Is coffee replacing tea as the nation’s prime hot beverage? JDE Peet’s argues that its versatility and popularity make it one of the hardest beverages to go without – and how c-stores should capitalise.
Forget tea, Britain is now officially a nation of coffee lovers! The coffee category is now worth over £1.6bn and a staggering 24.4m households are now buying coffee [JDEP] – so, although the UK has historically been known as a nation of tea drinkers, more cups of coffee are now consumed throughout the day than tea, and many consider coffee one of the hardest beverages to go without [JDEP].
As the second-largest ambient segment [NIQ], only trailing breakfast cereal, and boasting a healthy 2.5% growth in the last year [NIQ], coffee presents a significant opportunity for convenience stores to optimise their category management strategies. Consumers are increasingly seeking coffee shop experiences at home, not only to save money, but to recreate the café experience within the comfort of their kitchen. Convenience stores are perfectly positioned to capitalise on this growing trend by offering flavour-led formats that bring home coffee shop luxury. By providing inspiration and choice in flavours to encourage customisation, retailers can drive frequency and engagement.
Left: Speciality options are popular, with convenience stores outperforming the market (+15.3% vs +9.7% growth) [TMG]. Right: Quality reigns supreme in the coffee category, surpassing all other categories as the No.1 purchase driver [IGD].
The emphasis on quality is particularly evident in convenience stores, where pure Instants remain the dominant segment, but premium and tins are exhibiting stronger performance. Premium coffee boasts the highest penetration (40.9% of UK households) [NIQ], while tins – perceived as the highest-quality instant coffee – attract a younger demographic [NIQ]. To maximise sales and cater to discerning coffee drinkers, convenience stores should prioritise stocking a well-curated selection of higher-quality coffee products across all segments, ensuring they meet the evolving taste preferences of their customers.
Retailers should consider stocking household favourites such as Kenco, L’Or, Douwe Egberts and Tassimo which allows shoppers to purchase convenient but still delicious ways to enjoy their coffee shop favourites.
Top tips
Maria Kabalyk, head of category & shopper at JDE Peet’s, shares her top tips to bolster sales and make the most of the category:
● Offer shoppers good range and availability – Where possible, stock a diverse range of products from different coffee sub-categories, to appeal to a wider range of shoppers and the variety of their coffee consumption occasions. Ensure you have good availability, so they don’t have to shop around.
● Keep the category exciting and relevant by stocking new NPD – When and if possible, stock new innovations to keep the category new and in line with trends, to encourage purchase.
● Offer shoppers good value – As 49% of consumers say they are cutting down on their coffee shop visits to save money [NIQ] and 77% of in-home coffee cups are made using instant products [NIQ], stock a good range of products from trusted and familiar brands that consumers know and trust.
● Use POS to your advantage – Eye-catching signage and POS creates intrigue, with 60% of coffee shoppers making their purchase decision once they are in-store [Kantar].
Plan your shelf
- Align coffee space with its contribution to sales – coffee accounts for 64.5% sales in hot beverages [NIQ].
- Offer a breadth of brand choice to meet evolving shopper needs with two facings per SKU.
- With 80% of convenience shoppers saying brand is the most important factor when choosing coffee [HIM], this is pivotal when choosing what to stock.
- Prioritise growth areas – consumers are looking for higher-quality and more indulgent products. Speciality and mixes are growing x4 (total coffee rate), with coffee capsules growing x2.5 (total coffee rate) [NIQ].
- Make the coffee fixture visible for shoppers. Products placed at eye level are more likely to capture shopper attention, as this is the natural focal point when browsing shelves. Use signage and POS kits where possible.
Retailer testimonial
Avtar (Sid) Sidhu, owner and manager of Simply Fresh, Kenilworth, says:
”With coffee shop visits declining as consumers seek better value, there’s a clear shift towards at-home consumption and more affordable options. The JDE range is perfectly positioned to help convenience stores capitalise on this trend as they cover all bases within the coffee space.
”Driven by convenience and cost savings, over half of UK consumers prefer instant coffee. Notably, coffee capsules, premium blends, and instant flavour sachets are experiencing significant growth.
”Store owners can ensure they’re meeting demand by stocking key brands like Kenco, Douwe Egberts, L’OR, and Tassimo, providing comprehensive choice and representation across all growing segments within coffee fixtures.”
Products c-stores should be stocking
Consumers are turning to trusted and familiar brands that they know deliver on taste and quality. It is important for retailers to offer shoppers a good variety and availability and where possible, stock a diverse range of products from brands that consumers can rely on.
1. Kenco Iced/Hot Lattes: This flexible innovation creates even more consumption occasions and provides a great opportunity for retailers to maximise their rate of sale throughout the entire year – with iced lattes perfect for the summer and hot lattes ideal for the winter months.
Kenco Iced/Hot Latte Sachets are the fastest-growing range in the segment [NIQ] showcasing the opportunity for retailers to drive growth with indulgent options all year round.
2. Costa Tassimo Latte: Coffee shop-branded products, like JDE Peet’s Tassimo Costa range, continue to be incredibly popular. With options from cappuccinos to lattes, shoppers can bring versions of their usual Costa experience into the home, presenting a real opportunity for retailers as shoppers look for coffee shop-worthy beverages at the touch of a button.
3. Kenco Smooth uses a special blend of premium coffee beans, which are roasted with care and expertise to create a rich flavour and irresistible aroma. This incredibly smooth medium roast coffee boasts a well-balanced, rounded flavour. Also in the range is Kenco Decaf, which is expertly roasted to deliver on the unique smooth Kenco coffee taste that consumers look for. The range is available in PMP formats, which provide consumers with a sense of confidence that they are not being overcharged, driving incremental coffee sales.
4. L’Or Classique – Independent and convenience retailers can tap into the growing ”coffee shop at home“ trend by stocking trusted brands like L’Or Classique Instant Coffee. Offering a quality instant option is crucial, and L’Or Classique delivers exceptional value with its golden roasted blend, smooth and delicate yet intriguingly rich and aromatic taste. The Colombian Arabica beans provide a fruity and multidimensional character, ensuring every cup ignites a moment of pure pleasure. Stock L’Or Classique to offer shoppers a familiar, trusted, and delicious alternative to expensive coffee shop beverages.
For more details on the full JDE Peet’s range visit: https://www.jdepeets.com
