Iced Coffee

Sub-Category Report H2 2014

April 2015
 Executive summary
• Iced coffee accounted for 4% share of the global soft drinks category tracked
launches in H2 2014. Tracked iced coffee launches have grown at 23.6% CAGR over
the past 5 years. The growth is higher than soft drinks category (13% CAGR).

• Europe and Asia are the leading regions for iced coffee launches tracked during H2
2013 to H2 2014.

• Starbucks is the market leader in H2 2014 iced coffee launches tracked. The top 7
companies account for 35% of the total H2 2014 sub-category launches tracked.

• During H2 2013-H2 2014, ethical-packaging remained the leading positioning for iced
coffee launches tracked and also across all the regions.

• Milk is the leading flavor for iced coffee launches tracked across all the regions during
H2 2013 to H2 2014, except North America, where vanilla is prominent. In Middle
East/North Africa, both milk and vanilla are popular.

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Source: Innova Database product launches tracked
 Methodology and notes
• This report is a product launch analysis for iced coffee sub-category and initially
presents a brief analysis of the soft drinks category. The report also dives deeper into
the product launch, positioning and flavor trends in the iced coffee sub-category.

• For the purpose of semi-annual trends, the analysis covers the last 3 bi-annual
periods: H2 2013 to H2 2014, where H2 2014 represents second half of 2014.

• Geographic analysis covers six major regions – North America, Europe, Asia,
Australia/New Zealand, Latin America, and Middle East/North Africa (MENA). MENA
covers the following countries – Algeria, Egypt, Morocco, Tunisia, Bahrain, Iran,
Israel, Kuwait, Pakistan, Qatar, Saudi Arabia, Turkey and United Arab Emirates.

• Indexed product launch numbers are obtained by assigning ‘100’ to the start year
values and using 100 as the base calculating all later values in proportion to the
actual product launch numbers. CAGR stands for compounded annual growth rate.

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Source: Innova Database product launches tracked
 Category Analysis

4 www.innovadatabase.com
 Relative development of iced coffee product launches
vs. soft drinks category
• Global tracked launches of iced coffee have grown at 23.6% CAGR over the last 5
years. The growth is greater than soft drinks category (13.0%).

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Source: Innova Database product launches tracked
 Global soft drinks category launches, by sub-category
• Iced coffee held about 4% share of overall soft drinks category launches tracked over
the last 3 half years. Juice and juice drinks is the leading sub-category.

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Source: Innova Database product launches tracked
 Soft drinks sub-category product launches, by region,
H2 2013-H2 2014
• Compared to other regions, iced coffee's share of soft drinks category launches
tracked is higher in Asia.

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Source: Innova Database product launches tracked
 Iced coffee launches as percentage of soft drinks
category launches, by region
• Compared to other regions, iced coffee launches tracked as percentage of soft drinks
category are higher in Asia. In H2 2014, iced coffee launches increased across North
America, Europe and Australia/New Zealand.

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Source: Innova Database product launches tracked
 Sub-category Analysis

9 www.innovadatabase.com
 Global iced coffee launches
• Tracked global iced coffee launches exhibited a fluctuating trend during the period H2
2012 to H2 2014. The semi-annual growth peaked at 71% in H1 2013.

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Source: Innova Database product launches tracked
 Iced coffee launches, by region
• Asia remained the leading region for iced coffee launches tracked during H2 2013 to
H1 2014. However, during H1 2014 to H2 2014, Europe gained share and surpassed
Asia as the most active market.
• Europe, North America, and Australia/New Zealand are the only regions which
recorded YoY increase in launch activity in H2 2014.

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Source: Innova Database product launches tracked
 Iced coffee launches, by region
• In H2 2014, Europe gained share and replaced Asia as the leading region for iced
coffee launches tracked.

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Source: Innova Database product launches tracked
 Focus on health avenues and classic flavors
Starbucks Discoveries
Coffeehouse Flavors: Skinny Latte.
(Netherlands, Nov 2014)
Description: Skinny latte iced coffee
combines espresso and low fat milk
with reduced sugar, in a plastic pot
with straw. Low fat. Reduced sugar.
Fair trade.
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Nescafe Cafe Vanilla.
(Czech Republic, Oct 2014)
Description: Iced coffee with
vanilla, in a 250ml aluminum
can.
Emmi Caffe Latte Skinny Iced
Coffee.
(Ireland, Dec 2014)s
Description: 230ml of pasteurized
arabica iced coffee with fresh Swiss
milk and sweetener, in a plastic pot.
 Product Positioning Trends

14 www.innovadatabase.com
 Top 5 positionings for iced coffee
• The total share of top 5 positionings increased over the last 3 half years. Ethical –
packaging, with an increasing share, is the top positioning for iced coffee launches
tracked during H2 2013-H2 2014.

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Source: Innova Database product launches tracked
 Relatively fewer premium style products
Asahi Premium Coffee.
(Japan, Nov 2014)
Description: Premium coffee
featuring the full body and
clear taste of the Kilimanjaro
blend, in an aluminum can.
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Okf Cappuccino Coffee
Drink.
(Spain, Sep 2014)
Description: 240ml of
cappuccino coffee drink in an
aluminum can. Premium.
Binggrae Acafera Grande Americano
Coffee Drink.
(South Korea, Jul 2014)
Description: 270ml of ready-to-drink
Americano coffee in a PET bottle.
Colombia supremo premium coffee bean.
Grand taste, grand pleasure.
 Well-established lidded cups
Spar Enjoy Latte Macchiato.
(Austria, Sep 2014)
Description: Latte macchiato coffee
drink with milk (4.5% fat), in a 230ml
cardboard tub.
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Purmil Coffee Bene Cafe Latte.
(South Korea, Nov 2014)
Description: Coffee latte flavored
iced coffee drink in a 200ml
plastic pot.
Nescafe Shakissimo Latte Cappuccino
Coffee Drink.
(United States, Jul 2014)
Description: Latte espresso flavored milk
drink with coffee extract, in a 190ml
plastic cup.
 Considerable presence of cardboard tubs
Gmundner Milch Coffee Drink:
Classic Flavor.
(Austria, Sep 2014)
Description: Coffee drink with Austrian
milk, in a 230ml cardboard tub.
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Landessa Ice Coffee
Cappuccino.
(Netherlands, Nov 2014)
Description: Cappuccino coffee
drink with full fat milk and cream, in
a cardboard tub. No
preservatives. 100% Arabica with
real milk. Ultra heated. FSC
certified.
Belmont Cool Espresso Presso Iced
Coffee Drink.
(Slovenia, Aug 2014)
Description: UHT espresso coffee drink
with whole milk and cream, in a 230ml
cardboard tub.
 Top 5 positionings for iced coffee, by region
• Ethical – packaging is the leading positioning for iced coffee launches tracked across
all the regions during H2 2013-H2 2014.

Positioning types as % of total sub-category product launches tracked per region

(H2 2013 - H2 2014)

No
Ethical - Indulgent and Ethical -
Region Total Products Additives/Prese Low Fat
Packaging Premium Human
rvatives

North America 127 31% 13% 9% 17% 7%

Europe 336 64% 4% 8% 20% 13%

Asia 462 25% 9% 4% 2% 2%

Australia/New
19 26% 11% 26% 11% 11%
Zealand

Latin America 23 61% 4% 9% 0% 35%

Middle East/North
17 76% 12% 18% 6% 29%
Africa

Percentages may be greater than 100% due to multiple positionings per product

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Source: Innova Database product launches tracked
 No additives/preservatives retains major role
Chill Espresso Shot.
(Australia, Dec 2014)
Description: Espresso drink in a
600ml gable-top carton. Real roasted
robusta and Arabica coffee beans.
No artificial colors, flavors or
preservatives. Made fresh in
Western Australia.
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Illy Issimo Cappuccino Coffee
Drink With Milk And Cocoa.
(Turkey, Sep 2014)
Description: Cappuccino coffee
drink with milk and cocoa, in an
aluminum can. Italian Espresso
style. No preservatives.
Ufc Arabica Inspiration Roasted
And Ground Latte Coffee.
(France, Jul 2014)
Description: Roasted and ground
latte coffee in an aluminum can. No
additives/preservatives.
 Low fat claim launches prosper
Starbucks Frappuccino Low Fat
Coffee Drink: Vanilla Flavor.
(Switzerland, Nov 2014)
Description: Low fat coffee drink with
vanilla flavor, in a glass bottle.
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Cocio Ice Latte Milk-Vanilla: Hochwald Eiskaffee Iced Coffee.
Iced Latte Coffee With Vanilla (Hungary, Aug 2014)
Flavor.
Description: Heat-treated iced coffee
(Estonia, Sep 2014)
with 1.5% milk fat, in a 500ml SIG
Description: Low fat coffee and combibloc. Low fat.
milk drink with a gentle coffee
flavor and a hint of vanilla, in an
aluminum can.
 Niche stage for stevia inclusions
Whynatte Naturally Sweetened Premium Iced
Coffee Latte.
(United States, Nov 2014)
Description: Naturally sweetened premium iced
coffee latte in a 240ml aluminum can. Premium.
Only 6g of sugar. Naturally sweetened (stevia
leaf extract).
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High Brew Dark Chocolate Mocha Flavored Cold
Brew Coffee.
(United States, Nov 2014)
Description: Coffee and chocolate, what could be
better? High Brew original cold brew blend is
infused with a rich cocoa that's equal parts indulgent
and uplifting and only 60 calories! Contains stevia.
 Product Flavors Trends

23 www.innovadatabase.com
 Top 5 flavors for iced coffee
• Milk, although fluctuating, is the leading flavor for iced coffee launches tracked over
the last 3 half years. The total share of top 5 flavors fluctuated during H2 2013-H2
2014.

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Source: Innova Database product launches tracked
 Top 5 flavors for iced coffee, by region, H2 2013-H2
2014
• Milk is the leading flavor across all the regions, except North America, where vanilla is
the top flavor. In Middle East/North Africa, both milk and vanilla are popular.

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Source: Innova Database product launches tracked
 Milk is the leading flavor
Rauch Cafemio Cappuccino Iced
Coffee Drink With Creamy Milk.
(Macedonia, Dec 2014)
Description: 250ml of cappuccino
iced coffee drink with creamy milk,
in a PET bottle.
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Stumptown Coffee Roasters
Cold Brew Winter Cheer Coffee
With Milk.
(United States, Dec 2014)
Description: Lightly sweetened
cold brew coffee with milk and
mulling spices (cinnamon, orange
peel, allspice and cloves), in a
473ml tetra rex.
Georgia Off Switch Iced Coffee
With Milk And Fresh Cream For
Relaxing.
(Japan, Dec 2014)
Description: Iced coffee with milk
and fresh cream in an aluminum
can.
 Vanilla flavors run a close second
Emmi Caffe Latte: Vanilla.
(Switzerland, Nov 2014)
Description: Iced espresso latte
coffee with vanilla flavor, in a 230ml
plastic pot.
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Kohana Cold Brew Coffee With Shoprite Iced Coffee Drink With
Vanilla. Vanilla Flavor.
(United States, Oct 2014) (United States, Sep 2014)
Description: Small things make a Description: Sweet and creamy ultra
difference. The vanilla canned pasteurized coffeehouse drink with
ready-to-drink coffee is made by vanilla flavor, in a carton Elopak.
cold brewing Kohana own craft-
roasted coffee in an unique
proprietary process before blending
it with the very best ingredients
they could find.
 Variety of caramel flavored launches
Galaxy Caramel Iced Coffee Mocha
Latte.
(United Kingdom, Nov 2014)
Description: Coffee extract and
chocolate milk drink with caramel
flavor, in a cardboard can.
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Bellarom Las Vegas Latte
Macchiato Karamel
Geschmack: Caramel Flavored
Latte Machiato Coffee.
(Germany, Aug 2014)
Description: Caramel flavored
latte machiato coffee, in a 330ml
plastic bottle.
International Delight Sweet & Creamy
Iced Coffee With Caramel Macchiato
Flavor.
(United States, Jul 2014)
Description: Sweet and creamy iced
coffee with caramel macchiato flavor, in a
1.89L gable-top carton.
 Versatile almond milk finds more applications
Mollys Milk Truck Redeye Iced
Coffee: Almond Milk.
(United Kingdom, Nov 2014)
Description: Almond milk iced coffee
blended beverage with cinnamon,
agave, vanilla and espresso, in a
355ml plastic bottle.
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Blue Diamond Almond Breeze
Mocha Iced Coffee.
(United Kingdom, Oct 2014)
Description: Mocha iced coffee
made with a UHT blend of
almonds, coffee, cocoa and
sugar with spring water. Comes in
an HDPE plastic bottle.
Califia Farms Double Espresso Pure
Ice Coffee With Almond Milk.
(United States, Jul 2014)
Description: Double espresso pure ice
coffee with almond milk, in a plastic
bottle.
 What’s next for iced coffee? (1)
• Iced coffee is one of the smallest sectors of the soft drinks category in terms of launch
activity, with about 4% of the total in H2 2014. From this relatively small base launch
numbers have grown well ahead of soft drinks as a whole, with a 23.6% CAGR over the
2009 to 2014 period
• Iced coffee is traditionally popular in Asia and is an long-established market there,
resulting in an 8% share of total soft drinks introductions in H2 2014, which is twice the
global average. At the other end of the scale, share in Latin America and the MENA
regions is significantly lower than average. North America, Europe and Australia/New
Zealand saw the share of coffee drinks rise in H2 2014 over H2 2013, with a particularly
strong increase in Australia/New Zealand
• It appears that launch numbers of iced coffee may now be stabilising after a period of
rapid growth, with the rising total in 2013 giving way to an overall fall in numbers in both
H1 and H2 2014. Asia saw a particular fall in activity in H2 2014, allowing the rising
introductions in Europe to take the region into first place. It remains to be seen whether
this change is just a temporary blip or will be maintained in 2015. North America also
saw its share of activity rise between H2 2013 and H2 2014, although from a much
lower level
• The iced coffee market now consists of a wide range of formats, with the traditional cans
and bottles joined by cartons, cardboard ‘cans’ and, increasingly, lidded cups in the style
of takeaway coffee, emphasising a premium positioning and suitability for on-the-go
consumption (contd)
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Source: Innova Database product launches tracked
 What’s next for iced coffee? (2)
• The top positionings for iced coffee are both ethical, targeting packaging and human
issues, and both have seen their share rise strongly over the H2 2013 to H2 2014
period. The share of ethical-human, reflecting rising interest in fairtrade products, nearly
tripled over that time.
• Interest in health is also evident, with low-fat positionings taking third place in H2 2014,
with a share up from 7% to 12%. A range of low-fat and skinny claims are used and
there is also some interest in low-sugar and sugar-free lines, including those using
naturally-sweetened claims associated with stevia
• Claims relating to indulgent and premium saw a falling share in H2 2014, but this
probably reflects the move mainstream of the sector, in line with coffee variants such as
cappuccino, latte, etc., becoming standard in the coffee market. One premium
positioning finding growing popularity, especially in North America, is coffee made using
a cold-brewing process
• The leading flavor in launch activity is milk, ahead of vanilla, caramel, cream and sugar.
All had comparable shares in H2 2013 and H2 2014, although there are significant
regional differences overall, with vanilla dominating in North America, leading jointly with
milk in the MENA region and a very strong second to milk in Latin America. Milk leads
in Europe and Asia and completely dominates in Australia/New Zealand
• There is increasing interest in iced coffee made with non-dairy ingredients, with almond
milk blends particularly high-profile

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Source: Innova Database product launches tracked