The Coca-Cola subsidiary is seeking to increase the market share of its Caffè Vergnano coffee brand in Hungary, targeting growth in both the hospitality and at-home segments
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84% of 2,500 Hungarians surveyed by Coca-Cola indicated they start their day with a coffee at home | Photo credit: Coca-Cola HBC Hungary
Cola-Cola HBC plans to increase its hospitality business portfolio in Hungary by 150% by the end of next year as it seeks wider distribution of its Caffè Vergnano coffee brand.
The company cited Hungary as an opportune market with new Coca-Cola HBC Hungary research highlighting the growing popularity of coffee among the nation’s consumers.
Eighty-four percent of 2,500 Hungarians surveyed indicated they start their day with a coffee at home, according to Coca-Cola's research.
As part of its expansion, the company is seeking to increase Caffè Vergnano’s sales volume and revenues in Hungary by 200% and 220% respectively by the end of 2023. Coca-Cola HBC Hungary is targeting a 0.5% share of the entire Hungarian coffee market by the end of 2023.
“Coffee is a key element of our strategy to become a total beverage company and to be able to offer the right product to our customers at every time of the day for each consumption occasion that arises. With the brands currently available in 200 domestic hospitalility units, our goal is to attract an additional 300 HoReCa customers by the end of 2023.
“In addition to out of home sales, we also put emphasis on at-home consumption, because as our joint research with gkid showed, most people drink coffee in the morning in their homes,” said Gábor Árok, Coffee Business Manager, Coco-Cola HBC Hungary.
Coca-Cola HBC acquired a 30% stake in Italy’s Caffè Vergnano in June 2021 with the intention of distributing Caffè Vergnano’s products in its European markets outside of Italy.
Hungary represents the second new market entry for Caffé Vergnano in 2022 following a distribution agreement across hotels and restaurants in Ireland and Northern Ireland in September 2022.
Coffee roaster Caffè Vergnano achieved revenues of €92m ($89m) in 2021. Alongside its packaged coffee offering, the Turin-based company also operates more than 170 coffee shops globally, four of which are in Hungary.