Research and Markets: Retailers Such as Marks & Spencer and Co-Op Switched All Their...

Research and Markets: Retailers Such as Marks & Spencer and Co-Op Switched All Their Coffee and Tea Products to Fairtrade, According to the 2007 Report 'Other Hot Drinks in the United Kingdom'

DUBLIN, Ireland--(Business Wire)--Research and Markets
(http://www.researchandmarkets.com/reports/c76599) has announced the
addition of 'Other Hot Drinks in the United Kingdom' to their
offering.

The 'Other Hot Drinks in the United Kingdom' report offers a
comprehensive guide to the size and shape of the market at a national
level. It provides the latest retail sales data (2001-2006), allowing
you to identify the sectors driving growth. It identifies the leading
companies, the leading brands and offers strategic analysis of key
factors influencing the market - be they legislative, distribution or
pricing issues. Forecasts to 2011 illustrate how the market is set to
change.

Product coverage includes: flavoured powder drinks, other
plant-based hot drinks.

Data coverage: market sizes (historic and forecasts), company
shares and brand shares.

Why buy this report?

- Get a detailed picture of the hot drinks industry

- Pinpoint growth sectors and identify factors driving change

- Understand the competitive environment, the market's major
players and leading brands

- Use five-year forecasts to assess how the market is predicted to
develop

Executive summary

Ethical shopping strong down the hot drinks aisle

Be it Fairtrade, sustainable business or other initiatives such as
the ethical tea partnership, ethical shopping proved hugely
successful, particularly in coffee. In tea, the question of supply
still remains an issue, with an insufficient number of Fairtrade
estates to make more tea brands or indeed private label Fairtrade tea.
Consumers feel that they can do their small part to combat global
poverty by buying Fairtrade products. Retailers such as Marks &
Spencer and Co-Op switched all their coffee and tea products to
Fairtrade with this indicating the significance that increasing
numbers of consumers are placing on ethical and sustainable issues
when they do their grocery shopping.

Consumers reach for high quality options

Rising disposable incomes gave many the means to afford
higher-quality products during the review period. Sales of premium
positioned ground coffee, specialty tea and hot chocolate drove value
growth in 2006. Meanwhile, extra spending on premium lines compensated
for stagnant volume growth in the year. Premium hot drinks are viewed
as indulgent treats and affordable luxuries, which consumers are
prepared to pay more for. With growing demand for quality, interest
also increased in provenance and traceability, closely linking the
trend for quality with ethical shopping choices, as consumers became
more informed about coffee blends or cocoa origins.

Health and wellbeing drives otherwise stagnant tea

Hot drinks were as affected by health and wellness trends as other
grocery products in 2006. Decaffeinated tea and coffee performed well
and sales of green tea and fruit/herbal tea grew strongly.
Decaffeinated hot drinks resonate with consumers seeking a healthy
lifestyle. Brands focussed on developing and marketing blends that
compared in taste and quality to regular tea and coffee. Young
upmarket consumers bought into fruit/herbal tea and sought specific
teas to meet their needs, whether they wished to detox, relax or
energise.

Cafe culture shapes coffee

The presence of speciality chained coffee shops such as Costa
Coffee or Starbucks on nearly every high street in the UK certainly
influenced consumer attitudes to coffee. Espresso-based coffee's
ubiquity outside the home resulted in consumers seeking to replicate
the coffee shop experience in their home, with this driving growth of
speciality ground coffees. Coffee pods meanwhile act as a stepping
stone for many between instant speciality and ground speciality
coffee. Sales thus experienced strong growth on the back of consumers
keen for a more genuine coffee flavour but without the assorted
paraphernalia.

Britain still loves a cuppa, despite increased consumer
sophistication

With similar patterns witnessed in food and wine, trend-setting
consumers started to experiment and become more adventurous with their
tastes. Single estate tea blends and fine teas are back in fashion, a
reaction to the commoditisation of tea. However black standard tea
bags still account for the majority of tea drunk in the UK.

Companies Mentioned:

- Betty & Taylors of Harrogate Ltd

- Cafedirect Ltd

- Kraft Foods UK Ltd

- Nestle UK Ltd

- Tetley GB Ltd

- Twining & Co Ltd

- Typhoo Tea Ltd

- Unilever Bestfoods UK Ltd

For more information visit
http://www.researchandmarkets.com/reports/c76599

Source: Euromonitor International

Research and Markets
Laura Wood, Senior Manager
Fax: +353 1 4100 980
press@researchandmarkets.com
Fax: +353 1 4100 980

Copyright Business Wire 2007