Coronavirus quarantine boosts at-home coffee sales
Packaged coffee sales soar as COVID-19 keeps Americans home
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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.
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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.
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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.
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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 INC.||31.31||-0.10||-0.32%|
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“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||THE J. M. SMUCKER CO.||153.56||+2.55||+1.69%|
|KHC||THE KRAFT HEINZ CO.||36.88||-0.31||-0.83%|
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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.