Coffee in America DECEMBER 2009 © Experian Information Solutions, Inc. 2009. All rights reserved. Experian and the marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein may be the trademarks of their respective owners. No part of this copyrighted work may be reproduced, modified, or distributed in any form or manner without the prior written permission of Experian Information Solutions, Inc. Coffee in America Coffee plays such an integral part of every day life in America that it may be safe to say that coffee helps the United States go round. In fact, fully 60% of all U.S. households use either whole or ground coffee beans at home. Experian Simmons extensively reviewed the American coffee drinker for this report which features detailed insights into the coffee-drinking American. In addition, we compare the patrons of Dunkin’ Donuts and Starbucks, the leading players in the battle for brew. Source: Experian Simmons National Consumer Study Spring 2009 Full-Year © Experian Information Solutions, Inc. 2009. All rights reserved. www.ExperianSimmons.com | 212.471.2850 Coffee in the Home The average U.S. household that uses whole or ground coffee consumes 4.2 cups per day. In total that’s about 280.5 million cups of coffee consumed at home by Americans each day or about 102 billion cups per year. Among households that use coffee, 89% stock regular coffee and 46% stock decaf.* Among households that use coffee, 84% use pre-ground coffee and 26% use whole bean coffee at least some of the time.* *Some coffee using households use both. © Experian Information Solutions, Inc. 2009. All rights reserved. www.ExperianSimmons.com | 212.471.2850 Instant and Flavored Coffee Over a quarter of households (27%) stock instant coffee. Sixteen percent of households use instant flavored coffee. The most commonly used flavors among instant flavored coffee drinkers are: 42% 34% Vanilla Hazelnut 32% Swiss Mocha/Mocha © Experian Information Solutions, Inc. 2009. All rights reserved. www.ExperianSimmons.com | 212.471.2850 Older Americans More Likely to Drink Coffee Fifty-seven percent of adults ages 18-24 live in households that use coffee, but 25 to 34 year olds are the least likely to stock coffee in their cupboards with only 54% reporting they use whole or ground bean coffee at home. 69% 68% 65% 57% 57% 54% 18-24 25-34 35-44 45-54 55-64 % of adults who live in homes that use coffee by age © Experian Information Solutions, Inc. 2009. All rights reserved. www.ExperianSimmons.com | 212.471.2850 65+ Coffee Use Increases with Household Income Seventy percent of Americans who report annual household incomes of $150,000+ drink coffee compared with 54% of those with household income less than $25,000. 70% 66% 60% 62% 54% Less than $25K $25K$49,999 $50K$99,999 $100K$149,999 $150K+ % of adults who live in homes that use coffee by household income © Experian Information Solutions, Inc. 2009. All rights reserved. www.ExperianSimmons.com | 212.471.2850 Franchised Coffee Chains The following slides compare Dunkin’ Donuts and Starbucks patrons and determines if there is coffee brand loyalty among American consumers. © Experian Information Solutions, Inc. 2009. All rights reserved. www.ExperianSimmons.com | 212.471.2850 Dunkin’ Donuts vs. Starbucks Consumers Dunkin’ Donuts Starbucks 11% of American adults go to DD 13% of American adults go to Starbucks Between 9.15.08 and 9.15.09 the share of DD customers who go there 6+ times a month is up 11%* Between 9.15.08 and 9.15.09 the share of Starbucks customers who go there 6+ times a month is down 22% DD consumers are 41% more likely than the average adult to be registered Independents and 9% less likely to be registered Republicans Starbucks consumers are 11% more likely to be registered Independents and 11% more likely to be registered Republicans *Source: Simmons DataStream (preliminary estimates) © Experian Information Solutions, Inc. 2009. All rights reserved. www.ExperianSimmons.com | 212.471.2850 Coffee Drinkers Are Coffee Drinkers A majority of coffee-drinking Americans are loyal to their franchise. However, there are a considerable number of Dunkin’ Donuts and Starbucks consumers who jump between coffee houses. 33% of DD consumers also go to Starbucks Dunkin’ Donuts Starbucks 29% of Starbucks consumers also go to DD © Experian Information Solutions, Inc. 2009. All rights reserved. www.ExperianSimmons.com | 212.471.2850 How Often Americans Order Their Coffee The majority of both Dunkin’ Donuts and Starbucks customers visit each chain between one and five times in a typical month. Number of times patrons visit their respective coffee chain in 30 days 6% 6% 10% 15% 64% 63% 14+ 6 - 13 times 20% 16% Dunkin' Donuts patrons 1 - 5 times Less than once Starbucks patrons © Experian Information Solutions, Inc. 2009. All rights reserved. www.ExperianSimmons.com | 212.471.2850 Thank You! For more information, please email SimmonsMarketing@experian.com or call 212.471.2850 © Experian Information Solutions, Inc. 2009. All rights reserved. Experian and the marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein may be the trademarks of their respective owners. No part of this copyrighted work may be reproduced, modified, or distributed in any form or manner without the prior written permission of Experian Information Solutions, Inc.