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Tag: instant coffee

  • Universal Robina Launches Great Taste Premium Roast Instant Coffee at PHP 12.95

    Universal Robina Launches Great Taste Premium Roast Instant Coffee at PHP 12.95

    Universal Robina Corporation rolled out Great Taste Premium Roast Coffee Mix across the Philippines on September 23. The single-serve sachets retail at PHP 12.95 each.

    The instant blend offers a bolder roast profile. URC is pitching it to commuters, blue-collar workers and office staff who need extra caffeine during transit and shifts.

    Sachet Pricing and Market Reach

    Each PHP 12.95 pack combines dark roast extract with a creamer base. URC designed the sachet format for neighborhood sari-sari stores, convenience chains and supermarkets across Luzon, Visayas and Mindanao.

    Distribution runs through URC’s nationwide logistics network to reach thousands of micro-retailers. These small shops generate most FMCG sales in the Philippines. Single-serve portions drive local coffee revenue as consumers manage tight daily cash budgets.

    Expanding the Instant Coffee Mix

    This rollout follows the earlier debut of Great Taste White Sugar Free Coffee. That formulation targeted urban consumers who wanted to cut sugar intake without abandoning white coffee.

    Developing high-caffeine and low-sugar options helps the company defend shelf space against multinational rivals. The Great Taste lineup now covers standard three-in-one mixes, sweet white coffee, sugar-free variants and dark roast blends.

    Rivalry in the Philippine Beverage Sector

    Competition in the local coffee aisle remains fierce. Nestlé Philippines holds substantial volume through its Nescafé lines, while PT Mayora Indah’s Kopiko brand commands heavy market share in white and high-caffeine categories.

    For sari-sari stores, inventory turnover hinges on brand loyalty and prices between PHP 10 and PHP 15 per pack. Rising costs for robusta beans and dairy substitutes squeeze margins. Still, producers must keep shelf prices steady so shoppers do not switch brands.

    Product Diversification Across Regional Markets

    Across Southeast Asia, the launch fits a broader pattern of FMCG category expansion. URC has rolled out extensions in snacks, biscuits and ready-to-drink beverages across Thailand, Malaysia and the Philippines in recent quarters.

    Fourth-quarter sales across convenience stores and general trade outlets will show whether Philippine consumers trade up to premium roast mixes in sachet format.

  • Vittoria Coffee launches first instant coffee in its 64-year history

    Vittoria Coffee launches first instant coffee in its 64-year history

    Vittoria has launched its first range of instant coffee since the company’s inception in 1947.

    The company says the new range capture the richness and balance of a traditionally prepared coffee in the convenience of an instant.

    Made from freeze-dried Arabica beans, Vitoria Instant Coffee is available in 100g jars or single-serve bags that roast in a 3-minute steep.

    The 100g instant coffee jar comes in four different blends – Original Classic, Italian, Latte, and Mountain Grown. While the single-serve coffee bag is available in four 20-serve bags in Espresso, Italian, Mountain Grown, and Long Black.

    “We set out to create new, easier coffee experiences for all our customers,” said Rolando Schirato, MD, Vittoria Coffee. “These new products deliver on the distinctive Vittoria taste and offer our customers the convenience to enjoy our legendary 100-per-cent Arabica blends”.

    Vittoria Instant Coffee is available in all Woolworths supermarkets nationwide.

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  • Coffee wars: South Korea’s cafe boom nears saturation point

    Coffee wars: South Korea’s cafe boom nears saturation point

     

    In fashionable retail and commercial districts of southern Seoul, nearly one in every two buildings boasts a coffee shop – evidence of a boom that has delivered dizzying growth for the likes of Starbucks and local chains.

    But now the market is getting even more crowded, as convenience stores such as 7-Eleven offer 1,000 won (87 cents) cups, and smaller players are feeling the heat.

    “We declared an emergency situation, gathered all employees eight times to debate strategies,” Moon Chang-ki, CEO of mid-priced coffee chain Ediya, the country’s largest operator by location with about 1,800 stores, told reporters recently. “If we sell at that price, our store owners won’t earn any margins.”

    To compete, Ediya says it has instead focused on improving the quality of its coffee, and actually raised prices last year. Other chains have responded to growing competition by cutting back on store numbers and staff, or expanding overseas.

    The number of chain and stand-alone coffee shops in South Korea more than tripled to about 49,600 in 2015 from 12,400 in 2011, according to Korea Contents Media – far faster than overall consumption of coffee, which Koreans have been drinking for decades.

    PEAK COFFEE

    South Korea’s per capita coffee consumption has nearly doubled since 1990 to 2.3 kg (5 lb) per person, according to the International Coffee Organization – still roughly half the 4.5 kg that Americans consume.

    Revenue growth at coffee chains in the country slowed to about 8 percent in 2014, however, from more than 20 percent annually between 2008 and 2012, analysts say. While the number of new coffee shops in Seoul increased, so did closures, according to city data.

    Brewed coffee sales at 7-Eleven, run by Lotte Shopping’s Korea Seven Co Ltd, jumped 88 percent in 2015 after it introduced drip coffee early last year costing about a dollar, almost one-fifth the cost of an average Starbucks cup.

    McDonald’s Corp stores cut coffee prices to 1,500 won from 2,100 won early last year, and have seen sales of the beverage almost triple, the company told Reuters.

    By contrast, local chain Cafe Droptop, with about 225 shops, cut about 20 percent of its workforce at the end of 2015. Another chain, Coffine Gurunaru, with about 100 shops, incurred combined operating losses of 2.5 billion won ($2.2 million) in 2013 and 2014 after being profitable in the previous two years, filings show.

    “Even fried chicken restaurants and pubs are adding coffee, trying to be a cafe, while espresso machines are spreading in offices,” said Lee Kyung-hee, who heads the Korea Business Strategy Institute, a consultancy. “The coffee industry is fighting a war without borders.”

    GOING ABROAD

    Starbucks entered the market in 1999, and is widely credited with starting the country’s habit for splurging on higher-quality coffee and creating a cafe industry SK Securities said was worth about 2.5 trillion won ($2.2 billion) in 2014.

    Starbucks Coffee Korea, a 50-50 joint venture between the world’s biggest coffee chain and South Korean hypermarket operator E-Mart, now has 860 stores, putting the country behind only China and Japan as the company’s biggest markets in Asia, with sales more than doubling between 2011 and 2014.

    It posted a 20 percent increase in net profit to 30.77 billion won in 2014, the most recent year for which results are available, on revenue of 617 billion won, up 28 percent.

    But with industry growth slowing, some chains have been pushing abroad.

    Caffe Bene, which reached 932 domestic stores in 2014 before trimming back to 850 at the end of March, posted a 3.3 billion won net loss in the first three quarters of 2015, according to the latest public data.

    Last month, a joint venture between Singapore’s Food Empire and Indonesia’s Salim Group acquired a 38 percent stake in Caffe Bene, becoming the second biggest shareholder after South Korean private equity fund K3 Equity Partners.

    The chain said it was looking to expand in Southeast Asia to drive growth.

    Zoo Coffee, with 65 domestic shops, has opened about 200 franchise stores in China since entering the country in 2013 and in December announced a tie-up with China’s giant Dalian Wanda Group to open 50 stores per year there.

    Cafe Droptop in November opened its first overseas outlet in Shanghai.

     

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