Boston, MA -- (ReleaseWire) -- 06/30/2014 -- RTD coffee in 2013 continued to suffer from weak demand as in terms of supply some dynamism was observed. New players tried to enter the category in 2013 and retailers continued to be open to novelties. However, RTD coffee struggled to take off in France and unsuccessful products were quickly replaced by new ones due to shelf space being at a premium in retailers? snacking sections.
Only a few players offered RTD coffee in France in 2013. The leading player was Emmi AG, which held an off-trade volume share of 80% and value share of 79%. Emmi?s products are largely available on the snacking shelves of major grocery retailers and convenience stores and have been for a long time. As a result, they are well-known by consumers who purchase products for on-the-go consumption. Two other important suppliers of RTD coffee are Illycaff? France and Starbucks Coffee France SAS. Their RTD coffee brands are more recent entrants (Illy Issimo from Illycaff? was launched in 2011 while Frappuccino from Starbucks was launched in the French market in 2012), thus explaining in part their lower volume and value shares.
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Despite the fact that a growing number of consumers are tending to purchase food and drink for consumption on the go, the impact of this trend on RTD coffee will likely be limited over the forecast period. French consumers are accustomed to drinking hot fresh coffee and it will be difficult over the medium and long term to change this behaviour, which is currently being reinforced by the penetration of coffee pod machines and the success of fresh ground coffee pods. As a result, the dynamism observed in terms of supply should diminish year-on-year, also due to the fact that the space reserved for snacking products in supermarkets, hypermarkets and convenience stores is limited and profitability means retailers prefer products which move quickly. Consequently, products and brands with low recognition will have difficulty surviving. In addition, it is likely that not many manufacturers will invest in driving demand due to the fact that the category is small.
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The RTD Coffee in France market research report includes:
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- Where is ready to drink coffee most commonly consumed?
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