About this Report

This Euromonitor market report provides market trend and market growth analysis of the Coffee industry in Philippines. With this market report, youll be able to explore in detail the changing shape and potential of the industry. You will now be able to plan and build strategy on real industry data and projections. The Coffee in Philippines market research report includes:

Analysis of key supply-side and demand trends Detailed segmentation of international and local products Historic volumes and values, company and brand market shares Five year forecasts of market trends and market growth Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

What is the market size of Coffee in Philippines? What are the major brands in Philippines? How significant is vending in coffee distribution? How does the increasing nuber of speciality coffee shops impact retail sales of coffee? What are the future prospects for instant 2-in-1 coffee, 3-in-1 coffee and 4-in-1 coffee? How are coffee pods performing in Philippines?

Why buy this report?

Gain competitive intelligence about market leaders Track key industry trends, opportunities and threats Inform your marketing, brand, strategy and market development, sales and supply functions

This industry report originates from Passport, our Hot Drinks market research database. Each report is delivered with the following components: Report: PDF and Word Market statistics: Excel workbook

Sample Analysis TRENDS

Instant coffee mixes continued to gain popularity in both off-trade and on-trade channels in 2010. Rising demand for these products was due to the ease in preparation with minimal time involved, which is highly valued by Filipinos with busy lifestyles and busy consumer foodservice operators as brewing fresh coffee makes it difficult to meet demand. Nevertheless, the type of instant coffee used in on-trade establishments is

usually different from off-trade brands as food establishments with high volume consumption commonly work with coffee manufacturers to produce customised mixes made from freshly-ground coffee beans and with added flavours, but come in instant powder format.

COMPETITIVE LANDSCAPE

In 2010, Nestl Philippines continued to dominate coffee with an 81% share of off-trade volume sales and an 89% share of off-trade value sales. This was mainly due to the strong brand recognition of Nescaf, as its name is synonymous with coffee in the Philippines, and the extensive distribution network in both modern and traditional retail channels. The well-diversified product portfolio of Nescaf in instant coffee has also enabled the company to capture a broader range of consumers from low-income Filipinos to health conscious coffee drinkers.

PROSPECTS

Longer working hours and busier lifestyles for Filipinos, along with the desire to streamline operations amongst foodservice establishments, are all expected to increase the demand for instant coffee mixes over the forecast period. Nevertheless, consumption of fresh coffee is expected to improve over the same period. Higher demand should be driven by a niche group of affluent consumers who are willing to pay more and focus on quality rather than convenience.

Table of Contents
Table of Contents

Coffee in the Philippines - Category Analysis

HEADLINES TRENDS

Instant coffee mixes continued to gain popularity in both off-trade and on-trade channels in 2010. Rising demand for these products was due to the ease in preparation with minimal time involved, which is highly valued by Filipinos with busy lifestyles and busy consumer foodservice operators as brewing fresh coffee makes it difficult to meet demand. Nevertheless, the type of instant coffee used in on-trade establishments is usually different from off-trade brands as food establishments with high volume consumption commonly work with coffee manufacturers to produce customised mixes made from freshly-ground coffee beans and with added flavours, but come in instant powder format.

COMPETITIVE LANDSCAPE

In 2010, Nestl Philippines continued to dominate coffee with an 81% share of off-trade volume sales and an 89% share of off-trade value sales. This was mainly due to the strong brand recognition of Nescaf, as its name is synonymous with coffee in the Philippines, and the extensive distribution network in both modern and traditional retail channels. The well-diversified product portfolio of Nescaf in instant coffee has also enabled the company to capture a broader range of consumers from low-income Filipinos to health conscious coffee drinkers.

PROSPECTS

Longer working hours and busier lifestyles for Filipinos, along with the desire to streamline operations amongst foodservice establishments, are all expected to increase the demand for instant coffee mixes over the forecast period. Nevertheless, consumption of fresh coffee is expected to improve over the same period. Higher demand should be driven by a niche group of affluent consumers who are willing to pay more and focus on quality rather than convenience.

CATEGORY DATA

Table 1 Coffee Machine Sales: 2005-2010 Table 2 Retail Sales of Coffee by Category: Volume 2005-2010 Table 3 Retail Sales of Coffee by Category: Value 2005-2010 Table 4 Retail Sales of Coffee by Category: % Volume Growth 2005-2010 Table 5 Retail Sales of Coffee by Category: % Value Growth 2005-2010 Table 6 Fresh Ground Coffee: Standard Vs Pods 2005-2010 Table 7 Coffee Company Shares by Retail Value 2006-2010 Table 8 Coffee Brand Shares by Retail Value 2007-2010 Table 9 Forecast Retail Sales of Coffee by Category: Volume 2010-2015 Table 10 Forecast Retail Sales of Coffee by Category: Value 2010-2015 Table 11 Forecast Retail Sales of Coffee by Category: % Volume Growth 2010-2015 Table 12 Forecast Retail Sales of Coffee by Category: % Value Growth 2010-2015 Table 13 Fresh Ground Coffee: Forecast Standard Vs Pods 2010-2015

Coffee in the Philippines - Company Profiles

San Miguel Super Coffee Mix Co - Hot Drinks - Philippines
STRATEGIC DIRECTION KEY FACTS COMPANY BACKGROUND PRODUCTION COMPETITIVE POSITIONING

Summary 2 San Miguel Super Coffee Mix Co Inc: Competitive Position 2010

Universal Robina Corp - Hot Drinks - Philippines

STRATEGIC DIRECTION KEY FACTS COMPANY BACKGROUND PRODUCTION COMPETITIVE POSITIONING

Summary 5 Universal Robina Corp: Competitive Position 2010

Hot Drinks in the Philippines - Industry Context

EXECUTIVE SUMMARY
Stronger volume growth due to economic recovery Unusually hot weather affects consumers beverage choices Nestl Philippines continues to dominate hot drinks Supermarkets/hypermarkets remains a significant retail channel Stable hot drinks growth is expected over the forecast period

KEY TRENDS AND DEVELOPMENTS

Economic recovery and climate change affect the demand for hot drinks Change in consumer lifestyles drives new product developments Using brand ambassadors remains an effective tool for persuasion Companies continue to focus on healthy living Supermarkets/hypermarkets expansion improves hot drinks availability

MARKET DATA

Table 14 Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2005-2010 Table 15 Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2005-2010 Table 16 Retail Sales of Hot Drinks by Category: Volume 2005-2010 Table 17 Retail Sales of Hot Drinks by Category: Value 2005-2010 Table 18 Retail Sales of Hot Drinks by Category: % Volume Growth 2005-2010 Table 19 Retail Sales of Hot Drinks by Category: % Value Growth 2005-2010 Table 20 Foodservice Sales of Hot Drinks by Category: Volume 2005-2010 Table 21 Foodservice Sales of Hot Drinks by Category: % Volume Growth 2005-2010 Table 22 Total Sales of Hot Drinks by Category: Total Volume 2005-2010 Table 23 Total Sales of Hot Drinks by Category: % Total Volume Growth 2005-2010 Table 24 Hot Drinks Company Shares by Retail Value 2006-2010 Table 25 Hot Drinks Brand Shares by Retail Value 2007-2010 Table 26 Sales of Hot Drinks by Distribution Format: % Analysis 2005-2010 Table 27 Sales of Hot Drinks by Category and Distribution Format: % Analysis 2010 Table 28 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2010-2015 Table 29 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 20102015

Table 30 Forecast Retail Sales of Hot Drinks by Category: Volume 2010-2015 Table 31 Forecast Retail Sales of Hot Drinks by Category: Value 2010-2015 Table 32 Forecast Retail Sales of Hot Drinks by Category: % Volume Growth 2010-2015 Table 33 Forecast Retail Sales of Hot Drinks by Category: % Value Growth 2010-2015 Table 34 Forecast Foodservice Sales of Hot Drinks by Category: Volume 2010-2015 Table 35 Forecast Foodservice Sales of Hot Drinks by Category: % Volume Growth 2010-2015 Table 36 Forecast Total Sales of Hot Drinks by Category: Total Volume 2010-2015 Table 37 Forecast Total Sales of Hot Drinks by Category: % Total Volume Growth 20102015

DEFINITIONS

Summary 6 Research Sources

Segmentation
Segmentation
This market research report includes the following:

Coffee
o

Fresh Coffee Fresh Coffee Beans Fresh Ground Coffee Instant Coffee Instant Standard Coffee Instant Decaffeinated Coffee

Statistics Included
Statistics Included
For each category and subcategory you will receive the following data in Excel format:

From Passport

Market sizes Company shares Brand shares Distribution Foodservice distribution In-1s instant coffee Off-trade vs on-trade Pricing Standard vs pods

Market size details:

Retail volume Retail volume % growth Retail volume per capita Foodservice volume Foodservice volume % growth Foodservice volume per capita Total volume Total volume % growth Total volume per capita Retail value retail selling price % growth Retail value retail selling price local currency, USD, EUR, GBP, CHF, JPY Retail value retail selling price per capita local currency, USD, EUR, GBP, CHF, JPY Retail value retail selling price real (constant 2008) prices % growth Retail value retail selling price real (constant 2008) prices local currency, USD, EUR, GBP, CHF, JPY Retail value retail selling price real (constant 2008) prices per capita local currency, USD, EUR, GBP, CHF, JPY Retail value manufacturer selling price % growth Retail value manufacturer selling price local currency, USD, EUR, GBP, CHF, JPY Retail value manufacturer selling price per capita local currency, USD, EUR, GBP, CHF, JPY Retail value manufacturer selling price real (constant 2008) prices % growth Retail value manufacturer selling price real (constant 2008) prices local currency, USD, EUR, GBP, CHF, JPY Retail value manufacturer selling price real (constant 2008) prices per capita local currency, USD, EUR, GBP, CHF, JPY Retail rtd volume Retail rtd volume % growth Retail rtd volume per capita Foodservice rtd volume Foodservice rtd volume % growth Foodservice rtd volume per capita Total rtd volume Total rtd volume % growth

Total rtd volume per capita Retail cups volume Retail cups volume % growth Retail cups volume per capita Foodservice cups volume Foodservice cups volume % growth Foodservice cups volume per capita Total cups volume Total cups volume % growth Total cups volume per capita Retail value retail selling price nominal (current) prices % growth Retail value retail selling price nominal (current) prices local currency, USD, EUR, GBP, CHF, JPY Retail value retail selling price nominal (current) prices per capita local currency, USD, EUR, GBP, CHF, JPY Retail value manufacturer selling price nominal (current) prices % growth Retail value manufacturer selling price nominal (current) prices local currency, USD, EUR, GBP, CHF, JPY Retail value manufacturer selling price nominal (current) prices per capita local currency, USD, EUR, GBP, CHF, JPY

Methodology
Methodology

Global insight and local knowledge

With 40 years experience of developed and emerging markets, Euromonitor Internationals research method is built on a unique combination of specialist industry knowledge and incountry research expertise. This approach is what enables us to achieve our goal of building a market consensus view of size, shape and trends across the full distribution universe of each category. We factor in whichever channels are relevant, from large-scale grocery to direct sellers, from discount stores to local mom-and-pop outlets.

Industry specialists
Each industry we cover is managed by an Industry Manager and team of Industry Analysts who research and report on their specialist categories all year round. Our collaborative approach to research means that these industry teams are in constant dialogue with industry players and opinion formers. The planning of our research programmes reflects latest market trends and industry events. In completing each update project, this provides invaluable input to the testing, review and finalisation of our data.

The specialist in-house teams bring together findings from all stages of the annual research process. They work closely with in-country analysts, assess and challenge data and exercise final editorial control over the publication of new data and analysis.

Country and regional analysts

Our in-country analyst network is managed by country and regional analysts in our offices around the world. Working closely with each in-country team, the regional research management team ensures that all country researchers are well schooled in best practices, from the information collected in store checks, to the dialogue we build in trade surveys. Our country analysts ensure that national reports explain the data trends and provide clear insights into the local markets dynamics.

In-country research network

To deliver fresh insights every year in countries all around the world, we believe the strongest approach is to use analysts on the ground. They bring fluency in local language, physical proximity to the best sources, an ability to engage directly with local industry contacts, and an awareness of how the products and services we study are advertised, sold and consumed. These are essential parts of our ability to report incisively on these markets.

Our research methods

Each Euromonitor International industry report is based on a core set of research techniques:

Desk research
With industry events, corporate activity, trends and new product introductions tracked year round by our industry team, desk research provides a starting point for the in-country research programme. Our in-country researchers will access the following sources:

National statistics offices governmental and official sources National and international trade press National and international trade associations Industry study groups and other semi-official sources Company financials and annual reports Broker reports Online databases The financial, business and mainstream press

Accessing sources is only the first step. The ability to interpret and reconcile often conflicting information across multiple sources is a key aspect of the added value we provide.

Store checks
Store checks are an integral part of our methods for product industries. Carried out on the ground across a relevant mix of channels, the information gained provides first-hand insights into the products we are researching, specifically:

Place: We track products in all relevant channels, selective and mass, store and non-store Product: What are innovations in products, pack sizes and formats? Price: What are brand price variations across channels, how do private labels prices compare to those of branded goods? Promotion: What are marketing and merchandising trends, offers, discounts and tie-ins?

Findings are cross-referenced with brand share data analysis. The results, combined with the findings of desk research, provide a strong basis for identifying key areas of questioning to take forward into our trade survey.

Trade survey
Interaction with global players at corporate HQ and regional levels is complemented by unique local data and insights from our in-country trade surveys around the world. Through the high profile of the Euromonitor International brand, we are able to talk directly to a wide range of sources and therefore inform our analysis with the knowledge and opinions of the leading operators in the market. Trade surveys allow us to:

Fill gaps in available published data per company Generate a consensus view of the size, structure and strategic direction of the category Access year-in-progress data where published sources are out of date Evaluate the experts views on current trends and market developments

In building our composite industry view, we engage with a variety of personnel in key players at all points of the supply chain: materials suppliers, manufacturers, distributors, retailers and service operators. We also interview desk research sources: industry associations; study groups; and third party observers from the trade and financial press. Our objective is to engage in conversation with trade sources in which we exchange ideas and views on the industry, sharing our work-in-progress findings on supply/demand dynamics and potential. This dialogue enhances both parties understanding of the local market. The scope and reach of our trade survey also serves to eliminate bias (intentional and unintentional) from any single source.

Company analysis

At a global level, our company research combines our mix of industry interaction and use of secondary sources such as annual accounts, broker reports, financial press and databases. From a data perspective, the aim is to build top-down estimates of major players total global and regional sales. At a country level, in line with local reporting requirements, we access annual accounts, national-specific company databases and local company websites. These are all invaluable sources as we build a view of each domestic players size and position within very specific categories of the industry.

Forecasts
Data projections and future performance analysis are key elements of Euromonitor Internationals market intelligence. Working with historic trends of 15 years or more, a key aspect of our trade survey is to engage industry insider views of the next five years. Will volumes maintain their historic trend? Will price increases or falls of recent years continue, accelerate or slow down? Will increasing demand for one product cannibalise sales of another? Forecasts represent many of the essential conclusions we have reached about the current state of the market, how it works and how it behaves under different macro and micro conditions. Our written analysis will state the assumptions and the trade opinion behind whether our predictions are optimistic or pessimistic, so that clients can use our statistical forecasts with confidence.

Data validation
All data is subjected to an exhaustive review process, at country, regional and global levels. The interpretation and review of sources and data inputs forms a central part of the collaboration between industry teams and country researchers. Numbers are delivered to regional and global offices with an audit trail of sources and calculations to allow for a thorough evaluation of data sense and integrity. Upon completion of the country review phase, data is then reviewed on a comparative basis at regional and then at a global level. Comparative checks are carried out on per capita consumption and spending levels, growth rates, patterns of category and subcategory breakdowns and distribution of sales by channel. Top-down estimates are reviewed against bottom-up regional and global market and company sales totals. Where marked differences are seen between proximate country markets or ones at similar developmental levels, supplementary research is conducted in the relevant countries to confirm and/or amend those findings. This process ensures international comparability across the database, that consistent category and subcategory definitions have been used and that all data has been correctly tested. We make sure that possible discrepancies between different published sources have been reconciled and that our interpretation of opinion and expectation from each countrys trade sources has been applied to form a coherent international pattern.

Market analysis
Another integral part of all our research programmes is that all Euromonitor International data is accompanied by clear written analysis. From a research perspective, this explains and substantiates data findings. From a client perspective, this offers unique insights into local consumption trends, routes to market, brand preferences, channel dynamics and future trends. Our country level analysis also provides invaluable input into the ability of our central industry specialist teams to marry local insights with strategic conclusions on the direction of the market regionally and globally.