Hot coffee inflation in Canada stood at -10.450% in April 2023, according to GlobalData’s report on the prices of stock keeping units (SKUs) supplied through online retailers. In Q4 2023, GlobalData monitored the pricing of 507 hot coffee SKUs from companies such as Starbucks, Tim Hortons and President’s Choice that were sold by e-retailers. Buy the report here.
Pricing is crucial, especially in a challenging economic climate, as competitive pricing and price leadership impact consumers’ choices. GlobalData’s pricing analysis reveals that Real Candian Superstore offered lowest prices of the total SKUs within the hot coffee category from October through December 2023, followed by Voila and Atlantic SuperMarket. According to the analysis, the price range of $5 and $10 was the most competitive, with 229 SKUs.
The chart below illustrates price leadership among the covered retailers which offer the highest number of low-priced products in the category. Of all retailers, Real Candian Superstore had greatest share of lowest prices for individual SKUs in hot coffee in Canada in Q4 2023.
Analysis of the quarterly price data showed that no discounts were offered for hot coffee category by the retailers tracked by GlobalData. Among variants, the tracker revealed dark roast and original as the most popular (by number of SKUs) hot coffee variants. These were priced 29.24% lower than the average price of a hot coffee SKU.
Among the e-retailers tracked by GlobalData, the leading ones, based on the number of SKUs, were Real Candian Superstore, Voila, Atlantic SuperMarket, Costco Canada and Valu Mart. According to the analysis, Valu Mart had the lowest average unit price, while the retailer with the widest product assortment was Real Candian Superstore.
The report brings attention to the intricate pricing dynamics within the hot coffee market, examining both the SKU and retailer levels, and offering invaluable insights for stakeholders. Notably, Real Candian Superstore, Voila and Atlantic SuperMarket stood out as prominent e-retailers, providing competitive pricing for a substantial number of hot coffee SKUs. However, to comprehensively grasp hot coffee market in Canada, continuous tracking of SKU pricing over time is necessary.
For a more detailed analysis of pricing trends in the Canada hot coffee market, buy the report here.