COSTA COFFEE READY-TO-DRINK (RTD) KICKS OFF NEW YEAR WITH INNOVATION

COSTA COFFEE READY-TO-DRINK (RTD) KICKS OFF NEW YEAR WITH INNOVATION

• Coffee shop favourite Vanilla Latte added to Costa Coffee’s core RTD range
• Costa expands range further with one of the first Flat White RTD variants in GB
• Existing Latte and Caramel Latte variants available in multipacks from March, for shoppers to buy now and drink later

Coca-Cola European Partners (CCEP) and Costa Coffee are applying insights from Costa’s coffee shop business to launch two new Costa Coffee RTD variants, to drive incremental sales within the Coffee RTD segment.

Costa Vanilla Latte

The latest addition to the core range is Vanilla Latte – a proven coffee shop favourite[1], now available in a convenient 250ml can format. Vanilla is one of the biggest flavours in Costa Coffee retail[2] and accounts for six million over-the-counter servings every year[3].

The new variant is designed to tap into 85% growth in vanilla-flavoured RTD coffee over the last 12 months[4], while bringing a point of difference to the category. Consistent with the rest of the Costa Coffee RTD range which includes Latte, Caramel Latte and Americano variants, the Vanilla Latte offers consumers an authentic coffee experience with less milk and 30% less sugar[5] than its competitors, allowing another of its USPs – Costa’s signature Mocha Italia blend – to shine through.

Costa Flat White

Costa’s exciting new Flat White RTD, combines a double shot of espresso with creamy milk to deliver a stronger coffee taste and velvety texture, with just 76 calories per 200ml can. The aim is to tap into continued growth in Flat White RTD coffee sales, which have more than quadrupled over the last year[6].

Both variants are rolling out in grocery now and like each variant within the range, the aluminium can format is 100% recyclable, which is a growing area of focus for new entrants to the RTD coffee market.

Simon Harrison, Vice President, Commercial Development at CCEP GB, said: “The RTD coffee sector is experiencing 21% growth in value[7], as consumers look for pick-me-ups on-the-go, and increasingly at home as well. Within this, Costa RTD is the fastest growing brand in value terms[8], and our strategy is to drive continued growth through incrementality – more than 50% of Costa RTD consumers are new to the sector[9].

“Costa’s coffee shop business gives us insight into the types and flavours of coffee consumers want, and we’re confident our new launches will deliver – bringing new tastes and milk and caffeine profiles to our RTD range. We’ll continue to support the full range with impactful marketing and sampling activity this year, to demonstrate its suitability for a variety of consumer need states and occasions.”

Costa Coffee RTD Multipack Cans From March

Lockdown restrictions contributed to a 20% increase in sales volume of CCEP’s multipacks of cans in 2020[10], as consumers stocked up on products to enjoy later. The best-selling Costa Coffee Latte and Caramel Latte RTD variants will be available in 4x250ml multi-packs from March in grocery, to help retailers tap into changes in consumer movement patterns and working habits, in 2021 and beyond.

[1] Costa Store Data December 2019

[2] Costa Store Data December 2019

[3] Costa Store Data December 2019

[4] Nielsen Week Ending Val 3.10.2020 MAT total GB.

[5] Costa Research July: 30% less sugar versus most RTD coffee drinks in GB.

[6] Nielsen Week Ending Vol & Val 5.9.2020 MAT total GB.

[7] Nielsen Week Ending Val 5.9.2020 MAT total GB.

[8] Nielsen Week Ending Val 5.9.2020 MAT total GB.

[9] Kantar Worldpanel Division – Take Home Purchase Data, Jun 2019 - Mar 2020

[10] Nielsen Week Ending Vol 5.9.2020 MAT total GB.