Mondelez is hoping to grow the competitive coffee category by marketing new entrant, Carte Noire, as a premium instant blend alternative.
Mondelez, formally known as Kraft, launched Carte Noire in Australian supermarkets this month alongside a multi-million dollar shopper and advertising campaign.
Darren O’Brien, MD of Foods at Mondelez International Australia, told Inside Shopper the company’s strategy is one of category “premiumisation”.
He says Carte Noire plans to crack the saturated market, which is 90 per cent dominated by majors, Nescafe and Moccona, by challenging price expectations.
The brand’s entry level instant coffee starts at $8.99 for 100g, while upmarket option, Millicano Wholebean Instant, begins at $10.99 for 100g.
“Carte Noire Millicano is the most expensive freeze dried coffee [by weight] on the Australian supermarket shelf,” says O’Brien.
“It’s a high priced item for a premium space. But if we can get people buying it for dinner guests or that special ‘me time’ then that’s great.”
The strategy is based on research that shows people drink coffee in terms of occasions, rather than a particular allegiance to instant, pods, or espresso.
For example, an individual may buy instant for their early morning caffeine hit, coffee pods for guests, and will only drink lattes when dining out.
O’Brien says premium instant coffee will resonate with Australia’s famous “coffee snobs”, who are looking for more than just a lower-priced alternative.
Wider shopper strategy
In order to get shoppers past the price point barrier, Australians will be offered a 50 per cent discount on Carte Noire for its first month on shelves.
The company is also dropping sample sachets in 500,000 Australian letterboxes, and installing aisle fins and branded tower displays in Coles supermarkets.
O’Brien says the company underwent a lot of research for Carte Noire about supermarket shelf placement in the concentrated coffee aisle.
“A lot of our shelf understanding is based on science. We’ve found the best eye line placement is quite prominent, but it’s not necessarily on the middle shelves.
“The shopper is very much in a coffee coma when they’re in [the coffee aisle]. They’re very much on auto pilot and just go where to a brand is.”
Mondelez, which also owns Vegemite and Kraft Peanut Butter, says it is considering a store in store Carte Noire cafe concept in a major supermarket.
Carte Noire is the largest coffee brand in France, where it originated in 1978, and has a growing presence in the UK.
