Iced Coffee scores in the Dairy Sector

© Birgit Winter/pixelio

Iced coffee is the only segment among non-cheese dairy products where significant growth was recorded last year. This is where branded companies are providing a fresh sales momentum.

Like virtually all non-cheese dairy products last year, liquid products recorded a decline in sales and turnover that was quite massive in some cases. In the important sub-segment of drinking yoghurt, for instance, the downturn was in two digits, 11 per cent for sales and 15 per cent for turnover. Buttermilk experienced six per cent sales slump and a reduction in revenue of nearly ten per cent. On the other hand, whey and whey-based drinks – once the shooting stars among non-cheese dairy products – displayed at least a slight rise in average prices against the background of declining business.

The one and only segment that showed some robust performance was iced coffee. Moreover, seeing that its turnover reached the proud figure of EUR 116m, iced coffee can no longer be regarded as a niche product but rather a fully fledged product group. In fact, it’s a group that is characterised by a high level of competition. Shortly after the brilliant launch of Caffè Latte as the high-end pioneer among iced coffees in 2004, the market was virtually flooded with cold coffee drinks – drinks that were in fact priced at far more competitive levels. So it didn’t take long for iced coffees to enter the standard repertoire of discount stores.

However, it’s the branded companies that are still the most important drivers in this segment, as they continue to provide fresh ideas for both products and marketing. One of these firms is the Swiss dairy company Emmi which is currently causing quire a stir with its innovative flavours in the Caffè Latte range. Last month, Emmi presented its 8th product – Caffè Latte Light Brazil Edition – so that it now has by far the widest range of coffee drinks among all dairy companies. But Emmi is also extremely proactive in the product support it provides for retailers. For instance, Emmi Caffè Latte is a sponsor of the successful TV show “Germany’s Next Top Model” and is currently running a television campaign for Caffè Latte on various major TV channels. And of course Emmi Caffè Latte is presented on large billboards, big banners and info screens at various important hubs within Germany. Set up specially for the new Brazil Light Edition, an online competition is currently being held at www.de.emmi.ch, offering a trip to Brazil as the main prize. But iced coffee is also highly relevant for the dairy company Molkerei Bauer, says marketing manager Jens Fischer. Bauer has a product range called Caffè Freddo and will be presenting its latest novelty within this line. The new product is called Caffè Freddo Crema Fairtrade and has two fair trade ingredients: arabica coffee beans and sugar. The launch of this new member of the Caffè Freddo family will be accompanied by widespread PR activities in the public press. At the same time POS tastings will be held, encouraging consumers to buy these products and try them further at home.

So it’s time for shakes now, is it?
In the dairy beverages segment, an exciting generation of products is currently the talk of the town: shakes. This genre is of course far from new, and in the past there have been quite a few attempts to include frothy milkshakes in chilled cabinets. However, these ideas didn’t have much success and quickly disappeared into oblivion.

But perhaps the time has finally come for a good shake-up. The Swiss company Innoprax is certainly reporting considerable interest among retailers in its range of milkshakes, Shakeria, which attracted large crowds to the company’s stand at the last InterMopro. Innoproax reported equally positive responses in its foreign sales markets. Emmi and Molkerei Bauer are being highly innovative with their milkshakes. The Emmi Milk Shake – “shaken, not stirred” – is presented by the company as a “seductive” pleasure in a variety of flavours. These drinks are available in specially designed cups with snap-on lids. At the same time, Bauer is focusing its strategy on the licence brand Mövenpick, having launched a premium milkshake called Mövenpick Frappé. Its launch is supported by a large-scale radio campaign and various tasting campaigns.