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Soft drink giant, Coca-Cola has announced plans to make a push into the coffee market with the launch of Coca-Cola coffee later this year. The company said it will unveil the new drink in more than 25 markets around the world.
According to Coca-Cola, the new drink blends Coke soda with coffee to appeal to consumers who want less sugar in their drinks but more caffeine.
James Quincey, Coca-Cola CEO said the drink was designed to reach consumers during specific occasions and channels like the mid-afternoon energy slump at work.
In recent times there has been a paradigm shift by consumers from soda drinks to less sugary drinks.
According to Mintel, a global market research company, ready-to-drink coffee is the fastest growing segment in the coffee category, growing 31% in 2016 and 2017, Chilled coffee drinks such as cold brew are also growing in popularity with consumers.
In Nigeria, there has been a growing demand for coffee drinks particularly among young middle class and well-traveled.
Although the consumption is still very low, According to Euromonitor, coffee consumption grew by more than 2percent between 2010 and 2015 with a prediction that Nigerians will drink more than 1,000 tons of coffee in 2020, 23% higher than last year.
Interestingly, small coffee outlets are now competing with multinational giants, whose local subsidiaries help them enter the Nigerian market quickly.
According to Emeka Nwachukwu, owner of one of the coffee outlets on the Island, the coffee culture is growing and this can be attributed to increasing health awareness and lifestyle changes.
Nestlé is currently the giant player in the coffee market and has the largest market share in the country’s coffee sales; about 75percent of Nigerian coffee-drinkers drink Nescafé.
Nestlé is also paying for mobile coffee carts on the streets of Lagos, and plans to spend more cash over the next three years. Capitalizing on residents’ growing taste for coffee, the company aims to promote its instant brew as the fuel of choice for the upwardly mobile.
According to Nwachukwu, there are still huge opportunities in the market as seen in the number of small coffee outlets springing up daily on the highbrow, Victoria Island.
“Fast-paced lifestyle along with an aspiration to stay fit attracts people to ready to drink tea and ready to drink coffee,” he said
If Coca-Cola decides to include Nigeria on the list of 25 markets where the coffee drink will be launched later this year, this may stir up competition in the Ready-to-drink coffee market.