A report by Bharat Book Bureau, market research information aggregator, says that the coffee marketers and foodservice operators moved in the opposite direction during the 2009 recession in US, digging out of the trench of 2008 with a variety of strategies designed to capitalise on the fact that even upscale coffee is a relatively thrifty luxury that offers comfort during stressful times.
Two success stories were the rebound of Starbucks on the foodservice side and the revitalisation of the former P&G retail coffee portfolio by JM Smucker.
Although the era when the coffee market grew effortlessly through premiumisation may have ended, such upscale trends as the shifts towards specialty coffee beverages, gourmet beans and ethical consumerism are still clearly in force. What’s more, there’s ample opportunity for companies to capitalise on such trends as the economy recovers—not by ignoring the tougher times or reversing strategy, but by crafting an image that’s both upscale and responsive to consumers’ stronger-than-ever demand for value.
‘Coffee and Ready-to-Drink Coffee in the US: The Market and Opportunities in Retail and Foodservice’, sixth edition, says that $47.5 billion market, examining both the retail and foodservice sides of the business as well as the growing overlap of the two. On the retail side, the report analyses coffee sold for future brewing — beans and ground, and instant — as well as RTD coffee drinks (à la Frappuccinos), as well as coffee enthusiast’s new brewing method of choice: single-serve (pod) coffee. Positive upscaling trends that slowed during the weak economy will gradually regain the upper hand, the report predicts, resulting in increasing annual percentage sales gains lifting sales by 23 per cent by 2014 to reach $58.3 billion. The report examines sales across the entire retail universe, using Information Resources Inc InfoScan Review data and SPINSscan data to extensively chart performance, market composition and marketer/brand performance for the mass-market and natural supermarket channels.
Comprehensive coverage is also devoted to the vast foodservice market for coffee, including the expansion of specialty drinks at such mass-market venues as McDonalds, Dunkin’ Donuts and, most recently, Burger King with its planned 2010 roll-out of Starbucks’ Seattle’s Best. Supplementing the market tracking and forecasting of previous editions, the study pays special attention to trends in new product development, inclusive of valuable global perspective; details competitive opportunities, including via in-depth company profiles; explores winning marketing methods including Web-based activity; and provides detailed consumer profiling using Experian Simmons data for 2009.
— IndiaRetailing Bureau
