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With so many Americans locked down in their homes to ride out the coronavirus pandemic, packaged coffee sales have soared 24.9 percent among retail channels in a four-week period, according to market research data from Nielsen. The company also found that the volume of packaged coffee spiked by 27.3 percent as of March 21 while price/mix dragged by 2.3 percent.
Packaged coffee sales are up substantially year-over-year with 73.3 percent growth over the one-week period Nielsen monitored and a 28 percent gain over the respective four-week period.
These sales fall in line with the “pantry-loading” effect the country is now facing in light of the pandemic-related closures of major chains like Starbucks and Dunkin’ Brands, which was notably pointed out by analysts at the investment bank and financial service company Cowen Inc.
However, customers have been able to get their chain coffee fix through Starbucks and Dunkin’s ready-to-drink lineups, which are produced by Nestle and The J.M. Smucker Company, respectively. This has led to packaged coffee sales growth despite closures, with Starbucks seeing a 9.7 percent increase and Dunkin’ seeing a 6.5 percent increase.
"We’re glad that Starbucks customers are still able to enjoy the flavors they know and love at home through Starbucks packaged and ready-to-drink coffees, available at grocery stores and online retailers,” a Starbucks spokesperson told FOX Business about the matter.
Danone outperformed both chains with coffee sales that jumped a whopping 42.5 percent, according to Nielsen’s data.
Ground coffee brands also received growth from coronavirus-related pantry loading.
Keurig Dr. Pepper’s sales increased by 18.7 percent year-over-year, according to Nielsen – which a company spokesperson confirmed for FOX Business.
|KDP||KEURIG DR PEPPER||27.92||+0.14||+0.50%|
“We’re seeing demand increase across all of our products, with particular strength in single-serve coffee, water, carbonated soft drinks and juice, so we are prioritizing manufacturing capacity devoted to those products,” Keurig Dr. Pepper’s spokesperson shared.
Similarly, J.M. Smucker’s non-Dunkin’ single-serve ground coffee brands such as Folgers, Kava, Café Bustelo, Café Pilon and Medagilia D’oro saw a collective sales increase of 31 percent.
|SJM||J.M. SMUCKER CO.||113.93||+2.47||+2.22%|
|KHC||KRAFT HEINZ COMPANY||30.47||+0.08||+0.26%|
JAB Holding Company, the conglomerate that holds Krispy Kreme, Peet's and Jacobs Douwe Egberts, received a sales increase of 36.5 percent while Kraft Heinz received a sales increase of 18.7 percent through its coffee brands like Maxwell House.