Cold brew has taken hold in the coffee category.
No heat needed
Cold brew, also known as cold press, took hold in the coffee category. The type of coffee is brewed without heat. The Coca-Cola Co. launched cold-brew coffees under the Gold Peak brand. The J.M. Smucker Co., Orrville, Ohio, launched Dunkin’ Donuts Cold Brew Coffee Packs for at-home preparation.
U.S. retail sales of ground coffee slipped 1.5% to $3,990 million in the 52-week period ended July 9, according to Information Resources, Inc., a Chicago-based market research firm. Sales dropped for both brand leader Folgers, 6.8% to $1,139 million, and second-place Maxwell House, 3.9% to $551 million.
E-commerce sales potentially could be cannibalizing coffee sales at brick-and-mortar outlets.
“The two largest segments we have in e-commerce happen to be the snack nuts and coffee segments,” said George Zoghbi, the former chief operating officer of the U.S. commercial business for the Kraft Heinz Co., based in Pittsburgh and owner of the Maxwell House brand, in an Aug. 3 earnings call. “So they lent themselves more toward that channel.”
U.S. retail sales of R.-T.-D. canned and bottled tea rose 3% to $2,151 million in the 52-week period ended July 9, according to I.R.I. Nestle S.A., Zurich, Switzerland, and the Coca-Cola Co. in 2017 decided to end their R.-T.-D. tea joint venture on Jan. 1, 2018. The agreement dated to 1991. Nestle said it will grant the Coca-Cola Co. a license to manufacture and distribute Nestea in Canada, Spain, Portugal, Andorra, Romania, Hungary and Bulgaria.
U.S. retail sales of refrigerated juices and drinks slipped 1.3% to $6,018 million in the 52-week period ended July 9, according to I.R.I. Discouraging news came in May when the American Academy of Pediatrics released a report recommending children under the age of one should not consume juice because of its lack of fiber and protein and because of its caloric content. Orange juice sales have been weak.