Coffee in South Africa - FMCG Suppliers · PDF fileCoffee in South Africa Food 2012 . ... Iced...

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Coffee

in South Africa

Food 2012

Product Definitions

2

Product Definition

Pure Ground

This product comprises only pure coffee and has no chicory content. Before

consumption, this coffee needs to be brewed using a coffee-making machine.

Coffee beans that have not yet been ground are quantified within this coffee type,

regardless of whether these are Arabica or Robusta.

Pure Instant

This product comprises coffee beans that are roasted, ground and brewed. The

liquid coffee is then either spray-dried or freeze-dried before being packaged as

coffee powder or granules. The use of chicory is excluded from this coffee type, and

thus it is termed “pure”. This coffee does not require any further filtration and may

be brewed instantly, with the addition of hot water, before being consumed, thus it is

defined as “instant coffee”.

Mixed Ground This coffee type entails a blend of coffee and chicory that needs to be brewed and

filtered by a coffee-making machine before consumption.

Mixed Instant

The definition of mixed coffee in this report entails a blend of chicory and coffee.

Chicory is often used as a coffee extender because it is less expensive than pure

coffee. Chicory is a small plant where the roots are dried, cut and roasted, in a

similar method to raw coffee beans, and finally ground.

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Market Trends

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• Mixed Ground Coffee

• Marginal volume growth was seen in the for the category for 2011. The retail channel, which

accounts for close to half of category volumes, remained fairly static in 2011. There were no

significant changes noted in the regional and channel distributions.

• The 125g - 300g pack size range contributes 50.0% of the total mixed ground volumes. This is

down slightly from its 52.0% share in 2010.

• Mixed Instant Coffee

• Mixed instant is the largest of the coffee categories, with a market share of 64.5% for 2011.

Volumes increased only marginally in 2011. This may be indicative of coffee consumers

becoming more sophisticated and moving over to ground coffee.

• The majority of mixed instant volumes are channelled into retail (63.3% share for 2011).

• Pure Ground Coffee

• Pure ground coffee is the second largest coffee category in volume terms at 19.6% of total

market volumes for the base year. Over the last nine years, volumes have increased steadily.

• This category has the most optimistic outlook, with growth anticipated for 2012 and 2013.

• Unlike the other coffee categories, the majority of pure ground volumes are channelled through

the foodservice sector.

• Foil/metalised film continues to be the dominant pack type for this coffee category.

Market Trends

5

• Pure Instant Coffee

• Pure instant is the smallest of the coffee categories in volume terms. The category accounted for

a limited 5.8% of total market volumes for the base year. This niche category saw volume

increases in 2011.

• The majority of pure instant volumes are channelled through the retail trade.

• The 200g-360g glass packaging continues to be the most popular.

Market Trends (Cont.)

Total Market Volume

Coffee - 2011

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38 298 Tons

10.1%

64.5%

19.6%

5.8%

Mixed Ground

Mixed Instant

Pure Ground

Mixed Instant

Channel Distribution

Coffee - 2011

7 Note: Percentages may not add to 100%, due to rounding

2.9%

15.1%

1.1%

55.6%

25.2%

Export

Foodservices Direct

Industrial

Retail

Wholesale

38 298 Tons

Local Regional Distribution

Coffee - 2011

8 Note: Excludes Exports

9.9%

7.4%

28.5%

10.7%

5.7%

6.5%

6.6%

1.5%

23.2%

Eastern Cape

Free State

Gauteng

KwaZulu Natal

Limpopo Province

Mpumalanga

North West Province

Northern Cape

Western Cape

37 183 Tons

Packaging Demand Pack Size

Mixed Ground - 2011

9

11.0%

50.0%

32.0%

7.0%

100g or less

125g - 300g

400g - 1kg

2kg or more

Packaging Demand Pack Type

Mixed Ground - 2011


42.5%

11.9%

40.3%

1.3% 1.0%

3.1%

Carton

Flexible Plastic

Foil/Metalises Film

Paper

Rigid Plastic

Woven PP Sacks


Mixed Instant - 2011


10.5%

33.1%

50.0%

6.5%

150g or Less

200g - 300g

500g - 1kg

1.5kg or more


Mixed Instant - 2011

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5.1% 0.1%

0.7% 2.1%

92.0%

Bag in Box

Flexible Plastic

Foil/Metalises Film

Glass

Paper

Sachets

Tin


Pure Ground - 2011


30.5%

33.0%

31.4%

5.2%

100g or Less

120g - 400g

500g - 1kg

1.25kg or more/asrequired


Pure Ground - 2011


11.7%

0.4%

75.9%

0.1% 1.2%

8.1% 2.5%

Carton

Flexible Plastic

Foil/Metalises Film

Glass

Paper

Sachets

Tin


Pure Instant - 2011


19.1%

67.5%

11.2% 2.3%

150g or less

200g - 360g

500g - 1kg

2kg or more


Pure Instant - 2011


1.6% 1.4%

1.2%

75.4%

2.4%

7.7%

10.2%

Carton

Flexible Plastic

Foil/Metalises Film

Glass

Paper

Sachets

Tin

BMI Research

Information

17

Annual Quantifications

Total Market Quantification for 140 CPG Categories

What are the latest market trends? And:

• Is the category growing or declining?

• What does the future hold for the category?

• What are packaging trends for the market?

• Are category sales growing or declining in retail, wholesale or export?

• How is your product performing in foodservices?

Market Quantification involves sizing up markets annually to see volume, value and consumption trends.

The service is available for most food, beverage, confectionery and snack products. We have more than

10 years of historical data in tracking each market. Using these insights, you’re able to harness the

potential in your market by understanding strategic category trends across the total market.

A unique offering incorporating formal and informal market components.

Total market includes retail, wholesale, foodservices, industrial and exports.

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BMI Tracking Report Schedule

2012

Non-Alcoholic

Beverages

Bottled Water

Carbonated Soft Drinks

Cordials and Squashes

Fruit Juice

Iced Tea

Mague

Sport Drinks and Energy Drinks

Dairy Beverages

Dairy Juice Blends

Drinking Yoghurt

Flavoured Milk

Maas

Milk

For further enquiries please contact [email protected]

REPORT NAME PUBLICATION

Packaging

All Reports

Packaging Overview

Paper & Board

QPM

Quarterly Import

Annual Beverage

Reports Full Report (all reports below)

Alcoholic Beverages

Flavoured Alcoholic

Beverages

Malt Beer

Sorghum Beer

Spirits

Wine


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BMI Tracking Report Schedule

2012 (Cont.)


On Request

Baked Products

Baking Aids

Eggs

Frozen and Par-Baked Products

Maize and Wheat

Premixes

Processed Meat Products

Confectionery and Snacks

Ice Cream

Packaging of Snack Foods

South African Confectionery Market

The Impulse Market in South Africa

For further enquiries please contact [email protected]


Annual Food

Publications

Biscuits and Rusks

Breakfast Foods, Pasta and Rice

Dairy

Desserts

F&C Beverages

Fats and Oils

Pre-prepared Meals

Protein

Sauces

Soups and Condiments

Sweet and Savoury Spreads

Value Added Meals

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ISOS

(In Store Observation Services)

How is your brand performing in-store?

Every week, we answer questions like:

• Is my product available on shelf?

• Does my brand have its fair share of shelf space?

• Is my product listed and available in all stores?

• Is my gondola end in store?

• Do I have promotional activity in that particular store?

ISOS: Gives first-hand insight into your brand’s performance in-store. Monitor your products versus your

competitors’ to assess your performance and remedy gaps. Ensure accurate data which translates into

tactical competitive advantages.

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Print Ads Promotional

Pricing and Share of Spend

Is your product visible enough in promotional print Media?

Assess whether your brand is gaining sufficient share, relative to your spend on promotional print

advertising. Track competitor promotional pricing to tactically react on your own product pricing.

Daily, we answer questions like:

• What is the promotional pricing?

• What is the regional promotional pricing variance?

• What are competitors’ pricing tactics?

• What Rand value is spent on our brand versus competitor brands by retailers?

• Are we losing market share because of this?

Coverage:

• National daily and weekly newspapers

• Weekly community newspapers

• Consumer magazines

• In-store broadsheets

Print Ads: Covers all brands advertised in all regions by retailer by month. The analysis provides an inside

picture of the retail promotional environment. Track competitor promotions and pricing, offering top line or

granular data.

22

Commissioned Research

Need to investigate the market regarding other issues?

If your research need is not covered by our standard set of services, we will tailor-make a study specifically

for you.

BMI’s Commissioned Research is designed specifically to answer your questions in your particular

market. From industrial assessments to traditional consumer studies, we have the expertise to grow your

business.

These may include:

• Consumer Research

• Qualitative Research including Focus Groups and In-depth discussions

• Quantitative Research solutions across various target markets

• Service Quality Measurement (SQM)

• Pack Type Testing and Preference

• Product Testing includes taste tests and new product development

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LISP

(Liquor In Store Pricing)

How is your liquor brand performing in-store?

Each week, we answer questions like:

• Is my product available on shelf?

• Does my brand have its fair share of shelf space?

• Is my product listed and available in all stores?

• Is my gondola end in store?

• Do I have promotional activity in that particular store?

LISP: Gives first-hand insight into your brand’s performance in-store. Monitor your products versus your

competitors to assess your performance and remedy gaps. Ensuring accurate data which translates into

tactical competitive advantage.

24

Consumer Research

Getting into the hearts and minds of Consumers through interaction, stimulation and discussion.

Qualitative and Quantitative solutions including:

• Focus groups

• Depth interviews

• Workshops

• Store visits

• In home visits

• Consumer surveys

• Online research

• Mystery shopping

• International project management

BMI Research: Consumer Division has a passionate focus on consumer behaviour, combining professional

skills with optimal technology and products to complement insights. Project teams are hand picked based on

their knowledge and expertise of the subject matter and offers a range of research methodologies that aim to

give you a multi-dimensional and insightful solution to the understanding of your product/brand. The division

has the ability to draw on BMI Research’s established experience in the retail and wholesale sectors,

providing a unique and customized solution to understanding consumer behaviour.

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For further information please

contact

BMI Research

(Pty) Ltd

Tel: +27 11 615 7000

Fax: +27 11 615 4999

Email: [email protected]

Visit our website on

www.bmi.co.za

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confidentiality.

NOTE:

Although great care has been taken

to ensure accuracy and completeness

in this project, no legal responsibility

can be accepted by BMI for the

information and opinions expressed in

this report.

Copyright © 2012

BMI Research (Pty) Ltd

Reg No. 2008/004751/07

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