Coffee Goes Cold

The chilled version has become big business in the United States.

May 25, 2016

SEATTLE – What’s hotter than coffee these days? Coffee on ice, as the chilled version has gained ground recently in the United States, Bloomberg reports.

From global giants like Illy and JAB to smaller shops such as Chameleon Cold-Brew and High Brew, coffee manufacturers are throwing in the ice. Ready-made chilled bottled and canned coffees have become more popular lately, with Coca-Cola and Dr Pepper all coming out with new chilled coffee drinks.

At coffeehouses, more customers are demanding sophisticated lattes and espressos on ice. During the fourth quarter of last year, Starbucks registered a 20% bump in iced drink sales across the country after it debuted its new cold brew coffee. “When given a choice, people tend to make the healthier, better-for-you choice as long as it’s within a reasonable cost premium,” said Chris Campbell, founder of Chameleon Cold-Brew.

The U.S. ready-to-drink coffee channel has grown by double digits each year since 2011, with Euromonitor International predicting it will come close to $3.6 billion by the end of the decade. Starbucks and PepsiCo have joined together for grocery store ready-to-drink coffee brews, with new sweetened and unsweetened black coffee in a bottle debuting this summer. This partnership captures around 75% of the ready-to-drink coffee market in the United States.

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