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Research Outline

Prepared for Colleen T. | Delivered February 27, 2020

Nesquik Competitors

Goals

This research aims to identify: 1. Nesquik Canada's global competitor brands, including private label 2. Successful mentor brands that have cleaned up their ingredient lists to be healthier 3. Successful mentor brands with functional nutrition 4. Dairy milk usage or trends in Canada 5. Market growth of plant-based milk in Canada 6. Insights on Quebec's consumption of milk and also if there are differences in consumers' use/acceptance of treat type products 7. Insights on children's products that have cleaned up their ingredients/become more acceptable to consume (cereals or beverage). This will be used to inform a rebrand.

Early Findings

Global Players in Chocolate Powdered Drinks

Nesquik and Competitor Brief Insights

  • Nestlé’s chocolate powder brands include Nesquik, Nescau, Dancow, and Milo.
  • "Nesquik is the world’s largest brand, with retail sales of US$850 million in 2014, followed by its sister brand Nescau, at US$620 million.
  • Mondelez had 7% of the global hot chocolate market share in 2014, with a variety of brands including Cadbury Drinking Chocolate, O’Boy, and Green & Black.
  • PepsiCo came next with chocolate powder drinks brands Toddy and Mágico.

Milk Consumption in Canada

  • In recent years, Canada's consumption of milk has gradually declined.
  • In 2018, Canada's consumption of milk was at 65.9 liters per capita, which was a decrease of almost 20 liters per capita since 2004.
  • Milk with a 2% butterfat content was the most popular type of milk to drink in Canada in 2018 and represented almost half of the volume of milk consumed per capita.
  • "Quebec had around 354,200 dairy cows on farms as of January 2018 and produced the most milk out of all Canadian provinces in 2017, with milk production being an essential part of their economy."

Plant-Based Milk in Canada

  • According to Statistics Canada, "Canadians are consuming about 20% less dairy milk than they were a decade ago." There is a growing interest in many non-dairy, or plant-based, milk alternatives, including soy, almond, coconut, cashew, and rice.
  • Oat milk currently claims 3% of refrigerated non-dairy beverage sales in Canada.
  • Almond milk follows, in terms of sales, "out of the $216 million worth of chilled non-dairy milks sold in Canada in 2019, $137 million was almond milk."

Summary

  • For the initial hour, we tried as much of the requested information as possible. We were able to identify some early insights on Nesquik's competitors, followed by some insights on milk and plant-based milk consumption in Canada.
  • One of the most comprehensive reports we could find on Nesquik's competitor insights was a 2015 report by Euromonitor, a more recent report did not appear available in a public search. However, the finding that Nestle is a market leader in chocolate milk powder still appears to be true today, as this finding is supported in more recent market reports.
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