 90.4 93.9
--- Convenience Stores 0.5 0.3 0.2
--- Discounters 0.9 4.7 1.5
--- Forecourt Retailers 1.5 0.3 1.3
--- Hypermarkets 0.0 0.0 0.0
--- Supermarkets 90.4 85.1 90.8
-- Traditional Grocery Retailers 3.0 7.7 4.2
--- Food/drink/tobacco specialists 0.0 0.0 0.0
--- Independent Small Grocers 1.2 3.4 3.8
--- Other Grocery Retailers 1.8 4.3 0.3
- Mixed Retailers 0.0 0.0 0.0
- Non-Grocery Specialists 1.4 0.7 0.7
Non-Store Retailing 2.3 1.2 1.2
- Vending 0.0 0.0 0.0
- Homeshopping 0.0 0.0 0.0
- Internet Retailing 2.3 1.2 1.2
- Direct Selling 0.0 0.0 0.0
Total 100.0 100.0 100.0
Key: C = coffee; T= tea; OHD = other hot drinks
Table 16 Forecast Sales of Hot Drinks by Retail vs Foodservice: % Volume Breakdown 2018-
2023
% volume analysis
2018 2019 2020 2021 2022 2023
Retail 50.5 49.4 48.3 47.2 46.0 44.8

Foodservice 49.5 50.6 51.7 52.8 54.0 55.2
Total 100.0 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Table 17 Forecast Sales of Hot Drinks by Retail vs Foodservice: % Volume Growth 2018-2023
% volume growth
2018/19 2018-23 CAGR 2018/23 Total
Retail 0.3 0.5 2.3

Foodservice 4.8 5.1 28.4
Total 2.6 2.9 15.2
trade sources
Table 18 Forecast Retail Sales of Hot Drinks by Category: Volume 2018-2023
Tonnes
2018 2019 2020 2021 2022 2023
Coffee 25,928.2 26,050.8 26,159.3 26,250.8 26,325.0 26,408.9

Tea 12,480.1 12,357.1 12,269.9 12,202.3 12,155.5 12,132.2
Other Hot Drinks 12,418.3 12,595.4 12,798.5 13,009.3 13,232.4 13,455.7
Hot Drinks 50,826.6 51,003.4 51,227.7 51,462.4 51,712.9 51,996.8
trade sources
Table 19 Forecast Retail Sales of Hot Drinks by Category: Value 2018-2023
AUD million
2018 2019 2020 2021 2022 2023
Coffee 1,349.8 1,372.2 1,396.0 1,417.2 1,437.6 1,457.1

Tea 429.4 439.7 451.0 461.8 472.7 485.2
Other Hot Drinks 194.6 198.5 199.8 202.1 205.3 208.7
Hot Drinks 1,973.9 2,010.4 2,046.8 2,081.0 2,115.5 2,151.0
trade sources
Table 20 Forecast Retail Sales of Hot Drinks by Category: % Volume Growth 2018-2023
% volume growth
2018/19 2018-23 CAGR 2018/23 Total
Coffee 0.5 0.4 1.9

Tea -1.0 -0.6 -2.8
Hot Drinks 0.3 0.5 2.3
trade sources
Table 21 Forecast Retail Sales of Hot Drinks by Category: % Value Growth 2018-2023
% constant value growth

2018/2019 2018-23 CAGR 2018/23 Total
Coffee 1.7 1.5 7.9

Tea 2.4 2.5 13.0
Hot Drinks 1.9 1.7 9.0
trade sources
Table 22 Forecast Foodservice Sales of Hot Drinks by Category: Volume 2018-2023
Tonnes
2018 2019 2020 2021 2022 2023
Coffee 43,036.4 45,260.4 47,686.7 50,325.3 53,170.2 56,228.8

Tea 3,935.7 4,044.3 4,151.9 4,258.4 4,364.6 4,467.9
Other Hot Drinks 2,826.5 2,901.1 2,981.0 3,064.9 3,153.9 3,248.0
Hot Drinks 49,798.6 52,205.8 54,819.7 57,648.6 60,688.7 63,944.7
trade sources
Table 23 Forecast Foodservice Sales of Hot Drinks by Category: % Volume Growth 2018-2023
% volume growth
2018/19 2018-23 CAGR 2018/23 Total
Coffee 5.2 5.5 30.7

Tea 2.8 2.6 13.5
Hot Drinks 4.8 5.1 28.4
trade sources
Table 24 Forecast Total Sales of Hot Drinks by Category: Total Volume 2018-2023
Tonnes
2018 2019 2020 2021 2022 2023
Coffee 68,964.6 71,311.2 73,846.0 76,576.1 79,495.2 82,637.7

Tea 16,415.8 16,401.4 16,421.8 16,460.7 16,520.1 16,600.1
Other Hot Drinks 15,244.8 15,496.5 15,779.5 16,074.2 16,386.2 16,703.7
Hot Drinks 100,625.2 103,209.1 106,047.4 109,111.0 112,401.5 115,941.5
trade sources
Table 25 Forecast Total Sales of Hot Drinks by Category: % Total Volume Growth 2018-2023
% total volume growth

2018/19 2018-23 CAGR 2018/23 Total
Coffee 3.4 3.7 19.8

Tea -0.1 0.2 1.1
Hot Drinks 2.6 2.9 15.2
trade sources
SOURCES
Sources used during the research included the following:
Summary 1 Research Sources

Official Sources Australian Bureau of Statistics
Biological Farmers of Australia
Department of Agriculture,
Fisheries & Forestry
UN Comtrade
Trade Associations Australasian Association of

Convenience Stores
Australasian Specialty Coffee

Association
Australasian Specialty Tea

Association
Australian Beverages Council Ltd
Australian Bottled Water Institute

Inc
Australian Coffee Traders

Association Inc
Australian Food & Grocery Council
Australian Green Tea Growers

Association
Australian Soft Drinks Association

(ASDA)
Dairy Australia
Dairy Industry Association of

Australia
Independent Vending Machine

Operators Association of Australia
Inc
International Bottled Water

Association
International Federation of Fruit

Juice Producers
Packaging Council of Australia
Tea Industry Forum
UNESDA & CISDA
Trade Press ABC News
Adelaide Now
AdNews
Age, The
Appliance Retailer
Aqua Botannical
Australian Broadcasting Corp

News
Australian Financial Review
Australian Food News
B&T Magazine
Beanscene Magazine
Beverage Daily
Beverage Net
Beverage World
Business Review Weekly
Caffe Culture
Consumable
Convenience & Impulse Retailing
Convenience World
Courier Mail
C-store.com.au
Daily Telegraph
Fairfax Media
Food & Drink Business
Food Bev
Food Dive
Food Magazine
Food Processing
Food Works
Fox FM
Gourmet Traveller
Healthy Food Guide
Herald Sun
Hospitality Magazine
Huffington Post
Illawarra Mercury
Inside FMCG
Inside Small Business
ITWire
Marketing Mag
Natural Health Magazine
News Mail
News.com.au
Nine Digital Pty Ltd
Packaging News
PR News Wire
Prime Creative Media Pty Ltd
Retail World
Retail World Magazine
Sky News
Smart Co
Soft Drinks International
STiR
Sydney Morning Herald
The Australian
The Daily Mail
The Herald
The New Daily
The Weekly Review
The Weekly Times
Verdict Media Ltd
Source: Euromonitor International
COFFEE IN AUSTRALIA - CATEGORY

ANALYSIS
HEADLINES
 Coffee records 1% off-trade volume growth and 2% off-trade current value growth to reach
AUD1.3 billion in 2018
 Fresh ground coffee pods records the strongest growth within coffee of 9% in 2018
 On-trade volume growth of coffee exceeds that of off-trade in 2018 due to the strong café
culture
 Nestlé Australia continues to clearly lead coffee in Australia with a 47% off-trade value share
in 2018
 Coffee to record a 4% off-trade current value CAGR (2% CAGR at constant 2018 prices) and
a negligible volume CAGR over the forecast period to reach sales of AUD1.6 billion in 2023
PROSPECTS
Australia’s Growing Café Culture Impacts Instant Coffee

Although instant coffee still accounted for more than half of overall coffee off-trade volume
sales in Australia in 2018, its share of overall off-trade coffee volumes declined year-on-year
throughout the review period. The decline of instant coffee in Australia is related to Australia’s
burgeoning coffee culture. For example, consumers are looking to make café-style coffee at
home using fresh coffee beans or fresh ground coffee pods or consumers are purchasing coffee
from cafés. Research company Indeana completed a study for Lavazza Australia, with the
results released for International Coffee Day in 2017. This study found that those living in
Sydney purchased 4.41 cups of coffee a week on average, while those living in Melbourne
purchased 3.91 cups a week on average. Over the forecast period, volume sales of instant
coffee are expected to remain in decline, while fresh ground coffee pods and fresh coffee beans
are expected to record growth as Australia’s coffee culture further develops.
Consumer Demand for Ethical and Sustainable Coffee Continues To

Grow
In line with the growing ethical living trend, more consumers are showing concern about the
sustainability of their coffee products. For example, Euromonitor International’s Global
Consumer Trends survey 2017 found that Fairtrade was an influential beverage product feature
for 11% of Australians. Nespresso’s coffee ambassador Mitch Monaghan was quoted in trade
press “Appliance Retailer” as stating at a panel discussion in Sydney hosted by Nespresso that,
“We know there is a real appetite for what businesses are doing to drive sustainability and with
that comes consumer demand for more information and they then make choices as to which
businesses they will and won’t engage with.” The demand for ethical and sustainable coffee is
expected to increase over the forecast period, with consumer demand for these product features
forecast to increase.
Slowing Growth for Fresh Ground Coffee Pods

Fresh ground coffee pods recorded slower volume growth in 2018 than in 2017. This can be
explained in part by the growing maturity of the category. Fresh ground coffee pods growth is
expected to slow even further over the forecast period as a result of this increasing maturity,
with strong growth expected for other coffee products. Environmental concerns about the impact
of fresh ground coffee pods is also likely to contribute to the reduced growth of these products
over the forecast period. Organic fresh coffee is expected to see the strongest off-trade value
growth over the forecast period.
COMPETITIVE LANDSCAPE
Nestlé Australia Remains the Leader in Coffee in Australia

Nestlé Australia remains the overall leader within coffee in Australia, owing to the strength of
its key brands, such as Nescafé Blend 43 and Nescafé Gold Blend within regular instant
standard coffee and Nespresso within fresh ground coffee pods. Nescafé Blend 43 saw its
brand share decline overall over the review period. Nescafé Gold Blend recorded brand share
increases in both volume and value terms in 2018 within regular instant standard coffee. The
Nescafé Gold range introduced a new label in May 2018, with the new labelling providing more
consistency across the range.
Cantarella Bros Sees Its Share Within Coffee Increase in 2018

Cantarella Bros’ positive performance was due to the popularity of its Vittoria brand, which
saw the company’s share continue increasing significantly in 2018. Over the review period, the
Vittoria brand has seen its share increase significantly in fresh ground coffee pods along with
increases in share in fresh coffee beans, although these increases were more moderate.
Vittoria’s highest brand share is in standard fresh ground coffee.
De Master Blenders 1753 NV Records Significant Share Growth in

Fresh Ground Coffee Pods
DE Master Blenders 1753 NV saw its share within fresh ground coffee pods experience
strong growth over the review period. This was due to the popularity of its L’Or brand. The
company launched new aluminium coffee pods in 2018 compatible with the Nespresso coffee
machine. The new aluminium coffee pods can also be recycled through a programme with
TerraCycle.
CATEGORY DATA
Table 26 Retail Sales of Coffee by Category: Volume 2013-2018
Tonnes
2013 2014 2015 2016 2017 2018
Fresh Coffee 9,032.7 9,470.4 9,916.8 10,375.8 10,872.4 11,375.3

- Fresh Coffee Beans 3,022.9 3,142.9 3,222.6 3,318.3 3,421.2 3,520.4
- Fresh Ground Coffee 6,009.8 6,327.5 6,694.3 7,057.5 7,451.2 7,854.9
-- Fresh Ground Coffee 1,494.2 2,007.9 2,521.5 2,973.6 3,428.6 3,884.6
Pods
-- Standard Fresh 4,515.6 4,319.6 4,172.7 4,083.9 4,022.6 3,970.3
Ground Coffee
Instant Coffee 16,201.9 15,918.9 15,605.3 15,266.5 14,909.5 14,552.9
- Instant Standard Coffee 12,915.2 12,778.4 12,557.5 12,300.2 12,026.1 11,726.9
-- Regular Instant 12,332.6 12,190.0 11,964.0 11,699.6 11,418.8 11,110.5
Standard Coffee
-- Decaffeinated 582.6 588.4 593.5 600.6 607.2 616.3
Instant Standard Coffee
- Instant Coffee Mixes 3,286.7 3,140.5 3,047.8 2,966.2 2,883.5 2,826.0
-- Regular Instant 3,278.3 3,132.1 3,039.4 2,957.8 2,874.9 2,817.4
Coffee Mixes
-- Decaffeinated 8.4 8.4 8.4 8.5 8.5 8.6
Instant Coffee Mixes
Coffee 25,234.6 25,389.3 25,522.2 25,642.3 25,781.9 25,928.2
Table 27 Retail Sales of Coffee by Category: Value 2013-2018
AUD million
2013 2014 2015 2016 2017 2018
Fresh Coffee 320.9 360.0 400.0 441.4 468.0 500.1

- Fresh Coffee Beans 67.3 71.5 76.0 79.4 84.1 90.9
- Fresh Ground Coffee 253.6 288.5 324.0 362.0 383.9 409.3
-- Fresh Ground Coffee 135.9 176.9 215.6 255.1 278.4 304.5
Pods
-- Standard Fresh 117.7 111.6 108.4 106.9 105.6 104.7
Ground Coffee
Instant Coffee 830.7 846.7 861.6 869.8 858.3 849.7
- Instant Standard Coffee 638.7 650.2 661.0 667.2 652.8 640.8
-- Regular Instant 593.0 604.2 614.9 620.6 605.7 593.0
Standard Coffee
-- Decaffeinated 45.7 46.0 46.1 46.5 47.1 47.8
- Instant Coffee Mixes 192.0 196.5 200.6 202.6 205.4 208.9
-- Regular Instant 191.4 195.9 200.0 202.0 204.8 208.3
Coffee Mixes
-- Decaffeinated 0.6 0.6 0.6 0.6 0.6 0.6
Coffee 1,151.5 1,206.7 1,261.6 1,311.2 1,326.3 1,349.8
Table 28 Retail Sales of Coffee by Category: % Volume Growth 2013-2018
% volume growth
2017/18 2013-18 CAGR 2013/18 Total
Fresh Coffee 4.6 4.7 25.9

- Fresh Coffee Beans 2.9 3.1 16.5
- Fresh Ground Coffee 5.4 5.5 30.7
-- Fresh Ground Coffee Pods 13.3 21.1 160.0
-- Standard Fresh Ground Coffee -1.3 -2.5 -12.1
Instant Coffee -2.4 -2.1 -10.2
- Instant Standard Coffee -2.5 -1.9 -9.2
-- Regular Instant Standard Coffee -2.7 -2.1 -9.9
-- Decaffeinated Instant Standard Coffee 1.5 1.1 5.8
- Instant Coffee Mixes -2.0 -3.0 -14.0

-- Regular Instant Coffee Mixes -2.0 -3.0 -14.1
-- Decaffeinated Instant Coffee Mixes 0.7 0.5 2.7
Coffee 0.6 0.5 2.7
Table 29 Retail Sales of Coffee by Category: % Value Growth 2013-2018

2017/18 2013-18 CAGR 2013/18 Total

-- Standard Fresh Ground Coffee -0.8 -2.3 -11.0
Instant Coffee -1.0 0.5 2.3
- Instant Standard Coffee -1.8 0.1 0.3
-- Regular Instant Standard Coffee -2.1 0.0 0.0
- Instant Coffee Mixes 1.7 1.7 8.8
-- Regular Instant Coffee Mixes 1.7 1.7 8.8
Coffee 1.8 3.2 17.2
Table 30 Retail Sales of Fresh Coffee by Regular vs Decaffeinated: % Volume 2013-2018
% retail volume
2013 2014 2015 2016 2017 2018
Total 100.0 100.0 100.0 100.0 100.0 100.0

Decaffeinated 4.6 4.7 4.8 4.8 4.8 4.7
Regular 95.4 95.3 95.2 95.2 95.2 95.3
Note: Totals may not sum to 100% due to data rounding
Table 31 Retail Sales of Fresh Ground Coffee Pods by Hard vs Soft: % Volume 2013-2018
% retail volume
2013 2014 2015 2016 2017 2018
Hard Coffee Pods 99.8 99.8 99.8 99.9 99.9 99.9

Soft Coffee Pods 0.2 0.2 0.2 0.1 0.1 0.1
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 32 NBO Company Shares of Coffee: % Retail Value 2014-2018
% retail value rsp

Company 2014 2015 2016 2017 2018

Jacobs Douwe Egberts - 19.5 20.6 21.2 21.3
DE Master Blenders 1753 21.5 3.1 3.7 4.9 5.6
NV
Freshfood Services Pty 3.4 3.5 3.4 3.4 3.3
Ltd
Lavazza Australia Pty Ltd - - 2.9 3.0 3.1
Australia Pty Ltd
Aldi Stores 0.5 0.6 0.7 0.8 1.1
Coca-Cola Amatil Ltd 0.3 0.3 0.4 0.4 0.5
Maranatha Import Export 0.4 0.4 0.3 0.4 0.4
Pty Ltd
John Frisco & 0.3 0.3 0.3 0.3 0.3
Associates Pty Ltd
Stuart Alexander & Co 0.3 0.3 0.3 0.2 0.2
Pty Ltd
Mondelez Australia Pty 0.1 0.2 0.2 0.1 0.1
Ltd
Valcorp Fine Foods Pty 3.1 3.0 - - -
Ltd
Cerebos Australia Ltd - - - - -
Premier Food & - - - - -
Beverages Pty Ltd
Sara Lee Coffee & Tea - - - - -
Australia Pty Ltd
Others 4.9 4.5 4.3 3.9 3.8
Total 100.0 100.0 100.0 100.0 100.0
Table 33 LBN Brand Shares of Coffee: % Retail Value 2015-2018
% retail value rsp

Moccona Jacobs Douwe Egberts 19.5 20.6 21.2 21.3

Nescafé (Nestlé SA) Nestlé Australia Ltd 19.4 17.7 15.6 14.1
Nespresso (Nestlé SA) Nestlé Australia Ltd 13.1 14.0 13.2 12.1
Nescafé Gold Nestlé Australia Ltd 8.5 8.2 8.2 8.2
(Nestlé SA)
L'Or Espresso DE Master Blenders 1753 0.8 1.4 2.6 3.3
(Jacobs Douwe NV
Egberts)
Lavazza (Lavazza Lavazza Australia Pty Ltd - 2.9 3.0 3.1
SpA, Luigi)
Robert Timms Freshfood Services Pty 3.2 3.1 3.1 3.0
(FreshFood Holdings Ltd
Pte Ltd)
International Roast Nestlé Australia Ltd 3.3 3.1 3.1 3.0
(Nestlé SA)
Harris (Jacobs DE Master Blenders 1753 2.3 2.3 2.3 2.3
Douwe Egberts) NV
Nescafé Dolce Gusto Nestlé Australia Ltd 1.1 1.0 1.4 1.6
(Nestlé SA)
Aurora Cantarella Bros Pty Ltd 0.9 0.8 0.8 0.8
Grinders Coffee Coca-Cola Amatil Ltd 0.3 0.4 0.4 0.5
(Coca-Cola Co, The)
Gloria Jean's Coffee Maranatha Import Export 0.4 0.3 0.4 0.4
Pty Ltd
Illy (Illycaffè SpA) John Frisco & 0.3 0.3 0.3 0.3
Associates Pty Ltd
Melitta (Melitta Stuart Alexander & Co 0.3 0.3 0.2 0.2
Unternehmensgruppe Pty Ltd
Bentz KG)
Bushells (FreshFood Freshfood Services Pty 0.3 0.2 0.2 0.2
Holdings Pte Ltd) Ltd
Andronicus (Nestlé Nestlé Australia Ltd 0.1 0.1 0.1 0.0
SA)
Lavazza (Lavazza Valcorp Fine Foods Pty 3.0 - - -
SpA, Luigi) Ltd
Riva (Suntory Cerebos Australia Ltd - - - -
Holdings Ltd)
Harris DE Master Blenders 1753 NV - - - -
L'Or Espresso DE Master Blenders 1753 NV - - - -
Moccona DE Master Blenders 1753 NV - - - -
Melitta (Melitta Premier Food & - - - -
Unternehmensgruppe Beverages Pty Ltd
Bentz KG)
Harris (Sara Lee Sara Lee Coffee & Tea - - - -
Corp) Australia Pty Ltd
Moccona (Sara Lee Sara Lee Coffee & Tea - - - -
Corp) Australia Pty Ltd
(Private Label)
Others Others 13.0 12.4 12.0 11.9
Total Total 100.0 100.0 100.0 100.0
Table 34 Forecast Retail Sales of Coffee by Category: Volume 2018-2023
Tonnes
2018 2019 2020 2021 2022 2023
Fresh Coffee 11,375.3 11,875.0 12,374.5 12,870.4 13,361.3 13,869.0

- Fresh Coffee Beans 3,520.4 3,634.8 3,757.5 3,891.2 4,035.6 4,192.7
- Fresh Ground Coffee 7,854.9 8,240.2 8,617.0 8,979.1 9,325.7 9,676.3
-- Fresh Ground Coffee 3,884.6 4,288.9 4,643.9 4,956.5 5,240.8 5,520.0
Pods
-- Standard Fresh 3,970.3 3,951.3 3,973.1 4,022.7 4,084.9 4,156.3
Ground Coffee
Instant Coffee 14,552.9 14,175.9 13,784.8 13,380.4 12,963.8 12,539.9
- Instant Standard Coffee 11,726.9 11,416.5 11,097.0 10,771.2 10,436.8 10,096.9
-- Regular Instant 11,110.5 10,791.7 10,464.0 10,131.2 9,791.2 9,446.6
Standard Coffee
-- Decaffeinated 616.3 624.9 633.0 640.0 645.6 650.3

- Instant Coffee Mixes 2,826.0 2,759.3 2,687.8 2,609.2 2,526.9 2,443.0
-- Regular Instant 2,817.4 2,750.7 2,679.1 2,600.5 2,518.1 2,434.1
Coffee Mixes
-- Decaffeinated 8.6 8.6 8.7 8.7 8.8 8.9
Coffee 25,928.2 26,050.8 26,159.3 26,250.8 26,325.0 26,408.9
trade sources
Table 35 Forecast Retail Sales of Coffee by Category: Value 2018-2023
AUD million
2018 2019 2020 2021 2022 2023
Fresh Coffee 500.1 534.0 571.3 608.4 645.6 683.7

- Fresh Coffee Beans 90.9 95.0 99.1 104.0 109.3 115.1
- Fresh Ground Coffee 409.3 439.0 472.2 504.5 536.3 568.6
-- Fresh Ground Coffee 304.5 335.6 367.8 398.6 428.6 458.7
Pods
-- Standard Fresh 104.7 103.4 104.4 105.9 107.8 110.0
Ground Coffee
Instant Coffee 849.7 838.3 824.7 808.7 791.9 773.4
- Instant Standard Coffee 640.8 631.4 620.3 607.8 594.9 580.6
-- Regular Instant 593.0 582.9 571.3 558.1 544.7 530.0
Standard Coffee
-- Decaffeinated 47.8 48.5 49.0 49.7 50.1 50.5
- Instant Coffee Mixes 208.9 206.9 204.4 201.0 197.1 192.8
-- Regular Instant 208.3 206.2 203.8 200.3 196.4 192.2
Coffee Mixes
-- Decaffeinated 0.6 0.6 0.6 0.6 0.6 0.6
Coffee 1,349.8 1,372.2 1,396.0 1,417.2 1,437.6 1,457.1
trade sources
Table 36 Forecast Retail Sales of Coffee by Category: % Volume Growth 2018-2023
% volume growth
2018/19 2018-23 CAGR 2018/23 Total

-- Standard Fresh Ground Coffee -0.5 0.9 4.7
Coffee 0.5 0.4 1.9
trade sources
Table 37 Forecast Retail Sales of Coffee by Category: % Value Growth 2018-2023

2018/2019 2018-23 CAGR 2018/23 Total

-- Standard Fresh Ground Coffee -1.3 1.0 5.0
Coffee 1.7 1.5 7.9
trade sources
Table 38 Forecast Retail Sales of Fresh Coffee by Regular vs Decaffeinated: % Volume 2018-
2023
% retail volume
2018 2019 2020 2021 2022 2023
Total 100.0 100.0 100.0 100.0 100.0 100.0

Decaffeinated 4.7 4.7 4.6 4.6 4.6 4.5
Regular 95.3 95.3 95.4 95.4 95.4 95.5
TEA IN AUSTRALIA - CATEGORY

ANALYSIS
HEADLINES
 Tea declines by 1% in off-trade volume while growing by 3% in off-trade current value to

reach AUD429 million in 2018
 Other fruit/herbal tea records the strongest off-trade value growth in tea, spurred by its health
positioning
 On-trade volume sales of tea increase by 3% while off-trade volume sales decline by 1% in
2018
 Unilever Australia leads tea in Australia with a 26% off-trade value share in 2018
 Tea to record a -1% off-trade volume CAGR and 5% off-trade current value CAGR (3%
CAGR at constant 2018 prices) over the forecast period to reach AUD548 million in 2023
PROSPECTS
Lack of Innovation Impacting Traditional Teas

A shortage of new product innovation is impacting sales of traditional teas, such as black tea,
as it is not drawing fresh consumers to these products. This trend is observed in the falling per
capita consumption of black tea, which decreased each year over the review period and is
predicted to remain in decline over the forecast period. The growth of coffee culture in Australia
could also be a factor contributing to the decline of traditional tea as Australians seek out a
morning cup of coffee rather than tea.
Health Advantages of Tea and Novel Flavours To Draw in Consumers

On the other hand, teas with a health positioning, such as other fruit/herbal tea, saw
significant growth in 2018. Consumers are attracted to the health positioning and benefits of
these products. Trade press “Retail World” quoted Endeavour Consumer Health Senior Brand
Manager, Ms Tyquin, in May 2018 as noting that change within tea will be motivated by the
health advantages of the products as well as consumers wanting more flavour novelty and
variety. Ms Tyquin is also quoted in this article as stating, "Consumers are looking for healthier
alternatives in every category," and that "herbal tea certainly answers this". As a result, other
fruit/herbal tea is expected to record the strongest value growth in tea over the forecast period.
On-trade Sales Encouraged by Widening Product Variety

On-trade volume sales of tea recorded reasonable growth in 2018. This is attributable to the
increasing variety of speciality teas, such as Chai, and herbal teas, such as peppermint,
attracting more consumers to drink tea in the on-trade by providing greater product choice. This
growth is also being supported by the café culture of Australia, with tea products appealing to
those visiting cafés who are looking for a beverage other than coffee.
Unilever Australia Ltd Leads Tea in Australia

While Unilever Australia led tea in Australia in 2018, the company recorded year-on-year
declines in share over the review period. The biggest competition for the company within tea
comes from AB Food & Beverages Australia, which recorded year-on-year share growth in tea
over the review period. Within loose black tea, Bushells was the leading brand, comprising of
three variants, with the Bushells Blue Label Fine Leaf Tea the leading subbrand. All three
subbrands experienced year-on-year declines throughout the review period. Within tea bags
black, Lipton Yellow Label was the number two brand, although the brand’s share has declined
since the start of the review period, coinciding with the growth of the Twinings brand.
Conversely, within green tea, the Lipton brand leads, with the brand’s share increasing
throughout the review period. The company launched a matcha green tea range in three
variants in November 2017: Green Tea with Pure Matcha; Green Tea with Pure Matcha Ginger;
and Green Tea with Pure Matcha Mint.
Ab Food & Beverages Australia Continues To Gain Share in Tea

AB Food & Beverages Australia took over the lead in black tea in 2017, which it continued to
hold in 2018. The Twinings brand recorded a slight brand share increase in loose black tea,
while the brand recorded slight decline in its tea bags black share in 2018. The company’s
Twinings brand also leads in fruit/herbal tea, a position that has been consistent throughout the
review period. The company’s Twinings Green Tea ranked second within green tea in 2018 and
the brand increased its share within green tea over the review period.
Madura Tea Estates Australia Sees Growth Over the Review Period,
However This Stagnates in 2018
Madura Tea Estates Australia Pty Ltd is a locally managed and owned tea company located
in northern New South Wales. The company recorded year-on-year increases within black tea
between 2013 and 2017; however, this growth was negligible in 2018. In contrast, the
company’s share within green tea increased between 2016 and 2018. Madura Green Tea is the
fifth-ranked brand within green tea in Australia in 2018.
CATEGORY DATA
Table 39 Retail Sales of Tea by Category: Volume 2013-2018
Tonnes
2013 2014 2015 2016 2017 2018
Black Tea 10,893.2 10,679.2 10,440.7 10,181.9 9,980.1 9,824.6

- Loose Black Tea 2,548.3 2,463.0 2,392.8 2,319.2 2,258.9 2,211.4
- Tea Bags Black 8,345.0 8,216.2 8,047.9 7,862.8 7,721.2 7,613.1
Fruit/Herbal Tea 870.1 926.4 985.1 1,049.8 1,121.2 1,196.3
Green Tea 817.2 876.9 939.1 967.3 1,007.0 1,045.2
Instant Tea 629.8 547.9 475.1 421.6 388.7 360.0
Other Tea 51.6 52.2 52.7 53.0 53.5 54.1
Tea 13,261.9 13,082.6 12,892.6 12,673.6 12,550.4 12,480.1
Table 40 Retail Sales of Tea by Category: Value 2013-2018
AUD million
2013 2014 2015 2016 2017 2018
Black Tea 261.3 262.6 260.4 259.1 262.7 268.1

- Loose Black Tea 41.0 40.6 39.9 39.4 39.9 40.6
- Tea Bags Black 220.3 222.1 220.5 219.7 222.8 227.5
Fruit/Herbal Tea 62.1 66.0 69.3 74.0 79.1 85.4
Green Tea 46.9 50.8 54.1 55.9 57.8 59.7
Instant Tea 22.8 19.8 16.7 14.9 13.8 12.8
Other Tea 3.1 3.2 3.3 3.3 3.4 3.5
Tea 396.3 402.3 403.7 407.1 416.8 429.4
Table 41 Retail Sales of Tea by Category: % Volume Growth 2013-2018
% volume growth
2017/18 2013-18 CAGR 2013/18 Total
Black Tea -1.6 -2.0 -9.8

- Loose Black Tea -2.1 -2.8 -13.2
- Tea Bags Black -1.4 -1.8 -8.8
Fruit/Herbal Tea 6.7 6.6 37.5
Green Tea 3.8 5.0 27.9
Instant Tea -7.4 -10.6 -42.8
Other Tea 1.1 0.9 4.7
Tea -0.6 -1.2 -5.9
Table 42 Retail Sales of Tea by Category: % Value Growth 2013-2018

2017/18 2013-18 CAGR 2013/18 Total
Black Tea 2.0 0.5 2.6

- Loose Black Tea 1.7 -0.2 -1.0
- Tea Bags Black 2.1 0.6 3.2
Green Tea 3.2 4.9 27.3
Instant Tea -7.1 -11.0 -44.0
Other Tea 3.5 2.3 11.9
Tea 3.0 1.6 8.4
Table 43 NBO Company Shares of Tea: % Retail Value 2014-2018
% retail value rsp

Company 2014 2015 2016 2017 2018
Unilever Australia Ltd 28.3 27.5 26.9 26.0 25.8

Australia Pty Ltd
Dilmah Australia Pty Ltd 11.2 11.0 10.8 10.3 10.3
Tetley Australia Pty Ltd 10.3 10.2 9.8 9.4 9.3
Madura Tea Estates 4.4 4.5 4.7 4.8 4.8
Australia Pty Ltd
Nerada Tea Pty Ltd 3.6 3.4 3.3 3.2 3.2
Aldi Stores 1.4 1.4 1.5 1.6 1.6
United Foods Pty Ltd 0.2 0.2 0.2 0.2 0.2
Red Seal Natural Health 0.1 0.1 0.1 0.1 0.2
Ltd
Just Rooibos Australia 0.1 0.1 0.1 0.1 0.1
Others 15.6 16.1 16.2 17.2 17.4
Total 100.0 100.0 100.0 100.0 100.0
Table 44 LBN Brand Shares of Tea: % Retail Value 2015-2018
% retail value rsp

Twinings AB Food & Beverages 23.0 23.9 24.6 24.7

Foods Plc)
Lipton (Unilever Unilever Australia Ltd 12.0 12.2 12.1 12.1
Group)
Dilmah (MJF Group) Dilmah Australia Pty Ltd 11.0 10.8 10.3 10.3
Lipton Yellow Label Unilever Australia Ltd 9.3 8.8 8.2 8.2
(Unilever Group)
Tetley (Tata Global Tetley Australia Pty Ltd 8.4 8.2 8.0 7.9
Beverages Ltd)
Bushells (Unilever Unilever Australia Ltd 5.7 5.5 5.2 5.1
Group)
Madura Madura Tea Estates 4.5 4.7 4.8 4.8
Australia Pty Ltd
Nerada (Boh Nerada Tea Pty Ltd 3.4 3.3 3.2 3.2
Plantations Sdn Bhd)
Diplomat (Private Aldi Stores 1.1 1.2 1.3 1.3
Tynee Tips (Tata Tetley Australia Pty Ltd 0.8 0.6 0.5 0.5
Global Beverages Ltd)
Natureland Cantarella Bros Pty Ltd 0.4 0.4 0.4 0.4
Just Organic Aldi Stores 0.3 0.3 0.4 0.4
(Private Label) Supermarkets Pty Ltd
Robur (Tata Global Tetley Australia Pty Ltd 0.3 0.3 0.2 0.2
Beverages Ltd)
Celestial United Foods Pty Ltd 0.2 0.2 0.2 0.2
Seasonings (Hain
Celestial Group
Inc, The)
Red Seal (Ebos Red Seal Natural Health - 0.1 0.1 0.2
Group Ltd) Ltd
Just Rooibos (Just Just Rooibos Australia 0.1 0.1 0.1 0.1
Rooibos CC)
Kinkara (Tata Tetley Australia Pty Ltd 0.1 0.1 0.1 0.1
Global Beverages Ltd)

Red Seal Red Seal Natural Health 0.1 - - -
Ltd
Jarrah (Associated AB Food & Beverages - - - -
Kinkara (Tata Tea Tetley Australia Pty Ltd - - - -
Ltd)
Robur (Tata Tea Ltd) Tetley Australia Pty Ltd - - - -
Tetley (Tata Tea Ltd) Tetley Australia Pty Ltd - - - -
Tynee Tips (Tata Tetley Australia Pty Ltd - - - -
Tea Ltd)
(Private Label)
Others Others 17.3 17.4 18.3 18.4
Total Total 100.0 100.0 100.0 100.0
Table 45 Forecast Retail Sales of Tea by Category: Volume 2018-2023
Tonnes
2018 2019 2020 2021 2022 2023
Black Tea 9,824.6 9,602.1 9,410.4 9,235.5 9,080.5 8,945.1

- Loose Black Tea 2,211.4 2,144.2 2,081.9 2,023.0 1,970.6 1,924.3
- Tea Bags Black 7,613.1 7,457.8 7,328.5 7,212.4 7,109.9 7,020.9
Fruit/Herbal Tea 1,196.3 1,275.3 1,355.7 1,438.3 1,523.4 1,614.7
Green Tea 1,045.2 1,090.9 1,133.7 1,173.2 1,209.2 1,242.0
Instant Tea 360.0 334.1 314.4 298.6 284.6 271.5
Other Tea 54.1 54.8 55.6 56.7 57.7 58.9
Tea 12,480.1 12,357.1 12,269.9 12,202.3 12,155.5 12,132.2
trade sources
Table 46 Forecast Retail Sales of Tea by Category: Value 2018-2023
AUD million
2018 2019 2020 2021 2022 2023
Black Tea 268.1 270.6 274.1 276.7 279.2 282.9

- Loose Black Tea 40.6 40.2 40.0 39.8 39.7 39.8
- Tea Bags Black 227.5 230.4 234.1 236.9 239.5 243.1
Fruit/Herbal Tea 85.4 91.8 97.6 103.6 109.8 116.5
Green Tea 59.7 61.7 64.3 66.9 69.4 71.8
Instant Tea 12.8 11.9 11.3 10.8 10.3 9.9
Other Tea 3.5 3.6 3.7 3.8 3.9 4.0
Tea 429.4 439.7 451.0 461.8 472.7 485.2
trade sources
Table 47 Forecast Retail Sales of Tea by Category: % Volume Growth 2018-2023
% volume growth
2018/19 2018-23 CAGR 2018/23 Total
Black Tea -2.3 -1.9 -9.0

- Loose Black Tea -3.0 -2.7 -13.0
- Tea Bags Black -2.0 -1.6 -7.8
Green Tea 4.4 3.5 18.8
Instant Tea -7.2 -5.5 -24.6
Other Tea 1.3 1.7 8.9
Tea -1.0 -0.6 -2.8
trade sources
Table 48 Forecast Retail Sales of Tea by Category: % Value Growth 2018-2023

2018/2019 2018-23 CAGR 2018/23 Total
Black Tea 1.0 1.1 5.5

- Loose Black Tea -0.9 -0.4 -2.1
- Tea Bags Black 1.3 1.3 6.9
Green Tea 3.4 3.8 20.3
Instant Tea -6.8 -5.0 -22.5
Other Tea 2.7 2.9 15.5
Tea 2.4 2.5 13.0
trade sources
OTHER HOT DRINKS IN AUSTRALIA -

CATEGORY ANALYSIS
HEADLINES
 Other hot drinks records growth of 1% in off-trade volume and 2% in off-trade current value to
reach AUD195 million in 2018
 Other hot drinks sees new product developments in 2018
 On-trade volume of other hot drinks increases by 3% compared to the 1% off-trade volume
growth in 2018
 Nestlé Australia leads other hot drinks with a 61% off-trade value share in 2018
 Other hot drinks to record a 2% off-trade volume CAGR and 4% off-trade value CAGR (1%
CAGR at constant 2018 prices) over the forecast period to reach AUD236 million in 2023
PROSPECTS
New Product Developments in Other Hot Drinks in 2018

Other hot drinks saw new product developments in 2018 after enduring a shortage of product
developments for some years. In June 2018, Nestlé Australia launched Fantales and Jaffas hot
chocolate products within chocolate-based flavoured powder drinks and Milo Frothycino within
malt-based hot drinks. These new product innovations have the potential to help generate more
interest in other hot drinks.
Café Culture Encourages Growth of Other Hot Drinks in the On-trade

The growth of the café culture has had an impact on the consumption of other hot drinks in
the on-trade. It has had a positive impact on consumption through local consumers enjoying
decadent treats in the on-trade, such as a dessert or indulgent-type drink. This is being
supported by the growth in dessert culture in Australia, with Gelato Messina representative,
Dana Newman, quoted on Goodman Fielder Food Service’s website as stating, “We’ve
definitely seen a rise in dessert culture, firstly in Sydney and now we’re very much seeing the
same in Melbourne.” However, the growth of café culture has also had a negative impact on the
consumption of other hot drinks in the on-trade, with coffee products providing competition for
these drinks.
Influence of Demographic Factors on Other Hot Drinks

The slow growth of the population aged 0-14 years continues to have an impact on other hot
drinks in Australia. This is because this age group are key consumers of these products. Other
hot drinks manufacturers have responded to this continued demographic trend by seeking to
broaden consumer demand for their products from children to adults. For example, Nestlé
Australia’s launch of its new hot chocolates, Fantales and Jaffas, are aimed to appeal to both
children and adults as they are inspired by two of their iconic brands. Over the forecast period,
the increase in the 0-14 demographic is predicted to remain restrained, resulting in a tricky
operating environment for manufacturers.
Nestlé Australia Remains the Leader in Other Hot Drinks

Nestlé Australia’s Milo brand remained the most valuable brand in other hot drinks in 2018.
However, sales for the brand were virtually stagnant in 2018, reflecting the impact of the
demographic factors impacting other hot drinks. The company’s Nesquik brand saw value
growth within both chocolate-based flavoured powder drinks and non-chocolate-based flavoured
powder drinks. Likewise, the company’s Sustagen brand saw its brand share increase in 2018
within both chocolate-based flavoured powder drinks and non-chocolate-based flavoured
powder drinks, with the brand appealing to consumers seeking out additional nutritional support.
Aldi Stores Supermarkets Increases Its Share Within Other Hot Drinks
Aldi Stores Supermarkets increased its share within other hot drinks throughout the review
period as the company increased its supermarket footprint in Australia. The number of Aldi
stores increased from 311 in 2013 to 486 in 2017. Consumers appreciate the value and
competitive pricing offered by Aldi Stores Supermarkets. Aldi’s product range within other hot
drinks includes Alcafe and Expressi in chocolate-based flavoured powder drinks and NRG Maxx
in malt-based hot drinks.
Vitarium Experiences Share Growth Due To Growing Health

Consciousness
Vitarium’s company share within other hot drinks increased over the course of the review
period. The growth in the company’s Vitarium brand within chocolate-based flavoured powder
drinks is attributable to the increasing health and wellness trend. Vitarium contains no added
sugar and is sweetened with natvia, referred to on the label as “a 100% natural blend of the
stevia plant & fruit extracts”. Aversion to sugar remains a significant issue in the non-alcoholic
drinks industry, with Euromonitor International’s Global Consumer Trends Survey 2017 finding
that 45% of Australians are trying to limit their intake of refined sugar. Health and wellness is set
to remain an important trend within non-alcoholic drinks over the forecast period.
CATEGORY DATA
Table 49 Retail Sales of Other Hot Drinks by Category: Volume 2013-2018
Tonnes
2013 2014 2015 2016 2017 2018
Flavoured Powder Drinks 12,479.2 12,348.0 12,254.2 12,237.0 12,300.6 12,418.3

- Chocolate-based 3,728.2 3,829.5 3,929.1 4,026.5 4,135.2 4,255.1
Flavoured Powder Drinks
- Malt-based Hot Drinks 7,762.4 7,504.7 7,290.1 7,151.5 7,080.0 7,051.7
- Non-Chocolate-based 988.6 1,013.8 1,035.1 1,058.9 1,085.4 1,111.5
Other Plant-based Hot - - - - - -
Drinks
Other Hot Drinks 12,479.2 12,348.0 12,254.2 12,237.0 12,300.6 12,418.3
Table 50 Retail Sales of Other Hot Drinks by Category: Value 2013-2018
AUD million
2013 2014 2015 2016 2017 2018
Flavoured Powder Drinks 185.4 186.3 186.4 187.7 191.2 194.6

- Chocolate-based 65.8 67.5 69.1 70.8 73.3 75.6
- Malt-based Hot Drinks 107.2 105.5 103.4 102.3 102.7 103.3
- Non-Chocolate-based 12.4 13.3 13.9 14.5 15.1 15.7
Drinks
Other Hot Drinks 185.4 186.3 186.4 187.7 191.2 194.6
Table 51 Retail Sales of Other Hot Drinks by Category: % Volume Growth 2013-2018
% volume growth
2017/18 2013-18 CAGR 2013/18 Total
Flavoured Powder Drinks 1.0 -0.1 -0.5

- Chocolate-based Flavoured Powder 2.9 2.7 14.1
Drinks
- Malt-based Hot Drinks -0.4 -1.9 -9.2
- Non-Chocolate-based Flavoured Powder 2.4 2.4 12.4
Drinks
Other Plant-based Hot Drinks - - -
Other Hot Drinks 1.0 -0.1 -0.5
Table 52 Retail Sales of Other Hot Drinks by Category: % Value Growth 2013-2018

2017/18 2013-18 CAGR 2013/18 Total
Flavoured Powder Drinks 1.8 1.0 5.0

Drinks
- Malt-based Hot Drinks 0.6 -0.7 -3.6
Drinks
Table 53 NBO Company Shares of Other Hot Drinks: % Retail Value 2014-2018
% retail value rsp

Company 2014 2015 2016 2017 2018

Cadbury Pty Ltd 12.8 12.7 12.8 13.1 13.3
Australia Pty Ltd
Club Trading & 4.4 4.8 4.9 5.1 5.2
Distribution Pty Ltd
Aldi Stores 1.2 1.6 1.8 2.0 2.1
Vitarium Pty Ltd 1.3 1.5 1.4 1.5 1.5
Lindt & Sprüngli 1.4 1.3 1.3 1.3 1.3
(Australia) Pty Ltd
Avalanche Coffee Ltd 0.7 0.8 0.9 0.9 1.0
Vitaco Health Ltd 0.8 0.8 0.9 0.9 0.9
SmithKline Beecham 0.9 0.8 0.8 0.8 0.8
(Australia) Pty Ltd
Myerton Health Products 0.5 0.5 0.4 0.4 0.4
Pty Ltd
Dick Smith Foods Pty Ltd 0.1 0.1 0.1 0.1 0.1
Cadbury Schweppes - - - - -
Australia Ltd
Unistraw International - - - - -
Ltd
Others 2.9 3.2 3.5 3.6 3.7
Total 100.0 100.0 100.0 100.0 100.0
Table 54 LBN Brand Shares of Other Hot Drinks: % Retail Value 2015-2018
% retail value rsp

Milo (Nestlé SA) Nestlé Australia Ltd 50.2 49.5 48.6 48.1
Cadbury Drinking Cadbury Pty Ltd 12.7 12.8 13.1 13.3
Chocolate (Mondelez
International Inc)
Nesquik (Nestlé SA) Nestlé Australia Ltd 7.1 7.3 7.4 7.5
Sipahh (Unistraw Club Trading & 4.8 4.9 5.1 5.2
International Ltd) Distribution Pty Ltd
Sustagen (Reckitt Nestlé Australia Ltd - - 3.8 3.8
Benckiser Group Plc
(RB))
Ovaltine AB Food & Beverages 1.7 1.6 1.7 1.6
Foods Plc)
Vitarium Vitarium Pty Ltd 1.5 1.4 1.5 1.5
Lindt Lindt & Sprüngli 1.3 1.3 1.3 1.3
(Chocoladefabriken (Australia) Pty Ltd
Lindt & Sprüngli AG)
Nestlé (Nestlé SA) Nestlé Australia Ltd 1.3 1.2 1.2 1.2
Avalanche Avalanche Coffee Ltd 0.8 0.9 0.9 1.0
Abundant Earth Vitaco Health Ltd - - 0.9 0.9
(Shanghai
Pharmaceuticals
Holding Co Ltd)
Horlicks SmithKline Beecham 0.8 0.8 0.8 0.8
(GlaxoSmithKline Plc) (Australia) Pty Ltd
Alcafe (Private Aldi Stores 0.5 0.6 0.6 0.6
NRG Maxx (Private Aldi Stores 0.4 0.5 0.5 0.5
Nestlé Alpen Blend Nestlé Australia Ltd 0.7 0.5 0.5 0.4
(Nestlé SA)
Akta-Vite Myerton Health Products 0.5 0.4 0.4 0.4
Pty Ltd
Dick Smith's OzeChoc Dick Smith Foods Pty Ltd 0.1 0.1 0.1 0.1
Sustagen (Mead Nestlé Australia Ltd 3.6 3.7 - -
Johnson Nutrition Co)
Abundant Earth Vitaco Health Ltd 0.8 0.9 - -
Cadbury Drinking Cadbury Pty Ltd - - - -
Chocolate (Kraft
Foods Inc)
Cadbury Drinking Cadbury Schweppes - - - -
Chocolate (Cadbury Australia Ltd
Plc)
Sipahh Unistraw International Ltd - - - -
Others Others 3.2 3.5 3.6 3.7
Total Total 100.0 100.0 100.0 100.0
Table 55 Forecast Retail Sales of Other Hot Drinks by Category: Volume 2018-2023
Tonnes
2018 2019 2020 2021 2022 2023
Flavoured Powder Drinks 12,418.3 12,595.4 12,798.5 13,009.3 13,232.4 13,455.7

- Chocolate-based 4,255.1 4,385.8 4,502.3 4,610.8 4,718.1 4,817.4
- Malt-based Hot Drinks 7,051.7 7,074.1 7,134.0 7,212.0 7,305.0 7,407.2
- Non-Chocolate-based 1,111.5 1,135.4 1,162.1 1,186.5 1,209.3 1,231.1
Drinks
Other Hot Drinks 12,418.3 12,595.4 12,798.5 13,009.3 13,232.4 13,455.7
trade sources
Table 56 Forecast Retail Sales of Other Hot Drinks by Category: Value 2018-2023
AUD million
2018 2019 2020 2021 2022 2023
Flavoured Powder Drinks 194.6 198.5 199.8 202.1 205.3 208.7

- Chocolate-based 75.6 77.8 79.9 81.9 83.9 85.7
- Malt-based Hot Drinks 103.3 104.5 103.1 102.8 103.4 104.4
- Non-Chocolate-based 15.7 16.3 16.8 17.4 18.0 18.7
Drinks
Other Hot Drinks 194.6 198.5 199.8 202.1 205.3 208.7
trade sources
Table 57 Forecast Retail Sales of Other Hot Drinks by Category: % Volume Growth 2018-2023
% volume growth
2018/19 2018-23 CAGR 2018/23 Total

Drinks
- Malt-based Hot Drinks 0.3 1.0 5.0
Drinks
trade sources
Table 58 Forecast Retail Sales of Other Hot Drinks by Category: % Value Growth 2018-2023

2018/2019 2018-23 CAGR 2018/23 Total

Drinks
- Malt-based Hot Drinks 1.1 0.2 1.0
Drinks
trade sources

Hot Drinks in Australia: Euromonitor International March 2019

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Hot Drinks in Australia

LIST OF CONTENTS AND TABLES

Table 43 NBO Company Shares of Tea: % Retail Value 2014-2018 ........................ 24

HOT DRINKS IN AUSTRALIA -

Café Culture Continues To Support the Growth of Hot Drinks in Australia

Premiumisation and Health and Wellness Key Trends in Hot Drinks

Nestlé Australia the Leading Player in Hot Drinks 2018

New Product Developments Focus on Premiumisation, Indulgence and

Hot Drinks To See Recovery in Volume Growth

Retail 55.9 54.8 53.7 52.6 51.5 50.5

Table 2 Sales of Hot Drinks by Retail vs Foodservice: % Volume Growth 2013-2018

Retail 0.4 -0.1 -0.3

Table 3 Retail Sales of Hot Drinks by Category: Volume 2013-2018

Coffee 25,234.6 25,389.3 25,522.2 25,642.3 25,781.9 25,928.2

Table 4 Retail Sales of Hot Drinks by Category: Value 2013-2018

Coffee 1,151.5 1,206.7 1,261.6 1,311.2 1,326.3 1,349.8

Table 5 Retail Sales of Hot Drinks by Category: % Volume Growth 2013-2018

Coffee 0.6 0.5 2.7

Table 6 Retail Sales of Hot Drinks by Category: % Value Growth 2013-2018

% current value growth

Coffee 1.8 3.2 17.2

Table 7 Foodservice Sales of Hot Drinks by Category: Volume 2013-2018

Coffee 34,318.2 35,890.9 37,439.3 39,168.6 41,011.5 43,036.4

Table 8 Foodservice Sales of Hot Drinks by Category: % Volume Growth 2013-2018

Coffee 4.9 4.6 25.4

Table 9 Total Sales of Hot Drinks by Category: Total Volume 2013-2018

Coffee 59,552.8 61,280.2 62,961.4 64,810.9 66,793.4 68,964.6

% total volume growth

Coffee 3.3 3.0 15.8

Table 11 NBO Company Shares of Hot Drinks: % Retail Value 2014-2018

% retail value rsp

Nestlé Australia Ltd 43.3 43.0 41.9 39.9 38.1

Lindt & Sprüngli 0.1 0.1 0.1 0.1 0.1

Table 12 LBN Brand Shares of Hot Drinks: % Retail Value 2015-2018

% retail value rsp

Moccona Jacobs Douwe Egberts 13.3 14.2 14.6 14.5

% retail value rsp

Coffee 3.4 3.9 4.4 4.6 5.0 5.6

Table 14 Retail Distribution of Hot Drinks by Format: % Volume 2013-2018

Store-Based Retailing 98.8 98.6 98.5 98.4 98.3 98.2

Store-Based Retailing 97.7 98.8 98.8

Retail 50.5 49.4 48.3 47.2 46.0 44.8

Retail 0.3 0.5 2.3

Table 18 Forecast Retail Sales of Hot Drinks by Category: Volume 2018-2023

Coffee 25,928.2 26,050.8 26,159.3 26,250.8 26,325.0 26,408.9

Table 19 Forecast Retail Sales of Hot Drinks by Category: Value 2018-2023

Coffee 1,349.8 1,372.2 1,396.0 1,417.2 1,437.6 1,457.1

Coffee 0.5 0.4 1.9

% constant value growth

Coffee 1.7 1.5 7.9

Table 22 Forecast Foodservice Sales of Hot Drinks by Category: Volume 2018-2023

Coffee 43,036.4 45,260.4 47,686.7 50,325.3 53,170.2 56,228.8

Coffee 5.2 5.5 30.7

Coffee 68,964.6 71,311.2 73,846.0 76,576.1 79,495.2 82,637.7

% total volume growth

Coffee 3.4 3.7 19.8

Summary 1 Research Sources

Biological Farmers of Australia

Trade Associations Australasian Association of

Australasian Specialty Coffee

Australasian Specialty Tea

Australian Beverages Council Ltd

Australian Bottled Water Institute