кейси для індивідуальної роботи 2014 н.р. / TCHIBO GMBH IN HOT DRINKS

SCOPE OF THE REPORT

Scope

This global profile focuses on the industry trends in hot drinks.

All values expressed in this report are retail/off-trade in US dollar terms using a fixed exchange rate (2011).

2011 figures are based on part-year estimates.

All forecast data are expressed in constant terms; inflationary effects are discounted. Conversely, all historical data are expressed in current terms; inflationary effects are taken into account.

Hot Drinks

US$125.9 billion

Disclaimer

Much of the information in this briefing is of a statistical nature and, while every attempt has been made to ensure accuracy and reliability, Euromonitor International cannot be held responsible for omissions or errors.

Figures in tables and analyses are calculated from unrounded data and may not sum. Analyses found in the briefings may not totally reflect the companies’ opinions, reader discretion is advised.

German company Tchibo has been successfully expanding in Eastern Europe, which has helped offset slow growth in its domestic German market. Continued Eastern European expansion forms a central part of the company’s growth strategy, as well as fully capitalising on the growth opportunity offered by the dynamic coffee pod category in Germany.

Tchibo ranks number six in global hot drinks in 2011 with a value share of 1.7%. The company is part of the Maxingvest group (a private company that also owns over 50% of cosmetics company Beiersdorf AG).

Tchibo's hot drinks profile is based entirely on coffee, with fresh coffee its main focus, although instant coffee plays an important role in Eastern Europe due to local consumer preferences.

The company’s unique mix of retail, high-street outlet/café and internet activity as well as the importance of non-food in its product offer makes it something of an oddity among the top 10 hot drinks players. Germany remains its single most important market (over 40% of sales in 2011).

Tchibo reported total turnover of €3.5 billion in 2011, which represents a positive increase of 5% on the previous year, with all regions contributing to growth.

However, profit decreased significantly, from €288 million EBIT in 2010 to just over €200 million in 2011. This was due to higher raw material costs, specifically for coffee and cotton.

WEAKNESSES

No presence beyond

Europe

 Tchibo has a relatively narrow geographic focus. It is virtually absent outside Western and Eastern Europe, while rival Melitta has a strong position in Latin America, for example.

THREATS

Private label

Limitations of business

model

 Tchibo's unique business model has paid dividends, but it represents a barrier to growth in markets where a culture for buying nonfood items in a café does not exist.

Coffee pod competition

 According to Tchibo, its online shop is one of the most frequently visited in Germany. This gives it a good platform not just for its non-food range, but also for premium coffee products such as its Cafissimo pod system.

 Russia is one of the most important growth markets for coffee in Eastern Europe over the forecast period, growth that Tchibo, as the third-ranking player in the country, is well positioned to capitalise on.

 In Tchibo’s key German market, private label has a very strong and growing presence in coffee, putting additional pressure on brands including Tchibo.

 Tchibo also faces stiff competition within the important coffee pod category in Germany. Should it fail to gain a larger share of the category, its growth potential in Germany will be constrained.

Sustainability key part of new strategy

 Having completed its “Strengthen Strengths” strategy programme started in 2007 to return the company to positive growth (through cost-cutting measures, the closure of unprofitable outlets and the modernisation of the remaining network), 2010 marked the beginning of its new programme

“Building our Future on Tradition”. One of the cornerstones of this strategy involves sustainability; Tchibo increased the proportion of its coffee that is Rainforest and Fairtrade Alliance certified.

Cafissimo

Tchibo’s Cafissimo coffee pod system is a key focus area for the company’s coffee business. The brand achieved a near 4% share of coffee pods in Germany in 2011, and Tchibo is keen to gain a larger share of this important growth category.

The company aims to compete against brands such as Nespresso with innovative pod machines such as its Cafissimo DUO, claimed to be the world’s smallest capsule machine.

Eastern Europe

 Eastern Europe has become an important growth driver for Tchibo, and the region forms a central part of its growth strategy. The company has already achieved a wide geographic spread across the region, however opportunities for further market entry continue to exist, specifically in the Balkan region. An important growth market will furthermore be Russia, where Tchibo already has a strong presence, and which is expected to drive regional growth of coffee over the forecast period.

Expansion beyond Europe unlikely

 At the heart of Tchibo’s recent restructuring efforts was the aim to return the business to positive profit growth after years of profit declines. Apart from a domestic store modernisation programme and the closure of unprofitable outlets, this also included withdrawal from a number of markets such as the UK. A strong focus on cost control and margin improvement is likely to continue, which makes further expansion beyond its core region of Europe unlikely in the foreseeable future.

COMPETITIVE POSITIONING

Tchibo growth accelerates

Hot drinks overall recorded accelerating growth towards the end of the review period, benefiting from the boom in coffee pod sales in developed Western markets despite continued economic weakness, as well as the rapid growth in sales of instant coffee in the emerging world.

While posting positive year-on-year growth, Tchibo was not able to match the performance of larger rivals such as Nestlé for most of the review period. Slow growth in the mature German market, which continues to account for a significant proportion of Tchibo’s total hot drinks retail sales (40% in 2011) dragged down the company’s global performance in comparison to rivals with a larger emerging market presence.

However, growth greatly accelerated in 2011. Tchibo’s growth rate doubled in Russia (which has become Tchibo’s most important international market), as well as receiving a significant boost in Germany as a result of price increases.

Y-o-y growth

Hot Drinks: Global Market vs Tchibo vs Key Competitors, % Y-o-Y Growth, US$ mn RSP 2006-2011

16%

14%

12%

10%

8%

6%

4%

2%

0%

The hot drinks competitive landscape has generally been static, with little movement among the top four players.

Nestlé continued to lead the global hot drinks market comfortably by value in 2011 and it is the only player with a double-digit market share. Nestlé also maintained very strong growth momentum in 2011 and consolidated its global hot drinks leadership.

By the end of 2012, Kraft Foods will split into two separate public companies: a high-growth global snacks business and a high-margin North American grocery business.

The change of the corporate structure may prompt greater focus on coffee, but could also eventually lead to Kraft disposing of its international coffee business, which could provide an opportunity for Nestlé to strengthen its presence in fresh coffee and further cement its overall hot drinks leadership.

Tchibo’s global ranking of sixth is achieved on the basis of its strong position in Germany (where it is the second largest hot drinks company, behind Kraft) and in Eastern Europe (where it ranks fourth).