Costa taps into Hungary’s love of coffee

Hungary is among the first Coca‑Cola HBC markets to launch at-home, at-work, in HoReCa and on-the-go Costa Coffee products since The Coca‑Cola Company acquired Costa Coffee last year. “With 85% of Hungarians adults drinking coffee and half taking a regular coffee break at work, Hungary is an attractive and lucrative coffee market. Our ambition is to achieve a 20 percent market share in the premium segment of the Hungarian coffee market in the first 12 months with Costa Coffee”, said Márton Vajda, the company's Premium Spirits & Coffee Manager.

Prodromos Nikolaidis, Group Coffee Director at Coca‑Cola HBC, noted: “The coffee category is worth over €35 billion across Coca‑Cola HBC’s 28 markets, and Hungary is a key coffee market, with encouraging trends. The COVID-19 crisis has of course brought challenges, especially for bars, restaurants and cafes and we have seen a shift from workplace to home consumption. However, our total Costa Coffee offering makes us confident that we can provide an at-home and away-from home coffee experience, whatever and wherever the occasion. Coca‑Cola HBC has so far introduced Costa Coffee to 5 countries since May, with plans to launch in even more this year, and a vision to be the best coffee partner, making Costa the number one choice for customers and consumers in all our markets.” Prodromos Nikolaidis added that “thanks to the strong and experienced local team, the Hungarian launch has got off to a really great start”.

Márton Vajda added that in accordance with the strategy of the leading beverage partner, Coca‑Cola HBC Hungary aims to offer beverages that meet consumer occasions around the clock with its broad portfolio. Hungary’s leading beverage company already has sparkling soft drinks, water, functional beverages, premium spirits and energy drinks. “With Costa Coffee, our portfolio offers more than 100 products in more than 500 different formats. Our plan is to have just over two-thirds of coffee sales in retail in the first few years, while coffee consumed in bars, restaurants, cafes and at-work will account for the rest”, said Márton Vajda.

Coca‑Cola HBC has so far introduced four types of roast & ground coffee in Hungary, as well as coffee beans. These are the medium and dark roast Signature Blends made from the unique combination of Arabica and Robusta beans; the 100% Arabica Bright Blend, and the Columbia Single Origin which is also made from 100% Arabica beans. Starting from October, Costa Coffee’s offer will be expanded with Nespresso-compatible coffee capsules. Costa Coffee's professional coffee machines have also been introduced to bars, restaurants, premium stores and in offices. All of Costa’s coffee is 100% Rainforest Alliance Certified.

The coffee market in Hungary

According to Nielsen’s 2019 data, the retail coffee market in Hungary is expanding by 6.4 percent each year. The increase is primarily due to the availability of premium coffee beans and the still young capsule segment, which offers great growth potential for both producers and distributors.

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85% of the Hungarian adult population drinks coffee. According to Nielsen’s research conducted last summer, we consume an average of 2.7 cups a day. 91 percent of coffee drinkers have coffee at home every day, and 53 percent also had coffee on a daily basis at work – at least before the pandemic. The majority of Hungarians place a big emphasis on functional coffee, with the main purpose of ‘waking up’ in the morning. However, the trends show that more and more people are drinking coffee with the intention of enjoying it, with more people are looking for quality coffees and cafés.

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The research shows that consumers mostly buy coffee in hypermarkets, and coffee beans buyers are the most loyal to the place of purchase. The most popular packaging is ground coffee.

Those who buy coffee beans and capsules typically spend more on coffee and usually get two packs per purchase, and if they choose coffee beans, they usually put one-kilogram packs in the basket. The 250-gram packages are mainly chosen by those who buy ground coffee. Although coffee purchase is mostly planned ahead, in the case of impulsive shopping, price is an important factor – yet the brand was identified as the main aspect of choice.

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