A MARKETING war is brewing in the $425m instant coffee market, with Cerebos Australia taking the bold step of launching a new double roasted coffee brand, Riva, in a mature market dominated by heavyweight Nescafé.
The move coincides with the relaunch of rival brand Nescafé and a large-scale campaign through Mojo (which won the Nescafé business from McCann-Erickson in 2002).
Nescafé’s new campaign poses the question, “How do you like your coffee” and is aimed at getting Australians to drink one extra cup of coffee per day, translating to an additional $70m in sales.
Nestlé marketing manager, beverages Mark Beales said the company was investing heavily to provide the coffee category with a “shot in the arm”.
Nescafé is the market leader in the retail coffee category (with around 70% market share).
Cerebos marketing manager (Australia and NZ) Peter Haydon was undeterred by Nescafé’s stranglehold on the retail coffee category, however, saying there were opportunities to modify buyer behaviour.
“The Australian instant coffee market is characterised by a lack of any real product differentiation, innovation or growth,” he said.
FCB Auckland created a campaign for Riva featuring a Brazilian character Haydon said the target market was “destined to love”.
