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UK other hot drinks market led by Cadbury Highlights

Press Release   •   Jul 10, 2013 14:40 BST

Current value sales within the UK other hot drinks market grew by 2% to reach £206 million in 2012.

After some years of being considered drinks for elderly people or the very young, other hot drinks continued to benefit from increased manufacturer attention in 2012. With the price of cocoa still high, manufacturers brought new products to the market at a time when hot drinks seem to be gaining momentum.

That said, in 2012, other hot drinks performed worse than in 2011, down from 4% growth in the previous year, but it was still growth. Chocolate-based flavoured powder drinks performed strongly; however, this was not enough to counterbalance the further slowdown or decline in other categories of other hot drunks, thus bringing down the overall value growth of other hot drinks in 2012.

This has likely been influenced by the fall of the UK economy into another recession. Growth has still been provided by some indulgence purchases, but generally these purchases are more concentrated in confectionery sales. The higher price of chocolate-based drinks compared to other products in the hot drinks market may also have hindered growth.

There have been bad falls for all malt-based drinks, and for much of the health and wellness market in the other hot drinks category. Malt-based drinks have struggled to compete with chocolate-based drinks thanks to the increased manufacturer attention paid to the latter over the last few years with the introduction of new variants.

By contrast, malt-based drinks seem to have a brand awareness problem, with there being a perception that these products are aimed at an older demographic.

In the main, the leading players all lost value shares in other hot drinks in 2012. The largest losses in value share were recorded by R Twining & Co Ltd and GlaxoSmithKline partly due to these players' use of price promotions to drive volume sales. In addition, they faced more of a challenge from premium player Green & Blacks and other players in the market.

The company leading value sales in 2012 was Cadbury UK which achieved a 25% value share, based on its range of hot drinks but in particular, the success of the its Cadbury Highlights, which is an all-time favourite.

For more information on the UK other hot drinks market, see the latest research: UK Other Hot Drinks Market

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