The canned coffee market, which has long been an important segment of the soft drinks market in Japan, has gone through a major transition in 2008.
The “standard” type of canned coffee, including both milk and sugar, which accounted for roughly 60% of the market in previous years, has been loosing ground as consumers grow more concerned about their health amidst news of rising obesity rates.
In January, Asahi canned coffee brand Wanda released a “Gold Low-Sugar,” with 73% less sugar than previous drinks. The drink was a hit, and intial sales projections of 30 million can have already been surpassed threefold. Following this trend, in September Kirin relaunched their Fire drink, with slightly less sweetener. Suntory also joined in, relaunching a low-sugar version of their Boss coffee. The popularity of the low-sugar coffee drinks might be linked to compulsory health checks for obesity in full-time corporate employees that started this April.
In April, Asahi went one step further and released a non-sugar edition to its Wonda line, sweetened by a small amount of milk. Ad copy for the drink claims that “lower in calories, but the taste is not beat by standard coffee.” In May, Kirin expanded its Fire line with “Fire Cafe Zero”, described as “not as sweet as coffee with sugar, easier to drink than black coffee.” In July, a version made with 30% milk content was added to the line-up. Pokka and Sapporo rolled out non-sugar drinks in July and September, making the low sugar/non-sugar segment the most active in the market – possibly linked to compulsory health checks for obesity in full-time corporate employees that started this April.
Three non-sugar coffee drinks released in 2008.
Another trend was towards stronger, richer espresso-based drinks sold in smaller cans. One such drink was Kirin’s Fire Demitasse Shot released in November, and positioned as a premium alternative, as it is brewed with 18 hours of the beans being brewed and ground. Asahi relaunched its Wonda Demitasse Espresso which debuted last year.
Starbucks has also entered this market, but with what appears to be a strategy to win over consumers who do not usually drink canned coffee. Starbucks started its collaboration with beverage manufacturer Suntory in 2005 with the development of RTD cup coffee sold in convenience stores under the Starbucks brand. Suntory is also producing Starbucks new canned coffee drinks, the Espresso Doppio, and the Espresso Con Panna. The Starbucks drinks are both smaller and more expensive than other brands, making them about twice as expensive when measured in terms of volume.
Starbucks entered the canned coffee market with the Double Shot Line.
Despite so many new products on the market, canned coffee drinkers are seen as consuming less. A recent Nikkei report showed that in the past a heavy user drank around five cans a day, recently someone who drinks three cans a day is seen as a heavy user. This could be related to the core group of canned coffee drinkers growing older, as well as increased concerns over health and a trend toward smaller, more expensive premium coffee drinks.