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seen in the fast growth of capsules, R&G \\\[roast and ground\\\] and mixes.” She emphasises that Australia has an “amazing, ever evolving” out-of-home coffee culture and that consumers are increasingly looking for ways to replicate café experiences at home. At the same time, she says, they continue to love the convenience and versatility of instant coffee, which accounts for more than half of all consumption occasions. “In this regard, Nestlé is in an unparalleled position thanks to a unique portfolio of iconic, market leading coffee brands – Nescafé, Nespresso and Starbucks – that enables us to capitalise on the growth and tremendous potential of the coffee market,” Ms Starush said. “This is evident in the great results of the past year when we launched several big innovations, including the Starbucks by Nespresso coffee capsules.” This range combines Nestlé expertise in coffee systems with the unique coffee flavours and house blends of Starbucks, giving consumers the opportunity to enjoy a premium experience in the comfort of their homes. “This launch has been successful in driving category growth by attracting new shoppers to the capsule segment with a strong and globally recognised brand,” Ms Starush said. “Nestlé has been gradually launching the Starbucks by Nespresso range in key regions around the world, with Australia being one of the markets where these products took off straight away, thanks to the strong appeal of the Starbucks brand among younger coffee drinkers.” Ms Starush cautions, though, that “it’s becoming harder to innovate coffee in exciting ways, which is what consumers want” but that “when you get it right, such as with the Starbucks by Nespresso coffee capsules, the rewards just keep coming.” Milk drinks and milk modifiers Constituting a “smaller but still very important segment” of the Nestlé business are milk drinks and milk modifiers, Ms Starush says, with the Milo brand still a staple in many Australian households. “We saw some decline last year, which has now stabilised, with good gains due to new product launches, such as reduced-sugar Milo,” she said. The hot chocolate segment, which also falls under milk modifiers, is performing well, she adds, as consumers still desire indulgent chocolate drinks, with confectionery partnerships bearing fruit. When it comes to hot-beverage innovation, Ms Starush says several key trends have been the driver, with focus on authenticity and quality of ingredients, sustainable practices, “sensorial experiences” and health. “Within better-for-you offerings, there’s demand for plant-based milk alternatives in hot beverages,” she said. “Nestlé’s plant-based Milo, with the same iconic taste \\\[as the original product\\\], is getting rave reviews, especially from households that can’t drink it in a dairy format. And we’re soon to launch Nescafe plant-based mixes that allow all coffee enthusiasts who prefer alternative milks to enjoy their favourite non-dairy lattes at home.” Another trend is towards cold coffee consumption, Ms Starush says, with cold-brew and nitro formats becoming increasingly popular – having emerged from out-of-home coffee but now progressively featured in the capsules market. “Then there’s the preoccupation with sustainable practice,” she said, “which revolved around coffee growers and communities in the past, whereas now the additional focus is on sustainable packaging solutions and recyclability, which consumers increasingly demand from the brands. “Sustainability is another area where Nestlé is leading the way, with the \\\[global commitment initiatives of the\\\] Nescafe Plan and Nespresso AAA Sustainable Quality program and our corporate ambition to make 100 per cent of the packaging recyclable or reusable by 2025.” HOT BEVERAGES Double shot of innovation L’OR Barista is promoted as the first capsule machine to make two drinks at once or offer a double- shot coffee from 12 coffee blends – for those coffee drinkers looking for a “multisensorial” coffee experience at home. The brand, citing its love of innovation and the new, teamed up with chef and My Kitchen Rules TV presenter Manu Feildel to create three of “the world’s most romantic recipes” featuring “ingredients of love” designed to “add spice and excitement to any relationship, especially romantic ones”. The celebrity chef enlisted the help of relationship expert Samantha Jayne from The Bachelor TV series, who “uncovered how the stimulant properties of coffee and various foods can cause the heart to race and passion to ignite”. The recipes, which contain different “ingredients of love” and are promoted as being suitable for occasions such as first dates, special anniversaries and the birth of a child, are ‘Orange and Hazelnut Espresso Martini’, ‘Coffee Crème Brulee with Caramelised Figs’, and ‘Coffee and Honey Pan Roasted Duck Breast with Glazed Carrots and Parsnips’. Ms Jayne says caffeine’s great benefits of keeping people more alert can help power couples who have children and are working long days to be “more present” and able to give their undivided attention to loved ones. MAY, 2020 RETAIL WORLD 55