Costa Coffee has launched a new ready-to-drink Frappé range to help attract more young consumers to the chain’s increasingly profitable RTD coffee category
Costa Coffee reports that its RTD segment nearly doubled in size for the second year in a row | Photo credit: Costa Coffee
Costa Coffee and Coca-Cola Europacific Partners (CCEP) have launched a new ready-to-drink (RTD) Frappé range to provide a popular product for younger adult consumers.
The range, which is being rolled out across grocery, wholesale and convenience locations, consists of two popular flavours from Costa Coffee’s existing coffee shop offering – Chocolate Fudge Brownie and Caramel Swirl.
Costa Coffee said the beverages have a lower caffeine intensity and less sugar than many other RTD coffee beverage brands on the market, key factors it has highlighted as being attractive to younger adults.
Labelled as the chain’s low intensity sub-segment, which prioritises flavour over caffeine, Costa Coffee and CCEP say that sales are up 34% year-on-year for the division.
Costa Coffee reports that its RTD segment nearly doubled in size for the second year in a row. The company cites this as proof of a successful strategy to bring new shoppers in, rather than encourage existing shoppers to switch brands.
“RTD coffee is worth £228m and up 37% in value YOY, which equates to an extra £65m of sales in the last 12 months. But it’s still yet to reach its full potential,” said Martin Attock, Vice-President, Commercial Development at CCEP GB.
Costa Coffee launched its first range of RTD beverages in June 2019.