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Global Hot Drinks Corporate Strategy: A Static Market Driven by Tactical Growth Strategies
Euromonitor International, March 2010, Pages: 51
Key Findings in the Report:
Tactical measures are being used to increase product offerings and ranges of price points, particularly in foodservice in the US.
A lack of M&A activity has resulted in stagnation in the competitive environment. This situation is expected to continue, without any major M&AS disturbing the market.
Small scale M&As are, however, happening in specific markets and categories, although these do not have a significant impact on the global rankings. Strategic alliances are increasingly adopted to gain share of throat.
Diversification within tea or coffee, geographic expansion and increasing sales of fair trade and/or organic products are the principal strategies.
Hot drinks companies are expected to play safe and not venture beyond their comfort zones. However, they need to consider taking the risk of developing non-core categories in order to increase their share of the overall hot drinks market.
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