United States Coffee Demand Consumption Patterns and Key Marketing Issues Robert F. Nelson President...

United States Coffee Demand

Consumption Patterns and Key Marketing Issues

Robert F. NelsonPresident and CEONational Coffee Association of USA

““Destiny is not a matter of chance,Destiny is not a matter of chance,it is a matter of choice”it is a matter of choice”

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Methodology

• Nationally representative sample• 2,950 persons, 18 years and older• Random digit telephone interviews• January 2002

Definitions

• Total coffee– All coffee types - traditional and gourmet

coffee beverages

• Gourmet coffee beverages– Espresso based beverages – cappuccino,

espresso, latte and café mocha– Iced/iced blended coffee – blended and frozen

coffee drinks– Gourmet coffee

• Gourmet coffee– Premium whole bean or ground varieties

Total Coffee

139,070

158,092161,470

161,022

105,430 108,700

Yesterday Past Year

Num

ber

Dri

nkin

g in

Tho

usan

ds

1991 2002

Renewed Consumer Focus

1990’S Transition

Staple Beverage

Social & Gourmet BeverageSocial & Gourmet Beverage

Percent of Population Drinking Gourmet Coffee Beverages Daily

3.0% 3.3%

9.0% 9.0%

14.0%13.0%

'97 '98 '99 '00 '01 '02

Occasional Consumption of Gourmet Coffee Beverages

35%

47%51% 53%

62%59%

'97 '98 '99 '00 '01 '02

10 Percent of Americans

Drink Gourmet

Coffee Daily

13 percent of Americans

Drink Gourmet Coffee

Beverages Daily

Gourmet Market

Gourmet

Commercial

Purchase of Cause-Related Coffee

1% 1%4%

1%

Shade Fair Trade Organic Bird-Friendly

Percent of Past Week Traditional Coffee Only Drinkers

Long Term Trends Total Coffee

Percent of Population Drinking Yesterday

Percent of Population Drinking Coffee (Total) Daily

56.0% 55.0% 54.0% 54.0%52.0% 52.0%

'97 '98 '99 '00 '01 '02

Cups per Drinker – Total Coffee

3.1

3.33.2

2000 2001 2002

Occasional Consumption of Coffee (Total)

75% 75%78% 79% 80% 77%

'97 '98 '99 '00 '01 '02

Occasional Drinkers

Daily DrinkersDaily Drinkers

Market StrategyMarket Strategy

COMMODITYProduct inProduct in

The Market PlaceThe Market Place

Market Place

• Taste profiles• Types and varieties used• Consumer attributes• Embrace differentiation

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