coffee trends usa_04302012_064652

47
2011 NATIONAL COFFEE DRINKING TRENDS PREVIEW OF RESULTS © 2011 National Coffee Association of U.S.A., Inc.

Upload: yhhrv

Post on 23-Oct-2014

147 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: coffee trends usa_04302012_064652

2011 NATIONAL COFFEE DRINKING TRENDS

PREVIEW OF RESULTS

© 2011 National Coffee Association of U.S.A., Inc.

Page 2: coffee trends usa_04302012_064652

Agenda Background and Methodology

What are people drinking?

How is the economy affecting coffee consumption?

How is the single-cup coffee market evolving?

2

Page 3: coffee trends usa_04302012_064652

Background Conducted annually since 1950 to understand coffee

consumption.

Longest available statistical series of consumer drinking patterns.

Data has been collected through an on-line survey since 2008. Prior to that, data collection was via telephone (and door-to-door in the early days).

3

Page 4: coffee trends usa_04302012_064652

Methodology The methodology for this online survey is: Nationally representative sample of 2,663 people aged 18

years and older.

Respondents randomly selected from online panels.

Sample mirrors the US population distribution in terms of age, gender and region.

All respondents drank a beverage other than tap water past day.

Data collection: mid-January to mid-February, 2011 with daily quotas to ensure a balanced mix of days of the week.

4

Page 5: coffee trends usa_04302012_064652

What are People Drinking?

Page 6: coffee trends usa_04302012_064652

Past Day Penetration – Trending

6

Base: Total sample (n=3042, 2008, n=3118, 2009, n=2740, 2010, n=2,663, 2011) What did you drink yesterday during each of the following times? This may include any beverage that you drank at home or outside your home and may have come in a cup, can or bottle. Significantly different from PY

0

10

20

30

40

50

60

70

'08 '09 '10 11

Soft Drinks

Total Coffee

Tap water

Bottled water(unflavored)Tea

Juice

PERC

ENT

DRIN

KIN

G

Presenter
Presentation Notes
On a macro level, past day beverage penetration is stable across coffee and the other beverages examined in this analysis. This indicates that coffee consumption is overall, stable despite the economic volatility of recent years.
Page 7: coffee trends usa_04302012_064652

Past Day Penetration – Trending

7

0

10

20

30

40

50

60

70

80

90

10019

54

1956

1958

1960

1962

1964

1966

1968

1970

1972

1974

1976

1978

1980

1982

1984

1986

1988

1990

1993

1996

1998

2000

2002

2004

2006

2008

2010

Base: Total sample (n=2,663, 2011) What did you drink yesterday during each of the following times? This may include any beverage that you drank at home or outside your home and may have come in a cup, can or bottle. Significantly different from PY

Tran

sitio

n fr

om in

-per

son

inte

rvie

ws t

o te

leph

one

Tran

sitio

n fr

om te

leph

one

inte

rvie

ws t

o on

line

PERC

ENT

DRIN

KIN

G

Presenter
Presentation Notes
Turning to a long-term perspective on past day coffee penetration, we can see that between the 1950s and the late 1970s, there was a generalized trend to declining past day coffee penetration. If this trend had not been reversed, the coffee category would be much smaller today than it currently is. Fortunately, since the late 1970s, past day coffee penetration has been, despite some volatility, stable overall. That trend continues today.
Page 8: coffee trends usa_04302012_064652

Penetration of Coffee – Past Day/Week/Year

8

60

72 82

59

70

84

56

68 77

58 68

76

Past day Past week Past year

'08 '09 '10 '11

PERC

ENT

DRIN

KIN

G

Base: Total sample (n=3042, 2008, n=3118, 2009, n=2740, 2010, n=2,663, 2011) What did you drink yesterday during each of the following times? This may include any beverage that you drank at home or outside your home and may have come in a cup, can or bottle. Significantly different from PY

Presenter
Presentation Notes
When we look at past day, past week and past year penetration, we again see overall stability. The slight softening in past day penetration seen in 2010 vs. 2009 has been corrected this year. Past year penetration declined between 2009 and 2010. This number remains consistent in 2011, indicating that the category may have lost some light consumers.
Page 9: coffee trends usa_04302012_064652

Daily Penetration of Coffee By Age

9

34

51

66

76

41

53

63 68

31

44

61

74

40

54 61

69

18-24 25-39 40-59 60+

'08 '09 '10 '11

PERC

ENT

DRIN

KIN

G

Base: Total sample 2011 – n=2,663, n=344 (18-24), n=619 (25-39), n=1,020 (40-59), n=680 (60+) What did you drink yesterday during each of the following times? This may include any beverage that you drank at home or outside your home and may have come in a cup, can or bottle. Significantly different from PY

Presenter
Presentation Notes
While the overall story is one of stability, there are shifts happening within subgroups. In particular – past day consumption among younger consumers saw declines between 2009 and 2010. These have been reversed in 2011, with the numbers returning to 2009 levels. Past day consumption among older consumers also returned to 2009 levels, reversing growth seen between 2009 and 2010. The importance of these year-over-year variations should not be overstated in a tracking study. We want to see trends over several years before declaring a fundamental shift. However, these consumption shifts are consistent with strong sales performance of some out of home coffee businesses, which are better developed among younger consumers. They are also consistent with shifting consumer attitudes on their personal financial situation, which we will see later in this presentation.
Page 10: coffee trends usa_04302012_064652

Daily Penetration of Coffee by Type

10

56 51

35

6 8

24

7

18

58 54

38

7 8

25

9

17

Total Coffee TraditionalCoffee - Total

TraditionalCoffee - Not

Gourmet

Instant Decaf Gourmet CoffeeBeverages (Net)

Espresso-BasedBeverages

TraditionalCoffee - Gourmet

'10 '11

PERC

ENT

DRIN

KIN

G

Base: Total sample (n=2740, 2010, n=2,663, 2011) What did you drink yesterday during each of the following times? This may include any beverage that you drank at home or outside your home and may have come in a cup, can or bottle. Significantly different from PY

Combined to Create Gourmet Coffee

Beverages

Presenter
Presentation Notes
There is no one segment of the coffee industry that is clearly driving growth in past day penetration.
Page 11: coffee trends usa_04302012_064652

Daily Penetration of Coffee Types by Age

11

40

30

18

4 4

26

14 12

54 46

29

6 6

32

14 20

61 59

43

5 8

23

7

17

69 68

53

11 14 21

4

18

Total Coffee TraditionalCoffee - Total

TraditionalCoffee - Not

Gourmet

Instant Decaf Gourmet CoffeeBeverages (Net)

Espresso-BasedBeverages

Traditionalcoffee - Gourmet

18-24 25-39 40-59 60+

PERC

ENT

DRIN

KIN

G

Base: Total sample (n=2,663, 2011) What did you drink yesterday during each of the following times? This may include any beverage that you drank at home or outside your home and may have come in a cup, can or bottle.

Combined to Create Gourmet Coffee

Beverages

Presenter
Presentation Notes
As we have always seen, past day coffee penetration overall skews older, with 40% of consumers aged 18-24 consuming coffee past day in contrast with 69% of consumers aged 60+ consuming coffee past day. However, this is not seen consistently across formats – gourmet coffee beverages and especially espresso based coffee beverages skew younger, offering an entry point for younger consumers. Traditional coffee not gourmet, instant coffee and decaf coffee skew older.
Page 12: coffee trends usa_04302012_064652

Daily Penetration of Coffee Types – Aged 18-24

12

31

23

14

4 3

19

9 10

40

30

18

4 4

26

14 12

Total Coffee TraditionalCoffee - Total

TraditionalCoffee - Not

Gourmet

Instant Decaf Gourmet CoffeeBeverages (Net)

Espresso-BasedBeverages

Traditionalcoffee - Gourmet

2010 2011

PERC

ENT

DRIN

KIN

G

Base: Total sample aged 18-24 (n=344, 2011) What did you drink yesterday during each of the following times? This may include any beverage that you drank at home or outside your home and may have come in a cup, can or bottle. Significantly different from PY

Combined to Create Gourmet Coffee

Beverages

Presenter
Presentation Notes
Increases in past day consumption among consumers aged 18-24 are not attributable to a single coffee format.
Page 13: coffee trends usa_04302012_064652

Daily Penetration of Coffee Types – Aged 25-39

13

44 38

26

5 6

21

8 13

54

46

29

6 6

32

14 20

Total Coffee TraditionalCoffee - Total

TraditionalCoffee - Not

Gourmet

Instant Decaf Gourmet CoffeeBeverages (Net)

Espresso-BasedBeverages

Traditionalcoffee - Gourmet

2010 2011

PERC

ENT

DRIN

KIN

G

Base: Total sample aged 25-39 (n=619, 2011) What did you drink yesterday during each of the following times? This may include any beverage that you drank at home or outside your home and may have come in a cup, can or bottle. Significantly different from PY

Combined to Create Gourmet Coffee

Beverages

Presenter
Presentation Notes
Increases in past day consumption among consumers aged 25-39 are primarily attributable to growth in gourmet coffee beverages, including traditional coffee – gourmet.
Page 14: coffee trends usa_04302012_064652

Weekly Penetration of Coffee by Gourmet Sub-types

14

39

25

13 11 10

8

3

22

9

36

22

11 9 9 7

4

21

9

GourmetCoffee

Beverages(Net)

Espresso-Based Cappuccino Latte Cafe Mocha Espresso Macchiato TraditionalCoffee -

Gourmet

Frozen BlendedCoffee

'10 '11

PERC

ENT

DRIN

KIN

G

Significantly different from PY

Base: Total sample (n=2740, 2010, n=2,663, 2011) What did you drink yesterday during each of the following times? This may include any beverage that you drank at home or outside your home and may have come in a cup, can or bottle. Now we’d like to ask you about some specific types of coffee beverages you may have consumed in the PAST WEEK. Please keep in mind that these may be coffee beverages that you drank at home or bought outside your home and may have come in a cup, can or bottle. In the past week, have you, yourself, drunk...

Presenter
Presentation Notes
While none of these declines are significant, it is interesting to see some softness in past week penetration of some of the espresso based coffee beverages. This may reflect new attitudes towards coffee following the recession. We will need to see the 2012 numbers to truly understand if this is a larger trend or a one year finding.
Page 15: coffee trends usa_04302012_064652

From The Press

15

One of the first things consumers cut out of their budgets when they're feeling pinched is a jolt of high-priced caffeine served up by their local barista. It's also one of the first little luxuries that consumers find worth shelling out for when they start to feel more comfortable with the direction of the economy.

Yahoo Finance, February 18, 2011

Presenter
Presentation Notes
Include image of someone surfing internet in café on ipad
Page 16: coffee trends usa_04302012_064652

Share of Cups – Gourmet vs. Non-Gourmet

16

Base: Past Day Coffee Drinkers Age 18+ (n=1523, 2010, n=1,555, 2011) Was the [COFFEE/COFFEE BEVERAGE] gourmet coffee - that is, brewed from premium whole bean or ground varieties?

Gourmet, 40

Not gourmet,

60

Gourmet, 37

Not gourmet,

63

2010 2011

Presenter
Presentation Notes
We learned for the first time last year that 40% of total coffee cups are gourmet. The number remains consistent in 2011.
Page 17: coffee trends usa_04302012_064652

Number of Cups Per Day M

ean

# O

f Cup

s

Base: Past Day Coffee Drinkers Age 18+ (n=1829, 2008, n=1839, 2009, n=1523, 2010, n=1,555, 2011) How many cups or glasses of [COFFEE/COFFEE BEVERAGE] did you drink [TIME OF DAY]?

Base: Total sample (n=3042, 2008, n=3118, 2009, n=2740, 2010, n=2,663, 2011) How many cups or glasses of [COFFEE/COFFEE BEVERAGE] did you drink [TIME OF DAY]?

Per Capita (Drinkers And Non-Drinkers) Per Total Coffee Drinkers

2.1 2.0 1.8 2.0

'08 '09 '10 '11

3.6 3.5 3.2 3.4

'08 '09 '10 '11

17

Presenter
Presentation Notes
We saw some softness in cups per drinker in 2010. This has been reversed in 2011. We theorized in 2010 that some consumer might be cutting back on the number of cups they drink per day as a cost-savings measure. If this was true, they have collectively moved away from this behaviour in 2011.
Page 18: coffee trends usa_04302012_064652

Share of Coffee By Location Consumed

18

Travelling, 6 Eating Place,

6

Work, 12

Other, 3

Home, 73

Workplace coffee area,

74

Other locations, 27

Base: Past Day Coffee Drinkers Age 18+ (n=1,555, 2011) Where did you drink the [COFFEE/COFFEE BEVERAGE]? Where was the [COFFEE/COFFEE BEVERAGE] prepared you had yesterday [TIME OF DAY]?

Where coffee consumed at work is prepared

Share of Past Day Coffee

Presenter
Presentation Notes
One of the challenges of this study is that it tends to overstate share of coffee consumption at home. Recognizing this, we asked consumers to assign their last 10 cups to in home vs. out of home. This gave us a 73% share for in-home. Even this likely overstates in-home coffee consumption. However, it gave us a target for this percentage. We eliminated outliers in the dataset to match place of preparation to this number, which we believe is a more accurate reflection of the market.
Page 19: coffee trends usa_04302012_064652

How is the economy affecting coffee consumption?

Page 20: coffee trends usa_04302012_064652

Personal Financial Situation – vs. 6 Months Ago

4

14

46

25

11

Much better

Somewhatbetter

The same

Somewhatworse

Much worse

20

Base: Past year coffee consumers (n=2,020, 2011) Compared to six months ago, is your personal financial situation...

7

20

46

19

7

8

21

45

17

10

2

11

45

29

14

2

9

49

31

9

Much better

Somewhat better

The same

Somewhat worse

Much worse

18-24 25-39 40-59 60+

Total Sample By Age

28% among 18-39 vs.

12% among 40+

36%

18%

27% among 18-39 vs.

42% among 40+

Presenter
Presentation Notes
Reinforcing the fact that the economy is not yet fully recovered, 36% of consumers feel that their personal financial situation is worse today than it was 6 months ago. This compares to only 18% who feel that it is better. However, there are clear differences when we look at this data among the different age cohorts. 28% of consumers aged 18-24 feel better about their personal financial situation compared to only 12% of consumers over the age of 40. These attitudinal differences may be driving behavioral differences with the coffee category.
Page 21: coffee trends usa_04302012_064652

Past 6 Months Changed Coffee Consumption Because of Financial Situation

21

Yes, 17

No, 80

Base: Past year coffee consumers (n=2,020, 2011) And within the past 6 months, have you changed your coffee consumption because of your personal financial situation? This could include changes to how much coffee you drink, what type of coffee you drink, where you buy your coffee, etc.

33

23

44

Away fromhome only

At home only

Both

Made changes…

Base: Changed coffee consumption (n=333, 2011) Have you made changes to the coffee you purchase and drink...

14% in 2009 15% in 2010

Presenter
Presentation Notes
When we ask consumers if they have changed their coffee consumption in response to the economy, the vast majority (80%) have not. This number is consistent with what we saw in previous years. Among those who have made changes. Most have made changes at home and away from home or away from home only.
Page 22: coffee trends usa_04302012_064652

Away from Home Changes – Financial Situation Same/Worse

65

36

27

17

16

15

9

Buy less frequently

Switched to making more coffee at home

Buy less expensive type of coffee/drink

Buy smaller cups

Stopped buying entirely

Use coupons

Switched locations looking for better value

22

Base: Personal financial situation is same/worse and made changes away from home (n=215, 2011) Which of these changes have you made to the coffee you purchase and drink away from home? Please select all that apply.

Presenter
Presentation Notes
Among those who have made changes away from home, the biggest change is to buy less frequently. Another common behaviour is to buy a less expensive type of coffee. These behaviours are consistent with our findings on past week espresso-based beverage consumption. Some consumers indicate that they have switched to making more coffee at home. As such, economizing behaviour can represent opportunities for some coffee brands.
Page 23: coffee trends usa_04302012_064652

At Home Changes – Financial Situation Same/Worse

41 34 33

31 31

28 27

26 21

18 15

9 7

2

Make coffee at home instead of buying at a…

Switch to less expensive name brand

Limiting use - drinking less frequently

Stock up when buying on sale

Buy less often

Use coupons

Only buy when it's on sale

Switch to less expensive generic or store brand

Limiting use - using less coffee per pot

Switch stores to look for better value

Buying larger size

Buy a smaller size / downsize

Stopped buying entirely

Something else

23

Base: Personal financial situation is same/worse and made changes at home (n=189, 2011) Which of these changes have you made to the coffee you purchase and drink at home? Please select all that apply.

Presenter
Presentation Notes
The dominant at-home behaviour is making more coffee at home. Again we see the opportunity that changing behaviour can represent for some brands. Although limiting use is cited by some respondents, we do not see this reflected in the actual consumption data.
Page 24: coffee trends usa_04302012_064652

Single Cup (Instant Coffee Stick Packs)

Presenter
Presentation Notes
With any mature category that is managing to remain stable, ongoing innovation is key. The coffee industry continues to evolve in many ways. One of those ways is single cup – both instant and brewed. We wanted to use the centennial convention presentation of the NCDT as an opportunity to understand how in more detail how single cup is evolving.
Page 25: coffee trends usa_04302012_064652

Instant Coffee Package Formats – Past Day Penetration

1

5

Stick pack

Can or jar

25

Base: Total sample (n=2,663, 2011) What kind of package did the instant coffee come in?

Percent drinking instant coffee from…

Presenter
Presentation Notes
Instant coffee stick packs are still niche, with 1% penetration on a past day basis. However, when we remember that instant coffee in total has only 6% past day penetration, we see that stick packs account for a sizeable share of instant coffee. What we have not yet seen is stick packs driving overall instant coffee category growth.
Page 26: coffee trends usa_04302012_064652

Instant Coffee Stick Packs – Familiarity

24

21

34

9

10

2

I have never heard of it

I have heard of it, but don't knowanything about it

I know a little bit about it but havenever bought it

I bought it in the past, but not now

I buy it occasionally

I buy it regularly

26

Base: Ever drank coffee aged 18+ (n=2,171 2011) Some instant coffee is sold in single, pre-measured stick packs. What is your experience with instant coffee in this type of packaging?

21% total penetration, 12%

current users

Presenter
Presentation Notes
21% of consumers have tried instant coffee from a stick pack, 12% buy stick packs currently but only 2% buy them regularly (which is consistent with 1% past day penetration). Increasing frequency from within the base of consumers who have bought stick packs represents a sizeable opportunity.
Page 27: coffee trends usa_04302012_064652

Instant Coffee Stick Packs – Advantages

54

53

46

35

25

19

18

14

8

5

60

57

57

35

27

21

18

32

11

0

Easy to use on the go / while traveling

Pre-measured / easy dosage

Easy to use / open packaging

Less mess

Enables me to drink a wider variety / more flavours

Stays fresher longer

People in the household drink different types of…

Coffee tastes great

Better value for the money

OtherAware of stick packs

Stick pack users

27

Base: Aware of instant coffee stick packs (n=1,187 2011), Stick pack users (n=247, 2011) In your opinion, what are the advantages of using instant coffee from single pre-measured stick packs? Please select all that apply.

Significantly higher vs. comparison group

Presenter
Presentation Notes
When we look at the attitudes of stick pack users vs. those who are aware of stick packs, we see that the greatest difference is on the statement “coffee tastes great”. This underlies the importance of a taste message and the importance of delivering superior taste in cup to driving stick pack adoption. Convenience is price of entry. Without great taste, convenience will not drive stick pack sales.
Page 28: coffee trends usa_04302012_064652

Instant Coffee Stick Packs – Disadvantages

58

32

15

11

7

7

7

60

20

8

7

9

8

11

Too expensive

Coffee does not taste great

Don't drink coffee on the go

Don't find the pre-measured amount convenient

They're not available in my area / where I shop

I find them difficult to open

Other Aware of stick packs

Stick pack users

28

Base: Aware of instant coffee stick packs (n=1,187 2011), Stick pack users (n=247, 2011) In your opinion, what are the advantages of using instant coffee from single pre-measured stick packs? Please select all that apply.

Presenter
Presentation Notes
When we look at stick pack weaknesses, the same issue emerges – the greatest difference between users and non users is taste perceptions. Worryingly, one in five stick pack users agree with the statement “coffee does not taste great”. There is always going to be some baseline agreement with statements like this, but we wonder if the product engineers in the audience could further reduce this number.
Page 29: coffee trends usa_04302012_064652

Single Cup (Capsules)

Presenter
Presentation Notes
We are going to spend the rest of our time talking about brewed single cup.
Page 30: coffee trends usa_04302012_064652

Single Cup Brewing Systems – Awareness

30

59

48

60

63

56

61

40

63

66

62

55

37

55

61

57

73

61

68

78

77

Total

18-24

25-39

40-59

60+

2005200620072011

Base: Total Sample age 18 and over (n=2,950 2005, n=2,954 2006, n=2,951 2007, n=2,663 2011) Several companies have recently introduced a new way of brewing coffee. With this brewer, you insert a single, pre-measured, sealed disk or capsule of coffee into a specially designed machine. The machine brews a single cup of coffee directly into your coffee cup in about a minute. Have you heard of this type of brewer before now?

Presenter
Presentation Notes
We stated tracking brewed single cup in 2005, the year when many mainstream systems were launched. If we look just at awareness of the systems since those early days, we clearly see improvements, with awareness moving from 59% to 73%. Consistent with the early days, older consumers are more aware of the systems than their younger counterparts.
Page 31: coffee trends usa_04302012_064652

Single Cup Brewing Systems – Ownership

31

1 2 3

7

2005 2006 2007 2008 2009 2010 2011

Base: Total Sample age 18 and over (n=2,950 2005, n=2,954 2006, n=2,951 2007, n=2,663 2011) In the next six months, how likely are you to buy this type of single-cup brewer for use in your home? Those who responded “Already have this brewer in my home”

NA NA NA

Presenter
Presentation Notes
Ownership is, so far, growing at a very consistent average of 1% per year. 7% penetration is still relatively small, but it is easy to see how, over time, single cup brewing systems have the potential to fundamentally alter how and where Americans prepare and consume coffee and to also affect the types of coffee we consume.
Page 32: coffee trends usa_04302012_064652

Single Cup Brewing Systems – Time Owned

32

29

31

33

7

35

17

23

27

Less than 6months

6-12months

1-2 years

More than2 years

20072011

Base: Have single cup brewing system at home (n=75 2007, n=173 2011) How long have you owned this type of brewer?

Significantly higher vs. comparison group

Presenter
Presentation Notes
Now that single cup systems have been in the market for several years, it makes sense that the percentage of consumers who have owned this type of system for more than two years has increased vs. 2007. Equally interesting is the high number of consumers who have acquired a single cup system in the past six months. This indicates that the market is still strong for this type of system.
Page 33: coffee trends usa_04302012_064652

Single Cup Brewing Systems – Replacement

33

28

61

11

49

36

15

Replacedpreviousbrewer

Use both (oldand new)

Did not ownbrewerbefore

20072011

Base: Have single cup brewing system at home (n=75 2007, n=173 2011) Did you replace your previous coffee brewer with this new machine for coffee you prepare at home, or do you now use both?

Significantly higher vs. comparison group

Presenter
Presentation Notes
Reflecting an increasing move of single cup systems to the mainstream, an increasing number of consumers are making the full move to a single cup system and replacing their previous system.
Page 34: coffee trends usa_04302012_064652

Single Cup Brewing Systems – How Acquired

34

56

44

52

48

Bought forself

Received asgift

2007 2011

Base: Have single cup brewing system at home (n=75 2007, n=173 2011) Did you buy this brewer yourself or did you receive it as a gift?

Presenter
Presentation Notes
The market is roughly equally divided between consumers who bought the system for themselves vs. received it as a gift. This is unchanged since 2007.
Page 35: coffee trends usa_04302012_064652

Single Cup – Average Cups Per Day

35

Base: Have single cup brewing system at home (n=173 2011) On average, how many cups of coffee made with this single-cup brewer do you personally drink per day?

36

18

24

9

14

43

27

17

8

6

Less than one

1

2

3

4+Bought for self

Received as Gift

Presenter
Presentation Notes
Consumers who receive a single cup system as a gift tend to use the system slightly less than those who buy it for themselves. This has implications for manufacturers of the coffee product that is used in these systems.
Page 36: coffee trends usa_04302012_064652

Single Cup Brewing Systems – % of Coffee

36

None, 11

1%-25%, 19

25%-49%, 8

50%-74%, 13

75%-100%, 49

Percent of the consumer’s total coffee made with single cup system

Base: Have single cup brewing system at home (n=173 2011) Thinking about all coffee that you drink both at home and away from home, what percent of your total coffee is made with this single-cup brewer …

Presenter
Presentation Notes
Consumers tend to use the systems fairly heavily – with 49% preparing 75-100% of their coffee using the single cup system. Though we have not investigated it specifically this may indicate that single cup steals share from out of home coffee.
Page 37: coffee trends usa_04302012_064652

Single Cup Brewing Systems – Beverages Made

37

54 25

17 12

5 5 5

3 3 4

2 1

19 25

30 24

9 8 7

8 7 6

2 2

Traditional coffee

Flavored coffee

Hot chocolate

Hot tea

Cappuccino

Iced tea

Café Mocha/Mocha

Latte

Espresso

Iced coffee

Macchiato

Frozen blended coffee

I make this beverage with my machine regularly

I make this beverage with my machine occasionallyBase: Have single cup brewing system at home (n=173 2011) Please indicate your experience with making each of the following beverages using this single-cup brewer.

72

49

47

36

15

13

12

11

10

11

5

3

% Regularly/Occasionally

Presenter
Presentation Notes
Most consumers who own a single cup system use it to make traditional coffee. This is followed by flavoured coffee, hot chocolate and hot team. Specialty coffees form a third tier.
Page 38: coffee trends usa_04302012_064652

Single Cup Brewing Systems – Purchase Intent

38

2

4

5

7

10

22

26

26

54

33

2007

2011

Definitely Would Buy Probably Would Buy Might or Might Not BuyProbably Would Not Buy Definitely Would Not Buy

Base: Aware of single cup brewers (n=1,630 2007, n=1,951 2011) In the next six months, how likely are you to buy this type of single-cup brewer for use in your home?

Significantly higher vs. comparison group

Presenter
Presentation Notes
Purchase intent has shifted from 2007 to 2011, but interestingly, what has increased is not the percentage saying “definitely would buy” or “probably would buy”, but rather the percentage saying “might or might not buy”. This indicates remaining ambivalence on the part of consumers that needs to be addressed as to maintain category growth.
Page 39: coffee trends usa_04302012_064652

Single Cup Brewing Systems – Gifting Intent

39

2

3

8

6

18

25

31

35

40

32

2007

2011

Definitely Would Buy Probably Would Buy Might or Might Not BuyProbably Would Not Buy Definitely Would Not Buy

Base: Aware of single cup brewers (n=1,630 2007, n=1,951 2011) In the next six months, how likely are you to buy a single-cup brewer as a gift for someone outside of your home?

Significantly higher vs. comparison group

Presenter
Presentation Notes
The pattern with gifting intent is the same – more consumers are saying they “might or might not” buy a single cup system as a gift, but the “definitely” and “probably” number has not shifted.
Page 40: coffee trends usa_04302012_064652

Single Cup Brewing Systems – Perception

40

9

15

17

30

42

36

21

13

11

6

2007

2011

Excellent Very Good Good Fair Poor

Base: Aware of single cup brewers (n=1,630 2007, n=1,951 2011) What is your overall opinion of single-cup brewers? Do you think that they are…

Significantly higher vs. comparison group

Presenter
Presentation Notes
At the same time, perceptions of the single cup systems as “excellent” or “very good” are improving. This should, in time, lead to an increase in the number of consumers who are committed to buying them.
Page 41: coffee trends usa_04302012_064652

Impact of Attitudes on Single Cup Brewer Perceptions

41

.24

.17

.12

.10

.08

.08

.05

.05

.04

.03

.02

-.07

This brewer makes better tasting coffee than other brewing methods

This type of brewer is easier to use than other brewing methods

I have heard positive comments about this brewer from friends and family

This type of brewer is great when I only want to make a single cup

A cup of coffee made with this brewer is good value for my money

This brewer allows me to experiment with many brands of my favourite coffee

It is easy to buy the coffee disks/capsules that this type of brewer requires

This type of brewer is great for entertaining

This type of coffee brewer is reasonably priced

It is easy to tell which brands of coffee disks/capsules work with which type of brewer

This brewer is able to make a wide variety of beverages

This brewer creates more waste than other brewers I've used in the past

Base: Aware of single cup brewers (n=1,951 2011) Here is a list of statements about single cup brewers. Please indicate if you agree completely, agree somewhat, neither agree nor disagree, disagree somewhat or disagree completely with each statement.

Presenter
Presentation Notes
One of the key questions has to be – how do we continue to drive improved perceptions of single cup systems. The one word answer is “taste”. This one attribute has the greatest potential to improve overall perceptions of the single cup systems. You will recall of course that the message was the same for instant single cup.
Page 42: coffee trends usa_04302012_064652

Single Cup Attitudes – 2007 vs. 2011

42

Base: Aware of single cup brewers (n=1,630 2007, n=1,951 2011) Here is a list of statements about single cup brewers. Please indicate if you agree completely, agree somewhat, neither agree nor disagree, disagree somewhat or disagree completely with each statement.

2007 2011 Gap

I have heard positive comments about this brewer from friends and family 33 47 14

This type of brewer is easier to use than other brewing methods 52 63 11

It is easy to buy the coffee packets that this type of brewer requires 38 49 11

This brewer makes better tasting coffee than other brewing methods 24 34 10

It is easy to tell which brands of coffee packets work with which type of brewer 36 42 6

This type of brewer is great for entertaining 30 33 3

A cup of coffee made with this brewer is good value for my money 29 32 3

This type of brewer is great when I only want to make a single cup of coffee 75 77 2

This type of coffee brewer is reasonably priced 28 27 -1

Presenter
Presentation Notes
The good news is that taste perceptions are improving – up 10% from 2007 to 2011. While this is great, manufacturers of the systems and coffee need to challenge themselves to maintain this momentum.
Page 43: coffee trends usa_04302012_064652

Final Thoughts

Presenter
Presentation Notes
We are going to spend the rest of our time talking about brewed single cup.
Page 44: coffee trends usa_04302012_064652

Younger Consumers and the Economy

Younger consumers are feeling better about the economy and responding by returning to previous coffee consumption habits.

Consumers 18-39 increasing coffee frequency with those aged 25-39 specifically increasing gourmet coffee frequency

The challenge may be addressing the needs of older consumers, who are still feeling vulnerable.

44

Presenter
Presentation Notes
We stated tracking brewed single cup in 2005, the year when many mainstream systems were launched. If we look just at awareness of the systems since those early days, we clearly see improvements, with awareness moving from 59% to 73%. Consistent with the early days, older consumers are more aware of the systems than their younger counterparts.
Page 45: coffee trends usa_04302012_064652

Stability

Despite the increasing fragmentation of the beverage category, the coffee category remains strong.

Category stable overall

80% are maintaining coffee habits despite economic uncertainty

45

Presenter
Presentation Notes
We stated tracking brewed single cup in 2005, the year when many mainstream systems were launched. If we look just at awareness of the systems since those early days, we clearly see improvements, with awareness moving from 59% to 73%. Consistent with the early days, older consumers are more aware of the systems than their younger counterparts.
Page 46: coffee trends usa_04302012_064652

Evolution

Coffee retains its relevancy through ongoing evolution:

Growth of gourmet coffee

Single cup (brewed and instant)

46

Presenter
Presentation Notes
We stated tracking brewed single cup in 2005, the year when many mainstream systems were launched. If we look just at awareness of the systems since those early days, we clearly see improvements, with awareness moving from 59% to 73%. Consistent with the early days, older consumers are more aware of the systems than their younger counterparts.
Page 47: coffee trends usa_04302012_064652