WW International, Inc. (WW - Free Report) has rolled out ready-to-drink canned coffee that can be availed online at the WW Shop. This is also scheduled to be launched across the WW Studios in mid-October. The latest product comes in flavors of Cafe Latte and Mocha Latte. A single serve has extra protein and a creamy flavor, with each can containing 3 SmartPoints per serving. This is considerably lesser than the market’s average of 8 SmartPoints.
The canned coffee is made of simple ingredients and has lower added-sugar content than popular drinks at cafes. It carries no artificial colors, sweeteners, flavors or preservatives, and is a good source of protein and fiber. Being a global wellness company, management remains committed to fulfill members’ expectations from a healthy brand. Notably, the company’s entire consumable products sold in WW Studios and WW Shop online have no artificial sweeteners, flavors, colors or preservatives.
We expect WW International to benefit out of the recent ready-to-drink coffee lattes’ launch, owing to consumers’ growing inclination toward health and wellness products during the coronavirus pandemic. Moreover, beverages like energy drinks, and ready-to-drink coffee and tea are mostly preferred due to their low-calorie content. The pandemic has further led to a sharp increase in demand for food and beverages as work from home and dine at home have become the new normal.
According to the market research firm Packaged Facts, sales of the major beverage categories are expected to rise over $160 billion by 2020 end and surpass $170 billion in 2024, from $150 billion in 2019. As per data from Research and Markets, the U.S. coffee market is likely to grow at a CAGR of 4.8% during 2020-2025.
Coming to WW International, the company has been experiencing strength in its digital business. During the second quarter of 2020, digital revenues were up 50% year over year. Moreover, the company’s subscribers reached nearly 5 million at the quarter’s end, aided by impressive growth of 23% in digital subscribers on a year-over-year basis. Management remains keen on driving growth via building new coaching experiences, latest digital features and bringing creative content. Shares of this Zacks Rank #3 (Hold) company have surged 49.7% in the past six months, compared to its industry’s 53.8% rally.
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