Chapter 1: Executive Summary
Introduction
Scope of Report: Foodservice and Retail
Dollar Sales Based on Retail Value
Excluded Products
Report Methodology
Market Trends
Higher Coffee Prices Drive Dollar Sales Growth
2011 Sales Approach $38 Billion
Table 1-1: Total U.S. Sales of Coffee, 2007-2011 (in millions of dollars)
Figure 1-1: Share of Total U.S. Dollar Sales of Coffee: Foodservice vs. Retail, 2007 vs. 2011 (percent)
Restaurants Gain in Foodservice Share
Ground Coffee Dominates Mass-Market Retail Sales
Projected Market Growth
Marketer Overview
Approximately 1,000 Marketers
Foodservice Marketers
Joint Ventures and Licensing Provide Synergies
Mergers, Acquisitions and Divestures
Two Spinoffs Coming Up
Top 12 Marketers Account for 84% of Mass-Market Coffee Sales
New Product Trends
Retail Product Launches Slow
Top Retail Trends: Private Label, Upscale, Organic
Figure 1-2: Number of New Coffee Introductions by Top Package Tags/Claims, 2006, 2010, and 2011
Higher Quality Coffee in Both Foodservice and Retail
Retailers Preparing for Growth in Private Label
Marketers Extend Single-Serve Coffee Options
Light vs. Dark Roasts
Single-Origin Coffees
Instant Growth
Flavored Coffees Becoming More Sophisticated
Iced Coffee is Hot
New Entries Brew in Ready-to-Drink Coffee
Foodservice and Retail Trends
Premium Coffee Is Now the Foodservice Standard
Coffee Competition Among Foodservice Players Grows
Supermarkets Lead Retail Market for Packaged Coffee
Consumer Trends
More Than Seven out of 10 Americans Drink Coffee
Older Consumers Drink Coffee More Frequently
Most Coffee-Drinkers Prefer Regular Hot Coffee
Figure 1-3: Coffee Consumption by Type in Last 7 Days: Weekends vs. Weekdays, September 2011 (percent of U.S. adults)
Three out of Five Coffee-Drinkers Strongly Agree Freshly Brewed Coffee Tastes Better than RTD
Brewing Method of Choice
Five-Year Trend by Types of Coffee Used
Brands Usage Rates
Internet Has Changed Consumers’ Lifestyles
Consumers and Traditional Media
Consumers and Social Media

Chapter 2: Market Overview
Introduction
Scope of Report: Foodservice and Retail
Dollar Sales Based on Retail Value
Excluded Products
Eight Product Types
Coffee Brewed and Served by the Cup
Ground Coffee
Whole Bean Coffee
Single-Serve Coffee
Instant Coffee
Instant Cappuccino and Latte Mixes
Packaged Ready-to-Drink (RTD) Coffee Beverages
Liquid Coffee Concentrates
SymphonyIRI Categories
Additional Descriptors
Arabica vs. Robusta
Decaffeinated Coffee
Types of Roasts
Espresso Is a Brewing Process as Well as a Roast
Blends vs. Varietals
Estate Coffee
Flavors
Third-Party Certified Coffee
Illustration 2-1: Fair Trade Certified Logo
Illustration 2-2: USDA Certified Organic Logo
Illustration 2-3: Rainforest Alliance Certified Logo
Illustration 2-4: Smithsonian Bird Friendly Coffee Logo
Illustration 2-5: UTZ Certified Logo
Market Size and Growth
Higher Coffee Prices Drive Dollar Sales Growth
2011 Sales Approach $38 Billion
Table 2-1: Total U.S. Sales of Coffee, 2007-2011 (in millions of dollars)
Foodservice Sales Approach $30.7 Billion
Table 2-2: U.S. Sales of Coffee Through Foodservice Channels, 2007-2011 (in millions of dollars)
Retail Sales of Coffee Approach $7.3 Billion
Table 2-3: U.S. Sales of Coffee Through Retail Channels, 2007-2011 (in millions of dollars)
Market Composition
Foodservice Is Larger Category in Dollar Sales
Figure 2-1: Share of Total U.S. Dollar Sales of Coffee: Foodservice vs. Retail, 2007 vs. 2011 (percent)
Restaurants Gain in Foodservice Share
Table 2-4: Share of U.S. Foodservice Dollar Sales of Coffee: By Venue, 2007 vs. 2011 (percent)
Supermarkets Ring Up 51% of Retail Sales
Table 2-5: Share of U.S. Retail Dollar Sales of Coffee: By Channel, 2007 vs. 2011 (percent)
Retail Market Composition
Ground Coffee Dominates Retail Mass-Market Sales
Table 2-6: U.S. Retail Share of Coffee Sales by Product Type, 2007 vs. 2011 (percent)
Dry Coffee Category Leads in Dollar Sales
Table 2-7: SymphonyIRI-Tracked Sales and Share of Coffee by Category, 2010 vs. 2011 (in millions of dollars)
Regular Ground Coffee Dominates Dry Coffee Category
Table 2-8: SymphonyIRI-Tracked Sales of Dry Coffee Category: Dollar Sales, Change and Category Share by Segment, 2010 vs. 2011 (in millions of dollars)
Table 2-9: SymphonyIRI-Tracked Unit and Volume Sales of Dry Coffee: By Segment, 2010 vs. 2011 (in millions)
Decaf Coffee Sales Decline to Under $347 Million
Instant Coffee Sales Perk Up
Table 2-10: SymphonyIRI-Tracked Dollar Sales of Decaffeinated Coffee: By Segment, 2010 vs. 2011 (in millions of dollars)
Table 2-11: SymphonyIRI-Tracked Dollar Sales of Instant Coffee: By Segment, 2010 vs. 2011 (in millions of dollars)
Shelf-Stable RTD Coffee Dominates Liquid Coffee Category
Table 2-12: SymphonyIRI-Tracked Dollar Sales of Liquid Coffee: By Segment, 2010 vs. 2011 (in millions of dollars)
Table 2-13: SymphonyIRI-Tracked Unit and Volume Sales of Liquid Coffee Category: By Segment, 2010 vs. 2011 (in millions)
Private Label About 9% of Retail Mass-Market Coffee Sales
Seasonality and Regionality
Retail Sales Highly Seasonal
Northwest Coffee Culture Hides Specialty Coffee’s East Coast Roots…
… But Chicago Residents Spend the Most in Coffeehouses
Market Outlook
The Economy and Its Impact on Coffee
Raw Coffee Prices Soar into Early 2011, Then Retreat
Table 2-14: Composite Green Coffee Prices, 2006-2011 (in cents per pound)
Why Coffee Prices Went Sky-High
Foodservice and Retail Coffee Prices Follow
Table 2-15: Average U.S. Retail Coffee Prices for Roasted Coffee, 2006-2011 (in dollars)
Americans Drink 18.5 Gallons of Coffee Per Capita Annually
Most Coffee Prepared at Home
Single-Serve Coffee Is Booming
Table 2-16: Comparison of Starbucks Coffee Costs by Product Type, November 2011 (in dollars)
Premium/Gourmet/Specialty Coffee Remains Strong
Growing Number of Foodservice Outlets Serve Premium Coffee
Opportunities to Market Coffee to Hispanic Consumers
Table 2-17: Demographic Snapshot of the U.S. Population
Table 2-18: Coffee Products and Brands with High Indexes Among Hispanic Consumers, 2011 (U.S. adults)
Competition from a Broad Spectrum of Beverages
Table 2-19: SymphonyIRI-Tracked Sales and Share of Major Beverage Categories, Year-End June 12, 2011 vs. Year Ago (in millions of dollars)
Health and Wellness Benefits
Projected Market Growth
Coffee Sales Will Surpass $51 Billion by 2016
Table 2-20: Projected Total U.S. Sales of Coffee, 2011-2016 (in millions of dollars)
Foodservice Sales Will Top $41 Billion in 2016
Table 2-21: Projected U.S. Sales of Coffee Through Foodservice Channels, 2011-2016 (in millions of dollars)
Retail Sales Will Grow to $10.1 Billion by 2016
Table 2-22: Projected U.S. Sales of Coffee Through Retail Channels, 2011-2016 (in millions of dollars)
Global Market Overview
A Primary Commodity
Table 2-23: World Coffee Production: Marketing Years, 2005/2006 - 2011/2012 (number of bags in millions)
South America and Central America Account for Two-Thirds of World Coffee Production
Europe and Asia Pacific Region Lead in New Coffee Product Introductions
Table 2-24: Share of Global Coffee Product Launches: By Region and Annual Total, 2006-September 30, 2011 (number of reports)
Opportunities Abroad for U.S. Players
Nestlé Leads by Number of New Coffee Product Reports Internationally
Table 2-25: Top 20 International Marketers: By Number of Coffee Product Launches, 2006-September 30, 2011 (number of reports)
Instant Gratification Conquers the World
Table 2-26: Top 20 Package Tags/Marketing Claims: By Reports of Global Coffee Product Launches, 2006-September 30, 2011

Chapter 3: The Marketers
Marketer Overview
Complex International Structure
Approximately 1,000 Marketers
Global Marketers and Investors Control Many Top Brands
Foodservice Marketers
Joint Ventures and Licensing Provide Synergies
Mergers, Acquisitions and Divestures Shape the Industry
Two Spinoffs Coming Up
Retail Marketer and Brand Share
Methodology
Top 12 Marketers Account for 84% of Mass-Market Coffee Sales
J.M. Smucker, Kraft, and Starbucks Dominate Sales
Table 3-1: Top Marketers of Packaged Coffee by SymphonyIRITracked Sales and Share, 2010 vs. 2011 (in millions of dollars)
Folgers Captures Almost One out of Four Dollars
Figure 3-1: U.S. Retail Sales of Packaged Coffee: Top Brands by Dollar Share, 2011 (percent)
Smucker Leads Ground Coffee Category with 40% Share
Table 3-2: Top Marketers of Regular Ground Coffee by SymphonyIRI-Tracked Sales and Share, 2010 vs. 2011 (in millions of dollars)
Figure 3-2: U.S. Retail Sales of Regular Ground Coffee: Top Brands by Dollar Share, 2011 (percent)
Smucker Likewise Leads in Ground Decaf
Table 3-3: Top Marketers of Ground Decaffeinated Coffee by SymphonyIRI-Tracked Sales and Share, 2010 vs. 2011 (in millions of dollars)
Figure 3-3: U.S. Retail Sales of Ground Decaffeinated Coffee: Top Brands by Dollar Share, 2011 (percent)
Single Cup Coffee
Table 3-4: Top Marketers of Single Cup Coffee by SymphonyIRITracked Sales and Share, 2010 vs. 2011 (in millions of dollars)
Figure 3-4: U.S. Retail Sales of Single Cup Coffee: Top Brands by Dollar Share, 2011 (percent)
Starbucks and Eight O’Clock Top Whole Bean Brands
Table 3-5: Top Marketers of Whole Bean Coffee by SymphonyIRITracked Sales and Share, 2010 vs. 2011 (in millions of dollars)
Figure 3-5: U.S. Retail Sales of Whole Bean Coffee: Top Brands by Dollar Share, 2011 (percent)
Instant Coffee Boosted by Starbucks’ VIA
Table 3-6: Top Marketers of Regular Instant Coffee by SymphonyIRI-Tracked Sales and Share, 2010 vs. 2011 (in millions of dollars)
Figure 3-6: U.S. Retail Sales of Regular Instant Coffee: Top Brands by Dollar Share, 2011 (percent)
Smucker Leads Tiny Instant Decaf Category
Table 3-7: Top Marketers of Instant Decaffeinated Coffee by SymphonyIRI-Tracked Sales and Share, 2010 vs. 2011 (in millions of dollars)
Figure 3-7: U.S. Retail Sales of Instant Decaffeinated Coffee: Top Brands by Dollar Share, 2011 (percent)
Starbucks Dominates RTD Coffee with an 86% Share
Table 3-8: Top Marketers of RTD Coffee by SymphonyIRI-Tracked Sales and Share, 2010 vs. 2011 (in millions of dollars)
Figure 3-8: U.S. Retail Sales of Ready-to-Drink Coffee: Top Brands by Dollar Share, 2011 (percent)
Liquid Coffee Concentrates a Miniscule Business at Retail

Chapter 4: New Product, Marketing, and Advertising Trends
New Product Trends
Retail Product Launches Slow
Figure 4-1: Number of New U.S. Coffee Introductions, Reports and SKUs, 2006-2011
Top Retail Trends: Private Label, Upscale, Organic
Figure 4-2: Number of New Coffee Introductions by Top Package Tags/Claims, 2006, 2010, and 2011
Table 4-1: Number of New U.S. Coffee Introductions by Package Tag/Claim, 2006-2011
No Clear Market Leader in U.S. Product Launches
Table 4-2: Top 10 Marketers: By Number of U.S. Coffee Product Launches, 2006-2011 (reports)
Higher Quality Coffee in Both Foodservice and Retail
Illustration 4-1: Maxwell House Gourmet Roast Coffee
Retailers Preparing for Growth in Private Label
Illustration 4-2: Fresh & Easy Donut Shop Blend
Marketers Extend Single-Serve Coffee Options
Illustration 4-3: Emeril’s Gourmet Coffee K-Cups
Illustration 4-4: Green Mountain Coffee Roasters’ New Label: Barista Prima K-Cups
Illustration 4-5: Dunkin’ Donuts K-Cups
Illustration 4-6: Dunkin’ Donuts One Cup Pods, Tested but Discontinued
Illustration 4-7: Starbucks K-Cups
Illustration 4-8: Nestlé Dolce Gusto Single Cup Coffee Brewers
Illustration 4-9: Nescafé Dolce Gusto Single Cup Capsules
Illustration 4-10: Coffee Bean & Tea Leaf Single Cup Brewer
Illustration 4-11: Coffee Bean & Tea Leaf Single Cup Capsules
Illustration 4-12: Rogers Family San Francisco Bay OneCup Capsules
Light vs. Dark Roasts
Illustration 4-13: Seattle’s Best Coffee Level System
Illustration 4-14: Peet’s Medium Roast Coffees
Illustration 4-15: Peet’s Uzuri African Blend
Single-Origin Coffees
Illustration 4-16: Wegmans Private Label Sumatra Mandheling Coffee
Limited Edition Coffees
Seasonal Blends
Illustration 4-17: Paramount Fall In Love Coffees
Illustration 4-18: Dunkin’ Donuts Spring Seasonal Limited Edition Flavors
Anniversary Blends
Illustration 4-19: Starbucks Limited Edition Tribute Blend
Limited Edition Rare Single-Origin Coffees
Illustration 4-20: Starbucks’ Reserve Coffee
Instant Growth
Illustration 4-21: Starbucks Extends VIA Ready Brew with House Blend and Breakfast Blend Varieties
Illustration 4-22: Starbucks Also Added a Caramel Variety in VIA Iced Coffee
Flavored Coffees Becoming More Sophisticated
Illustration 4-23: Starbucks Natural Fusions are its First Flavored Coffees
Iced Coffee is Hot
Illustration 4-24: Starbucks Iced Coffee Blend
Illustration 4-25: Green Mountain Coffee Roasters Brew Over Ice KCups
New Entries Brew in Ready-to-Drink Coffee
Illustration 4-26: Seattle’s Best Coffee Iced RTD Coffee
Illustration 4-27: Wolfgang Puck Iced RTD Coffee
Illustration 4-28: illy issimo Iced RTD Coffee
Illustration 4-29: Coffee Bean & Tea Leaf Iced RTD Coffee
Ideological Coffee: Organic, Natural and Fair Trade
Illustration 4-30: Tiny Footprint Carbon Negative Coffee
Functional Coffee
Illustration 4-31: Bean & Body Functional RTD Coffee
Illustration 4-32: Eight O’Clock Coffee Performance Blend Metabolism Boost
Illustration 4-33: Green Mountain Coffee Roasters Revv Pulse with Ginseng and Guarana
Illustration 4-34: Health is Wealth RTD Iced Coffee
Illustration 4-35: The Healthy Bean Antioxidant-Infused Coffee
Competition from Pistachios?
Marketing and Advertising Trends
Marketers Change Logos and Package Designs
Starbucks Drops Coffee from its Logo
Illustration 4-36: Starbucks Logos Over the Years
Seattle’s Best Packages Simplify Consumer Decisions
Illustration 4-37: Seattle’s Best Coffee: Old vs. New Logo
Illustration 4-38: Seattle’s Best Coffee: Old Package
Illustration 4-39: Seattle’s Best Coffee: New Package
Starbucks Begins Roast Level Labeling
Illustration 4-40: Starbucks New Packaging Highlights Roast Levels
Eight O’Clock Coffee Gets Packaging Redesign
Illustration 4-41: Eight O’Clock Coffee: Old vs. New Package
Caribou Coffee Makes Logo More Stylized
Illustration 4-42: Caribou Coffee: Old vs. New Logo
Sampling and Free Coffee Giveaways
Dunkin’ Donuts Cans Free Iced Coffee Promotion
Eight O’Clock Coffee: Taste What People Are Talking About
Illustration 4-43: Eight O’Clock Coffee’s “Taste What People Are Talking About” Promotion
7-Eleven’s National CofFREE Day Promotion
Illustration 4-44: 7-Eleven CofFREE Day Promotion
Events Sponsorship Creates Buzz
7-Eleven’s Dip a Drip Contest
Illustration 4-45: 7-Eleven “Dip a Drip” Promotion
Tassimo Brewbot Mobile Road Tour
Illustration 4-46: Actress Eva Longoria at the Opening of Tassimo’s Brewbot Café
illycaffè Focuses on High-End Events
Illustration 4-47: Illy AuthentiCity Lounge at the New York City Wine and Food Festival
Coffee Marketers Ally Themselves with Causes
Coffee Bean & Tea Leaf: Support the Troops
Illustration 4-48: The Coffee Bean & Tea Leaf: Support Our Troops
Maxwell House: “Drops of Good” Helps Rebuild Community Houses Across the USA
Illustration 4-49: Maxwell House “Drops of Good” Cause Marketing
Seattle’s Best Coffee: Brew-lanthropy Project
Illustration 4-50: Seattle’s Best Brew-lanthropy Finalists
Starbucks: Create Jobs for USA
Illustration 4-51: Starbucks “Create Jobs for USA” Cause Marketing
Making Use of Websites and Social Media
Starbucks Savvy About Social Media
Illustration 4-52: Starbucks Mines its Facebook Fans for Data
Illustration 4-53: Webpage Promoting Eight O’Clock Radio Commercials
Folgers Jingle Contest
Illustration 4-54: Folgers Jingle Contest
Celebrity Coffee Brands
Illustration 4-55: David Lynch Signature Coffee
Illustration 4-56: Wolfgang Puck Iced RTD Coffee
Caribou Coffee’s Ambient Advertising
Illustration 4-57: Caribou Coffee’s Toasty Warm Bus Shelter
Illustration 4-58: Caribou Coffee’s Reasons to Stay Awake
Advertising and Marketing Positioning
Key Themes
Flavor and Aroma
Illustration 4-59: Starbucks Rhapsodizes About Natural Fusions Coffee
Illustration 4-60: Dunkin’ Donuts’ Dunkin’ Turbo Coffee Has Big Flavor
Illustration 4-61: Smell the Virtual Aromas in Starbucks VIA Commercials
Illustration 4-62: A Taste Promise Guarantees Consumers Will Love Starbucks VIA
Fast and Easy to Make
Illustration 4-63: Folgers Coffee “Just Got Easier”
Illustration 4-64: Brewed Coffee in Just One Minute with Keurig
Sharing Coffee with Family and Friends
Illustration 4-65: A Husband Makes His Wife Fresh Keurig Coffee at Breakfast
Illustration 4-66a: Starbucks Five-Page Spread: Celebrate Fall with Friends
Illustration 4-66b: Starbucks Five-Page Spread: Celebrate Fall with Friends
Illustration 4-66c: Starbucks Five-Page Spread: Celebrate Fall with Friends
Illustration 4-67: Coffee-Lovers Spreading the Word About Starbucks VIA
Variety
Illustration 4-68: Choosing Keurig Coffee at Home
Real People
Illustration 4-69: Dunkin’ Donuts “What are you Drinkin?” Campaign Uses Real People
Customization
Illustration 4-70: Starbucks Personalization Commercial
Illustration 4-71: Starbucks’ “However-You-Want-It” Frappuccino
Illustration 4-72: 7-Eleven’s Website Showcases its Coffee Varieties and Toppings
Health and Wellness
Illustration 4-73: Bean & Body Positions its RTD Coffees as Promoting Health and Wellness
Seattle’s Best Uses Humor to Reposition Itself as Making Coffee Fun
Illustration 4-74: Offbeat Commercial for Seattle’s Best Coffee
Competitive Positioning: Nescafé Taster’s Choice vs. “Big Bucks” Brew
Illustration 4-75: Taster’s Choice Competitive Positioning
Ethics Make Consumers Feel Better About Themselves
Illustration 4-76: Ad for Green Mountain Fair Trade Coffee

Chapter 5: Foodservice and Retail Trends
Foodservice Trends
Foodservice Venues
Foodservice Distribution Methods
Explosion of Foodservice Locations
Foodservice Sales Strongest in All Types of Restaurants
Table 5-1: Share of Dollar Sales of Meals and Snacks Away from Home by Type of Outlet, 2006-2010 (percent)
Restaurant Industry Sales Reach New Record
Table 5-2: Restaurant Industry Sales: 2008-2011 (in billions of dollars)
Despite Proliferation of Chains, Small Businesses Predominate
Premium Coffee Is Now the Standard
Most Restaurants Rely on One Blend
Organic Coffee “Hot” in 2011 Restaurant Survey
Coffee Competition Among Foodservice Players Grows
Table 5-3: Major U.S. Foodservice Operators with a Coffee Niche, 2010
K-Cups in Boston Market Restaurants
Experian Simmons Consumer Survey Findings
Table 5-4: McDonald’s, Starbucks, and Dunkin’ Donuts by Penetration Rates and Core Customer Visits, 2011 (U.S. Adults)
Table 5-5: Top Demographic Indicators for McDonald’s, Starbucks, and Dunkin’ Donuts, 2011 (indexes)
QSR Coffee-Drinkers
Coffeehouses Encourage Patrons to Linger
Starbucks and Large Regional Coffeehouse Chains
Licensed Cafés and Kiosks
The Next Big Wave of Coffeehouses?
McCafés Top 6% of McDonald’s U.S. Sales
Burger King Switches to Seattle’s Best Coffee…
…as Does Subway
Jack in the Box Changes Its Coffee Again
Wendy’s Also Seeks to Be a Coffee Destination
Dunkin’ Donuts Leads QSRs in Coffee Servings
Tim Hortons, the Canadian Chain with a U.S. Presence
Drive-Thrus Buzzing
Coffee Tops C-Store Shopper Lists
Customer-Customized Coffee a C-Store Strength
Coffee a Hot Spot for 7-Eleven
Sheetz, a C-Store Chain with Full-Service Espresso Bars
Office Coffee Service an Important Perk
Vending Machine Sales Lagging
For Hotels, It’s “Goodbye Freeze-Dried, Hello Espresso”
Airlines Flying High with Coffee Grounds
Retail Trends
Retail Distribution Methods
Supermarkets Lead Retail Market for Packaged Coffee
Mass Merchandisers and Supercenters
Walmart a Top Coffee Seller
Warehouse Clubs
Gourmet/Specialty Food Stores
Specialty Coffee Stores
Company Snapshot: The Coffee Bean & Tea Leaf
Health and Natural Food Stores
Internet, Mail Order, and Subscriptions

Chapter 6: Competitor Profiles
Competitor Profile: Caribou Coffee Co., Inc.
Company Overview
Caribou Rebrands to Broaden Its Appeal
Coffeehouse Expansion Plans
Expanding the Food Focus
Commercial Sales Growing
Domestic and International Franchises
Rainforest Alliance Certification
Competitor Profile: Dunkin’ Brands Group, Inc.
Company Overview
Dunkin’ Donuts Leads in Hot and Iced Coffee Unit Sales
Dunkin’ Donuts Expanding Westward
Dunkin’ Donuts Coffee in Grocery Channels
Dunkin’ Donuts Partners with GMCR for K-Cups
America Runs on Dunkin’
Dunkin’ vs. McDonald’s and Starbucks
Competitor Profile: Eight O’Clock Coffee Co.
Company Overview
Competitor Profile: Green Mountain Coffee Roasters, Inc.
Company Overview
Keurig System Instrumental in Driving GMCR’s Growth
GMCR Also Expands Through Acquisitions
GMCR Makes K-Cup Deals with Smucker, Dunkin’ Donuts, and Starbucks
A Razors/Blades Business Model
High Warranty Claims for Brewers
Key K-Cup Patent Expires in December 2012
New K-Cup Brand and Brews
Environmental and Social Responsibility
Competitor Profile: Kraft Foods, Inc.
Company Overview
Kraft Foods Plans to Split the Company
Deliberate, Savvy Planning
Starbucks Ends Long-Term Partnership with Kraft
Kraft’s U.S. Coffee Business
Maxwell House is the Nation’s No. 2 Coffee Brand
Yuban Is Rainforest Alliance-Certified
Sanka Suffers an Image Problem
Maxwell House International Coffee Mixes Losing Their Luster
Gevalia Kaffe Gets New U.S. Push
Kraft Delays Gevalia Retail Launch
Single-Cup Tassimo Successful in Europe; Stumbles in U.S.
Kraft Raises, Then Cuts Coffee Prices
Competitor Profile: McDonald’s Corp.
Company Overview
McDonald’s Upgrades its Coffee…
…and Takes on Starbucks with McCafé
McCafé Expands Beyond Coffee
McCafé Boosts Coffee Share and Sales
McDonald’s vs. Starbucks
McCafés a Global Success Story
Competitor Profile: Massimo Zanetti Beverage USA, Inc.
Company Overview
Chock full o’Nuts Is a New York Favorite
Hills Bros. Popular with Heavy Coffee-Drinkers
MJB Premium Coffee in the Pacific Northwest
Chase & Sanborn Positioned on Affordable Price
Massimo Zanetti Buys Kauai Coffee Co.
Cafés and Foodservice
Competitor Profile: Nestlé USA, Inc.
Company Overview
Nestlé’s U.S. Operations: Vast and Varied
Nestlé Leads Instant Coffee Market
Nespresso an International Superpremium Success
Nestlé Sues Other Marketers for Making Nespresso Capsules
Nescafé Rolls Out Dolce Gusto
Coffee Sustainability
Competitor Profile: Peet’s Coffee & Tea, Inc.
Company Overview
Two Business Segments: Retail Stores and Specialty Sales
Peet’s Retail Stores
A Growing National Brand in Grocery Channels
Foodservice and Office Accounts
Home Delivery
Peet’s Mantra: “It’s All About the Coffee”
Peet’s Introduces Medium-Roast Coffee
Peet’s Not into Single Cup Coffee Yet
Competitor Profile: Sara Lee Corp.
Company Overview
Sara Lee Sheds U.S. Retail Coffee and DSD Foodservice Coffee Businesses
Sara Lee Hopes to Spin Off its International Coffee Business
Four Current Business Segments
Sara Lee Still Brews Up a Storm in Coffee Internationally
Senseo a Global Single-Serve Coffee Sensation
Senseo Stumbles in U.S., then Fails to Regain Lost Ground
Competitor Profile: The J.M. Smucker Co.
Company Overview
A Family Business with a Thirst for No. 1 Brands
A Focus on Breakfast
Smucker the Leader in Mass-Market Coffee
Mainstream Folgers Is the Nation’s Leading Coffee Brand
Dunkin’ Donuts License
Millstone, Smucker’s Mass-Gourmet Brand
Smucker Acquires Rowland Coffee
Smucker to Acquire Sara Lee’s North American Foodservice Coffee Business
Smucker Raises, Then Drops Coffee Prices
Competitor Profile: Starbucks Corp.
Company Overview
Starbucks History
Starbucks Launches Pike Place Roast Coffee, Oatmeal
Back on Track
The Vast Worldwide Starbucks Coffeehouse Phenomenon
Starbucks Redesigns Logo, Hints at Expanding to Other CPG Categories
Starbucks in Grocery Channels
Starbucks Ends Long-Term Grocery Partnership with Kraft
VIA an Instant Success
Starbucks Launches Blonde Roast
Starbucks Launches K-Cups with GMCR
Starbucks Acquires Juicemaker Evolution Fresh
The North American Coffee Partnership
Other Partnerships, Other Products
Foodservice Operations
Starbucks’ Seattle’s Best Coffee Co. Subsidiary
Subway and Burger King Roll Out Seattle’s Best Nationally
Lofty Goals
Seattle’s Best Introduces “Level System” for Grocery Channel
Torrefazione Italia
Starbucks a Pioneer in Corporate Responsibility and Ethical Sourcing
New Starbucks Stores Partnering with Communities
Starbucks Create Jobs for USA
Starbucks Targeting International Expansion
Starbucks vs. McDonald’s and Dunkin’ Donuts

Chapter 7: The Consumer
Methodology
More Than Seven out of 10 Americans Drink Coffee
Older Consumers Drink Coffee More Frequently
Older Consumers Are Also Heavier Coffee-Drinkers
Table 7-1: Coffee-Drinking by Age Group, September 2011 (U.S. adults, percent and index)
Table 7-2: Frequency of Coffee-Drinking by Age Group, September 2011 (U.S. adults, percent and index)
Table 7-3: Amount of Coffee Consumption by Age Group (Weekdays), September 2011 (U.S. adults, percent and index)
Table 7-4: Amount of Coffee Consumption by Age Group (Weekends), September 2011 (U.S. adults, percent and index)
Most Coffee-Drinkers Prefer Regular Hot Coffee
Figure 7-1: Coffee Consumption by Type in Last 7 Days: Weekends vs. Weekdays, September 2011 (percent of U.S. adults)
Coffee Beverages and Iced Coffee More Popular with Women
Table 7-5a: Coffee Consumption in Last 7 Days by Type and Gender: Weekdays, September 2011 (U.S. adults, percent and index)
Table 7-5b: Coffee Consumption in Last 7 Days by Type and Gender: Weekends, September 2011 (U.S. adults, percent and index)
Younger Consumers Choose Coffee Beverages and Iced Coffee
Table 7-6: Coffee Consumption in Last 7 Days (Weekdays) by Type and Age Group, September 2011 (U.S. adults, percent and index)
Table 7-7: Coffee Consumption in Last 7 Days (Weekends) by Type and Age Group, September 2011 (U.S. adults, percent and index)
Eight out of 10 Coffee-Drinkers Drank and Made Coffee at Home in Last Week
Table 7-8: Coffee-Drinking Behavior in Last 7 Days by Age Group, September 2011 (U.S. adults, percent and index)
Nine out of 10 Coffee-Drinkers Agree Freshly Brewed Tastes Better than Instant
Three out of Five Coffee-Drinkers Strongly Agree Freshly Brewed Coffee Tastes Better than RTD
70% of Coffee-Drinkers Say It’s Worth Paying More for Freshly Brewed Coffee
86% Agree Freshly Brewed Coffee Is Worth Taking the Extra Trouble
Is Starbucks the Best Coffee?
One out of Four Thinks Foodservice Coffee Tastes Better Than Coffee Made at Home
Three out of Four: RTD Coffee Is Overpriced
Almost 60% of Coffee-Drinkers Say Coffee Is Good for You
Coffee Gives 78% of Coffee-Drinkers More Energy
Table 7-9: Percent of Coffee-Drinkers Who Agree with the Statement “Freshly Brewed Coffee Tastes Better Than Instant Coffee,” September 2011 (U.S. adults, percent and index)
Table 7-10: Percent of Coffee-Drinkers Who Agree with the Statement “Freshly Brewed Coffee Tastes Better than Canned/Bottled Ready-to-Drink Coffee,” September 2011 (U.S. adults, percent and index)
Table 7-11: Percent of Coffee-Drinkers Who Agree with the Statement “It’s Worth Paying More for Freshly Brewed Coffee,” September 2011 (U.S. adults, percent and index)
Table 7-12: Percent of Coffee-Drinkers Who Agree with the Statement “It’s Worth Taking the Extra Trouble to Have Freshly Brewed Coffee,” September 2011 (U.S. adults, percent and index)
Table 7-13: Percent of Coffee-Drinkers Who Agree with the Statement “Starbucks Is the Best Coffee,” September 2011 (U.S. adults, percent and index)
Table 7-14: Percent of Coffee-Drinkers Who Agree with the Statement “Coffee Made at Home Doesn’t Taste as Good as Coffee from Restaurants, Fast Food, Coffee/Donut Shops, etc.,” September 2011 (U.S. adults, percent and index)
Table 7-15: Percent of Coffee-Drinkers Who Agree with the Statement “Individual Cans/Bottles of Ready-to-Drink Coffee Are Overpriced,” September 2011 (U.S. adults, percent and index)
Table 7-16: Percent of Coffee-Drinkers Who Agree with the Statement “Coffee Is Good For You,” September 2011 (U.S. adults, percent and index)
Table 7-17: Percent of Coffee-Drinkers Who Agree with the Statement “Drinking Coffee Helps Give Me Energy,” September 2011 (U.S. adults, percent and index)
Brewing Method of Choice
Figure 7-2: Household Ownership Rates of Coffee Brewers by Type, September 2011 (percent of U.S. households that make coffee other than instant)
Supermarkets the Most Popular Place to Buy Packaged Coffee
Table 7-18: Percent of Coffee Purchasers in Last 12 Months by Retail Channel, September 2011 (U.S. adults)
Coffeehouses Lead in Foodservice Coffee
Table 7-19: Percent of Foodservice Coffee Purchasers in Last 30 Days by Type of Outlet, September 2011 (U.S. adults)
Table 7-20: Percent of Foodservice Coffee Purchasers in Last 30 Days by Type of Coffee Ordered, September 2011 (U.S. adults)
One Out of Two Households Use Ground Coffee Most Often
Figure 7-3: Household Usage Rates of Coffee: By Product Type, 2011 (percent of U.S. households)
Five-Year Trend by Types of Coffee Used
Table 7-21: Trended Number of Coffee Users: By Product Type Used Most Often, 2007-2011 (percent of U.S. households)
Espresso/Cappuccino Has Youthful Demographic
Table 7-22a: Usage of Espresso/Cappuccino: By Household Age Group, 2011 (number in millions, percent and index)
Table 7-22b: Usage of Ground/Whole Bean Coffee: By Household Age Group, 2011 (number in millions, percent, and index)
Demographic Indicators by Product Type
Regular Ground Coffee
Ground Decaf
RTD Coffee
Regular Instant
Instant Decaf
Instant Cappuccino and Latte Mix
Sugar-Free Instant Cappuccino and Latte Mix
Whole Bean Coffee
Espresso/Cappuccino
Table 7-23: Top 10 Demographic Indicators for Selected Types of Coffee, 2011 (index of U.S. households)
Brands Usage Rate
Table 7-24: Coffee Brands Used Most Often by Percentage of U.S Households, 2011 (percent of U.S. households)
Demographic Trends: Ground Coffee Brands
Chock full o’Nuts
Dunkin’ Donuts
Eight O’Clock
Folgers
Hills Bros.
Maxwell House
Starbucks
Table 7-25: Top 10 Demographic Indicators for Selected Ground Coffee Brands, 2011 (index of U.S. households)
Demographic Trends: Selected Espresso/Cappuccino Brands
Table 7-26: Top 10 Demographic Indicators for Selected Espresso/Cappuccino Brands, 2011 (index of U.S. households)
Demographic Trends: Instant Coffee Brands
Table 7-27: Top 10 Demographic Indicators for Selected Instant Coffee Brands, 2009 (index of U.S. households)
Demographic Trends: Instant Cappuccino and Latte Mix Brands
Table 7-28: Top 10 Demographic Indicators for Instant Cappuccino and Latte Mix Brands, 2011 (index of U.S. households)
Demographic Trends: RTD Coffee Brands
Table 7-29: Top 10 Demographic Indicators for Selected Ready-To-Drink (RTD) Coffee Brands, 2011 (index of U.S. households)

Consumer Media Trends

Internet Has Changed Many Consumers’ Lifestyles
Internet Has Changed How Consumers Shop
Consumers and Traditional Media
Consumers and Social Media
Consumers’ Attitudes Toward Advertising
Table 7-30: The Internet and Lifestyle Changes: Total U.S. Adults vs. Coffee Households by Type of Coffee, 2011 (U.S. adults, percent and index)
Table 7-31: Consumer Internet Use Patterns: Total U.S. Adults vs. Coffee Households by Type of Coffee, 2011 (U.S. adults, percent and index)
Table 7-32: Consumer Use of Traditional Media: Total U.S. Adults vs. Coffee Households by Type of Coffee, 2011 (U.S. adults, percent and index)
Table 7-33: Consumer Use of Social Media: Total U.S. Adults vs. Coffee Households by Type of Coffee, 2011 (U.S. adults, percent and index)
Table 7-34: Consumer Attitudes Toward Advertising: Total U.S. Adults vs. Coffee Households by Type of Coffee, 2011 (U.S. adults, percent and index)