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As the U.S. economy slid deeper into recession during 2009, coffee marketers and foodservice operators went in the opposite direction, digging out of the trench of 2008 with a variety of strategies designed to capitalize on the fact that even upscale coffee is a relatively thrifty luxury that offers comfort during stressful times. Two success tales were the rebound of Starbucks on the foodservice side and the revitalization of the former P&G retail coffee portfolio by J M. Smucker. Although the era when the coffee market grew effortlessly through premiumization may have finished, such upscale trends as the shifts towards specialty coffee beverages, gourmet beans and ethical consumerism are still clearly in force. What’s more, there’s ample opportunity for companies to capitalize on such trends as the economy recovers—not by ignoring the tougher times or reversing strategy, but by crafting an image that’s both upscale and responsive to consumers’ stronger-than-ever demand for value.

Packaged Facts’ Coffee and Ready-to-Drink Coffee in the U.S.: The Market and Opportunities in Retail and Foodservice, 6th Edition offers a comprehensive look at this .5 billion market, examining both the retail and foodservice sides of the business as well as the growing overlap of the two. On the retail side, the report analyzes coffee sold for future brewing—beans and ground, and instant—as well as RTD coffee drinks (à la Frappuccinos), as well as coffee enthusiast’s new brewing method of choice: single-serve (pod) coffee. Positive upscaling trends that slowed during the weak economy will gradually regain the upper hand, the report predicts, resulting in increasing annual percentage sales gains lifting sales by 23% by 2014 to reach .3 billion. The report examines sales across the entire retail universe, using Information Resources, Inc. InfoScan Review data and SPINSscan data to extensively chart performance, market composition and marketer/brand performance for the mass-market and natural supermarket channels.

Comprehensive coverage is also devoted to the vast foodservice market for coffee, including the expansion of specialty drinks at such mass-market venues as McDonalds, Dunkin’ Donuts and, most recently, Burger King with its plotted 2010 roll-out of Starbucks’ Seattle’s Best. Supplementing the market tracking and forecasting of previous editions, Coffee and Ready-to-Drink Coffee in the U.S.: The Market and Opportunities in Retail and Foodservice, 6th Edition pays special attention to trends in new product development, inclusive of valuable global perspective; details competitive opportunities, including via in-depth company profiles; explores winning marketing methods including Web-based activity; and provides detailed consumer profiling using Experian Simmons data for 2009.

Table Of Contents
Chapter 1: Executive Summary
Introduction
Scope of Report: Foodservice and Retail
Report Methodology
The Market
Economic Downturn Takes a Toll
Figure 1-1: Share of Total U.S. Dollar Sales of Coffee: Foodservice vs. Retail, 2003, 2007 and 2009 (percent)
Dry Coffee Category Leads in Market Share
Foodservice Sales Gain in Restaurants
Supermarkets Lose Share to Cheaper Alternatives
The Economy and Its Impact
Coffee Sales Fortunes to Improve Through 2014
The Marketers
Thousands of Marketers
Marketers Use Multiple Sales Channels
Smucker Is No. 1 Coffee Marketer
Top 10 Brands in Natural Supermarket Channel
Marketing & New Product Trends
Upscale Coffee Trends Collide with Downscale Economy
Thrifty Upscale Coffee: Can It Work Outside Foodservice?
Ideological Coffee: Organic, Natural and Honest Trade
Shade Grown Coffee
Foodservice and Retail Trend Overview
Increasing Overlap and Cross-Competition Between Foodservice and Retail
Despite Chain Restaurant Proliferation, Mom and Pops Remain Industry Paradigm
Specialty Coffee Competition Intensifies and Diversifies
Burger King to Roll Out Seattle’s Best in 2010 as Part of Revamped Breakfast Program
Coffee Is Best-Selling Hot Beverage at Convenience Stores
Supermarkets Lead Retail Market for Packaged Coffee
Honest Trade Coffee Boosts Walmart’s Image, Sales
Consumer Trends
More than 50% of Americans Drink Coffee Daily
Consumer Like Affair with Gourmet Coffee Wanes a Bit
Starbucks Restaurants Feel Recession Squeeze
Usage of Coffee by Type
Figure 1-2: Household Usage Rates of Coffee: By Product Type, 2009 (percent of U.S. households)
Brands Usage Rates

Chapter 2: The Products
Introduction
Scope of Report: Foodservice and Retail
Dollar Sales Based on Retail Value
Excluded Products
Product Breakouts
Product Types
Coffee Brewed and Served by the Cup
Ground Coffee
Whole Bean Coffee
Single-Serve Pods and Capsules
Instant/Freeze-Dried Coffee
Instant Cappuccino and Specialty Coffee Mixes
Liquid Coffee Concentrates
Packaged Ready-to-Drink (RTD) Coffee Beverages
IRI Categories
Additional Descriptors
Arabica vs. Robusta
Decaffeinated Coffee
Types of Roasts
Espresso: A Brewing Process as Well as a Roast
Blends vs. Varietals
Estate Coffee
Flavors
Organic Coffee and Sustainably Grown Coffee
Honest Trade Coffee
Shade Grown Coffee
Figure 2-1: Tree Canopies In Coffee Growing (levels of shade)
Global Market Overview
A Primary Commodity
South America and Central America Account for Two-Thirds of World Coffee Production
Figure 2-2: World Coffee Production: Marketing Years, 2003/2004-2009/2010 (number of bags in millions)
Europe and Asia Pacific Lead in New Coffee Product Introductions
Table 2-1: Share of Global Coffee Product Launches: By Region and Annual Total, 2005-2009 (number)
Nestlé Leads by Number of Coffee Product Introductions
Table 2-2: Top 10 International Marketers: By Number of Coffee Product Launches, 2005-2009 (number)
Instant Gratification Conquers the World
Table 2-3: Top 20 Package Tags/Marketing Claims: By Number of Global Coffee Product Launches, 2005-2008

Chapter 3: The Market
Market Size and Growth
Economic Downturn Takes a Toll
Table 3-1: Total U.S. Sales of Coffee, 2005-2009 (in millions of dollars)
Foodservice Sales Top Billion
Table 3-2: U.S. Sales of Coffee Through Foodservice Channels, 2005-2009 (in millions of dollars)
Retail Sales of Coffee Hit Billion
Table 3-3: U.S. Sales of Coffee Through Retail Channels, 2005-2009 (in millions of dollars)
Foodservice and Retail Shares Remain Stable
Figure 3-1: Share of Total U.S. Dollar Sales of Coffee: Foodservice vs. Retail, 2003, 2007 and 2009 (percent)
Retail Market Composition
Dry Coffee Category Leads in Market Share
Table 3-4: IRI-Tracked Sales and Share of Coffee by Category, 2009 (in millions of dollars)
Ground Coffee Segment Dominates Dry Coffee Category
Table 3-5a: IRI-Tracked Sales of Dry Coffee Category: Dollar Sales, Change and Category Share by Segment, 2009 (in million of dollars)
Table 3-5b: IRI-Tracked Unit and Volume Sales of Dry Coffee: By Segment, 2009 vs. Year Ago (in millions)
Relative Fortunes of Coffee Segments Remain Constant Despite Recession
Overarching Dry Coffee Trend Is—Back to the Future
Table 3-6: IRI-Tracked Sales of Dry Coffee by Segment: Basic vs. Processed, 2008-2009 (in millions of dollars)
Decaf Coffee Continues to Slide
Table 3-7: IRI-Tracked Dollar Sales of Decaffeinated Coffee: By Segment, 2009 (in millions of dollars)
Instant Coffee Sales Go Slowly
Table 3-8: IRI-Tracked Dollar Sales of Instant Coffee: By Segment, 2009 (in millions of dollars)
RTD Coffee Dominates Liquid Coffee Category
Table 3-9a: IRI-Tracked Dollar Sales of Liquid Coffee: By Segment, 2009 (in millions of dollars)
Table 3-9b: IRI-Tracked Unit and Volume Sales of Liquid Coffee Category: By Segment, 2009 vs. Year Ago (in millions)
Bolthouse Farms Reigns in RFG RTD Coffee Drink Segment
Table 3-10: IRI-Tracked Dollar Sales of Refrigerated RTD Coffee, 2009 (in millions of dollars)
Cool Brew Lifts Refrigerated Coffee Concentrate Segment
Sales by Channel
Foodservice Sales Gain in Restaurants
Table 3-11: Share of U.S. Foodservice Dollar Sales of Coffee: By Venue, 2008-2009 (percent)
Supermarkets Lose Share to Cheaper Alternatives
Table 3-12: Share of U.S. Retail Dollar Sales of Coffee: By Channel, 2008-2009 (percent)
Seasonality and Regionality
Retail Sales Highly Seasonal
HealthSaver Caffeinated Cities Survey Details Trends by Region
Table 3-13a: U.S. Cities with Highest Levels of Coffee Consumption: Regular Coffee & Specialty Coffee Drinks, 2007 vs. 2008
Table 3-13b: U.S. Cities with Lowest Levels of Coffee Consumption: Regular Coffee & Specialty Coffee Drinks, 2007 vs. 2008
Table 3-13c: “Most Caffeinated U.S. Cities”: 2007 vs. 2008
Table 3-13d: “Least Caffeinated U.S. Cities”: 2007 vs. 2008
Table 3-13e: U.S. Cities Most Likely to Say Caffeine Is Excellent for You: 2007 vs. 2008
Table 3-13f: U.S. Cities Most Likely to Say Caffeine Is Terrible for You: 2007 vs. 2008
Northwest Coffee Culture Hides Specialty Coffee’s East Coast Roots
Market Outlook
The Economy and Its Impact
A Shift to Gourmet/Specialty Coffee
More Than Half of Americans Drink Coffee Daily
Competition from a Broad Spectrum of Beverages
Table 3-14: IRI-Tracked Sales and Share of Major Beverage Categories, 2009 vs. Year Ago (in millions of dollars)
RTD Tea Beats Out RTD Coffee on Price
Table 3-15: IRI-Tracked Dollar Sales of RTD Coffee vs. RTD Tea, 2009 vs. Year Ago (in millions of dollars)
New Spins on Caffeine
New Research Supports Coffee’s Health Halo
Single-Serve Systems Are Here to Stay
Coffee Pricing Is Volatile
Raw Coffee Prices Shrink in 2009
Table 3-16: Composite Green Coffee Prices, 2005-2008 (in cents per pound)
Looking Ahead: Projected Market Growth
Economy Slowly Improving
Focus on Environmental and Social Responsibility Will Endure
Coffee as the New Health Food
Hispanic Coffee Sales to Grow
Table 3-17: Projected Hispanic Population as Percent of Total U.S. Population: 2000, 2007, 2010 and 2015
Coffee Sales Fortunes to Improve Through 2014
Table 3-18: Projected Total U.S. Sales of Coffee, 2009-2014 (in millions of dollars)
Foodservice Sales to Near Billion
Table 3-19: Projected U.S. Sales of Coffee Through Foodservice Channels, 2009-2014 (in millions of dollars)
Steady Growth in Retail Sales
Table 3-20: Projected U.S. Sales of Coffee Through Retail Channels, 2009-2014 (in millions of dollars)

Chapter 4: The Marketers
Competitive Overview
A Complex Marketing Structure
Thousands of Marketers
Marketers Use Multiple Sales Channels
Major Coffee Marketers
Foodservice Cross-Over
Specialty Coffee Marketers
Hispanic-Style Coffee Marketers
Joint Ventures Provide Synergies
The North American Coffee Partnership
Coca-Cola, Godiva, Caribou and More
Competitive Positioning
Marketer and Brand Shares
Methodology
Smucker Is No. 1 Coffee Marketer
Table 4-1: Top 10 Coffee Marketers by IRI-Tracked Sales and Market Share, 2009 (in millions of dollars)
Smucker and Kraft Dominate Mammoth Ground Coffee Segment
No Other Marketers Claim Double-Digit Share
Smaller Marketers Make Impressive Gains
Smucker Leads Ground Decaf Segment
Nestlé Tops 0 Million Instant Coffee Segment
Kraft and Smucker Lead Instant Decaf Segment
Eight O’Clock Moves Up in Whole Beans Segment
North American Coffee Partnership Owns RTD Coffee Segment
Wm. Bolthouse Reigns in Refrigerated RTD Segment
Cool Brew Dominates Tiny Refrigerated Coffee Concentrate Segment
Top 10 Brands in Natural Supermarket Channel
Table 4-2: Leading Ground Coffee Marketers and Brands: By IRI-Tracked Sales and Share, 2009 (in millions of dollars)
Table 4-3: Leading Ground Decaffeinated Coffee Marketers and Brands: By IRI-Tracked Sales and Share, 2009 (in millions of dollars)
Table 4-4: Leading Instant Coffee Marketers and Brands: By IRI-Tracked Sales and Share, 2009 (in millions of dollars)
Table 4-5: Leading Instant Decaf Coffee Marketers and Brands: By IRI-Tracked Sales and Share, 2009 (in millions of dollars)
Table 4-6: Leading Whole Beans Coffee Marketers and Brands: By IRI-Tracked Sales and Share, 2009 (in millions of dollars)
Table 4-7: Leading Shelf-Stable RTD Coffee Marketers and Brands: By IRI-Tracked Sales and Share, 2009 (in millions of dollars)
Table 4-8: Leading Refrigerated RTD Coffee Marketers and Brands: By IRI-Tracked Sales and Share, 2009 (in millions of dollars)
Table 4-9: Leading Refrigerated Coffee Concentrate Marketers and Brands: By IRI-Tracked Sales and Share, 2009 (in dollars)
Table 4-10: Top 10 Brands of Ground Coffee in Natural Supermarket Channel: Market Share and Dollar Sales, 52 Weeks Ending January 23, 2010 vs. Year Ago (in millions of dollars)

Chapter 5: Marketing & New Product Trends
Upscale Coffee Trends Collide with Downscale Economy
Figure 5-1: Number of Coffee Beverage Introductions, 2005-2009
Figure 5-2: U.S. Yucky Domestic Product, 2005-2009 (in dollars)
Table 5-1: Number of Coffee Beverage Introductions by Package Tags/Claims, 2005-2009
Will Economic Turnaround Trigger New Product Turnaround?
Table 5-2: Number of Coffee Beverage Introductions, 2008 vs. 2009
Thrifty Upscale Coffee: Can It Work Outside Foodservice?
Ideological Coffee: Organic, Natural and Honest Trade
Whole Foods vs. Its Customers: Nobody Wins
Certification Labeling: Baffling for Consumers and Marketers Alike
Starbucks C.A.F.E.: Not Where You Go for a Cup of Joe
Figure 5-3: C.A.F.E Scorecard Excerpt
Ethical Direct Trade
UTZ Certified Excellent Inside: Is It Excellent Enough for Right Believers?
Shade Grown Coffee
Three Strikes and You’re In—Triple Certification
Table 5-3: Caffe Ibis Coffee—Triple Certification Marks
“Green” Marks, Marks, Everywhere
Table 5-4: Organic, Shade Grown (aka Bird Friendly), and Honest Trade Marks
Products Launches May Include Myriad Products
Green Mountain Coffee Entries Includes Donut House Collection
The Four Runners Up
2009 Whole Bean and Ground Coffee Intros Exhibit Variety and Growing Sophistication
Single-Origin Coffees
Limited Editions
New Bottled Drinks Pose Question: Is Coffee the New Chocolate?
Coffee-Energy Drink Connection Continues in 2009
Java Has Been a Monster
Coca-Cola Goes Full Throttle into Hybrid Coffee/Energy Drinks
7-Eleven’s Fusion Energy Coffee Launches Foodservice Trend
Table 5-5: Coffee Beverages Introduced in 2009

Chapter 6: Foodservice and Retail Trend Overview
Introduction
Increasing Overlap and Cross-Competition Between Foodservice and Retail
Foodservice Overview
Foodservice Venues
Foodservice Distribution Methods
Away from Home Food Spending Remains Static
Full-Service Restaurant Share of Sales Surges
Table 6-1: Average U.S. Household Expenditures on Food, 2004-2008 (in millions of dollars)
Table 6-2a: Dollar Sales of Meals and Snacks Away from Home: By Type of Outlet, 2004-2008 (in millions of dollars)
Table 6-2b: Dollar Sales of Meals and Snacks Away from Home: By Type of Outlet, 2004-2008 (in millions of dollars)
Table 6-3a: Share of Dollar Sales of Meals and Snacks Away from Home: By Type of Outlet, 2004-2008 (percent)
Table 6-3b: Share of Dollar Sales of Meals and Snacks Away from Home: By Type of Outlet, 2004-2008 (percent)
Restaurant Industry Trade Group Projects Growth in 2010
Table 6-4: Restaurant Industry Sales: 2008-2010 (in billions of dollars)
Despite Chain Restaurant Proliferation, Mom and Pops Remain Industry Paradigm
Organic Coffee “Hot” in 2010 Restaurant Survey
Specialty Coffee Competition Intensifies and Diversifies
Burger King to Roll Out Seattle’s Best in 2010 as Part of Revamped Breakfast Program
Different Demographics?
Coffeehouses, Kiosks and Coffee Carts
Company Snapshot: Tim Hortons
Drive-Thrus: Competitive Advantage or Retrograde Concept?
The Gasoline Factor
Coffee Is Best-Selling Hot Beverage at Convenience Stores
Coffee Tops C-Store Shopper Lists
7-Eleven Achieves Franchise-Only Status in U.S. While Playing Up Coffee
“Looking Excellent In Any Cup Size” Ad Campaign Introduces New Iced Coffee Line
New Coffee Is Ancient News at 7-Eleven
7-Eleven Announces NYC Expansion Plans
Sheetz Specialty Coffee Drinks Include Lattes, Cappuccinos and Mochas
ExxonMobil Combines Upscale Coffee Image with Relaxed Approach
Hess/Dunkin’ Donuts Rollout Continues
Walgreen Tests Café W
Licensed Cafés and Kiosks
Books Go Better with Cafés
Mountain Mudd Franchises Spread from Billings to Lebanon
Less Workers = Less Office Coffee Service
Vending Machines Lagging in U.S., Picking Up in Britain
The Starbucks Vending Machine Experience
For Hotels, It’s “Goodbye Freeze-Dried, Hello Espresso”
Airlines Flying High with Coffee Grounds
Retail Trend Overview
Retail Distribution Methods
Types of Retail Outlets
Supermarkets Lead Retail Market for Packaged Coffee
Mass Merchandisers, Supercenters & Warehouse Clubs
Walmart a Top Coffee Seller
Honest Trade Coffee Boosts Walmart’s Image, Sales
Contest for National Warehouse Club Supremacy
Gourmet/Specialty Food Stores
Light Roast Coffee
Medium Roast Coffee
Dark Roast Coffee
Specialty Coffee Stores
Company Snapshot: The Coffee Bean & Tea Leaf
Health and Natural Food Stores
Top Coffee Brands in Natural/Specialty Arena
Table 6-5: Top UNFI Brands in Natural/Specialty Channels: by Share and Number of SKUs, 2008 vs.2009 (percent and number)
Internet, Mail Order, and Subscriptions

Chapter 7: Competitor Profiles
Competitor Profile: Caribou Coffee Co., Inc.
Company Overview
Rebuilding and Rebranding Post Recession
Commercial Expansion Shows Results
Caribou Coffeehouses’ Rustic Design Reinforces Brand Identity
We’re #2, We Try Harder
Reinventing the Hot Chocolate Wheel
Reaching Out to Consumers on a Number of Fronts
Competitor Profile: Dunkin’ Brands, Inc
Company Overview
“We Are Mainstream America”
“You Kin’ Do It” Campaign Cheers on “Everyday People”
Dunkin’ Pushes Forward with Expansion Plans
Various Types of New Outlets Targeted
Franchisees Miserable with Increased Retail Competition
Competitor Profile: Green Mountain Coffee Roasters, Inc
Company Overview
Specialty Coffee Unit Growing Rapidly
Keurig Unit Growing Even More Rapidly
Green Mountain’s CAGR Has Risen to 53% Since Keurig Acquisition
Green Mountain Buys Tulley’s for .3 Million
Green Mountain Buys Timothy and Revises Projections Up Once More
Balanced, Multichannel Distribution
How Keurig Grows Sales
Social Responsibility: Putting Your Money Where Your Mouth Is
Company Continues Ethical/Honest Trade Marketing
Competitor Profile: Kraft Foods, Inc
Company Overview
Table 7-1: Kraft, Inc. Net Revenues: By Region and Category, 2008 (in billions of dollars)
Kraft Buys Cadbury
The Maxwell House Roller Coaster
Lawsuit with P&G Settled
Brewing Some Excellent Marketing
Yuban Is Revitalized
Sanka Suffers from Image Problem
General Foods International Coffee Mixes Losing Their Luster
Starbucks Agreement Has Had Long-Term Benefits
Gevalia Kaffe Gets New U.S. Push
Kraft’s Tassimo Home Brewing System Succeeds in Europe But Stumbles in the U.S.
Kraft Switches to Bosch
Kraft Settles Lawsuit with Keurig
Tassimo Looking to Bring Its European Mojo to the U.S
Advertising “Webisodes” Fall Flat
Tassimo Has Potential
Competitor Profile: McDonald’s Corp.
Company Overview
McCafé: An Thought Whose Time Has Come
Concept Traces Back to Premium Roast Coffee Upgrade
Adding Coffee Bars
Advertising Approaches: Special, But Unsnobby
McCafés a Global Success Tale
McDonald’s Japan Shoots for No. 1 in Espresso Drinks
Competitor Profile: Massimo Zanetti Beverage USA, Inc.
Company Overview
The Third Largest Roaster in the U.S
Chock Full O’Nuts: “A Heavenly Coffee”—Literally
Hills Bros. Well loved with Heavy Coffee Drinkers
MJB Premium Coffee in the Pacific Northwest
Chase & Sanborn Offers Affordable Price
Cafés and Foodservice
Competitor Profile: Nestlé USA, Inc.
Company Overview
Nestlé’s U.S. Operations: Vast and Varied
Joint Ventures with Jamba Juice & Coke
Nestlé Leads Instant Coffee Market
Nespresso’s Speedy Nespresso Brings Delayed Financial Gratification
Worldwide Nespresso Gains 28% in Third Quarter of 2009
Nescafé Rolls Out Dolce Gusto
Competitor Profile: Peet’s Coffee & Tea, Inc.
Company Overview
Sales Grow Despite Recession
Two Business Segments: Retail Stores and Specialty Sales
Peet’s Pulls in Sails Against Headwind of Economy
Peet’s Mantra: “It’s All About the Coffee”
Peet’s Retail Stores Are Marching Eastward
Peet’s 10 Commandments
Now a National Brand in Grocery Channels
Partnership with Vistar Should Increase Office Sales
Two Types of Foodservice Accounts
Bidding War for Diedrich
Competitor Profile: Sara Lee Corp.
Company Overview
Sales Results
Sara Lee Sheds U.S. Retail Coffee and DSD Foodservice Coffee Businesses
DSD Sale Does Not Mean Capitulation in Foodservice Competition
Despite Divestitures, Sara Lee Still Brewing Up a Storm
Senseo a Global Single-Serve Brand
U.S. Customers Wait for Senseo to Return
Competitor Profile: The J.M. Smucker Co.
Company Overview
Smucker Buys Coffee Brands from P&G
A Focus on Breakfast and Tradition
A Family Business with a Thirst for No. 1 Brands
Folgers Coffee Sales Perk Up Under Smucker
Pricing Key to Success
Competitor Profile: Starbucks Corp
Starbucks to World: “Accounts of My Demise Are Somewhat Exaggerated”
Table 7-2: Starbucks Results of Operations for Fiscal Years 2005-2009 (in millions of dollars)
Return of Prodigal CEO Reignites Company
Past Is Prologue as Starbucks Reevaluates and Regroups
Schultz Shutters Hundreds of Stores
Starbucks Takes Time Out to Retrain Baristas
The Vast Worldwide Starbucks Coffeehouse Phenomenon
Starbucks “Individualizes” New Outlets
Starbucks Testing 31-Oz. Trenta Iced Drinks
Other Strategic Initiatives
Fresh Appeal
New Machines
Pike Place Roast
Clover Upscale Brewed
Customer Loyalty Program
My Starbucks Thought Webpage
Table 7-3: “My Starbucks Thoughts” by Type and Number as of December 8, 2009
Prior to Recession, Starbucks Expanded Drive-Thrus
Starbucks and Ad Agency Part Ways
Starbucks iPhone Apps
Despite Store Cutbacks, Starbucks Retains Brand Portfolio
Seattle’s Best Coffee & Torrefazione Italia
Seattle’s Best Goes Franchise Route
Foodservice Operations Suffer Setback During Inhospitable Times
Burger King to Roll Out Seattle’s Best Nationally
Profitable Partnerships in Consumer Packaged Goods
Kraft Markets Starbucks’ Ground and Whole Bean Coffee
The North American Coffee Partnership
Via Rollout Ongoing
Transformation Agenda Fuels Energy Drinks
Nutritional Health & Wellness to Promote Corporate Health & Wellness
Social Responsibility as Practice and Marketing Tool
Employees vs. Starbucks: You Win Some, You Lose Some
Tazo Tea & Ethos Water
Table 7-4: Tazo Tea—List of Hot Tea Products as of December 2009
Ethos Water: PR Plus or Ethical Dilemma?
Other Partnerships, Other Products

Chapter 8: The Consumer
More than 50% of Americans Drink Coffee Daily
77% of Adults Drink Coffee Each Year
Consumer Like Affair with Gourmet Coffee Wanes a Bit
Consumption Among 18- to 24-Year-Olds Rebounds Slightly
Coffee Drinkers Know Home Isn’t Just Where the Heart Is
Brewing Method of Choice
Figure 8-1: How Consumers Get Their Morning Java Jolt, 2010 (percent)
Consumer Use and Demographics
The Simmons Survey System
Starbucks Restaurants Feel Recession Squeeze
Table 8-1a: Usage Rates for Starbucks Restaurants and Starbucks Packaged Coffee Products, 2006-2009 (percent of U.S. adults)
Table 8-1b: Adult Consumer Base for Starbucks Restaurants and Starbucks Packaged Coffee Products, 2006-2009 (number of U.S. adults in millions)
Table 8-2a: Quick-Food Breakfast Consumers: Usage Rates Overall and for McDonald’s, Starbucks and Dunkin’ Donuts, 2005-2009 (percent of U.S. adults)
Table 8-2b: Quick-Food Breakfast Consumers: Consumer Base Overall and for McDonald’s, Starbucks and Dunkin’ Donuts, 2005-2009 (number of U.S. adults in millions)
Usage of Coffee by Type
Figure 8-2: Household Usage Rates of Coffee: By Product Type, 2009 (percent of U.S. households)
Espresso/Cappuccino Has Youthful Demographic
Table 8-3a: Usage of Espresso/Cappuccino: By Household Age Group, 2009 (number in thousands, percent and index)
Table 8-3b: Usage of Ground/Whole Bean Coffee: By Household Age Group, 2009 (number in thousands, percent and index)
Types of Coffee Used Most
Figure 8-3: Coffee Usage Rates: By Product Type Most Often Used Per Household, 2009 (percent of U.S. Households)
Five-Year Trend by Types of Coffee Used
Table 8-4: Trended Number of Coffee Users: By Product Type Used Most Often, 2005-2009 (percent of U.S. households)
Demographic Indicators by Product Type
Regular
Ground Decaf
RTD Coffee Drinks
Instant Decaffeinated
Instant Specialty Flavored Coffee Mix
Whole Bean Coffee
Espresso/Cappuccino
Psychographics Reveal Unlikely Connection Between Flavored Mix & Whole Bean
Brands Usage Rates
Demographic Trends: Ground and Whole Bean Coffee Brands
Café Bustelo
Chock Full O’Nuts
Eight O’Clock
Folgers
Hills Brothers
Maxwell House
Yuban
Demographic Trends: Selected Espresso/Cappuccino Brands
Demographic Trends: Instant Coffee Brands
Demographic Trends: Instant Specialty Coffee Mix Brands
Demographic Trends: RTD Coffee Brands
Table 8-5: Top Demographic Indicators for Selected Types of Coffee 2009 (index of U.S. households)
Table 8-6a: Coffee Purchaser Food and Shopping Lifestyle Attitudes: By Selected Coffee Types, 2009 (index of U.S. households)
Table 8-6b: Coffee Purchaser Food and Shopping Lifestyle Attitudes: By Selected Coffee Types, 2009 (index of U.S. households)
Table 8-6c: Coffee Purchaser Food and Shopping Lifestyle Attitudes: By Selected Coffee Types, 2009 (index of U.S. households)
Table 8-7: Coffee Brands Used Most Often by Percentage of U.S Households, 2009 (percent of U.S. households)
Table 8-8: Top 10 Demographic Indicators for Selected Ground/Whole Bean Coffee Brands, 2009 (index of U.S. households)
Table 8-9: Top Demographic Indicators for Selected Espresso/Cappuccino Brands, 2009 (index of U.S. households)
Table 8-10: Top Demographic Indicators for Selected Instant Coffee Brands, 2009 (index of U.S. households)
Table 8-11: Top Demographic Indicators for Selected Instant Specialty Coffee Mix Brands, 2009 (index of U.S. households)
Table 8-12: Top 10 Demographic Indicators for Selected Ready-To-Drink (RTD) Coffee Brands, 2009 (index of U.S. households)

Appendix: Addresses of Selected Industry Associations, Marketers and Coffeehouse Chains

The large number of daily coffee drinkers makes the coffee industry incredibly profitable. You can find money-making opportunities surrounding this caffeinated beverage virtually everywhere. Whether you start a coffee shop, do mobile espresso catering, open a coffee drink drive-through or sell coffee gift baskets through mail order, there are customers who want to buy what you sell.

If you like coffee, you can most likely find a lucrative coffee business opportunity that will fit your start-up capital and your lifestyle. You can start with a mobile service, upgrade to a kiosk or invest in a high-traffic storefront. In addition, you can partner with other companies to cut your expenses and grow your profits – such as event plotting businesses, catering services or hotels.

No matter what type of coffee business you choose to start, free samples are always a excellent way to get your business name out there and get your foot in the door with prospective customers. With a café, you can entice new customers with special events that feature local photographers, painters or musicians. You can often provide this “entertainment” for free, as these artists welcome the opportunity to promote their own talents.

In addition to the traditional advertising opportunities you have in the yellow pages, local newspapers and radio stations, you can print low-cost coupons to bring in new customers. Hold monthly drawings for a “free coffee drink” to get customers to give you their contact information so you can build a mailing list. Another simple technique is to offer discount coffee cards (“Buy 8, get one free”) to encourage people to become regular customers.

Delivering free coffee to a radio station is another inexpensive way to get your business name out there – in front of lots of people. Submitting a press release is a fantastic example – the media will promote you for free if you send them a fantastic news tale about your business. This could be as simple is having your friend write a review about your “Café Opening” and sending it to your local paper.

So how do you really start your coffee shop?

1. Learn your business – different coffee flavors, the various ways of preparing coffee, caffeinated beverage trends and new and different coffee products. Your knowledge will help your business stay competitive and profitable. Get an inexpensive start-up guide on how to start a coffee shop or interview a coffee shop owner who can give you first-hand advice.

2. Learn who your customers are. Obviously, they are most likely caffeine addicts – but what else do they want, and what are they willing to pay for it? (i.e. social atmosphere, relaxing work space, quick drive-through service, healthy meals, late-night hours) When you can make a unique café that offers value to the community, you’ll find it much simpler to win over customers.

3. Find out which licenses or permits you need from your local government office. Talk with an accountant, insurance agent and banker (you can get referrals from other local business owners or friends) to get helpful tips on financing, tax issues, insurance and business management that will save you time, money and hassles down the road.

Get Started!

Coffee is generically everywhere. People will pay for something a small different. Use your creativity to design a truly unique coffee service or café environment, and you’ll find that customers come flocking to your door. Businesses that provide coffee products or services can flourish even in a down economy, so if you want to start your business – go for it!

Thinking of an inexpensive, low-maintenance benefit to offer your employees? Then, why not try coffee vending machines? What’s more, they can even double up as an instant profit center for your business.

All You Need for Coffee Service

Coffee vending machines can dispense purely coffee, or a wide range of hot beverages, like hot chocolate, cappuccinos, assorted teas, espressos, and even soup and broths. With a single vending machine dispensing up to 1,000 single serve cups per day, you can offer a variety of drinks from top name brands to organic and gourmet blends.

All you need is a water line connection an outlet for electricity and you’ll be ready to offer coffee vending machines to employees. For equipment, you can have a coffee service vendor handle that. The coffee vendor will be the one to supply your office with a variety of hot beverages, brewing equipment, and even the services of technicians who will clean and maintain the equipment.

Why Coffee Vending Machines?

The two-fold benefit of coffee vending machines provides you with an brilliant service that your employees will not only delight in but also help them get motivated to do a better job. According to a 2006 study by the National Automatic Merchandising Association (NAMA), 79% of office employees with access to complimentary coffee and other hot beverages are more productive and feel more appreciated by their employers.

Add to that the fact that you can really reduce down time and lost labor since instead of keeping long lines at coffee shops, your employees now have their own coffee vending machines right at the pantry or office canteen.

How to Choose a Coffee Vendor

There are many coffee vendors that service large businesses and smaller companies with at least 20 employees. The larger coffee services have a lot more years of experience and can offer you advice on what optional set up you should try for your business.

But for a more personable relationship with your coffee vendor, you may want to try setting up coffee vending machines from smaller “mom and pop” outfits. Their community-based presence could lend your office coffee service a personal touch. Moreover, they could also offer coffee at much lower prices.

But regardless of which coffee vendor you choose to work with in the end, the order of the day is prompt and friendly service with flexible service terms. Since every vendor differs in what they offer, it is vital that you speak with several vendors first before deciding on the price, quality, and service that are just right for you.

In addition to overall service, the taste of your coffee is also vital. Quality of the coffee you serve should be your top priority when it comes to office coffee service so it’s best that you sample the various coffee blends before making a choice.

Coffee is undoubtedly the most well loved drink in America, and with that being said, you may have noticed the latest trend of mobile coffee for all of the Java junkies out there. More and more thoughts are coming to the market on a daily basis, meaning that mobile coffee sales are seeing an unexpected rise. This allows an environmentally friendly approach to coffee service, a greater expansion in access to coffee, and a lesser need for a storefront building to buy your cup of Joe.

Some well loved forms of mobile coffee service include backpacks and bike carts, which you can often see in larger cities serving hot dogs, popsicles – you name it. These options are now expanding to coffee, meaning that you should be able to get your Java anywhere on the go. These services are often available on a gorgeous day in a park, skiing on the slopes, or walking down a busy street on your way to work. Coffee bike carts are increasingly well loved because they are self-sufficient and don’t require electricity. The barista works as the driver, and he or she can transport the coffee anywhere that people are interested. As a passerby, you have the opportunity to stop the bike and order your coffee beverage while out and about or on your way to the office.

Coffee bike services have sparked the interest of other mobile business thoughts. These include fruit bikes, pastry bikes, and even newsstand services on bikes. The truth of the matter is that this is an ideal setting for a larger city, and it is also eco-friendly because it does not require the use of gas or electricity. Government officials in some cities have even lessened the standards for licensing for street sales to promote these entrepreneurial businesses that are also eco-friendly.

A coffee backpack is a less common form of mobile coffee service, but it can be used anywhere there are large groups of people. This is perfect for groups of tourists that are sightseeing, large populated beaches, and long lines of people waiting for a concert or movie. The coffee backpack barista can approach the crowds of people and quickly sell numerous coffee drinks without having to worry about a storefront location. You would be surprised at how many people are willing to take advantage of these services since they don’t have to worry about waiting in long lines at Starbucks to get their fix!

The truth is that the mobility and flexibility brought to the coffee business is exactly what Java junkies in America need. This provides greater and more convenient opportunities for regular coffee drinkers since they don’t have to worry about finding the closest coffee shop in their area, and it also boosts business and sales for creative coffee entrepreneurs. With the state of the economy as it is, self start businesses could be the saving grace for many people, so be on the lookout for countless options in mobile coffee services in a city near you!

The purpose of this report is to present Corporate Development Associates findings and analysis pertaining to the US Single-Serve Coffee Business, including both home consumption and foodservice usage.

This report is designed to help clients in marketing products and services to this business by providing a complete descriptive inventory of available brewers and coffee products (pods, K-Cups, Cartridges, etc.), as well as past trends and future projections. It also serves as means to learn about the products offered by key competitors. The products offered by all major manufacturers and roasters are profiled in terms of features and pricing.

THIS REPORT CONTAINS

A detailed description of currently available brewers in the single-serve market including key features and pricing

A discussion of the technologies currently employed

A detailed description of currently available single-serve hot beverage products including data on pricing, packaging and variety of product offerings

A analytical discussion of past performance and key trends for single-serve brewers and product sales for both home and foodservice markets

Projections for future performance in the home and foodservice markets with a focus on OCS

Single-serve coffee systems (also referred to as single cup or brew-by-pack) are machines which use pressure brewing to force water through coffee pods or other self contained media, such as K-Cups or T-Discs, to produce a single cup of freshly brewed coffee or other hot beverages.

A range of systems are now available, including both closed systems (which can only be used with specially designed brew packs) and open systems (which are primarily pod-based). The first brew pack systems to be introduced into the U.S. were the Melitta One, manufactured by Salton, and Keurig’s B100 model, both of which were launched in late 2003.

Beginning in 2004, the major coffee roasters entered the U.S. market: Sara Lee introduced its Senseo system following a successful European product launch; Procter and Gamble launched its Home Café systems, (which are produced in three versions, each produced by a different of manufacturer); and Nestlé introduced a revamped high-end Nespresso program. Kraft launched its patented product, Tassimo, in September 2005.

While originally positioned as a replacement for instant coffee, which has experienced a particularly significant decline in the past decade, marketers at the major U.S. roasters have repositioned their single-serve product to target consumers of gourmet or specialty coffees.

For more information please contact :

http://www.aarkstore.com/reports/U-S-Market-Overview-Single-Serve-Coffee-Brewing-In-At-Home-And-Away-From-Home-Coffee-Markets-Including-Office-Coffee-Service-13603.html

http://blogs.aarkstore.com/

From:Aarkstore Enterprise
Contact: Neel
Email: press@aarkstore.com
URL: www.aarkstore.com

As single cup coffee brewing systems gain in popularity, the brand that has stood above the rest has been Keurig. With its K-cup coffee brewer and incredible variety of available coffees, it’s no wonder that Keurig has risen to the top. Introduced just ten years ago, the patented Keurig (pronounced kor-ig) single cup coffee system stemmed from an age-ancient question: why do we brew coffee a pot at a time when we drink it a cup at a time? In answering that question, the fine folks at Keurig made coffee history with one of the most versatile and innovative coffee systems on the market today.

What makes Keurig so different?

Unlike other single-cup brewing systems, Keurig doesn’t just package coffee in a small disc. Every individual K-cup is its own drip coffee brewer, complete with filter. You just pop the cup into place, press a button, and in a minute or less you will have one perfectly brewed cup of coffee, ready to drink. Cleanup is just as simple. Just eject the k-cup and toss it away. No dripping filters, no coffee grounds mess to deal with.

While the simple cleanup and simple learning curve for the Keurig brewing process is nice, the real value of choosing Keurig over any other single-cup brewing system is the incredible variety of coffee and coffee products that are available in K-cups. From the very start, Keurig solicited the top gourmet coffee roasters from around the world and offered them a chance to be in on their revolutionary coffee concept. The hard work in the early years paid off. Today, Keurig offers nearly 200 coffee and other beverages for use with its K-cup system.

K-cup varieties for the home or office

Do you have a favorite brand of gourmet coffee? Chances are that you can get it in K-cups. Keurig has partnered with a diverse group of gourmet coffee roasters and name brands to offer the widest variety of coffees for any single-serve coffee system. Perhaps the best-known of the companies that package their own coffee for Keurig is Green Mountain Roasters, a socially conscious roasting company that imports the finest coffees from all over the world. Among the other specialty coffee roasters and distributors that package their coffee in K-cups for Keurig are Newman’s Own Organics, Diedrich, Emeril, Gloria Jean, Caribou, Timothy’s, Tully’s and Van Houtte. Each of them sells multiple roasts and blends through K-cups, though not necessarily every one of the blends that they make. There is quite a selection, though. Green Mountain alone offers over thirty of their specialty coffees in k-cups, including specialty signature blends like Wild Blueberry.

More than just coffee

Keurig does not confine you to making just coffee in you Keurig maker. They also offer a variety of teas, including Celestial Seasonings, Twinings and Bigelow teas, and gourmet chocolate drinks like Ghirardelli, Timothy’s and Green Mountain.

Keurig Brewers

Keurig originally made coffee makers only for businesses and large offices. In fact, most people’s first experience with K-cups was at their doctor’s or dentist’s office. For the past several years, Keurig has also made coffee brewers for the home market. There are currently three models available for the home market, ranging in price from $99 to $199. Keurig still makes their brewers for the small and large office, but they are only available through local distributors. There are Keurig brewers designed for small and large offices, and specifically for the hospitality industry. The hotel Keurig brewers are designed for single suite use, hospitality suite and coffee service use, depending on the level of use that you expect to get from your brewer.

Other Coffee Accessories and Gifts from Keurig

If you are not satisfied with the variety of k-cups available, Keurig also sells My K-cup for specific models of their home brewer. With My K-cup, you can make your own K-cup assembly using your own favorite gourmet coffee – or save money by buying whatever is on sale at the supermarket and making your own. Using the My k-cup is as simple as using a regular filter cup with a standard coffee maker, but you are still brewing only one cup at a time in the exclusive patented brewer, so you get all the flavor and convenience – with your own favorite coffee.

On every street corner there is something brewing in the air. A potion of potent effect that lingers on an on and entices the senses. It is the aroma that is so familiar, so known that the Smallest scent caught by the passing breeze would be enough to captivate the senses.

Coffee shops and cafés have been mushrooming every where nowadays in bustling metropolises, city centers and other places where it is a must that people meet somewhere to discuss, chat and spend idle time with one another.

In the recent years, the coffee business started boosting up in sales and other facets of the business. People have found coffee shops and cafés a convenient rendezvous for business meetings, dates, study appointments, group activities and other kinds of get together.

During the time of the peak of competition, coffee shops and cafés have introduced new lines of products, merchandises, brews, variants coffee add-ons to make the coffee experience the ultimate coffee experience.

Serving coffee and coffee service Coffee products and other blends have sprouted just as simple as the cafés themselves, and because of these changes in the need and the trend, customization or accommodation became the primary tools for making the coffee experience in one café on top of another.

One of those changes in the current themes would ice blended coffee, new blends of hot coffee, frapuccinos, organic and other brews that promise a different world everytime.

One the major changes in the way coffee is served would be ice blending. Blending coffee with ice, according to research really makes coffee more potent, is the in thing for people living in the quick lane.

People who have small time to wait for coffee to cool down and make it simpler to drink. Ice-blended coffee comes with a distinct warning to the drinkers, it could cause brain freezing. Ice blended coffee is the number choice of young people because of the relative ease of getting one and consuming it.

Hot coffee is never out of the picture though. As the cliché goes, “a classic never goes out of style.” Though overrun by ice-blended coffee and frapuccinos, hot coffee still stands tall, towering over the competition by offering some thing that its cold counterpart can’t give.

The aroma of sweet blended coffee and the satisfaction that one gets from sipping slowly like it was the first time. Now made even more enticing by new brews and blends, hot coffee is the perfect getaway from the quick tracked and quick-paced brew of the ice blends.

Now that the world is so concerned about how things are grown, organically grown coffee has been introduced to ensure that people who have small or no trust in synthetics may still delight in a cup of coffee in hand.

As anyone who’s used a Keurig coffee machine can attest, the single cup brewer is the embodiment of kitchen convenience. Keurig coffee makers can brew a cup of hot, tasty coffee or tea in less than a minute – with no fuss and no mess.

With its sleek looks and compact size, the Keurig coffee maker is designed to be your constant countertop companion. Just fill the water reservoir and turn the machine on. The Keurig coffee maker heats up in minutes and then stays on so it’s ready to brew at a moment’s notice.

Did you know that Keurig coffee makers can bring convenience to a number of other culinary endeavors? Here are a few coffee-free serving suggestions you may not have considered:

Breakfast Made Simple

The next time you rise and shine, don’t just turn to your Keurig brewer for a fresh cup of coffee, use it to make breakfast. To make a hot bowl of oatmeal in less than 60 seconds, follow these simple steps:

1. Pour your favorite instant oatmeal mix into a bowl and place it under the Keurig brewer.

2. Run a brewing cycle without a K Cup in the brewing chamber so that the machine dispenses plain, hot water.

3. Stir your oatmeal until it cools slightly, then delight in your breakfast.

Lunch on the Go

Need a lunch that’s as quick and simple as it is tasty and satisfying? Use your Keurig coffee maker to heat up a tasty cup of soup. Just follow the steps outlined above, substituting the oatmeal for your favorite brand of instant soup.

Sweet Treats

The Keurig coffee maker is fantastic at brewing fresh coffee and tea, but did you know that the machine is also fantastic for making hot cocoa? Ghirardelli now offers Premium Double Chocolate Hot Cocoa mix for use with the Keurig brewer. Each packet is precisely portioned so you get a perfect cup of cocoa every time.

About CoffeeCow

This article was provided by CoffeeCow.com which goes to fantastic lengths to provide the highest quality products, the fastest service, and the deepest discount prices you will find on Keurig coffee makers, regular, decaf, and flavored coffee and tea, and a full line of coffee supplies. Developed by coffee professionals with over 35 years of experience in fulfilling any coffee service need, CoffeeCow offers all the coffee conveniences for your home or office. Visit http://www.coffeecow.com for more information.

This article is copyrighted by CoffeeCow. It may not be reproduced in whole or in part and may not be posted on other websites, without the express written permission of the author, who may be contacted via email at coffeecow@digitalbrandexpressions.com.

Whether shared between colleagues in the break room, sipped after a family meal or savored during conversation with friends, coffee is a fixture on the American social scene. After experiencing a surge of popularity in the 1990s, coffee is now so entrenched in our culture that the thought of the traditional tea party has given way to the “coffee party”.

Coffee parties offer friends a chance to gather and delight in each other’s company along with a hot cup of a favorite brew. Sound like an inviting experience? If so, here are some thoughts for hosting a delightful coffee party for you and your friends:

* Send invitations to your friends, instead of just an e-mail or phone call. This adds a special touch that everyone can appreciate.

* Let the coffee be the star of the show. Have a variety of brews and flavorings on hand for your guests to try. It’s simpler than you reckon when you brew your drinks using a single cup coffee maker. Be it a Senseo, Melitta or Keurig coffee machine, your guests will like how quick and simple it is to make their favorite coffee. Single cup brewers can make one cup in less than a minute – there’s no mess and no waiting to end the pot before trying a different coffee blend.

* Use decorative mugs and plates to serve your guests – these can be fun, colorful dishes or something more dainty and sophisticated, whatever suits the mood.

* Make your coffee party a special event. Place up decorations, be they simple flower arrangements or multi-colored streamers.

* Play up your indulgences. Serve finger foods and bite-sized desserts, such as biscotti, lady fingers or mini-muffins. Get your friends involved by asking everyone to bring his or her favorite baked goods.

* Give your coffee party a special theme. Whether it’s a going-away party, a Hawaiian luau-styled event or an occasion to dress in formal wear, your coffee party is sure to be a hit.

* Delight in the company. Whether you’re exchanging books, playing board games, watching a movie or just catching up with one another, the point of the coffee party is to have a excellent time with the people you care about.

Remember, all it takes is a small imagination and a few excellent friends to make your coffee party a huge success.

About CoffeeCow

This article was provided by CoffeeCow.com which goes to fantastic lengths to provide the highest quality products, the fastest service, and the deepest discount prices you will find on single cup coffee makers, regular, decaf, and flavored coffee and tea, and a full line of Keurig coffee supplies. Developed by coffee professionals with over 35 years of experience in fulfilling any coffee service need, CoffeeCow offers all the coffee conveniences for your home or office. Visit http://www.coffeecow.com for more information.

This article is copyrighted by CoffeeCow. It may not be reproduced in whole or in part and may not be posted on other websites, without the express written permission of the author, who may be contacted via email at coffeecow@digitalbrandexpressions.com.