Respondent
Feedback
Coffee
in South Africa
Food 2012
Product Definitions
2
Product Definition
Pure Ground
This product comprises only pure coffee and has no chicory content. Before
consumption, this coffee needs to be brewed using a coffee-making machine.
Coffee beans that have not yet been ground are quantified within this coffee type,
regardless of whether these are Arabica or Robusta.
Pure Instant
This product comprises coffee beans that are roasted, ground and brewed. The
liquid coffee is then either spray-dried or freeze-dried before being packaged as
coffee powder or granules. The use of chicory is excluded from this coffee type, and
thus it is termed “pure”. This coffee does not require any further filtration and may
be brewed instantly, with the addition of hot water, before being consumed, thus it is
defined as “instant coffee”.
Mixed Ground This coffee type entails a blend of coffee and chicory that needs to be brewed and
filtered by a coffee-making machine before consumption.
Mixed Instant
The definition of mixed coffee in this report entails a blend of chicory and coffee.
Chicory is often used as a coffee extender because it is less expensive than pure
coffee. Chicory is a small plant where the roots are dried, cut and roasted, in a
similar method to raw coffee beans, and finally ground.
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Market Trends
4
• Mixed Ground Coffee
• Marginal volume growth was seen in the for the category for 2011. The retail channel, which
accounts for close to half of category volumes, remained fairly static in 2011. There were no
significant changes noted in the regional and channel distributions.
• The 125g - 300g pack size range contributes 50.0% of the total mixed ground volumes. This is
down slightly from its 52.0% share in 2010.
• Mixed Instant Coffee
• Mixed instant is the largest of the coffee categories, with a market share of 64.5% for 2011.
Volumes increased only marginally in 2011. This may be indicative of coffee consumers
becoming more sophisticated and moving over to ground coffee.
• The majority of mixed instant volumes are channelled into retail (63.3% share for 2011).
• Pure Ground Coffee
• Pure ground coffee is the second largest coffee category in volume terms at 19.6% of total
market volumes for the base year. Over the last nine years, volumes have increased steadily.
• This category has the most optimistic outlook, with growth anticipated for 2012 and 2013.
• Unlike the other coffee categories, the majority of pure ground volumes are channelled through
the foodservice sector.
• Foil/metalised film continues to be the dominant pack type for this coffee category.
Market Trends
5
• Pure Instant Coffee
• Pure instant is the smallest of the coffee categories in volume terms. The category accounted for
a limited 5.8% of total market volumes for the base year. This niche category saw volume
increases in 2011.
• The majority of pure instant volumes are channelled through the retail trade.
• The 200g-360g glass packaging continues to be the most popular.
Market Trends (Cont.)
Total Market Volume
Coffee - 2011
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38 298 Tons
10.1%
64.5%
19.6%
5.8%
Mixed Ground
Mixed Instant
Pure Ground
Mixed Instant
Channel Distribution
Coffee - 2011
7 Note: Percentages may not add to 100%, due to rounding
2.9%
15.1%
1.1%
55.6%
25.2%
Export
Foodservices Direct
Industrial
Retail
Wholesale
38 298 Tons
Local Regional Distribution
Coffee - 2011
8 Note: Excludes Exports
9.9%
7.4%
28.5%
10.7%
5.7%
6.5%
6.6%
1.5%
23.2%
Eastern Cape
Free State
Gauteng
KwaZulu Natal
Limpopo Province
Mpumalanga
North West Province
Northern Cape
Western Cape
37 183 Tons
Packaging Demand Pack Size
Mixed Ground - 2011
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11.0%
50.0%
32.0%
7.0%
100g or less
125g - 300g
400g - 1kg
2kg or more
Packaging Demand Pack Type
Mixed Ground - 2011
10 Note: Percentages may not add to 100%, due to rounding
42.5%
11.9%
40.3%
1.3% 1.0%
3.1%
Carton
Flexible Plastic
Foil/Metalises Film
Paper
Rigid Plastic
Woven PP Sacks
Packaging Demand Pack Size
Mixed Instant - 2011
11 Note: Percentages may not add to 100%, due to rounding
10.5%
33.1%
50.0%
6.5%
150g or Less
200g - 300g
500g - 1kg
1.5kg or more
Packaging Demand Pack Type
Mixed Instant - 2011
12
5.1% 0.1%
0.7% 2.1%
92.0%
Bag in Box
Flexible Plastic
Foil/Metalises Film
Glass
Paper
Sachets
Tin
Packaging Demand Pack Size
Pure Ground - 2011
13 Note: Percentages may not add to 100%, due to rounding
30.5%
33.0%
31.4%
5.2%
100g or Less
120g - 400g
500g - 1kg
1.25kg or more/asrequired
Packaging Demand Pack Type
Pure Ground - 2011
14 Note: Percentages may not add to 100%, due to rounding
11.7%
0.4%
75.9%
0.1% 1.2%
8.1% 2.5%
Carton
Flexible Plastic
Foil/Metalises Film
Glass
Paper
Sachets
Tin
Packaging Demand Pack Size
Pure Instant - 2011
15 Note: Percentages may not add to 100%, due to rounding
19.1%
67.5%
11.2% 2.3%
150g or less
200g - 360g
500g - 1kg
2kg or more
Packaging Demand Pack Type
Pure Instant - 2011
16 Note: Percentages may not add to 100%, due to rounding
1.6% 1.4%
1.2%
75.4%
2.4%
7.7%
10.2%
Carton
Flexible Plastic
Foil/Metalises Film
Glass
Paper
Sachets
Tin
BMI Research
Information
17
Annual Quantifications
Total Market Quantification for 140 CPG Categories
What are the latest market trends? And:
• Is the category growing or declining?
• What does the future hold for the category?
• What are packaging trends for the market?
• Are category sales growing or declining in retail, wholesale or export?
• How is your product performing in foodservices?
Market Quantification involves sizing up markets annually to see volume, value and consumption trends.
The service is available for most food, beverage, confectionery and snack products. We have more than
10 years of historical data in tracking each market. Using these insights, you’re able to harness the
potential in your market by understanding strategic category trends across the total market.
A unique offering incorporating formal and informal market components.
Total market includes retail, wholesale, foodservices, industrial and exports.
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BMI Tracking Report Schedule
2012
Non-Alcoholic
Beverages
Bottled Water
Carbonated Soft Drinks
Cordials and Squashes
Fruit Juice
Iced Tea
Mague
Sport Drinks and Energy Drinks
Dairy Beverages
Dairy Juice Blends
Drinking Yoghurt
Flavoured Milk
Maas
Milk
For further enquiries please contact [email protected]
REPORT NAME PUBLICATION
Packaging
All Reports
Packaging Overview
Paper & Board
QPM
Quarterly Import
Annual Beverage
Reports Full Report (all reports below)
Alcoholic Beverages
Flavoured Alcoholic
Beverages
Malt Beer
Sorghum Beer
Spirits
Wine
REPORT NAME PUBLICATION
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BMI Tracking Report Schedule
2012 (Cont.)
REPORT NAME PUBLICATION
On Request
Baked Products
Baking Aids
Eggs
Frozen and Par-Baked Products
Maize and Wheat
Premixes
Processed Meat Products
Confectionery and Snacks
Ice Cream
Packaging of Snack Foods
South African Confectionery Market
The Impulse Market in South Africa
For further enquiries please contact [email protected]
REPORT NAME PUBLICATION
Annual Food
Publications
Biscuits and Rusks
Breakfast Foods, Pasta and Rice
Dairy
Desserts
F&C Beverages
Fats and Oils
Pre-prepared Meals
Protein
Sauces
Soups and Condiments
Sweet and Savoury Spreads
Value Added Meals
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ISOS
(In Store Observation Services)
How is your brand performing in-store?
Every week, we answer questions like:
• Is my product available on shelf?
• Does my brand have its fair share of shelf space?
• Is my product listed and available in all stores?
• Is my gondola end in store?
• Do I have promotional activity in that particular store?
ISOS: Gives first-hand insight into your brand’s performance in-store. Monitor your products versus your
competitors’ to assess your performance and remedy gaps. Ensure accurate data which translates into
tactical competitive advantages.
21
Print Ads Promotional
Pricing and Share of Spend
Is your product visible enough in promotional print Media?
Assess whether your brand is gaining sufficient share, relative to your spend on promotional print
advertising. Track competitor promotional pricing to tactically react on your own product pricing.
Daily, we answer questions like:
• What is the promotional pricing?
• What is the regional promotional pricing variance?
• What are competitors’ pricing tactics?
• What Rand value is spent on our brand versus competitor brands by retailers?
• Are we losing market share because of this?
Coverage:
• National daily and weekly newspapers
• Weekly community newspapers
• Consumer magazines
• In-store broadsheets
Print Ads: Covers all brands advertised in all regions by retailer by month. The analysis provides an inside
picture of the retail promotional environment. Track competitor promotions and pricing, offering top line or
granular data.
22
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• Pack Type Testing and Preference
• Product Testing includes taste tests and new product development
23
LISP
(Liquor In Store Pricing)
How is your liquor brand performing in-store?
Each week, we answer questions like:
• Is my product available on shelf?
• Does my brand have its fair share of shelf space?
• Is my product listed and available in all stores?
• Is my gondola end in store?
• Do I have promotional activity in that particular store?
LISP: Gives first-hand insight into your brand’s performance in-store. Monitor your products versus your
competitors to assess your performance and remedy gaps. Ensuring accurate data which translates into
tactical competitive advantage.
24
Consumer Research
Getting into the hearts and minds of Consumers through interaction, stimulation and discussion.
Qualitative and Quantitative solutions including:
• Focus groups
• Depth interviews
• Workshops
• Store visits
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• Online research
• Mystery shopping
• International project management
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providing a unique and customized solution to understanding consumer behaviour.
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