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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