BY VERONIKA ZHUPANOVA
CONSUMER ANALYST, GLOBALDATA
Increasingly busy lives and the resulting time scarcity is driving demand for coffee among busy Russian urban dwellers. As the market is forecast to recover after a period of economic uncertainty, companies need to innovate in their product selection in order to get consumer attention.
After a drastic contraction in market value over 2011-2016 at a CAGR of -12.8%, Russia’s resilient hot coffee market is forecast to recover during 2016-2021 with a CAGR of 3.15% in US dollar values. This growth will be fuelled by increasingly busy lifestyles and greater demand for an energy boost during tiring and stressful days. The economic situation in Russia in previous years has made it difficult for local and international companies. However, the economy is forecast to improve, making it important to innovate effectively in the market.
Coffee targeting students with fun packaging
Nescafé has rolled out a coffee drink targeting students. The single-serve pack comes in a range of varieties, including Luck Magnet, Good Luck at Exams, and Stir and Read. The product is ideally placed to appeal to students, who are generally revising before the exams at the end of the semester. The pack also claims to have ‘the taste of a successful exam session’ and features sugar and creamer, as well as coffee.
The launch demonstrates an example of how brands can target a specific occasion, such as exams, to revitalise traditional instant coffee. While the current launch doesn’t have any specific add-on features, additional ingredients that will promote functional benefits that enhance memory or improve concentration further, such as DHA, will help to add value to the product.
Easy-brew ground coffee targets on-the-go consumption
Another interesting positioning example is that of Charnaya Karta (‘Black Card’) ground coffee, which is specifically designed to be brewed in a 250ml cup, launched by Zolotye Kupola. As ground coffee is associated with coffee machines or French presses, it is interesting to see how this process makes it more widely available to the on-the-go segment. The launch also reflects growing quality demands in the instant coffee market.
Chicory gets a premium makeover and improved nutritional profile
Another example is a chicory drink from Moskovskaya Kofeyna na Payakh. Chicory is a popular coffee substitute in the country, and is also seen as a cheaper and better-for-you energy boosting solution. However, unlike its conventional chicory competitors, this launch comes in a coffee-like sublimated form, rather than powder. This form is reported to enable the drink to feature 35% more inulin, a nutrient associated with a range of benefits including normalising the digestive system. Additionally, the coffee-like texture makes the product look more premium and shifts its perception closer towards the higher end.
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