CLUB COFFEERESEARCH STUDYSWANA

2017

Club committed to quality since 1906– Customers across North America– Innovative and competitive

Canada’s largestproducer of roastand ground coffee– Expanding rapidly into tea and other hot beverages

Innovating for consumers

Convenience, Value  and Quality Now in ~1/3 of US homes #1 selling small houseware appliance Single serve coffee sales have grown 

319% in sales since 2011 reaching $4.6Bn in 2015

Single serve expanding to soups, oatmeal, cold beverages, etc.$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

US Retail Coffee Sales 2009 – 2020

Single Serve Coffee Standard Ground CoffeeWhole Bean Instant

US

D $

millio

ns

Single Serve is Booming

“Keurig Effect” = On Demand/SS Solutions 

18Bn K-Cups Sold Between 2013-2104 = 35 Story Building on a NYC Block!

Not only are we filling our landfills 

Loss of coffee grounds in the composting process

Consumers want a better solution. We have reached a tipping point.

In 2015 ~20Bn Plastic Single Serve cups were sold in North America … by 2020 ~100Bn+ in landfill

8

“On Demand” SS Coffee has up front Environment Benefits reducing food waste, water and energy

consumption!

A recent PAC/Quantis LCA found that the single-serve best case scenario for traditional plastic pods posts a better environmental performance than the comparable drip-brew scenario across their full life cycles. Why? Waste due to coffee over-preparation and inferior

packaging freshness retention

The amount of coffee and water required to make up for consumer waste and the electricity consumed for drip brewing

Minimal coffee waste by the single-serve system, which provides an exact serving of coffee despite the greater packaging waste

Reduction of food waste

“The coffee market has lost its best consumer:

the kitchen sink”

1 mins TIME 10mins

No waste, set brew sizes for what you

need

WASTEOften mostof the pot goes down the drain

No up front mess – just pour in water, place the

HASSLEWash andclean the coffee pot and maker

Eachperson has a choice, decaf or flavour?

VARIETYYou are

limited to what is in the pot

Plastic K‐Cups are going into Landfill Keurig has plans for Recyclable K‐Cups by 

2020 Too much consumer effort, for a category 

driven by convenience … Most cups not recyclable in practice Contamination of recycle stream with 

coffee 90% of brewed pod is coffee – valuable 

organics lost to landfill

Recycling = the 10% Band-Aid ®

Waste stream impacts– Coffee grounds diverted to landfill –

adding to food waste– Plastic pods going into recycling that 

can’t be processed

“Recyclable” and “biodegradable” pods likely to challenge processors AND not deliver what consumers really want

Municipal Headaches

PῧrPod100™ Highlights Ring: blend of coffee chaff & bio‐resins

More than 20% coffee chaff reclaimed from coffee roasting in the resinBio‐composite resin blend developed through university researchFull & rapid disintegration in lab & municipal tests

Lid: compostable combinationNew compostable ink system – compatible with Keurig 2.0® brewer

Mesh: compostable bio‐based plasticNew bio‐polymer formula & molding processes

100% Compostable is the Solution

Promotes growth of curbside composting across US Links composting to food waste and household waste narrative Positions composting as right solution before less effective

options arrive Puts coffee back into the organic stream

Benefits for the Composting Sector

100% Compostable is the Solution

Will consumers understand the difference?

Effects on the value of our finished product

Reason for Study

Identification of like products

• Objectives• Initial

demographics• Resources,

Costing, Timing

• Distribution opportunities

• Brand/Product Availability

Develop Scope, Costs & Approach

• Recommendation on Target Areas

• Audit Planning• Residential

Scope/Plan• Commercial

Scope/Plan

Design Testing Process & Plan

• Residential• Commercial• Audits/Reports• Survey• PR• Communication

Distribution of Product, Audit and Reporting

• PR• Engagement

Program• Media

Strategy• Launch

Event (if successful)

• Activation Plan

Public Education & Engagement

Demographics for High Probability of Single Serve Brewer Ownership:

RESIDENTIAL

Multi family units Low rise 200-300 units Target areas with Premium

grocers (i.e. Whole Foods or New Seasons) Superintendents supportive

to Sustainable Initiatives Urban

Current Coffee in Kcup Compatible Brewers

Supports Sustainable Initiatives UrbanUniversity of Washington,

Fairmont Hotel, Columbia Tower

High Income Millennials, Parents High Coffee Shop/Food Service

Areas

Environmentally conscious

Pretty much most of Seattle!

COMMERCIAL

• Contamination

• Coffee Cups

• Coffee Related

• Coffee Pods

Pre-Audit InterimAudit

Post Audit

99 89

25

Non-Compostable Coffee CupsTotal Count Per Audit

Pre-Audit InterimAudit

Post Audit

1612

2

Non-Compostable PodsTotal Count Per Audit

Pre Audit InterimAudit

Post Audit

7% 7%

4%

All Contamination by WeightOver All Three Audits

Pre-Audit InterimAudit

Post Audit

1.54% 1.71%0.78%

% Contamination PurPod Related

Over All 3 Audits

Industry Experts Support PῧrPod100™

The Right Solution

For each ton of organic waste composted at Cedar Grove Composting…

COMPOST

C02 vs.

CH4

Transport

Carbon stored in

soil

Healthy plants

Reduce chem use

Total GHG emission reduction equivalent-

Taking 468,000 cars off the road for an entire year!

Providing Consumers The Right Solution … PῧrPod100™

Delivering an outstanding hot beverage... guilt free…

that enhances the consumer experience !

• Golf course maintenance• Mulching• Highway Projects (DOT)• Roof top garden

establishment• Soil remediation and

reclamation• Stream and wetland

restoration• Stormwater BMPs

• Bioretention• Rain Gardens• Erosion Control• Green roofs

Michele RiggsProject Manager/ Technical Services

micheler@cgcompost.com(206) 437-5682