• Hot beverage sales at SPAR and EUROSPAR have grown by 31% in last four years with revenue predicted to top €23m in next 12 months
• In-store coffee offerings to be rolled out to another 30 stores in 2014, marking €360,000 investment
Leading Irish retailers SPAR and EUROSPAR have signed new contracts with coffee companies Insomnia and Tim Hortons, which will see their in-store hot beverage offering expanded to 30 stores in 2014, signifying an investment of €360,000, it was announced today.
Sales of hot beverages at SPAR and EUROSPAR are up by one-third (31%) in the last four years and eight percent year-to-date. The company is predicting revenue from hot beverages to grow from €19 million to €23 million over the next 12 months and the brand is now one of Ireland’s single biggest sellers of coffee by value and volume.
Making the announcement during the run up to Christmas, traditionally the busiest time of the year for coffee sales, Leo Crawford, Group Chief Executive, BWG Group said: “The hot beverage category has proved to be a resilient offering over the last few years, in spite of reduced disposable income and tightening household budgets. The growth figures for SPAR confirm that what people consider to be small luxury goods, such as premium coffee, not only survive but actually thrive in straightened economic times.
“What’s more, hot beverage sales have proven to be a reliable barometer of the wider economy with sustained annual sales growth generally reflecting improving consumer sentiment. As the country starts to return to growth, we believe the coffee category provides huge revenue potential for our retailers and our supply partners and in this regard, we are delighted to be announcing new contracts with Insomnia and Tim Hortons.”
Insomnia coffee is currently available in 122 SPAR stores – both barista and self-service – and 19 EUROSPAR stores. Tim Hortons is available in 159 SPAR stores and 25 EUROSPAR stores. A further 30 SPAR stores around the country are due to introduce coffee offerings in 2014.
In the last year, more than 14 million hot beverages have been sold through SPAR stores nationwide. Milk-based coffee, such as cappuccinos and lattes, makes up the majority of hot beverage sales (50%) followed by Americano (26%) tea (15%) and hot chocolate (9%).
The run up to Christmas is traditionally the busiest time of year for hot beverage sales, with revenue topping €2 million at SPAR and €275,000 at EUROSPAR for the month of November.