In the last decade, Russians have acquired a new habit – to buy takeaway coffee in a coffee shop and take it with them for a walk.
One of the largest coffee shops in Russia, COFFEE LIKE, shared with The DairyNews data on the taste preferences of customers, seasonality and cost of the most popular coffee drinks.
Russians prefer to take out cappuccino
The COFFEE LIKE coffee chain analyzed sales for 2019-2021 and identified the TOP 3 popular coffee drinks that Russians most often take away. All three leaders contain milk or cream.
The undisputed winner was cappuccino, which is preferred by 36.3% of Russians, latte (19.9%) and raf (17.9%) are in second and third place. Drinks without milk – espresso and Americano – account for only 6.4%. The most popular volume of coffee with you is 0.3 liters, it is chosen by 44.7% of buyers.
“Based on sales data for the last 2 years, we have identified the months when Russians buy coffee with them the most. They were September, August, April and May. Coffee consumption in these months increases from 10% to 16%, – says Tatiana Kuznetsova, executive director of the COFFEE LIKE chain of coffee shops.
Coffee is a seasonal drink
The growth of coffee sales in spring and early autumn is directly related to the temperature of the air outside. April is the first warm month after winter: Russians resume long walks, coffee sales increase by 10% during this period.
In August, September and May, the most comfortable weather is established in most regions of Russia in order to spend time outdoors, These months are leaders in the number of takeaway coffee purchased: sales increase by 16% compared to the monthly average. In addition, business activity increases at the beginning of autumn, this is especially noticeable in large cities. “More and more people started taking coffee to take away. This is due to its availability. Now a lot of coffee shops are opening and it is quite easy to find a quality drink according to your preferences. Espresso-based milk drinks are the most popular, they are more difficult to prepare at home, and they cope well with the role of a pleasant reward in between work,” says Tatiana Kuznetsova.
In the summer months – June and July – the number of purchases of coffee with you comes to an average monthly value, since in the heat, soft drinks are more relevant – water, lemonade, kvass. In addition, many people go on vacation or out of town, which also affects the volume of coffee sales. During the cold period (December-February), the number of sales decreases by 30% of the monthly average.
What affects the cost of coffee with you?
The cost of each drink consists of the cost of its components. The main ones are coffee beans, milk, packaging. For example, the structure of the cost of cappuccino is as follows: coffee 27%-38%, milk 42%-50%, packaging 17%-23% (depending on volume).
Over the past 4 months (September-December 2021), the purchase price of coffee has increased by 16%, glasses have risen in price by 12%. At the same time, the growth of the final cost of the takeaway coffee chain, for example, in the COFFEE LIKE network, was restrained in the range of 2-5% until the end of the year. From this it follows that the owners could afford not to raise product prices due to long-term contracts with suppliers, a short supply chain and a high level of vertical integration. However, at the beginning of the year, due to the increase in cost, we should expect an increase in prices for the finished drink. Indexing will vary depending on the price segment in which the coffee shop operates.
“There are two reasons for the increase in the price of raw materials: a lean year in Brazil and strikes in Colombia, which complicates supplies,” says Tatiana Kuznetsova. – In addition, the delayed demand for coffee outside the home also played a role – coffee shops had to buy more raw materials to meet demand. All this together creates a situation of coffee shortage, which leads to its rise in price.”
Nevertheless, despite fluctuations in the catering market due to the coronavirus pandemic, the expert does not expect a strong drop in demand for coffee products. According to the association of producers “Roschaikof”, the difference in consumption of coffee beans to instant coffee was 55% versus 45%. The popularity of coffee returned to Russia in 2000 and has increased significantly over the decade. If in the 2000s one person consumed about 0.5 kg of coffee per year, then in 2019 this figure increased to 1.5 kg per year. Largely due to the tradition of taking coffee for a walk with you in recent years, the dynamics of consumption of coffee beans among Russians is steadily growing.
“The value of a coffee drink for the consumer increases annually, and this increases the elasticity of demand with an increase in price. Good coffee will continue to be bought, even if it becomes a little more expensive. However, the mission of coffee shops in such a situation is still to provide a product at an affordable price,” concluded Tatiana Kuznetsova.
On average, the proportions of the ingredients of classic takeaway milk drinks are distributed as follows: coffee 13%-44%, milk/cream 17%-50%, packaging 13%-23%.
The increase in prices for each ingredient entails an increase in the final cost of the drink.
The high season is considered to be April, May, August and September, when, thanks to the warm weather, takeaway coffee sales volumes are growing.