Finlays plans to help European brand owners capitalise on the cold brew coffee opportunity
With the cold brew coffee market in Europe on the verge of major growth, Finlays has confirmed a major investment to build its own coffee extraction facility in Hull, on the same site as our existing tea decaffeination plant.
The European cold brew coffee market is currently in its infancy, with revenues of around $80m*. But following the phenomenal growth in the US market over the last decade, this is forecast to grow to around $350m by 2027, a CAGR of over 20%**.
Finlays is ideally placed to help European brand owners capitalise on this opportunity. Not only do we have over 111 years of experience in coffee roasting and grinding, we also recently made a major investment in a new coffee roaster. This investment will be used in conjunction with our new extraction facility to ensure that customers receive finished cold brew products with the taste profile and specifications they’re looking for.
And, of course, Finlays is already a major global player in cold brew coffee with a major share of the US market and a growing share in Asia. Our plan in Europe is to emulate the successful model we have in the US to deliver the same premium quality cold brew that has taken the North American market by storm.
Premiumisation is critical. It has been the key factor in the strong performance of the European coffee sector over the last decade. From instant, to roast and ground, to pods, category value has increased dramatically. Cold brew coffee is the next exciting frontier, and something we plan to take a leading role in, combining our UK heritage with global expertise to drive value across the supply chain.
Our new extraction facility is all about helping our customers unlock this opportunity together. It’s about being true partners, while being nimble, flexible and focussed on their needs whatever category they operate in. That means manufacturing in a flexible range of formats, and being able to develop bespoke solutions.
Cold brew coffee is coming. The question is: are you ready?
This article appeared in the latest edition of 1750 magazine – Click to read the latest trends and insight from the world of beverages
Notes and references:
* GlobalData Plc 2020, Maia Research Analysis 2020
**GlobalData Plc 2020, Maia Research Analysis 2020