Nestl é ready-to-drink coffee to promote new products, that is, drinking coffee has become a "new" magic weapon?

On March 4, 2021, Nestl é announced the launch of a series of silky lattes for ready-to-drink coffee, which is one of the first products developed by Nestl é's recently established product innovation center focusing on liquid beverages and dairy products.

With its excellent coffee system, Nestl é is in a leading position in the field of ready-to-drink coffee in China. According to the prospective Industrial Research Institute, Nestl é ranked first with a market share of 42.6% in China's ready-to-drink coffee market in 2020. Suntory, Starbucks, Unification, Weiquan and Coca-Cola accounted for 7%, 5.3%, 4.4%, 3.4% and 1.6% of the market share, respectively.

Since Nestl é entered the Chinese coffee market, it has launched "1-2" instant coffee, relying on instant coffee to kick-start consumers'"first cup of coffee" and gradually cultivate people's habit of drinking coffee.

While Nestl é launched a new ready-to-drink coffee product, "Spring Limited Cherry Blossom Shufflei Latte", this new bottle is a recyclable material, and Nestl é also cooperates with the Japanese illustrator Association Gold Award artist Munai Darang to create artists' joint cherry blossom series, limited peripheral gifts and other related activities, and create a certain amount of social topics, all of which take a fancy to the huge development potential of the Chinese coffee market.

According to the "Global Coffee Industry Development Trends" released by the United States Department of Agriculture (USDA) at the end of June 2020, China's coffee consumption in 2019 / 2020 was 3.25 million packets, an increase of 4.8% over the same period last year. In addition, according to Euromonitor International, the domestic ready-to-drink coffee market is expected to exceed 14.9 billion yuan in 2021. From these data, we can see that China's coffee market is expanding.

In response, the person in charge of Nestl é Greater China coffee business said that many consumers also come into contact with coffee from Nestle coffee ready-to-drink products, so as to slowly develop their habit of drinking coffee, that is, coffee is very suitable as an entry-level product. For Nestl é, the role of instant coffee is the "first cup of coffee" and the first step for Nestl é to launch a coffee culture. The biggest strategic role of instant coffee is to recruit new users, and China should now be the largest market for Nestl é's ready-to-drink coffee business in the world.

Because instant coffee is essentially a flavor drink, it is not pure black coffee, and it will be easier for consumers to drink coffee for the first time. In addition, instant coffee is easy to carry, and the price is more reasonable, the threshold of consumption is lower. And instant coffee has also become an important magic weapon to drive consumers into the coffee market. Many food and beverage giants have added to the ready-to-drink coffee market, such as Sumida Coffee, Coca-Cola, Nongfu Spring and so on. Nestl é will also face more competitors.

In addition to facing fierce competition, Nestl é ready-to-drink coffee needs to be solved first in terms of product distribution. At present, Nestle coffee ready-to-drink products are mainly distributed by Yinlu, which continues to produce Nestl é ready-to-drink coffee and distribute Nestl é ready-to-drink coffee in 12 provinces.

He Wenlong, head of Nestle's coffee business in Greater China, said, "at present, the stores we cover are only part of it. How to open up new markets is what we still need to work hard." In the future, we will continue to increase the coffee market through different forms and different channels. "

* Image source: Internet