Boston, MA -- (SBWIRE) -- 06/24/2014 -- RTD coffee once again registered high growth in 2013. This category is still in its infancy and therefore underdeveloped. Some major brands began to invest in marketing and promotion of these products and this helped the category to achieve high double digit growth. In addition to the increased attention from major players other positive factors were also observed. The warm summer weather, for instance, helped the category achieve growth as this is a coffee drink which is served cold and is therefore very much a seasonal product. The good summer weather and the fact that August and September had exceptionally high temperatures therefore helped RTD coffee to reach a new level of off-trade value sales. In 2013 growth was registered by both the chilled and non-chilled formats in RTD coffee.
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RTD coffee is still a very immature category and this means that strong fluctuations in company share are possible. In 2013, for instance, Douwe Egberts continued to lead the category with a strong position, and yet the company lost significant share compared to the previous year. This was mostly due to the fact that the runner up, Arla Foods, was very active with its Starbucks brand. In terms of actual off-trade value sales Douwe Egberts remained more or less stable, but as Starbucks managed to achieve an impressive increase in value sales in 2013 the two companies were almost equal in size by the end of 2013.
Double digit growth for RTD coffee is expected to continue over the forecast period, with a CAGR of 14% in terms of off-trade value sales at constant 2013 prices. The extension of the product ranges of the existing players is one likely source of this growth and the extension of distribution channels for existing players is expected to be another. RTD coffee is still very much an underdeveloped category with plenty of growth potential for both Douwe Egberts and Arla Foods which were the two major players in RTD coffee in 2013.
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The RTD Coffee in Netherlands market research report includes:
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- Where is ready to drink coffee most commonly consumed?
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