Costa Coffee’s Bold RTD Gamble: Will Recipe Revamp Rescue Plummeting Sales?
Costa Coffee’s Bold RTD Gamble
Costa Coffee is shaking up its ready-to-drink lineup with bold new flavors and eco-friendly packaging. The revamped range includes vitamin-enriched Double Shot + Espressos, Lattes, and Frappés, plus fresh flavors like Creamy Tiramisu Frappé and Double Shot + Caramel. Sleek 250ml cans and 330ml rPET bottles designed for younger consumers will hit grocery stores, convenience outlets, and online shops. Multipacks aim to enhance at-home consumption while reducing plastic waste. Convenience retailers are deploying customizable POS materials tied to Costa’s on-pack promotions to drive visibility.
The brand’s betting on summer festivals to win Gen Z fans. A partnership with Boardmasters Festival will feature free samples, instant cash prizes, and festival tickets. Pop-up events nationwide will target young adults with “sensory experiences” and eye-catching packaging. With 60% of RTD sales stemming from impulse purchases, Costa is doubling down on high-traffic retail placements to capitalize on spontaneous buys. Bright signage at stores aims to attract impulse buyers, while WhatsApp-based “Hypeline” offers personalized messages to drive social media buzz. Limited-time offers add urgency.
Key to the strategy is improved taste and texture. Lattes now use a “silkier” recipe with Costa’s Signature Blend, while vitamin-enhanced options cater to health trends. The Creamy Tiramisu Frappé and Caramel Double Shot target varied palates, promising consistent quality. The inclusion of health-focused coffee variations in the lineup reflects a growing consumer trend.
Analysts note the chilled coffee market’s growth potential, but rivals like Starbucks and Pret have similar ambitions. Costa’s new packaging emphasizes clarity, with bold labels showing flavors at a glance. Recyclable rPET bottles align with eco-conscious demands, a priority for younger shoppers.
Yet questions linger: can flashy promotions offset price-sensitive buyers’ habits? Will revamped flavors stand out in a crowded market? Sales declines pushed Costa to act—its RTD segment lags behind café sales. The campaign aims to increase chilled coffee consumption, leveraging its UK brand strength.
Early reactions cite the Boardmasters tie-up as smart but warn sustaining hype post-summer’s tricky. With RTD coffee sales projected to grow 8% annually through 2025, Costa’s gamble may hinge on balancing novelty with loyalty. Success could hinge on whether Gen Z accepts tiramisu-flavored caffeine as much as festival vibes.
