“Nestlé is a strong company with global reach, exceptional demand generation and in-market capabilities. We have a diverse and strategically well-positioned product portfolio. Our iconic brands and innovative products connect with people every day, at every stage of their lives. These strengths give us a unique advantage and position us to win in the marketplace. We will now invest further in our brands and growth platforms to unlock the full potential of our products for our consumers and our customers,” said Laurent Freixe, Nestlé CEO. “Our action plan will also improve the way we operate, making us more efficient, responsive and agile. This will allow us to deliver value for all our stakeholders. I am confident that we can deliver superior, sustainable and profitable growth and gain market share, while transforming Nestlé for long-term success.”

Nestlé’s action plan is designed to allow the company to drive category growth and improve market share performance. Actions will include targeted investments in winning brands and growth platforms, more focused innovation activities to drive greater impact, and systematically addressing underperformers. Nestlé will step up investment in advertising and marketing to support growth. The necessary resources will be generated through cost savings and growth leverage.

In addition to the ongoing programs, Nestlé aims to deliver incremental cost savings of at least CHF 2.5 billion by the end of 2027 through key initiatives across procurement, commercial investments and structural costs. The company will also accelerate its digital transformation to be a real time, end-to-end connected enterprise, powered by data and artificial intelligence. It is additionally ensuring that sustainability is embedded into its activities.

As part of the action plan to drive operational performance and unlock potential, Nestlé’s water and premium beverages activities will become a global standalone business under the leadership of Muriel Lienau, head of Nestlé Waters Europe, as of 1 January 2025. The new management will evaluate the strategy for this business. This will include exploring partnership opportunities to enable Nestlé’s iconic brands and growth platforms to achieve their full potential.

Nestlé’s strategy includes accelerating its categories through expanding existing strengths, such as expanding its most successful brands and increasing exposure to growing channels. Within coffee, targeted growth areas include out-of-home coffee, ready-to-drink coffee, and cold coffee concentrates.

Nestlé said its action plan will allow the company “to deliver superior, sustainable and profitable growth.” In the medium term, organic sales growth is expected to be at 4% plus in a normal operating environment, with an underlying operating profit margin of 17.0% plus.

Nestlé confirmed 2024 guidance, with organic sales growth of around 2%, underlying trading operating profit margin of around 17.0% and underlying EPS broadly flat in constant currency. Looking ahead to 2025, Nestlé expects an improvement in organic sales growth compared to 2024, with the underlying trading operating profit margin anticipated to be moderately lower than the 2024 guidance.

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Kyoto is a brewing method from the 1600s originally invented by Dutch sailors on long voyages to Japan. To conserve firewood, they used lab equipment to cold brew their coffee, an original take on coffee that was prior to this, only hot brewed. Once they arrived in Japan, they traded their gear with Japanese artisans for art and poetry. The Japanese then perfected the brewing process, giving birth to what we now know as Kyoto Iced Coffee.

Dripdash has taken on the challenge of distributing this unique coffee in a ready-to-drink (RTD) format at scale. Traditionally, Kyoto Iced Coffee is only available in the early mornings at Third Wave coffee shops until it sells out. Kyoto Iced Coffee sells out so quickly because it’s hard to make large quantities when something is brewed one drop at a time. Dripdash wanted to make this exceptional brew accessible to a wider range of coffee enthusiasts through online distribution and retail locations across California, with more retailers on the way.

Kyoto Iced Coffee, also known as Dutch Coffee, is brewed drop by drop over 16 hours, creating a drink that’s both an art and a science. This slow process helps express the coffee’s oils and aromatic compounds, concentrating them to create layers of flavour that linger until the very last drop. It tastes unlike any other coffee experience. Dripdash offers three unique products:
1. Kyoto Iced Coffee: With ultra-rich flavours, low acidity, and a smooth finish, it offers a taste profile of dark chocolate and almond. At just 15 calories, it’s like having two shots of espresso in a single, refreshing sip.
2. Lavender-Maple Oatmilk Latte: This vegan offering uses Kyoto Iced Coffee as its base, infusing it with hints of lavender and real maple syrup from Vermont. Oatmilk provides a sustainable, plant-based alternative to dairy, and with 90 calories and 130mg of caffeine, it’s perfect for jump-starting your mornings without any refined sugars.
3. Black Sesame Oatmilk Latte: Imagine the taste of black sesame ice cream, but with a caffeinated punch. This drink, the only one of its kind on the market, blends traditional Asian savoury flavours with a creative edge. With 100 calories and 120mg of caffeine, it’s the bold choice for those seeking something different.

Dripdash’s approach aligns with the Third Wave Coffee movement, which values quality, sustainability, and a deep connection to the craft of coffee-making. “We’re not just looking to put another latte on the shelf; we’re infusing tradition and unique ingredients to give you a taste that tells a story,” said a spokesperson for the company.

The new Kyoto Iced Coffees are available on Dripdash’s website for an SRP of USD $4.99. To experience all three flavours, Dripdash has created a sampler pack: Try Dripdash Here.

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Black Rifle Energy beverages provide a boost from naturally sourced caffeine fueled by BRCC’s proprietary Black Rifle Energy Blend, presented in packaging that embodies the brand’s identity and its commitment to quality, patriotism, and the military and first responder communities. Offering zero-sugar energy delivery, Black Rifle Energy beverages come in four flavours, each with 200 milligrams of caffeine per 16-ounce can. The Black Rifle Energy beverage line is expected to launch in Q4 and be available nationwide in early 2025.

Under the terms of the agreement, KDP will sell and distribute Black Rifle Energy within the majority of its company-owned direct store territories nationwide, driving retail availability and multiplying household market share.

Commenting on the deal, Black Rifle Coffee Company CEO Chris Mondzelewski said, “The strength of Black Rifle Coffee Company lies in our decade-long commitment to offering customers unique products and experiences that can’t be found elsewhere. With Black Rifle Energy, we are staking our claim in a USD $21 billion category and launching the next generation of consumer-centric innovation. Our collaboration with KDP enables us to expand our retail presence, accelerate household reach, and enhance our commercial operations. We’re equally proud to partner with a company that shares our mission of giving back to the veteran community.”

Andrew Archambault, president, US Refreshment Beverages at Keurig Dr Pepper said, “This partnership is a win for consumers and for both of our companies. Black Rifle Coffee’s strong brand and passionate following are distinct advantages that position it for success in the energy space. This is an exciting expansion to our K-Cup pod partnership launched earlier this year, and we see a unique role for Black Rifle Energy within our Energy portfolio of brands. Together, we can drive growth and accessibility for this new product offering in the category.”

Terms of the agreement were not disclosed.

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Cold brew coffee has been a hot product for innovation for many brands and retailers seeking to refresh their product offerings and to dabble in the ready-to-drink (RTD) space. The cold brew category, which had a market size of USD $401 million in 2021, is projected to grow by a compound annual growth rate (CAGR) of 22.7 percent between 2023 and 2030, per Skyquestt. Many businesses recognise this and want to capitalise on the increased consumer interest. As companies in the sector are ramping up for peak cold brew season, many consumers will have already been drinking theirs – 16 percent of Americans drank at least one cold brew in the past week, according to the January survey of the 2024 National Coffee Data Trends report.

Consumers like cold brew’s great taste, convenience, and health benefits. Americans under 40 years old are driving the consumption of cold brew, and this versatile and trendy beverage is especially popular with Gen Z as an afternoon pick-me-up. This adds an even greater incentive for operators to get involved in the cold brew and cold coffee space.

As manufacturers and retailers are learning more about cold brew, it is important that they become familiar with cold brew food safety and the regulations and considerations underpinning this area. Coffee continues to be one of the safest foods in America – but as with any evolving area, science, facts, and expert advice can help assure that operators comply and use best practices in their business. As such, the purpose of this article is to detail some of the current challenges around safety and compliance for cold brew manufacturers and retailers.

What is cold brew coffee?

Between 2016 and 2017, several leading experts from across the coffee industry came to the National Coffee Association of USA, Inc (NCA), concerned that the lack of a common definition of “cold brew coffee” could lead to a range of different products being labelled or represented as cold brew coffee. This was important, as the US Food & Drug Administration (FDA) and the US Federal Trade Commission (FTC) require product and marketing claims to be “truthful and not misleading.”

Since the FDA does not have any formal definition or Standard of Identity for cold brew coffee, the stakeholders put their heads together and, through much debate, developed a baseline description for cold brew: a product made with roasted coffee grounds and brewed with room temperature or cooler water (NCA Cold Brew Safety Guide for Manufacturers). To avoid limiting future innovation in the cold brew space, the description is relatively broad and serves as a guide, so that operators working with cold brew can develop great-tasting products and feel good knowing they are serving authentic, safe products. Knowing how cold brew is made, prepared, and/or processed also helps identify potential safety risks and determine how it should be regulated.

How cold brew is made

Cold brew is traditionally made by ‘cold brewing’ roasted and ground coffee beans from Coffea arabica (Arabica coffee), or a blend of Arabica and Coffea canephora (Robusta), with filtered water. It can take some trial-and-error to find the right bean blend, roast, and grind that works with a cold brewing process to get a desired taste profile. Brewing water is typically room temperature or cooler, and steeping times for brewing can vary tremendously, from as little as a few minutes to 12 to 18-plus hours overnight. Brewing can be done at a retail shop using a five-gallon, full-immersion method or on an industrial scale in a manufacturing plant. Nowadays, all types of basic to very advanced technologies are available for cold brewing.

Once the cold-brewing step is complete, cold brew coffee can be served immediately at a retail shop or be heat-processed with a cook step and packaged in a container with an air-tight seal at a manufacturing plant. Cold brew can also be distributed in airtight kegs, bottled, or held with nitrogen gas to make nitro cold brew. There are too many bottling, distribution, and serving scenarios to account for here, but having detailed knowledge of how the cold brew is brewed, processed, and/or packaged, held, and served will help determine what food safety risks and regulations might apply to a product and to the operator.

Cold brew coffee can also be manufactured or served with additives like dairy or plant-based milks, spices, and herbs, or formulated with ingredients for functional health, novelty, and taste appeal. Because added ingredients have the capacity to introduce new food safety risks to the equation, this article focuses solely on unsweetened, plain cold brew. A manufacturer/retailer should always work with a food safety and compliance professional who can help oversee and provide guidance on navigating overly complex and nuanced food safety approaches needed for cold brew coffee.

Manufacturing rules

Historically, there have been a few instances of food recalls for manufactured RTD cold brew due to a lack of manufacturers’ awareness over FDA’s food safety and compliance rules. Cold brew that has been brewed and bottled in a manufacturing plant with an air-tight seal, whether as concentrate or single-strength (drinkable strength), needs to be processed with Good Manufacturing Practices (GMPs), heat-treated with a cook step, and packaged following FDA’s low-acid food regulations (21 CFR § Part 113). This is done to prevent the pathogen Clostridium botulinum, or C bot for short, from growing and producing toxins that could cause botulism. A manufacturer needs to work with a licensed low-acid food processing authority and have their process filed with the FDA.

Rules for retailers

For retailers, the regulations have been unclear, for several reasons. The FDA publishes the Food Code every few years, which sets a model for the safe handling of food in a retail setting. Federal, state, and local health departments can then decide how to interpret and enforce the Food Code in their own areas. However, health inspectors are often uncertain how to interpret the Food Code, which has created inconsistent enforcement and confusion amongst coffee shop retailers. One challenge for inspectors has been to determine how to regulate cold brew prepared, held, and served at retail, such as when brewing at room temperature for a prolonged time, or holding nitro cold brew in airtight kegs. The Food Code can offer multiple options for enforcement, one of which considers cold brew’s physical and chemical properties, like pH and moisture content.

Cold brew has a pH, or a measure of the acidity or alkalinity of a substance, which is considered low acid. A low acid food can, under certain circumstances, allow pathogens to grow or toxins to form, and cold brew coffee has a lot of moisture, conditions which, in theory, could potentially allow the growth of pathogens.

The Food Code recognises that in instances of a low acid pH and high available moisture content (measured through water activity aw), a food or beverage may be considered a time/temperature control for safety (TCS) food. A TCS food could, as the name implies, require specific holding temperatures and times, or require a heat-cook step.

However, the Food Code also allows that such TCS measures may not be required if certain conditions are met, such as the provision of safety data showing that a food or beverage can be produced safely under the desired conditions. Such safety data can be submitted to the health inspectors in the form of a challenge study or Product Assessment (which are scientific ways of evaluating the safety of a food).

Retailers are fortunate in that plain, unsweetened cold brew lacks nutrients for most organisms to grow, and many industry members would tell you that in their own privately run studies, cold brew seemed to prevent pathogens from growing. While the jury is still out as to what the exact mechanism might be, there seems to be some aspect of cold brew coffee that has antimicrobial properties.

Health inspectors often need to rely on science-based evidence like a challenge study or Product Assessment to determine how pathogens can grow in a food or beverage in order to make risk-based decisions. Recently, the NCA published a challenge study white paper on retail cold brew food safety, which evaluated concentrated cold brew prepared by the full-immersion method and single-strength cold brew packaged in a bag-in-box (which is often then inserted into a chilled dispenser at retail). The cold brew was purposely tested with known amounts of E coli, Salmonella, Listeria, C bot, Bacillus cereus, and Staph. These are different pathogens that are representative of common sources of food-borne illness and infections. The cold brew was stored at 85°F/29°C in conditions with air and no air for up to 11 days. The researchers found that neither pathogenic growth nor toxin formation occurred in the tested cold brew. These findings are crucial to help inform health inspectors on the safety of cold brew – and provide a strong scientific basis to demonstrate the safety of cold brew coffee.

What the future holds

While the research and resources that have been created are important steps for protecting this category, there is more work to be done to make sure that everyone is on the same page.

The NCA is currently working elbow-to-elbow with health inspectors, FDA scientists, and allied industry members with the Conference for Food Protection (CFP) in the Council III, Retail Cold Brew Coffee Safety & Compliance Committee. The committee aims to provide guidance to the CFP and ultimately health inspectors and retailers on how to interpret and enforce the Food Code for safety and compliance of retailers’ cold brew coffee programmes.

By being proactive, retailers, industry stakeholders, and health departments can work collaboratively to determine a common interpretation of the Food Code that most inspectors can get behind and retailers can comply with. Once guidance is developed through the CFP, the information can be shared with retailers and inspectors nationwide, followed by training and education to bring everyone up to speed on serving safe, compliant, and great-tasting cold brew.

• Mark Corey, PhD, joined the NCA as director of scientific and government affairs in February 2018. Previously, he worked in research and development roles in the coffee industry for ten years and was volunteer chairperson of the NCA’s Scientific Leadership Council for five years.

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When you think about European coffee culture, your first thought is probably sipping espresso at the counter in Rome or café au lait on the boulevards of Paris or perhaps the vibrant specialty scene you can find on high streets across the continent.

And while hot coffee continues to dominate the European market, ‘the times they are changing’, with consumers increasingly seeking cold options. Within this, ready-to-drink (RTD) coffee is a particularly exciting space offering consumers convenience, innovation, and a fresh experience.

In this article, we will explore what is driving this trend, where the trend is most profound, where it is going next, and how players in the industry can capitalise on the growing ‘cold rush’.

What’s driving the ‘Cold Rush’?

One of the things we at Finlays love about the coffee industry is that it never stands still; there is a constant thirst for innovation and bringing new experiences to its consumers.

Nowhere is this seen more clearly than in the RTD coffee space, where we are seeing huge amounts of innovation to bring new experiences to consumers – and particularly younger consumers – who are seeking convenience, novelty and innovative flavour profiles and combinations.

Convenience is particularly influential. The ability for great tasting coffee, which can be enjoyed immediately, anywhere, at any time offers a huge benefit to consumers.

So, while Europe might trail the US market when it comes to RTD coffee, it is catching up fast.

Where is RTD coffee being embraced?

The key markets today are in Western Europe, where RTD coffee is reaching significant scale, with further high growth forecasted. Germany is currently the largest market and has reached over half a billion dollars (USD $501 million in 2023) with 6 percent CAGR predicted up to 2028.

The UK is hot on its heels, currently valued at $340 million, but with predicted growth at 15 percent CAGR between 2024 and 28, per Euromonitor International. In fact, according to Euromonitor, the UK is forecasted to reach over $700 million by 2028, which would make it the largest market in Europe.

Multiple emerging markets

There is good growth potential elsewhere as well, with the Netherlands, Spain, Switzerland, and Turkey all expected to reach over $250 million by 2028. We are also seeing RTD coffee emerging in markets with high coffee consumption, where younger populations are driving market trends (such as Turkey, Sweden, and Spain), and where there is a high dairy intake (Switzerland, Austria, and Belgium).

Turkey, for example, expects more than 19 percent growth between 2024 and 2028, with high popularity of RTD coffee products such as Nescafé’s Xpress.

Where is acceptance slow?

Uptake has been slower in Italy, where coffee consumption remains fairly traditional and penetration of multinational foodservice operators is lower, therefore not driving the overall trend for iced coffee as effectively. With that said, even in traditional coffee markets, we are seeing younger consumers in this market beginning to make the switch.

Cold brew vs iced coffee

Within RTD coffee, a segment we are particularly excited about at Finlays is cold brew. While this segment is still in its early days, high growth is predicted over the coming years.

And to be clear – it is not a question of cold brew versus iced coffee – there is plenty of headroom in the European market for both, catering as they do to different consumer needs. Cold brew’s flavour profile and perceived smooth taste make it a perfect solution for an elevated offering.

In fact, the critical challenge facing the cold brew segment is around consumer education of what cold brew is, and the benefits it offers compared to iced coffee. However, this is something we are now starting to see thanks to major foodservice operators such as Starbucks featuring cold brew on its menus.

Cold brew’s trajectory in Europe

To understand the future of cold brew coffee in Europe, it is useful to look to the US market where cold brew has experienced astronomical growth over the last ten years or so, and now accounts for a fifth of all consumer spending on RTD coffee in retail. In the US, lots of brands, such as Starbucks and Peet’s Coffee, are effectively balancing their portfolios with both iced coffee and cold brew to target different market segments and consumers.

Following that path, cold brew is starting to emerge across Europe, and particularly in the UK, as well as Germany, primarily being driven by younger consumers who are seeking an elevated experience.
However, until now, the European market has struggled with supply challenges, with accessibility of high-quality cold brew concentrates hampering growth.

What’s next for RTD coffee in Europe?

RTD coffee is a hugely exciting opportunity for brand owners in Europe, with high growth predicted over the coming years. Here are four key trends to watch out for:

1. The Cold Rush. Expect to see consumers continue to explore cold coffee options, establishing RTD as a firm favourite across Europe.
2. Blurring lines. The blurring of RTD coffee with energy drinks is another key dynamic, with coffee offering a strong and compelling alternative to traditional energy drinks.
3. Cold brew enters the mainstream. With companies such as Starbucks, Blank Street, as well as independent coffee shops now offering cold brew, the stage is set for cold brew to enter the mainstream. Cold brew’s visibility will only increase, driving consumer awareness and understanding of the unique benefits it offers.
4. Innovation. As always in the coffee industry, we expect to see a huge amount of exciting innovation in the category. Recent examples include Joe and The Juice offering cold brew tonics, the continued use of CBD for functionality, and of course, the continued fusion of coffee and alcohol in applications like RTD cold brew martinis.

It will be fascinating to see what other innovations we see over the coming years.

• Thom Walton is group head of marketing and communications at Finlays, a leading global supplier of tea, coffee and extract ingredients and solutions to brand owners, retailers, and foodservice operations. Starting his career in creative marketing, Walton joined Finlays in 2019 where he is responsible for global marketing and communications. He uses his personal passion for tea and coffee in all their formats to support Finlays to connect with their customers around the world.

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Scott Ford, co-founder and CEO of Westrock Coffee, raised an RTD can produced by Westrock Coffee to officially toast the grand opening of the company’s ready-to-drink facility in Conway, Arkansas. From left, he is pictured with Will Ford, group president of operations; Joe T Ford, co-founder and chairman; and Arkansas Gov Sarah Huckabee Sanders.

“The opening of the Conway facility marks a critical milestone for Westrock Coffee,” said Scott Ford. “In line with our commitment as a world leader in beverage innovation, today we launch the largest integrated beverage facility of its kind. This uniquely positions us as a leading force in beverage production across any channel and beverage format. Moreover, this facility extends our commitment to sustainability and responsible sourcing for our customers, farmer partners, and the communities we serve.”

Westrock Coffee’s Conway facility is built on the latest production capabilities, robotics and end-to-end automation for seamless manufacturing from green coffee receiving through roast and grind, extraction, and all the way through to bottling and packaging. This comprehensive approach, coupled with a unique future-ready fully integrated design, allows Westrock Coffee to quickly scale to meet growing industry demands while upholding the high quality standards.

Additionally, a new 530,000-square-foot warehousing and distribution center, located just two miles away, ensures efficient product distribution, reduces transportation times, and maintains a smooth and transparent flow of materials and finished goods.

“The Ford family’s commitment to Arkansas is legendary, and today’s opening is just the latest in the long string of investments and jobs they’ve created for our state,” said Governor Sanders. “Westrock Coffee is quickly becoming one of Arkansas’ fastest-growing companies – a testament to the business savvy and hard work of the people behind it.”

Westrock Coffee offers a comprehensive range of services, from coffee bean sourcing to final product distribution, demonstrating its commitment to quality and providing customers with a complete set of solutions. An onsite Research and Development lab models full-scale operations, ensuring a seamless transition from concept to commercial production.

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The new products, launched in time for summer, have been crafted with an on-the-go lifestyle in mind.

Kirsty Pavely, marketing controller, UCC comments: “As the company who brought the world’s first ever canned coffee to market [in Japan], we are delighted to be able to bring the product to the UK for the first time – and just in time for summer. Our ready-to-drink range has been crafted with the same passion and dedication that has made Ueshima Coffee Company a beloved brand in Japan and beyond. We’re thrilled that some of our newly launched products – Iced Latte and Iced Matcha Latte – have already been so well received with 71% of customers we surveyed agreeing that the products stand out versus our competitors. We’ve seen a strong demand for our at-home coffee range, and we hope to replicate this success with this latest NPD.”

Both Ueshima’s Iced Latte and Iced Matcha Latte are packaged in 100% recyclable cans, further strengthening Ueshima’s existing commitment to sustainable practices.

Both drinks have been made with premium quality ingredients, and are low in both sugar and calories. The Iced Latte has 75 calories and 10g sugar per can, while the Iced Latte has 86 calories and 11g sugar per can. Ueshima’s Iced Latte and Iced Matcha Latte will be available from ueshimacoffeecompany.com, retailing at GB £2.

Since its launch into the UK market in 2021, Ueshima Coffee Company has built partnerships with operators including Waitrose & Partners, Sainsbury’s, Morrisons, Ocado, Harvey Nichols, Sticks’n’Sushi, Harrods, Japan Centre, Shoryu, Oakman Inns and Compass, to name a few, and has opened the Ueshima Coffee Company Coffee Bar at Ichiba Westfield London.

Ueshima Coffee Company is a brand owned and operated by UCC, which delivers a total coffee solution for foodservice, hospitality and retail operators.

For more information visit: ueshimacoffeecompany.com/pages/wholesale.

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Nguyen Coffee Supply, led by its founder/CEO, Sahra Nguyen, is ushering in the next wave of coffee culture rooted in the celebration of the robusta coffee species. Vietnam is the #1 robusta coffee producer in the world comprising 36% of the global robusta coffee production, and yet robusta has largely been excluded from American third wave coffee culture. By innovating on robusta products (from packaged coffee to RTDs) and telling a new narrative about robusta coffee in America, Nguyen Coffee Supply continues to champion historically marginalised coffee communities globally.

Since 2018, Nguyen Coffee Supply has been importing directly from Vietnam and roasting in Brooklyn, New York. Sahra Nguyen’s narrative shifting work through national media, social media and active involvement in industry events (ie. TEDx Speaker in 2019, inaugural member of the International Women’s Coffee Alliance (IWCA) Vietnam Chapter in 2020, a speaker at the Specialty Coffee Association Expo in 2022 and 2024, a speaker at Sintercafe’s International Coffee Week in 2023) has disseminated information about robusta coffee to a broad audience, reshaping perceptions within the retail sector and becoming a beacon of change in the industry.

Founder and CEO Sahra Nguyen said, “Our progress isn’t just exhilarating for our company; it’s genuinely remarkable for the entire Vietnamese coffee category and robusta market in America.”
The national expansion of Nguyen Coffee Supply into Target marks a significant achievement for the company, as its physical retail presence has multiplied tenfold, now spanning over 2,000 locations nationwide across multiple retailers. Continuing to make its products accessible to more consumers nationwide, Nguyen Coffee Supply products are available at Sprouts Farmers Market Stores, Whole Foods Market, Gopuff, Krogers’ QFC, H-E-B, Nugget Markets, Bristol Farms, and more. Nguyen Coffee Supply also ships direct-to-customers in all 50 states and internationally to Australia, Canada, France, Germany, Ireland, Singapore, UK and is available D2C online on Amazon. Products are also available in restaurants and cafés in New York City, Washington DC, Seattle, Kansas City and sold in FreshDirect, Getir, and Weee!

Nguyen Coffee Supply’s RTD Vietnamese coffee products made with robusta beans features 2X more caffeine, 2X more antioxidants and 60% less natural sugars than arabica coffee – offering consumers an elevated flavour and energy experience. Nguyen Coffee Supply’s RTDs are low in sugar, ranging from zero to 8 grams of added sugars across the three SKUs, aiding to deliver a real energy boost from natural caffeine. Hailed for their differentiation and flavour innovations, Nguyen Coffee Supply’s RTD Vietnamese coffee products have won BevNET’s Best Product Award (Classic Black SKU), New Hope’s NEXTY Award Finalist (Condensed Milk SKU) and Food & Wine’s Best Non-Dairy Latte (Coconut SKU).

Nguyen Coffee Supply’s RTDs Vietnamese Coffee Available at Target:

• Nguyen Coffee Supply Classic Black Cold Brew – 7.5 fl oz Can -MSRP $3.99
• Nguyen Coffee Supply Condensed Milk Cold Brew – 7.5 fl oz Can – MSRP $3.99
• Nguyen Coffee Supply Coconut Cold Brew – 7.5 fl oz Can -MSRP $3.99

Nguyen Coffee Supply’s coffee can be enjoyed in a wide array of styles including the traditional cà phê sữa đá (Vietnamese coffee with sweetened condensed milk and ice). Products include a variety of offerings from single bagged coffee beans, cold brew Ready to Drink cans, to various gift sets and monthly subscriptions. Nguyen Coffee Supply will announce new product innovations and additional retail expansions in the coming year.

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Brits still may not like their tea cold but they are embracing cold coffee – cold brew to be exact.
Thom Walton, global head of marketing at Finlays, a B2B manufacturer and supplier of tea, coffee and extract ingredients, including cold brew, commented that the UK cold brew market “first started to emerge in 2015, with availability largely focused on London. Since then, however, the category has seen strong growth with the number of retail stores and foodservice outlets offering cold brew increasing 140 percent CAGR, to reach consumers across the UK.”

Cold brew is made by soaking or ‘steeping’ coffee beans in cool water for at least a day in order to extract the flavours from the beans. Due to the gentle process and no need for high temperatures or pressures, the resulting product offers consumers a smoother, naturally sweeter, less acidic beverage. Walton explained that medium and dark roasts, coarsely ground, are best suited for the slow extraction process, “preventing over-extractions and bitterness, instead producing that velvety cold brew experience.”

It may be a niche market in the UK now, but the cold brew coffee market is experiencing rapid growth. Infographic credit: Finlays

It is this flavour profile and mouthfeel that Walton attributes to cold brew’s growth in popularity. “Finlays’ own UK consumer research found that once people start buying cold brew, they can’t stop,” he said, noting, “Of those surveyed, nearly half (43 percent) reported drinking cold brew at least once a month, while others drink it weekly (15 percent) and some even daily (8 percent).”

A new flavour and format

Its smooth taste, strong coffee flavour, and lower acidity compared to regular coffee offers a different consumption experience for consumers, especially those who want to diversify their coffee shop or café order. Cold brew has seen an increasing adoption in coffee shops and cafés, fuelling its growth on the back of the simultaneously growing coffee shop culture. Ilaria Abagname, a consultant at Euromonitor International, explained that “coffee shops play a key role in terms of innovation, as they act as a hub for educating consumers about new products, approaches to new coffee varieties and brewing methods, as well as syrups and flavours or alternative milk options.”

Consumers are increasingly interested in trying new and unique coffee flavours, said Abagname, adding, “cold brew allows for play and experimentation with flavours and ingredients, enabling a wide range of customisation options.” This is especially utilised in ready-to-drink (RTD) formats of cold brew, which offer a significant bolster to the category as RTD in itself is a growing market. One example is the use of nitrogen gas in cans to make nitro cold brew coffee, which gives the beverage a smoother texture and enhances its sweetness while reducing bitterness.

Major brands like Starbucks, Costa, Emmi, and Arctic Coffee dominate RTD/iced coffee in the UK, revealed Walton, and introduce flavour variations for their consumers. He used Califia Farms as an example, which introduced a pumpkin spice flavoured cold brew to its existing range in autumn 2022, driving the consumption of cold brew beyond the warmer summer months and showing how cold brew can provide a platform for flavour innovations to expand the category.

But it is convenience that may be the main draw for consumers. “We found that cold brew meets various consumer needs, from on-the-go refreshment to a quick caffeine boost,” noted Walton. According to data from NeilsenIQ, the RTD/iced coffee segment has grown from GBP £69.3 million in January 2023, to £77.1 million in January 2024, which in turn delivers growth in the cold brew segment.
“The growth of the RTD market has provided a significant boost to the cold brew trend by making it more convenient and accessible,” explained Abagname. “In fact, the RTD format has expanded its reach beyond coffee shops and cafés, making iced coffee and cold brew options available in retail spaces at an affordable price. This increased availability has promoted cold brew to a wider audience, driving its popularity further.” It offers consumers convenience and on-the-go consumption opportunities, all areas that consumers are demanding from the brands.

“Another factor driving awareness of cold brew,” commented Walton, “is the presence of multi-serve formats in retail. While single-serve formats occupy a stronghold in grab-and-go fridges, cold brew can also be found in a multi-serve format in the main aisles.” Although this may currently be a smaller segment of the market, it does give consumers a convenient and affordable way to consume cold brew at home, especially with cold brew being marketed as a more premium beverage offering, with a price to match.

Appealing to younger consumers

Cold brew is building a consumer base from customers who want an alternative to sugary iced coffees. As cold brew is a naturally sweeter beverage, it requires less sugar or sweeteners, which appeals to many consumers. Its convenience, grab-and-go attributes, and potential health benefits are reasons why cold brew is particularly desirable to Gen Z and millennial consumers, who are increasingly mindful of health.

Image: Finlays

Cold brew offers new drinking occasions for coffee, “such as an after-lunch pick-me-up, or in the evening as an alternative to alcohol,” said Walton. The premium nature of cold brew presents it as an alternative to alcohol for social occasions and gains support from the low and no alcohol trend.
“A key factor is that millennials and Gen Z are drinking alcohol more mindfully than previous generations, while also seeking healthier beverage options. This has driven demand in the ‘low and no’ alcohol category where cold brew plays a key role in innovation. Younger consumers are also much more receptive to exciting new beverage concepts and a premium drinking experience meaning they’re willing to try new things and to pay more for them,” shared Walton.

Abagname further added that cold brew coffee offers experimentation with flavours and ingredients and customisation. “This aspect of cold brew appeals to younger consumers who value variety, novelty, and the ability to personalise their food and beverage choices.”

A hot future for cold brew

Commenting on the future of the UK cold brew market, Walton revealed that we only need to look towards the US. “Looking at the trajectory of cold brew coffee in the US over the last ten years, there’s a clear direction of travel for the UK and Europe over the next decade. While the UK market is small, at Finlays, we believe the UK is about to follow the US in having its own cold brew moment with fast growth anticipated over the next few years.” He said that in the UK, currently, “the cold brew coffee market segment is valued around £10 million, however this is expected to reach £26 million by 2027. This presents a superb opportunity for brands who seize the initiative by bringing cold brew coffee into the mainstream.”

Finlays, which operates a cold brew facility in Hull, Yorkshire, UK, anticipates the continued growth of the category across the UK and Europe, as shown in the infographic above.

Meanwhile, Abagname emphasised the increasing interest in functional beverages and wellness-oriented products. “Cold brew may incorporate additional health benefits or functional ingredients, appealing to consumers looking for beverages that support their overall well-being.” She cited the UK brand Rokit Health, which offers cold brew coffees made with oatmilk and added vitamins and minerals. Noting consumer demand for reduced fat and sugar options, and cold brew’s adaptability, Abagname said the category can meet this demand, further encouraging its growth.

So, while the cold brew may currently be more of a niche market in the UK, it has a lot of potential to build on a wide variety of trends – from convenience to customisation to innovative flavours to healthier options to plant-based additives – that will secure its continued success.

• Kathryn Brand is an associate editor on T&CTJ, while still writing for several of Bell’s other magazines. She joined Bell Publishing at the beginning of 2022 after graduating from the University of East Anglia with a degree in English Literature and Creative Writing. She may be reached at: kathryn@bellpublishing.com.

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As acrylamide is considered carcinogenic, limitation and mitigation of this process contaminant in food is a priority in regulatory acts worldwide. Typically, acrylamide is formed when starchy food materials are exposed to high heat, such as during roasting and extraction to produce soluble coffee, coffee concentrates as well as cereal- or chicory-based coffee surrogates.

Acrylerase is the first commercially available enzyme for direct decomposition of acrylamide, enabling effective on-site control of acrylamide levels during the processing of soluble coffee and coffee extracts. It is a flexible and simple drop-in solution that can be easily integrated into existing manufacturing processes. Thus, Acrylerase can help with regulatory compliance without the need for other costly mitigation measures. All this makes Acrylerase a game-changing application in the manufacturing of soluble coffee and coffee extracts.

Dr Marc Struhalla, CEO of c-LEcta, expressed excitement in introducing Acrylerase to the market, “This innovative enzyme product offers a practical solution for soluble coffee manufacturers. Acrylerase can efficiently reduce acrylamide levels without compromising taste or disrupting production processes.”

“We are excited to launch Acrylerase together with c-LEcta,” added Jan Schwital, managing director of ANKA, a coffee technology company. “We believe simplicity and efficiency are key to any successful industrial application. Acrylerase provides just that for controlling acrylamide in instant coffee and coffee extracts.”

Regulatory compliance and brand protection

Consumers are becoming more and more aware of the potential risk of acrylamide in food. In some countries such as South Korea and in the EU, directives and regulations are already in force to mitigate acrylamide and limit consumer exposure, ie, by introducing benchmark levels and monitoring acrylamide levels in various product categories, including soluble coffee. In addition, the introduction of fixed maximum limits is currently under discussion by the European Commission.

“Acrylerase not only offers soluble coffee manufacturers a much simpler and more flexible way to comply with acrylamide regulations than was previously possible, but also enables usage of coffee volumes that may otherwise be rejected due to high acrylamide formation,” remarked Oliver Süße-Herrmann, managing director of ANKA.

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Over the last decade, I have had the privilege of watching the US retail coffee market unfold and it has been quite a journey. Today, I invite you to sit back, relax and open a can of your favourite coffee as we reflect on where the market has been, where it is now and where it’s going next. 

RTD coffee was first introduced in the US in the 1950s but didn’t fully resonate with consumers until forty years later. In the mid-1990s, an icon was born: the Starbucks bottled Frappuccino. This sweet, creamy, indulgent coffee beverage set the tone for what would be the RTD coffee space for over two decades. 

The early 2000s saw a surge in the popularity of RTD coffee, with consumers increasingly interested in convenient on-the-go coffee options to fit busy lifestyles. Companies such as PepsiCo, Coca-Cola, and Nestlé began to invest heavily, launching products and acquiring existing brands. This helped the market nearly double from USD $450 million in 2001 to $850 million by 2005 (market size of canned and bottled RTD coffee from 2001 to 2015. Statista.com. 2017, February). 

By 2013, the market was valued at $1.5 billion (per Nielsen) and was still exhibiting decent growth rates. But change was in the air. Consumers were becoming more health conscious and seeking alternative canned or bottled coffees that offered less sugar, less dairy and more coffee-forward flavour. Enter cold brew. What many predicted to be a passing fad quickly exploded into a multi-million-dollar segment of the category that transformed the RTD coffee landscape. 

Cold brew has proven itself to be more than just a fad and has gained market share currently at over 20% of the total RTD coffee market. In just ten years it has gained nearly a quarter of an entire category. In fact, in recent years we have seen multiple variations: flavoured, nitro, dairy alternatives and most recently the explosive growth in multi-serve (32 ounces or above) cold brew coffee. 

What does the future hold? As consumers become increasingly educated about coffee and interest in new products grows, we expect to see impressive year-on-year growth and – importantly – increased opportunities for brands. Here are three trends I think you should keep an eye on: 

1. Multi-serve momentum carries on. Multi-serve coffee has been on the market for a decade, but its popularity exploded during the pandemic. As consumers have begun to realise they can get great coffee at an affordable price to enjoy at home, expect this segment to see even more growth in the coming years. 
2. Natural energy will continue to steal share. With younger consumers becoming increasingly proactive over their health and wellness, they are turning to more ‘natural’ products for cleaner ways to consume food and beverage. This creates an opportunity for more coffee-based ‘energy’ drinks to steal share from the traditional products in this market. 
3. Private label potential. Private label coffee is sometimes equated to lesser quality. Yet consumers have started to see the potential across categories in private label and coffee is no exception. As shoppers become increasingly cost-conscious and aware of the premiumisation of private label coffee, they will start to seek out these products to fill a gap as a cost-effective solution. 

• Stacy DeMars is marketing manager for Finlays Americas, a division of Finlays, a leading independent B2B manufacturer and supplier of tea, coffee and botanicals.

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Founder and CEO Sahra Nguyen said, “In a category often called “crowded,” we’re thrilled to be recognised for our product innovations offering more flavour and function to consumers through our focus on robusta coffee as a core ingredient and differentiator.”

In 2023, Nguyen Coffee Supply became the first Vietnamese coffee ready-to-drink brand to receive national distribution from Whole Foods Market. Nguyen Coffee Supply also ships direct-to-customers in all 50 states and internationally to Australia, Canada, France, Germany, Ireland, Singapore, and the UK and is available online on Amazon. Products are also available in restaurants and cafés in New York City, Washington D.C., Seattle, Kansas City and sold in FreshDirect, Gorillas, and Weee!

Nguyen Coffee Supply is leading the way and ushering in the next wave of coffee culture rooted in uplifting the robusta coffee species and historically marginalised coffee communities around the world. Importing directly from the source and roasting in Brooklyn, New York, Nguyen Coffee Supply’s mission is to transform the coffee industry through diversity, sustainability and cultural integrity. Founded in 2018 by 1st generation entrepreneur-activist Sahra Nguyen, the company’s mission is to elevate robusta coffee (the dominant coffee bean grown in Vietnam), while building a diverse and inclusive coffee culture for all.

Nguyen Coffee Supply’s latest product innovation, the Vietnamese coffee Ready to Drink (RTD), is now available in over 1,000 retail doors nationally.

Nguyen Coffee Supply can be enjoyed in a wide array of styles including the traditional cà phê sữa đá (Vietnamese coffee with sweetened condensed milk and ice) as well as the pour over, Chemex, French press, drip, and espresso.

Learn more at Nguyen Coffee Supply.

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Solo Coffee is a ready-to-drink (RTD) coffee company that supplies many of the UK’s major hospitality groups, selling in over 2,000 outlets across the UK, as well as being available on Amazon and Ocado.

After years of working in specialty coffee and winning a UK national barista award, founders Theo Garcia and Alex Foss Sims decided to apply their expertise to create a finished product which would be readily available to all lovers of good coffee. Solo Coffee Concentrate is barista quality, ready-to-serve, espresso strength coffee which can be used for all coffee serves. This ready-to-drink coffee is most frequently used as a base for espresso martinis, iced lattes, and cold brew coffee drinks enabling customers such as bars, restaurants and hotels to consistently offer coffee-based cocktails of high quality on a cost-effective basis.

Funds raised by Solo Coffee will be used to support the company’s entry and expansion into the US hospitality industry. The company is in discussion with some of the largest state distributors and restaurant chains in the US and has already been contracted to supply the Hollywood actor, Millie Bobby Brown’s, coffee brand “Florence by Mills.”

Warren Scott, founder of Kliro Capital Partners, said, “We are delighted to have invested in Solo Coffee. Solo is a young dynamic business led by Theo and Alex who have an extraordinary passion for coffee. Their mission is simple, to make great quality barista coffee available to all. Kliro Capital Partners is committed to the pursuit of excellence in the drinks industry, and this is a further step in our strategy to support entrepreneurial businesses looking to shape their industries.”

Theo Garcia, co-founder of Solo Coffee, said “We are extremely excited to have Kliro Capital Partners joining the Solo Coffee team. From the first conversation we had with Warren and the team, I knew that they could be the perfect partner to support our business. With years of relevant experience, we felt that we had found the optimal fit. Although we are at the start of our relationship, I have no doubt that Kliro will add tremendous value to the business. Finding an investor has been difficult for us as we believe a partner should ideally be able to support in multiple ways, not just financial. Fortunately, Kliro Capital Partners are able to offer value in many different areas.”

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“We knew we had the opportunity to create something special when we saw the positive response to our previous seasonal collaborations for Dunkin’-inspired beers. The growing appetite for adult beverages inspired us to put a twist on our customers’ favourite Dunkin’ Iced Coffee, Iced Tea and Refresher flavours,” said Brian Gilbert, vice president of retail business development at Dunkin’. “Dunkin’ Spiked […] comes in eight distinct flavours, available in grocery and package stores later this month. This new line of ready-to-drink adult beverages elevates Dunkin’s offerings, and we know our 21+ fans will love every sip.”

Dunkin’ Spiked Iced Coffee has an ABV of 6%, drawing inspiration from the brand’s coffee flavours. Dunkin’ Spiked Iced Tea, the brand’s first venture into the hard tea category, has an ABV of 5% and offers four signature flavours.

The four Dunkin’ Spiked Iced Coffees varieties include:

• Dunkin’ Spiked Original Iced Coffee
• Dunkin’ Spiked Caramel Iced Coffee
• Dunkin’ Spiked Mocha Iced Coffee
• Dunkin’ Spiked Vanilla Iced Coffee

These can be purchased as:

• A 12-can mix pack (three 12 oz. cans of each flavour)
• Four-pack of 12 oz. Original Spiked Iced Coffee cans
• Single 19.2 oz. Original Spiked Iced Coffee cans

The four Dunkin’ Spiked Iced Teas varieties include:

• Dunkin’ Spiked Slightly Sweet Iced Tea
• Dunkin’ Spiked Half & Half Iced Tea
• Dunkin’ Spiked Strawberry Dragonfruit Iced Tea Refresher
• Dunkin’ Spiked Mango Pineapple Iced Tea Refresher

These can be purchased as:

• A 12-can mix pack (three 12 oz. cans of each flavour)
• Six-pack of 12 oz. Slightly Sweet Spiked Iced Tea cans
• Single 19.2 oz. Slightly Sweet Spiked Iced Tea cans

Consumers can find the Dunkin’ Spiked Iced Teas in grocery and package stores starting late August, while the Dunkin’ Spiked Iced Coffees will debut in early September. These beverages will be available in retailers across Connecticut, Delaware, Florida, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Texas and Vermont. To locate nearby stores, consumers can use the product finder on dunkinspiked.com. Notably, the Dunkin’ Spiked line of products will not be available at Dunkin’ restaurant locations.

To stay updated on the latest happenings at Dunkin’ Spiked, visit DunkinSpiked.com or subscribe to the Dunkin’ newsroom to receive notifications at news.dunkindonuts.com.

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Bizzy Cold Brew’s elevated rebrand, which was designed by Los Angeles-based creative agency Day Job, now clearly communicates the quality of its product line, from its craft-brewed process, stronger taste, high caffeine content and zero sugar in all its brews. Unlike competitors who hide or omit caffeine content from bottles, Bizzy Cold Brew moved its caffeine content to the front of the bottle, directly on the pour spot, to be more transparent with consumers about caffeine per serving. The shape of the bottle has also been changed to improve pourability for its consumers.

“We wanted our new look to elevate our visual identity and clearly communicate our craft product. With nods to an era when quality was the rule and not the exception, Bizzy Cold Brew’s superior taste and higher caffeine content makes it the best value for coffee lovers,” said Alex French, CEO and co-founder of Bizzy Cold Brew. “Bizzy Cold Brew is an affordable luxury and we’re excited that the branding now embodies our values and will stand out on shelves.”

Bizzy Cold Brew’s product lineup includes a variety of craft-brewed products, from unsweetened ready-to-drink, multi-serve bottles of cold brew to coarse grounds that can be brewed at home and convenient, eco-friendly brew bags. Bizzy Cold Brew is crafted using a unique brew process to ensure the smoothest taste and highest caffeine, with USDA Certified Organic Arabica coffee beans from Central and South America.

The Minneapolis, Minnesota-based brand is also committed to sustainable practices in all areas of its operations. The brand’s cold brew bottles are made of 100% post-consumer recycled plastic (excluding the cap) and it composts spent coffee grounds (650,000 pounds last year alone). Bizzy Cold Brew recycles and repurposes 100% of its burlap coffee bean sacks and its roaster utilises after-burner technology to eliminate airborne emissions from roasting.

Bizzy Cold Brew’s RTD products are available in more than 5,000 grocery stores across the United States. Its cold brew bags and grounds are also available for purchase on the Bizzy Cold Brew website and Amazon.com.

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Housed in colourful and decorative cans, Chamberlain Coffee’s flavour line-up includes Mocha Latte, Cinnamon Bun Latte, Vanilla Latte and a traditional Cold Brew Latte. Each of the four flavours are naturally sweetened with date syrup, containing only 1g of sugar, and dairy-free, made with almond milk & coconut cream.

“I don’t believe convenience should sacrifice quality. I developed these canned lattes for people who want to enjoy a delicious, high-quality latte, even on the busiest of days. This launch, inspired by my daily cold brew recipe, is especially exciting for me because it’s a product I have been dreaming of making since we started the brand,” said Chamberlain Coffee founder, creative director and investor, Emma Chamberlain. “We’re inspired by all of the ways you can enjoy coffee, and are eager to continue exploring innovative coffee products.”

Chamberlain Coffee has become a force within the coffee industry since its inception in 2020. With the constant production of new, fan-requested products (from unique coffee flavours to expansion into the tea category), the brand is demonstrating its ability to tap into audience needs. 

“Making Chamberlain Coffee accessible to customers whenever, wherever they are is always the goal and this new product is helping us do just that,” said Chamberlain Coffee CEO, Christopher Gallant. “We’re thrilled to have Walmart as our exclusive retail partner for launch and look forward to this new, delicious product being available to customers, conveniently nationwide.”

Consumers can find Chamberlain Coffee’s RTD beverages launching exclusively at Walmart in the ready to drink coffee section. For more information on Chamberlain Coffee, and to stay up to date on the latest product launches, follow on Instagram at @chamberlaincoffee.

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As the popularity of cold brew continues to rise, and coffee drinkers look for easy-yet-elevated coffee options that suit a grab-and-go lifestyle, Lavazza says its new cold brew cans offer a premier way to enjoy the popular beverage in both dairy and non-dairy options. The ready-to-drink cans will debut with four styles including Classic Cold Brew, Nitro Cold Brew, Cappuccino Cold Brew with Milk, and Double Shot Cold Brew with Oat Milk. Each can offers premium flavour profiles, from fruity aromas to tastes of nutty, creamy chocolate, helping to elevate a category that traditionally focuses on the inclusion of dairy products and sweeter profiles. Lavazza’s ready-to-drink cold brew is the only one of its kind to be made with USDA Certified Organic, Rainforest Alliance Certified, 100% Arabica coffee.

“Premium, organic, ready-to-drink coffee is growing at a rate nearly 39% faster than packaged coffee.* This is due in part to younger, American coffee drinkers’ preference for cold and iced coffees, which makes this market one of the most dynamic,” says Davide Riboni, CEO of Lavazza US. “We’re always thinking about what’s next for coffee drinkers and are confident that our new ready-to-drink cold brew will attract a new class of coffee connoisseurs who value premium taste and quality.”

The new ready-to-drink cans feature distinctive imagery, transporting consumers to four iconic Italian cities and regions. With each sip of Classic Cold Brew, coffee lovers will stroll along the canals of Venice. The smooth, refreshing rush of Nitro Cold Brew is reminiscent of the waves crashing against the walls of the Blue Grotto of Capri. Just as Tuscany’s majestic Cypress landscaping blends history and beauty, Cappuccino Cold Brew with Milk combines the sweet, creamy taste of milk with a cocoa aroma. The bustling streets of Milan – the heart of Italy’s revolutionary fashion and design – come alive with the balance of smooth, creamy oat milk and sweet, chocolaty aroma of espresso in Double Shot Cold Brew with Oat Milk.

All four flavours of ready-to-drink cold brew cans are available for $3.49 MSRP and can be purchased at select Lavazza cafes, Lavazza.us, Amazon.com, Eataly and other retailers where you typically find Lavazza coffee on shelves.

For more information, visit: lavazza.us or @LavazzaUSA.

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Premiumization is one of the most important drivers in the majority of developed markets. Almost all categories of products have two strands that serve different purposes. The rise of the middle class is reportedly driving the trend of affordable luxury.

More customers now have the means to elevate ordinary moments. Despite the uncertainty, consumer sentiment is rising, and consumers are experimenting with new flavour profiles and product categories.

The desire for knowledge and transparency about how and what we consume has also encouraged premiumization, which is driven by the value-driven millennial consumer who wishes to demonstrate their opinions through inconspicuous consumption. The second driver, absolute luxury, on the other hand, is a sign of exclusivity, says FMI.

It has evolved from overt displays of money to consumers displaying culture capital, exclusivity, and knowledge, all of which make for compelling stories. This strand represents the true ‘rich person,’ who wishes to prove wealth but in a less tangible, ‘meaningful’ way.

It manifests itself in a stronger desire to attempt to buy goods with an interesting story, craft credentials, clout, and provenance in the beverage industry. People are not overspending or recklessly spending, but their individual budgets now also include spendable money. It’s a low-cost luxury, and premiumization is on the rise.

Some key takeaways from the  FMI market study:

• The market is segmented based on nature, wherein the conventional ready-to-drink coffee is anticipated to account for around 87% of the market share over the forecast period.
• The North American ready-to-drink coffee market is anticipated to dominate the global market with a market share of around 29% in 2022.
• On the basis of type, original ready-to-drink coffee is expected to hold a prominent share in 2022, but flavoured ready-to-drink coffee is expected to witness a lucrative growth rate over the forecast period.
• Growing obesity rates among adults and children, busy lifestyles, unhealthy diets among adults and children, and tight working time are all factors driving consumers toward healthier options of convenience food. Ready-to-drink coffee is another functional drink that has been shown to have nutritional benefits. As the diabetic population and calorie-conscious consumers look for alternatives to sugar in their drinks, the rate of priority for antioxidant-enriched beverages among them is increasing.

“The key players operating in the global ready-to-drink coffee market are focusing on strengthening its distribution channel, partnership, merger & acquisition to reach larger consumer base,” says a research analyst at Future Market Insights.

Competitive Landscape

Companies are focusing on launching innovative drink blends with different flavours such as chocolate, vanilla, various milk flavours, customised sugar and ice level drinks and so on in order to attract the Gen-Z and millennial segment. Millennials are known for their eagerness to try new innovative flavours, which creates an opportunity for producers to introduce new flavoured ready-to-drink coffee to the market. The following are some noteworthy market developments:

• As part of the global coffee alliance, Seattle-based Starbucks and Swiss food and beverage giant Nestlé will launch ready-to-drink (RTD) coffee products in Oceania, Latin America, and Southeast Asia by 2022.

These insights are based on a report on Ready to Drink Coffee Market by Future Market Insights. Access the report here.

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Competition in the United States ready-to-drink (RTD) coffee category continues to heat up, with cold brew increasingly represented among new entries. Globally, the category reached USD $114 billion in 2020 according to Dublin, Ireland-based Research and Markets, which expects the market to grow at compound annual growth rate (CAGR) of 7.5 per cent from 2021-2026.

The market research firm attributes changing lifestyles, increasing spending capacities and shifting dietary preferences of consumers as the primary drivers of category growth.

“Consumers are increasingly preferring food and beverages that require minimum time to prepare and can be consumed on-the-go,” the company stated in announcing its 2021 research report on the category. “The canned and bottled packaging of these beverages are also adding to the convenience of consumers, thereby increasing their overall demand.”

Category leader pushes adoption curve

With an already robust portfolio of ready-to-drink coffee products created under its 27-year-old North American Coffee Partnership with PepsiCo, Starbucks found itself intrigued by 2020 consumer purchasing data from Information Resources, Inc. identifying that 72 per cent of US households had never tried a RTD coffee product. The company said sales of its RTD products under that partnership grew 14 per cent in 2020, providing dual incentives to address.

What were these untapped customers seeking that was not already offered in the well-served marketplace, where a plethora of cold coffee offerings has built a significant category in recent years?

To answer that question, Starbucks Coffee – the RTD category leader holding a 61 per cent share in 2020, but down from 63 per cent in 2019 according to London-based global market intelligence firm, Euromonitor International – embarked on what it calls its “biggest body of research yet” to identify the unmet desires of RTD holdouts.

The company said the findings were clear: a desire for the smooth coffee taste profile that has propelled cold brew into the spotlight, a ‘splash’ of milk and flavour, lower sugar and calorie content than other category offerings, skip the preservatives, and an ‘accessible’ price point.

Manpreet Cheema, senior product developer on Starbucks R&D team, said the goal was to keep the lightly sweetened beverage under 100 calories and zone in on the best roast profile, narrowed down over months of tastings and consumer tests. Feedback revealed that less acidic cold brew has become increasingly appealing to those not currently drinking RTD coffee, and provided the desired complexity, balanced profile, and rounded taste for the new line.

Rolled out last year through mass, grocery and convenience store channels as Starbucks Cold & Crafted, the new line debuted in three varieties: Coffee with a Splash of Milk & Vanilla, Coffee with a Splash of Milk & Mocha and Coffee Sweetened Black. The suggested retail price was set lower than most RTD options on the market at under $3 per 11-ounce bottle.

Meanwhile, Starbucks continued its model of translating popular in-store beverages into RTD versions for grocery channels with the addition of Dark Cocoa Sweet Cream Nitro Cold Brew, expanding the store-inspired platform that launched in in 2020, as well as Starbucks Vanilla Sweet Cream Cold Brew, offered in both 11-ounce single serve and, in a 40-ounce multi-serve.

Dunkin’ through its own collaboration with The Coca-Cola Company that began in 2017, leveraged a strong branding opportunity with the launch of RTD bottled iced coffee last year. Produced and distributed by Coca-Cola using Arabica coffee blends with real milk and sugar, the new flavours are inspired by three of the most iconic Girl Scout Cookie varieties: Thin Mints, Coconut Caramel, and the S’mores (graham cracker, chocolate, and marshmallow notes), available in 13.7-oz bottles and joining the existing Dunkin’-branded bottled Iced Coffee varieties of French vanilla, mocha and original.

RTD and health

Fast-moving Super Coffee, the number three bottled coffee brand in the US behind Starbucks and Dunkin’, pioneered what Research and Markets now describes as an entire vibrant “better-for-you” beverage segment within RTD. Company revenue grew 106 per cent from $4 million in 2018, to $55 million in 2020, and its products are distributed to 40,000 stores across America.

“Super Coffee was born from the idea of removing negative ingredients and replacing them with positive ingredients,” explained company COO Jordan DeCicco, one of three brothers – all former NCAA Division 1 student athletes – who co-founded the company in 2015. Eschewing added sugar and instead utilising no-calorie monk fruit as a sweetener, the company’s RTD offerings draw from a range of ingredients including vitamins, protein, MCT oil, L-theanine for easing stress and 3/3 antioxidants.

One line is formulated with lactose-free milk and offered in mocha, vanilla, hazelnut, and white chocolate peppermint in 340gm PET bottles. A plant-based line is offered in coconut mocha, French vanilla, sweet cream, or unsweetened versions in 11-oz cans, while Super Espresso comes in 6-oz cans in vanilla, caramel or unsweetened triple shot.

Named as the fastest growing beverage company by Inc in 2020, Super Coffee has tapped a deep roster of professional athletes and celebrities as brand advocates and ambassadors. In 2020, global superstar Jennifer Lopez and baseball legend turned businessman Alex Rodriguez became minority owners in Kitu Life, Inc., the makers of Super Coffee. Last year, Super Coffee celebrated National Coffee Day in the US by sharing its trade secrets and challenging RTD market leaders and all competitors to stop using added sugars in their own products.

Coffee for a cause

Another unique, rapidly growing player in the RTD market in the US is Black Rifle Coffee Company (BRCC), founded in 2014 by former United States Army Special Forces member (known as ‘Green Berets’) Evan Hafer, a passionate coffee lover who travelled with his coffee grinder while serving in the Iraq war. He began roasting for friends after returning home to civilian life, but it wasn’t long before he turned it into a business with the mission of serving US military veterans, active military, and first responders, directly funding veteran causes even before he was able to draw a salary for himself from the fledgling company. Fast-forward five years, and BRCC posted USD $82 million in revenue in 2019, nearly entirely from direct-to-consumer operations of military-themed ground coffee sold through the company’s website.

After launching its first RTD coffee in cans in 2020, revenues doubled to $164 million in that year, and were on track to hit USD $230 million in 2021, elevating BRCC to the number four position in the US RTD coffee sector. Scaling rapidly over the past two years, the company’s RTD coffees are currently sold in over 40,000 locations across convenience, grocery, and drug stores as well as mass retailers.

Black Rifle Coffee Company Espresso is a premium product made from 100 per cent Colombian coffee with 200mg caffeine per 11-oz can. It is lightly sweetened to balance its ‘coffee-forward’ flavours while maintaining lower sugar content than similar products. It is gluten free, a ‘good’ source of protein, and offered in either espresso mocha or espresso with cream flavours.

The company recently extended its RTD offerings with the launch of Espresso 300, which contains 300mg of caffeine per 15oz can and an ‘energising blend’ of MCT oil and amino acids. It’s available in caramel vanilla and rich mocha versions.

• E Edward ‘Ted’ Hoyt has more than two decades of experience as a trade magazine editor and freelance writer, authoring many articles in the premium coffee, spirits and cigar industries, among others.

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Emmi Caffè Latte, one of the leading ready-to-drink iced coffee brands in Europe, has started to incorporate chemically recycled polypropylene into its packaging. The cups are produced by Greiner Packaging and the chemically recycled material comes from Borealis, one of the world’s leading providers of advanced and circular polyolefin solutions based in Vienna, Austria.

Emmi, Switzerland’s largest milk processor is committed to climate protection and the circular economy. The dairy company has the stated goal to make all of its packaging 100% recyclable and is committed to various measures to promote circularity such as packaging that contains at least 30% recyclate by 2027. Focusing on recyclable packaging and the use of recycled materials, Emmi is taking a first step with its successful Emmi Caffè Latte, brand.

From September 2021, Emmi’s successful brand of chilled coffee drinks, Emmi Caffè Latte, will use at least 100 tonnes of plastic based on the recycled material each year. Chemical recycling renews plastic back to plastic creating recycled materials with a level of purity equivalent to fossil-fuel based PP and hence, fit for protective, food-safe and other demanding applications. In this way, Emmi is utilising difficult to recycle feedstock preventing plastic waste that would be likely landfilled or incinerated. In the future, depending on the availability of suitable material, the amount of recycled plastic in Emmi Caffè Latte, packaging is to be further increased.

The new technology to recover the polypropylene is currently still in its infancy, where Greiner Packaging and Borealis are leading the way. Only limited quantities of chemically recycled polypropylene are currently available, and Emmi is one of only a few food manufacturers to have secured a share of the chemically recycled polypropylene plastic through its early commitment and long-standing collaboration with the development companies.

“It takes joint efforts by food and packaging manufacturers to reduce waste and make measurable progress in the circular economy,” says Bendicht Zaugg, who is responsible for Sustainable Packaging at Emmi.

“We have had a long and rewarding partnership with both Emmi and Borealis,” says Greiner Packaging key account manager Vincenzo Crescenza. “This achievement is in line with our stated goal to work towards achieving a circular economy. Our strategy is to develop innovative products, develop new service partnerships and business models, and pioneer materials partnerships.”

“Borealis looks forward to a world without plastic waste,” says Trevor Davis, head of marketing, Consumer Products at Borealis. “The chemically recycled polypropylene used in this new Emmi Caffè Latte, cup is manufactured with Borealis Borcycle C portfolio of transformational chemical recycling solutions, giving polyolefin-based, post-consumer waste another life. It offers all-round benefits enabling the transition to a circular polyolefin industry whilst creating virgin quality plastic products. By staying true to our EverMinds ambition of accelerating action on circularity, together with our valuable partners along the whole value chain such as Emmi and Greiner Packaging, we are reinventing for a more sustainable living.”

The chemically recycled material used for Emmi Caffè Latte, cup consists entirely and solely of ISCC (International Sustainability & Carbon Certification) material, on a mass balance basis. Mass balance is a methodology that makes it possible to track the amount and sustainability characteristics of circular and/or bio-based content in the value chain and through each step of the process. This provides transparency ultimately also to the consumers, enabling them to know that the product they are buying is based on this renewable material.

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