SECTIONS- Category Context

- Consumer

- Why this matters for business

- Why NESCAFÉ can be good for your business?

- Which NESCAFÉ is right for your business?

CATEGORY CONTEXT

TWO POLARISING TRENDS ARE COMING TO THE FORE

APPRECIATION OF MORE PREMIUM QUALITY

REASSURANCE IN THE ‘TRUSTED’ EVERYDAY

TWO POLARISING TRENDS ARE COMING TO THE FORE

There is a growing appreciation and demand for coffee quality.

70% of UK consumers think it’s worth paying more for better quality coffee.

Being exposed to better tasting coffee in and out of home is driving a greater appreciation for quality coffee.

APPRECIATION OF MORE PREMIUM QUALITY

REASSURANCE IN THE ‘TRUSTED’ EVERYDAY

Brands are increasingly offering better quality coffee whilst maintaining value for money, and consumers are recognising the appeal in good quality from a trusted brand that allows them to go about their busy lives.

There is no longer perceived negativity associated with buying simple offers from good value brands.

This has never been truer in the context of COVID, with more than two thirds of #1 brands, like NESCAFÉ, seeing higher value share in April this year, demonstrating there is a preference for trusted brands.

Source: Kantar, FMCG Panel, 4wk 19/4/2020

AT THE SAME TIME, THE COFFEE LANDSCAPE IS CHANGING DRIVEN BY THE YOUNGER GENERATIONThis year Gen Z will account for 24% of the global workforce and by 2030, Millennials and Gen Z combined are predicted to account for 75% of the workforce.

EMPHASIS ON ETHICS

69% of Gen Z are more likely to buy from a company that contributes to social causes

HEALTHIER LIFESTYLE

NEW FORMATS

Of those who consume dairy alternatives, 84% say it’s a lifestyle choice VS 16% who do so for dairy/lactose intolerances.

The iGeneration is the first generation where more people drink coffee cold than hot (75% vs 71% respectively) and millennials are close behind (70% vs 81% respectively).

Source: Mintel Future of Coffee 2019

THE EMERGING TRENDS AND CHANGING LANDSCAPE IS DRIVING PREMIUMISATION IN THE CATEGORY

Source IRI+ Kantar MAT Full Year 2019 vs FY 2018. Volume sales cups **MAT cup share. Source IRI + Kantar MAT Total Market Total Coffee + Pods (excl RTD). Â

Regular I.C.

2.72p

-7%

Premium I.C.

3.69p

+2%

Origins+ Organic I.C.

4.38p

+15%

Super Premium I.C.

4.92p Frothy I.C.

17.3p

+8%

R&G

8.47p

+9%+5%

PODs

29p

+12%

(-2%) (+0.4%) (+0.6%) (+0.5%) (+0.3%) (+0.2%) (+0.3%)

INSTANT STILL PLAYS A CRITICAL ROLE IN AND OOH

Cups of coffee drunk in the UK are instant

710

Source: OOH data CGA coffee category market sizing data pack 2019 and IRI Total Market 52 week MAT w/e 29/12/18

CONSUMER

FOUR MAJOR FORCES ARE DRIVING MAJOR CHANGES IN MINDSETS AND BEHAVIOUR, THAT HAS IMPACTED THE WORLD OF COFFEE

Generational Differences

Convenience Oriented

More Health Aware

More conscious consumption

71% of over 65s drink instant coffee, while the younger cohorts (under 35s) consume instant, they also have the highest usage of coffee mixes, RTDs and alternative milks*.

The UK food-to-go market is forecast to be worth £23.4bn by 2024, up from £18.5bn in 2019, growing by 26.4%**

Plant-based milk is now the choice for almost a quarter of the UK, sales rising 10% over the last 2 years***

75% of the UK public are consciously modifying their consumer behaviour, reconsidering plastic, non-recyclable materials, dairy, meat, sugar and even clothes****

Sources: *Mintel, Coffee UK, 2019 **https://www.igd.com/articles/article-viewer/t/uk-food-to-go-sector-to-grow-by-264-by-2024/i/22073 ***https://www.theguardian.com/food/2019/jul/19/plant-based-milk-the-choice-for-almost-25-of-britons-now ****https://www.walnutunlimited.com/rise-of-the-conscious-consumer/

Generational Differences

Convenience Oriented

More Health Aware

More conscious consumption

SOME STATS THAT BACK THIS UP

WHY THIS MATTERS FOR BUSINESSES

PURCHASE DECISION MAKERS HAVE AN INCREASINGLY COMPLEX ROLE Free food and drink is a priority when it comes to making employees feel valued at work.

But, there’s a push from staff to move from crisps/fizzy drinks to fruit/herbal teas and more ethically sourced and sustainable coffee options.

This move towards fresh, perishable foods has lead to an increase in costs and time invested for decision makers.

But having a trusted go-to coffee brand you know your staff loves, decreases some of that complexity.

Source: Streetalk Workplace Drinking and Snacking Study, January 2019

Source: Streetalk Staff attitudes to change in brand of instant coffee at work August 2019

COFFEE STILL PLAYS AN ESSENTIAL PART OF BUSINESS

of employees agree that they feel more valued in workplaces where there is a good quality coffee offering.

70 %

of employers agree they provide coffee for staff and customer wellbeing and happiness.

68 %

NESCAFÉ IS THE NO.1 BRAND EMPLOYEES WOULD MOST LIKE TO SEE*

IN FACT, 1 IN 3 CUPS OF COFFEE DRUNK IN THE UK ARE NESCAFÉ

WHICH IS ALSO WHY, 8 OUT OF 10 PURCHASE DECISION MAKERS TRUST AND CHOOSE NESCAFÉ **

Sources:* Streetalk Workplace Drinking and Snacking Study, January 2019 Streetalk Staff attitudes to change in brand of instant coffee at work August 2019

“NESCAFÉ coffee is a must! Honestly coffee is the one thing we couldn’t do without. It’s as if coffee is more important than air for a lot of my staff.”

Female, Office of 100-149, Birmingham

“I don’t think the staff would like to see private label coffee. We serve NESCAFÉ Gold Blend Blend and it makes a huge difference.”

Male, Office of 100-149, London

WHAT CAN NESCAFÉ BRING TO YOUR BUSINESS?

GOOD COFFEE IS PURE & ROASTED TO PERFECTION

NESCAFÉ COFFEE IS GOOD COFFEE

GOOD COFFEE DOES ITS BEST TO BE BETTER

GOOD COFFEE FOR YOUR PEOPLE AND OURS

GOOD COFFEE IS PURE & ROASTED TO PERFECTIONThe NESCAFÉ name (and nation’s favourite coffee) makes people feel at home wherever they are. Consistently high quality, 100% pure and roasted to perfection, with a choice to suit every taste. NESCAFÉ Original has a full and bold flavour. NESCAFÉ Gold Blend has a rich aroma and a smooth taste to savour. NESCAFÉ Azera is designed for those curious to try new coffee experiences. It’s no wonder 1 in 3 cups of coffee drunk in the UK are NESCAFÉ .

GOOD COFFEE DOES ITS BEST TO BE BETTERThese days, people are demanding more than

great tasting coffee. They care about how it’s

made, and how it affects the world we live in.

So they’ll be happy to learn that NESCAFÉ

comes in tins that are infinitely recyclable.

And all our packaging will be 100% recyclable

or reusable by 2025. So their coffee is doing a

bit more for the world today, and tomorrow.

GOOD COFFEE FOR YOUR PEOPLE AND OURS

People are the heart of what we do: farming, sourcing, roasting and drinking. That’s why NESCAFÉ have been working with experts for over 10 years on sustainable sourcing to ensure a fruitful future for everyone in the coffee industry. Distributing over 180 million disease-resistant coffee plants to farms. Developing labour rights programmes. And helping our farmers to work more efficiently. So taste is just one of many reasons you can feel good about serving NESCAFÉ.

WHICH NESCAFÉ IS RIGHT FOR YOUR BUSINESS?

The unmistakable full-flavour of NESCAFÉ Original makes it the Nation's favourite coffee, with 4 billion cups drunk every year*.

Made from carefully selected and roasted coffee beans, our signature instant coffee blend is the distinctive coffee your people know and love. Our medium-dark roasted coffee beans and advanced double-filter technology, give every mug of NESCAFÉ Original that rich, full flavour. If your business needs a good quality, easy-going coffee to start everyone’s day, then NESCAFÉ Original is right for you.

Source: IRI, Retail Value Sales, w/e 25th April 2020

NESCAFÉ Gold Blend has a unique combination of a rich aroma and a smooth taste to savour. Made with premium golden roasted Arabica beans, carefully selected, then roasted to bring out their natural flavour. Our expertly crafted blend is great for all coffee drinking occasions, whether you’re simply on your morning break or savouring a moment with a colleague.

Now, its recognisable quality and taste can be found in a range of vegan lattes to appeal to your employees changing tastes and dietary choices.

If your business needs a good quality, premium coffee to help employees enjoy a moment, then NESCAFÉ Gold Blend is right for you.

NESCAFÉ Azera is a super-premium, barista-inspired instant coffee. With a delicious velvety crema and full, rich flavours, it satisfies those with a love of great experiences and quality coffee. NESCAFÉ Azera is growing at pace as people become more curious about new and interesting barista-inspired formats. In fact, 4 in 5 people would like to see NESCAFÉ Azera in their workplace.

If your business needs a good quality, super premium coffee to help spark curiosity in an innovative and dynamic setting, then NESCAFÉ Azera is right for you.

THANK YOU