Ready-to-drink coffee sales are super caffeinated

Based on the latest findings, it’s possible that consumers are passing up their local coffee and tea shops for the nearest grocery store because ready-to-drink coffee and tea sales are increasing.

Data provided by SymphonyIRI Group, Chicago, show that sales in the shelf-stable tea/coffee ready-to-drink category rose 3.2% to $1.6 billion in the 52 weeks ended July 8, 2012, with the unit sales also showing an increase of 5.1% to 747.7 million. Likewise, the RTD refrigerated teas/coffee category saw an even larger increase of 16.3% to $508.5 million with units up 9.5% to 234.2 million. The categories consist of the following segments:

Tea/coffee ready-to-drink:

• Canned and bottled tea ($1.3 billion sales, units up 4.9%)
• Cappuccino/ice coffee ($295.4 million sales, units up 6.9%)

Refrigerated teas/coffee:

• Refrigerated ready-to-drink coffee ($45.5 million sales, units up 154.7%)
• Refrigerated teas ($461.2 million sales, units up 5.7%)

Seeing the largest overall increase in sales dollars was the refrigerated ready-to-drink coffee segment, up 184.2%. Leading the segment in overall sales was International Delight (from Whitewave Foods Co.) with $24.4 million. Bolthouse Farms took the second and third spots with sales of $19 million (for its protein-blended coffee) and $862,112 (blended coffee), respectively. The protein-blended coffee sales increased 26%, with units rising 30.4%. Upstate Farms was fourth in sales at $681,216. Number five Emmi had sales of $197,053, up 493.5%. Units increased 396.2% to 115,165. 

In the refrigerated tea segment (see table), Gold Peak (from Coca Cola Co.) saw the biggest increase in sales —  38.9% to $82.5 million — and unit sales were up 40.5% to 34.5 million. Private label led the segment; dollar sales rose 8.8% and unit sales were up 5.7%. Turkey Hill Natures Accent was the only brand in the top five to see a drop in sales, down 8.6% with its units down 13.9%.

In a different aisle, the ready-to-drink canned and bottled tea segment saw a minimal increase overall in sales, with four of the top five dropping in sales. Arizona tea dominates the segment in overall sales with $326.5 million, but its sales were down 1.4% and its units were also down 1.1% to 210.7 million. Lipton Brisk Tea saw the biggest drop in sales (-14.3%) and units down 13%. Diet Snapple was the only company in the top five with a sales increase, 8.9% up in dollars, 11.9% up in units.

In contrast the ready-to-drink cappuccino and iced tea category (see table) saw only one company with a decrease in sales. Doubleshot Light (from North American Coffee Partnership) saw a 19.5% drop in sales and its units were down 20.2%. Leading this category in sales is Frappuccino (also from North American Coffee Partnership) with $205.2 million; its sales were up 6.7% and units up 3.7%. Seeing the biggest increase was Illy Issimo (from Ilko Coffee International) up 125.5% in sales and 141.1% in units.