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Beverages in Consumer Foodservice: The Best Portfolio Wins

Global foodservice beverages market: Limited growth in developed regions due to economic uncertainty

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2014-02-05 17:23:03 - Beverages in Consumer Foodservice: The Best Portfolio Wins - a new market research report on

2013 has brought an ever-increasing set of challenges for operators in the global foodservice beverages market. Growth continues to be limited in many developed markets, while consumers grow more demanding by the day. They may be more willing to spend than in previous years, but tastes are discriminating and they are only willing to invest in high quality menus and experiences.

The most beverage-heavy markets can be found in Western and Eastern Europe, due in part to the widespread popularity of bars and cafés. In Greece, where 67% of foodservice value stems from drink sales, the majority of local transactions in 2011 were completed in cafés. Similarly, Spain recorded 55% of 2012 value from beverage sales due to its dependency on



bars/pubs. That said, traditionally beverage-focused categories are not the only important part of the drinks conversation.

Even the most promising emerging markets, which helped to prop up growth in global foodservice throughout the review period, are now showing their limits. China, India, Brazil, Indonesia and Thailand all showed steadily slowing growth in dining-out transactions over 2007-2012, as local chained markets matured and neared saturation. This slowing of dining-out growth is apparent even at the regional level, as Asia Pacific, Latin America and Middle East and Africa have failed to return to pre-recession growth levels, despite a brief improvement in 2010.

Key Findings

Amidst current conditions in developed and developing markets alike, beverages have become central growth drivers for operators in many categories. They appeal to consumers at both ends of the income spectrum and drive traffic throughout the day during meals and snacking dayparts.

Beverages can serve to "qualify" restaurants to participate in new dayparts. This is particularly apparent during breakfast, when a high quality coffee platform is considered the first step in claiming share in certain markets, but can also be true for alcoholic drinks with dinner and dessert beverages in the evening.

Flavours have been tending toward more subtle, refreshing profiles rather than traditional variations on sweet. Some of this is due to increased interest in healthy beverages, but it is also being driven by the popularity of exotic teas, functional juices and unusual ingredients like ginger and basil.

With greater participation in beverages from traditional chained players has come more interest in beverages among consumers. This has given rise to new kinds of beverage-focused concepts, such as Asia Pacific´s growing bubble tea segment. Tea is poised to become the next wave in global beverage concepts, with its ability to be both sweet and refreshing, hot and cold, healthy or indulgent.

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