Coffee Consumer Research
Retail & Foodservice Channels
Republic of Ireland Market
OI Research
September 2011
Why we did it?
Why?
•
Bord Bia is looking to assist its Irish Fresh Coffee clients to identify opportunities to boost
volume sales and increase usage frequency among Irish consumers.
•
A key aim is to gain greater understanding of current consumer purchasing behaviour in
both the retail and food service channels.
•
The main Irish Coffee producers identified key objectives across both channels, and these,
along with the need to identify potential NPD opportunities formed the basis for this
research project.
•
The following methodologies were used in order to answer all key objectives with the
bulk of this report using the figures from the quantitative study.
Desk Research
Qualitative
• Mintel Reports
• Kantar data
• Previous Pricing research &
Bord Bia Tea category
• Web trawl
• 4 focus groups with regular
coffee buyers in home and
out of home (2 x Dublin, 2 x
Cork)
• Pre-tasking of respondents
to understand various
aspects of usage, frequency
and innovations.
•
Quantitative
• Nationally representative
online survey to n=1,000
regular buyers of fresh
coffee in retail or regular
buyers out of home.
All research was conducted between July and September 2011
Sample Profile - I
(Base: All Respondents, n=1002)
Gender
Social
Grade
Age
Dependent
Kids
Region
18-24
Dublin
Male
25-34
ABC1
Rest of
Leinster
35-44
45-54
C2DEF
Female
55+
Yes
Munster
Connaught/
Ulster
The demographic profile above reflects a robust representation of both Retail and Out
of home Fresh Coffee buyers.
No
Sample Profile II– Lifestage
(Base: All Respondents, n=1002)
Young & Free
Early Settlers
Young Jugglers
18-34, No kids
No mortgage
18-34, Mortgage,
No Kids
Kids, Oldest
0-6 years
Young & Free
Early
Settlers
Young
Jugglers
Established
Families
Oldest kids
6-15 years
Est.
Families
Empty
Nesters
Mature Families
Oldest Child 16+
Middle Aged
No Kids
Mature
Families
Empty Nesters
Mid Age No Kids
55+
35-54, No Kids
4
The lifestage segmentation provides a useful alternative view for profiling purpose
RETAIL SPECIFIC OBJECTIVES
Retail Specific Objectives
• Performance of PL and Discounter brands
• Behavioural changes over time
• Drivers of purchase & Importance of Ethics
• Importance of "Irishness" and Love Irish Food campaign
• Coffee machines/ apparatus usage in home
Discounter Qualitative Feedback
•
Regular coffee drinkers enjoy exploring new varieties and brands of
coffee.
•
•
Surprisingly high level of trial of Aldi/Lidl brands
Packaging and brands appear premium and exotic.
– Usually French or Italian
– Benefiting from Halo effect of European coffee cultures
•
Strong endorsement for the quality of Lidl coffee especially
amongst those that have trialled.
•
Leading to a high level of repeat purchase given value for money.
•
Rather than rejection of Lidl brands, it’s a brand in its infancy, but
those that buy it strongly emphasise its strength of flavour and its
good price point.
•
A challenge for Irish brands in the current market going forward.
Attitudes Towards Fresh Coffee
(Base: All 3 Monthly + Fresh Coffee Buyers In Retail, n=893)
Strongly Somewhat
Disagree Disagree
Neither
Somewhat
Agree
Strongly
Agree
Any
Agree
Q12.4 Coffee is one of life's pleasures
74
Q12.8 I find coffee is generally expensive
62
Q12.3 I love to try new types of Coffee
62
Q12.9 I would like to experiment more at
home with different coffee flavours
Q12.10 The quality of coffee I buy is
more important than the price I pay
Q12.6 I would love to
know more about coffee
61
58
55
Q12.5 Coffee is an unhealthy choice
37
Q12.1 Coffee is a luxury for me
32
Q12.7 I do not have a lot of confidence
when it comes to buying coffee
24
Q12.2 All Coffee brands are much the same
19
The threat from PL brands is further witnessed through consumers endorsement of experimentation
with coffee types.
Retail Specific Objectives
• Performance of PL and Discounter brands
• Behavioural changes over time
• Drivers of purchase & Importance of Ethics
• Importance of "Irishness" and Love Irish Food campaign
• Coffee machines/ apparatus usage in home
Recent Shifts In At Home Coffee Drinking Behaviour
(Base: All 3 Monthly + Fresh Coffee Buyers In Retail, n=893)
Q.11a) Would you say that you are drinking fresh coffee at home more often,
less often or about the same as you did this time last year?
Total
Less
Often
Don’t
Know
More
Often
18-34
35-54
55+
More often
38%
24%
14%
About the same
51%
64%
75%
Less often
9%
11%
10%
Don't know
2%
1%
1%
About the same
1 in 4 feel they are drinking more coffee at home than 12 months ago. Tends to reside in the younger
age groups. A further 1 in 9 feel they are drinking it less often… equally distributed across age.
Reasons For Drinking More Fresh Coffee At Home
(Base: All 3 Monthly + Fresh Coffee Buyers In Retail, n=893)
Q.11a) Would you say that you are drinking fresh
coffee at home more often, less often or about
the same as you did this time last year?
Q.11b) Which of these reasons best describes why are
you drinking coffee more often in your home?
Total
Less
Often
Don’t
Know
46%
Staying in more
More
Often
Like fresh coffee more
at home in general
38%
Having friends/family
around more
About the same
28%
18-34
35-54
55+
50%
44%
41%
26%
41%
73%
33%
16%
32%
Other people in
home drink it
19%
14%
17%
32%
Have more time
17%
16%
17%
9%
11%
9%
5%
27%
8%
15%
5%
0%
Coffee is more
affordable nowadays
Other
Key factor for higher consumption resides with staying in more and an increase in at home
entertaining… notable among the more family life-stages.
Reasons For Drinking Less Fresh Coffee At Home
(Base: All 3 Monthly + Fresh Coffee Buyers In Retail, n=893)
Q.11a) Would you say that you are drinking fresh
coffee at home more often, less often or about
the same as you did this time last year?
Q.11b) Which of these reasons best describes why are
you drinking coffee more often in your home?
Total
18-34
35-54
55+
40%
41%
50%
31%
48%
32%
23%
14%
14%
8%
9%
5%
14%
Others in house
have cut down 7%
3%
5%
18%
14%
11%
0%
Becoming more
health conscious
About the same
Less
Often
43%
39%
Is too expensive
Don’t
Know
Too busy/not
enough time
Friends coming round less
More
Often
Other
17%
10%
Its all about health concerns and the perceived cost involved for the 1 in 9 who report to drinking
less fresh coffee at home nowadays.
Attitudes Towards Fresh Coffee
(Base: All 3 Monthly + Fresh Coffee Buyers In Retail, n=893)
Strongly Somewhat
Disagree Disagree
Neither
Somewhat
Agree
Strongly
Agree
Any
Agree
Q12.4 Coffee is one of life's pleasures
74
Q12.8 I find coffee is generally expensive
62
Q12.3 I love to try new types of Coffee
62
Q12.9 I would like to experiment more at
home with different coffee flavours
Q12.10 The quality of coffee I buy is
more important than the price I pay
Q12.6 I would love to
know more about coffee
61
58
55
Q12.5 Coffee is an unhealthy choice
37
Q12.1 Coffee is a luxury for me
32
Q12.7 I do not have a lot of confidence
when it comes to buying coffee
24
Q12.2 All Coffee brands are much the same
19
Expense and health considerations do register among a significant proportion of buyers.
Retail Specific Objectives
• Performance of PL and Discounter brands
• Behavioural changes over time
• Drivers of purchase & Importance of Ethics
• Importance of "Irishness" and Love Irish Food campaign
• Coffee machines/ apparatus usage in home
Drivers of choice for Fresh Coffee - Retail
(Base: All 3 Monthly + Fresh Coffee Buyers In Retail, n=893)
Any Important
Least
Most
Scaled
The strength of coffee (i.e. 1-5)
3%
Promotions/special offers
3%
11%
8%
67
Is fair-trade sourced
3%
10%
7%
65
The lowest price
The origin of coffee
(i.e. Columbian/Java etc)
What others in my household drink
12%
14%
2%
55
5% 6%
1%
53
6% 9%
3%
The range of varieties/flavours available
6% 7%
1%
53
Have a quality mark or logo
4% 4%
0%
51
How it is packaged
27%
Diff
100
24%
57
1%
-23%
Rainforest Alliance Certified
6% 2%
-4%
Environmental considerations
2% 1%
-1%
Variety/Something new
9% 2%
-7%
37
An Irish brand
10% 3%
-7%
37
Health considerations
7% 3%
-4%
24%
4
43
49
43
The strength of coffee is the over-riding key driver of choice. However the price attribute appears to
split buyers. But Fair Trade resides strongly, despite a ‘mainstream’ confusion over exactly what it is.
Attitudes Towards Fresh Coffee
(Base: All 3 Monthly + Fresh Coffee Buyers In Retail, n=893)
Strongly Somewhat
Disagree Disagree
Neither
Somewhat
Agree
Strongly
Agree
Any
Agree
Q12.4 Coffee is one of life's pleasures
74
Q12.8 I find coffee is generally expensive
62
Q12.3 I love to try new types of Coffee
62
Q12.9 I would like to experiment more at
home with different coffee flavours
Q12.10 The quality of coffee I buy is
more important than the price I pay
Q12.6 I would love to
know more about coffee
61
58
55
Q12.5 Coffee is an unhealthy choice
37
Q12.1 Coffee is a luxury for me
32
Q12.7 I do not have a lot of confidence
when it comes to buying coffee
24
Q12.2 All Coffee brands are much the same
19
In line with drivers, attitudinally a majority of buyers endorse quality over price.
Retail Specific Objectives
• Performance of PL and Discounter brands
• Behavioural changes over time
• Drivers of purchase & Importance of Ethics
• Importance of "Irishness" and Love Irish Food campaign
• Coffee machines/ apparatus usage in home
Love Irish Food
(Base: Total Sample, n=1,002)
Q.27a) Are you aware or have you ever
heard anything about the “Love
Irish Food” campaign?
Q.27b) And how important is the “Love Irish Food”
campaign when considering which Coffee
brand to purchase?
Unsure
Total
Very important
9%
Yes
No
% Any
Important
Quite important
% Yes by
Key groups
Male
52%
Female
64%
18-34
61%
35-54
59%
55+
50%
Neither
Not really important
Not at all important
Don't Know
32%
23%
Total
41
Male
36
Female
44
18-34
36
35-54
44
55+
44
26%
8%
2%
1 in 10 feel the campaign is very important regarding brand consideration
Retail Specific Objectives
• Performance of PL and Discounter brands
• Behavioural changes over time
• Drivers of purchase & Importance of Ethics
• Importance of "Irishness" and Love Irish Food campaign
• Coffee machines/apparatus usage in home
Fresh Coffee Equipment In Home And Regularly Used
(Base: All 3 Monthly + Fresh Coffee Buyers In Retail, n=893)
Q.9a) Which of the following items for making Fresh Coffee do you have in your home?
Q.9b Which of these that you have in your home do you use regularly?
Use
Regularly
Have In
Home
18-34
35-54
55+
Cafetiere/Plunger
43
52
59
Filter Jug
31
21
20
Percolator
21
21
26
Plug in
Espresso machine
13
11
9
Oven to Espresso Pot
10
9
5
8
8
2
Pod Machine
More niche coffee apparatus appear to have greater level of ownership among the younger lifestages.
FOOD SERVICE SPECIFIC OBJECTIVES
Food Service Specific Objectives
• Overview of coffee types purchased out of home
• Drivers of location choice
• Coffee roasting and beans
• Price paid out of home for coffee types by location
• Education and influence of coffee shop
Coffee Type Penetration Out Of Home
(Base: All 2 Weekly + Out Of Home Coffee Drinkers, n=882)
Q.15 Thinking now about drinking coffee outside of home, which of these types of fresh coffee do you buy regularly?
Q.16 And if these types of fresh coffee, which do you buy most often when you are out of home?
Most
Often
Buy
Regularly
Most Often Type Purchased By Age Groups
18-34
35-54
55+
Cappuccino
32%
33%
28%
Latte
29%
18%
17%
Americano
21%
25%
25%
Espresso
8%
7%
9%
Filter coffee
7%
11%
17%
Decaffeinated
1%
2%
3%
Other
3%
3%
1%
Overall Cappuccino reported as most frequently purchased coffee type out of
home… consistent across age groups.
Coffee Location Penetration Out Of Home
(Base: All 2 Weekly + Out Of Home Coffee Drinkers, n=882)
Most
Often
Regular
Basis
Most Often Location By Key Groups
Male Female ABC1 C 2 DEF 18-34
35-54
55+
35%
54%
46%
43%
36%
44%
63%
18%
18%
18%
18%
28%
17%
5%
Restaurant
6%
5%
6%
5%
4%
3%
13%
Garage Forecourt
16%
10%
11%
16%
14%
16%
4%
Convenience Store
12%
5%
7%
11%
10%
9%
5%
Hotel
3%
2%
3%
1%
1%
2%
6%
At work
8%
5%
8%
4%
8%
7%
4%
Other
2%
0%
2%
1%
1%
2%
2%
Café/coffee
shop (sit in)
Café/coffee
shop (Takeaway)
Sit in coffee shop most prevalent location out of home. General convenience
outlets much stronger traction among 18-54’s of lower social grade.
Food Service Specific Objectives
• Overview of coffee types purchased out of home
• Drivers of location choice
• Coffee roasting and beans
• Price paid out of home for coffee types by location
• Education and influence of coffee shop
Drivers Of Location Choice For Coffee Out Of Home
(Base: All 2 Weekly + Out Of Home Coffee Drinkers, n=882)
Any Important
Least
Most
Diff
Value for money
16%
Type of coffee served
15%
The location/how convenient it is
13%
Expertise in coffee making
8%
Speed of service
1%
Interiors/comfort of the outlet
2%
Ambience/sociability
3%
Brand of coffee served
6%
Range of products available
0%
Loyalty card
-9%
Ethically sourced coffee
-4%
Free WIFI Available
-20%
Free enticements (e.g. books, newspaper)
-13%
It is family friendly
-10%
As part of a meal deal
-9%
Scaled
Key drivers of choice around value, type of coffee and convenience. Other important drivers reside
around the quality side (expertise and brand served).
Most Important Drivers Of Location Choice By Age
Group
(Base: All 2 Weekly + Out Of Home Coffee Drinkers, n=882)
18-34
35-54
55+
Value for money
24%
18%
12%
Type of coffee served
16%
17%
23%
The location/how convenient it is
15%
18%
16%
Brand of coffee served
11%
9%
9%
Expertise in coffee making
8%
14%
14%
Speed of service
6%
6%
5%
Interiors/comfort of the outlet
5%
5%
8%
Ambience/sociability
5%
5%
11%
Range of products available
3%
2%
2%
It is family friendly
1%
3%
1%
Free enticements (e.g. books, newspaper)
1%
1%
0%
Loyalty card
1%
0%
0%
Ethically sourced coffee
1%
1%
2%
Free WIFI Available
1%
1%
0%
As part of a meal deal
1%
0%
1%
Convenience consistently important to all ages, with value more concerning for 18-34’s while again
the more quality based attributes of type/ expertise/ interiors resonate stronger with older drinkers.
Food Service Specific Objectives
• Overview of coffee types purchased out of home
• Drivers of location choice
• Coffee roasting and beans
• Price paid out of home for coffee types by location
• Education and influence of coffee shop
Importance of Coffee Roasting
(Base: All 2 Weekly + Out Of Home Coffee Drinkers, n=882)
Q.19a How the coffee is roasted is important to me
Total
Strongly Agree
Slightly Agree
% Agree
Total
43%
Male
45%
Female
ABC1
Neither
Slightly Disagree
Strongly Disagree
Don't Know
C2DEF
41%
46%
38%
18-34
43%
35-54
43%
55+
43%
Overall, strong endorsement of the importance of how the coffee is roasted…
consistent across age groups.
Aware of bean type and interest in learning more
(Base: All 2 Weekly + Out Of Home Coffee Drinkers, n=882)
Q.19b Which, if any, of the following types of
coffee beans have you ever heard of?
Q.19c To what extent are you interested in learning
more about what type of coffee bean is
served when buying coffee out of home?
Total
Interest
Very interested
19%
Fairly interested
43%
Don't know
Neither
18%
None of these
Not very interested
14%
Not at all interested
Don't Know
5%
1%
Arabica
Robusta
Kona
Outside of Arabica, there is little recall of other coffee bean types, but there is a
high level of interest in learning more about this.
Attitudes To Coffee Drinking Out Of Home
(Base: All 2 Weekly + Out Of Home Coffee Drinkers, n=882)
Q.19d To what extent to you agree or disagree with each of the following
statements other people have made about drinking Coffee out of home?
% Any Agree
Strongly Somewhat
SomewhatStrongly
Disagree DisagreeNeither Agree Agree
Don’t
Know
Total
18-34
35-54
55+
Q19d.1 I prefer the coffee made by
a barista to an automatic machine
8
54%
57%
54%
47%
Q19d.2 Ireland has a lot to learn
from other European countries on
how to deliver coffee out of home
4
67%
61%
68%
75%
Q19d.3 I would like to know
more about the coffee being
served to me in cafes
1
64%
61%
66%
63%
Q19d.4 I find it difficult to replicate
the same coffee experience at
home that I get out of home
2
60%
58%
59%
64%
Q19d.5 The quality of coffee I buy is
more important than the
price I pay Outside of home
1
57%
49%
58%
67%
Further referenced with the high endorsement of wanted to know more about
how coffee is served in cafes.
Food Service Specific Objectives
• Overview of coffee types purchased out of home
• Drivers of location choice
• Coffee roasting and beans
• Price paid out of home for coffee types by location
• Education and influence of coffee shop
Attitudes To Coffee Drinking Out Of Home
(Base: All 2 Weekly + Out Of Home Coffee Drinkers, n=882)
Q.19d To what extent to you agree or disagree with each of the following
statements other people have made about drinking Coffee out of home?
% Any Agree
Strongly Somewhat
SomewhatStrongly
Disagree DisagreeNeither Agree Agree
Don’t
Know
Total
18-34
35-54
55+
Q19d.1 I prefer the coffee made by
a barista to an automatic machine
8
54%
57%
54%
47%
Q19d.2 Ireland has a lot to learn
from other European countries on
how to deliver coffee out of home
4
67%
61%
68%
75%
Q19d.3 I would like to know
more about the coffee being
served to me in cafes
1
64%
61%
66%
63%
Q19d.4 I find it difficult to replicate
the same coffee experience at
home that I get out of home
2
60%
58%
59%
64%
Q19d.5 The quality of coffee I buy is
more important than the
price I pay Outside of home
1
57%
49%
58%
67%
Although price is a key concern to some, in general the quality is more important
to the majority.
Price Generally Paid For Coffee Type At Location Type
(Base: All 2 Weekly + Out Of Home Coffee Drinkers, n=882)
Average
Americano Café Sit in
Americano Café Takeaway
Americano Convenience store*
Americano Garage Forecourt
Espresso Café Sit in
Espresso Café Takeaway*
Espresso Convenience store*
Espresso Garage Forecourt*
Cappuccino Café Sit in
Cappuccino Café Takeaway
Cappuccino Convenience store
Cappuccino Garage Forecourt
Latte Café Sit in
Latte Café Takeaway
Latte Convenience store*
Latte Garage Forecourt
Filter Café Sit in
Filter Café Takeaway*
Filter Convenience store*
Filter Garage Forecourt*
2.49
2.47
1.99
2.18
2.39
2.97
2.44
2.08
2.87
2.83
2.64
2.27
2.81
2.63
2.63
2.13
2.59
2.48
2.49
2.18
%ile 25 Median %ile 75 Count
2.20
2.50
2.80
99
2.00
1.80
1.90
2.00
2.50
1.50
2.00
2.50
2.50
2.00
2.00
2.50
2.00
2.00
2.00
2.00
2.00
2.00
1.70
2.50
2.00
2.00
2.40
2.80
2.13
2.00
2.80
2.80
2.50
2.00
2.80
2.65
2.30
2.00
2.50
2.25
2.50
1.98
2.95
2.20
2.50
2.80
3.50
3.38
2.00
3.00
3.10
3.20
2.55
3.00
3.00
3.25
2.50
3.00
3.00
3.00
2.00
35
13
28
32
12
5
7
130
51
30
30
76
49
12
28
38
10
11
18
* Caution – Small Base
The relative differential exists in the consumer mindset between the various coffee types and outlet
Food Service Specific Objectives
• Overview of coffee types purchased out of home
• Drivers of location choice
• Coffee roasting and beans
• Price paid out of home for coffee types by location
• Education and influence of coffee shop
Perceived Education Around Coffee And Interest In
Learning More
(Base: All 2 Weekly + Out Of Home Coffee Drinkers, n=882)
Q.24 To what extent do you feel you
are educated about coffee?
Q.25 To what extent are you interested
in learning more about coffee?
Total
Total
Very interested
19%
Not educated at all
% Any Interested in learning more by
perceived current coffee education groups
Fairly interested
45%
Educated a little
Educated a lot
Don't' know
Don't' know
Neither
15%
Not very interested
14%
Not at all interested
5%
2%
Not educated at all
56
Educated a little
70
Educated a lot
79
With only 1 in 20 feeling they are very educated in coffee and a general interest in
learning more – opportunity for Irish brands to introduce education to consumers.
Channels For Learning More About Coffee
(Base: All 2 Weekly + Out Of Home Coffee Drinkers, n=882)
Q.26 Which of the following ways would you be interested in finding out more about coffee?
Total
18-34
35-54
55+
Through leaflets in store
64%
62%
57%
Through logging onto a website
(e.g. the Bord Bia website)
29%
39%
41%
An interactive touchscreen
device in your supermarket
30%
28%
30%
Via an APP for a SmartPhone
30%
22%
8%
Attending a social
group about coffee
12%
15%
23%
Other
5%
4%
4%
In store appears the key opportunity to engage consumers. Website communication also
potentially productive, while Smartphone app appealing more to the younger audience.
Coffee Consumer Research
Retail & Foodservice Channels
Republic of Ireland Market
OI Research
September 2011