NATIONAL COFFEE DRINKING TRENDS © 2012 National Coffee Association of U.S.A., Inc. Agenda Background What are people drinking? How is coffee being prepared Country of origin associations 2 Background and Methodology NCA founded in 1911 National Coffee Drinking Trends conducted annually since 1950. Respondent profile: Aged 18 + Drank a beverage other than tap water past-day. Age, gender and region quotas to reflect the population distribution. 3 What are People Drinking? 4 Past-Day Penetration – Trending PERCENT DRINKING 70 Total Coffee 60 Soft Drinks 50 Tap water 40 30 Bottled water (unflavored) 20 Tea 10 Juice 0 2008 2009 2010 2011 2012 NOTE: NCDT 2012 includes a representative sample of Hispanic Americans and African Americans. Comparisons to previous years are directional only. Base: Total sample aged 18+ (n=3042, 2008, n=3118, 2009, n=2740, 2010, n=2,663, 2011, n=2,955, 2012) What did you drink yesterday during each of the following times? This may include any beverage that you drank at home or outside your home and may have come in a cup, can or bottle. 5 Past-Day Beverage Penetration – Long Term Trending 100 PERCENT DRINKING NOTE: NCDT 2012 includes a representative sample of Hispanic Americans and African Americans. Comparisons to previous years are directional only. 60 50 40 30 20 10 1954 1956 1958 1960 1962 1964 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1993 1996 1998 2000 2002 2004 2006 2008 2010 2012 0 Inclusion of an ethnically representative sample 70 Transition from telephone interviews to online 80 Transition from in-person interviews to telephone 90 Base: Total sample aged 18+ (n=2,955, 2012) What did you drink yesterday during each of the following times? This may include any beverage that you drank at home or outside your home and may have come in a cup, can or bottle. 6 6 Penetration of Coffee – Past Day/Week/Year PERCENT DRINKING 60 59 64 73 72 70 68 68 82 84 77 76 78 2008 2009 2010 2011 2012 56 58 NOTE: NCDT 2012 includes a representative sample of Hispanic Americans and African Americans. Comparisons to previous years are directional only. Past day Past week Past year Significantly higher / lower vs. previous year Base: Total sample aged 18+ (n=3042, 2008, n=3118, 2009, n=2740, 2010, n=2,663, 2011, n=2,955, 2012) What did you drink yesterday during each of the following times? This may include any beverage that you drank at home or outside your home and may have come in a cup, can or bottle. 7 Daily Penetration of Coffee By Age PERCENT DRINKING 63 50 63 61 61 65 74 68 69 71 2008 2009 54 53 2010 2011 44 41 34 51 66 76 2012 40 NOTE: NCDT 2012 includes a representative sample of Hispanic Americans and African Americans. Comparisons to previous years are directional only. 31 18-24 25-39 40-59 60+ Significantly higher / lower vs. previous year Base: Total sample aged 18+ 2012 – n=451 (18-24), n=816 (25-39), n=1050 (40-59), n=638 (60+) What did you drink yesterday during each of the following times? This may include any beverage that you drank at home or outside your home and may have come in a cup, can or bottle. 8 Daily Penetration of Coffee by Type NOTE: NCDT 2012 includes a representative sample of Hispanic Americans and African Americans. Comparisons to previous years are directional only. 64 58 56 PERCENT DRINKING 56 54 51 3839 35 32 Combined to Create Gourmet Coffee Beverages 2425 8 67 88 14 11 7 22 1817 2010 9 2011 2012 Total Coffee Traditional Coffee - Total Traditional Coffee - Not Gourmet Instant Decaf Gourmet Coffee Espresso-Based Beverages (Net) Beverages Base: Total sample aged 18+ (n=2,740, 2010, n=2,663, 2011, n=2,955, 2012) What did you drink yesterday during each of the following times? This may include any beverage that you drank at home or outside your home and may have come in a cup, can or bottle. Traditional Coffee Gourmet 9 Daily Penetration of Coffee Types by Age 71 50 PERCENT DRINKING 68 6365 NOTE: NCDT 2012 includes a representative sample of Hispanic Americans and African Americans. Comparisons to previous years are directional only. 59 52 51 41 Combined to Create Gourmet Coffee Beverages 41 36 30 27 28 7789 Total Coffee Traditional Coffee - Total Traditional Coffee - Not Gourmet Instant 13 14 9 8 Decaf 32 25 22 16 12 6 Gourmet Espresso-Based Coffee Beverages Beverages (Net) 26 23 19 13 18-24 25-39 40-59 60+ Traditional coffee Gourmet Significantly higher / lower than all other age groups. Base: Total sample aged 18+ (n=2,955, 2012, 18-24 (n=451), 25-39 (n=816), 40-59 (n=1050), 60+ (n=638)) What did you drink yesterday during each of the following times? This may include any beverage that you drank at home or outside your home and may have come in a cup, can or bottle. 10 Weekly Penetration of Coffee by Gourmet Sub-types NOTE: NCDT 2012 includes a representative sample of Hispanic Americans and African Americans. Comparisons to previous years are directional only. PERCENT DRINKING 44 39 36 31 26 25 22 18 13 11 Gourmet Coffee Beverages (Net) Espresso-Based Cappuccino 2010 2221 11 12 10 13 9 9 Latte Cafe Mocha 2011 13 13 87 Espresso 2012 99 344 Macchiato Traditional Coffee Gourmet Frozen Blended Coffee Base: Total sample aged 18+ (n=2740, 2010, n=2,663, 2011, n=2,955, 2012) What did you drink yesterday during each of the following times? This may include any beverage that you drank at home or outside your home and may have come in a cup, can or bottle. Now we’d like to ask you about some specific types of coffee beverages you may have consumed in the PAST WEEK. Please keep in mind that these may be coffee beverages that you drank at home or bought outside your home and may have come in a cup, can or bottle. In the past week, have you, yourself, drunk... Significantly higher / lower vs. previous year 11 Share of Cups – Gourmet vs. Non-Gourmet SHARE OF COFFEE CONSUMED YESTERDAY 2010 2011 2012 40 37 60 Gourmet 63 46 NOTE: NCDT 2012 includes a representative sample of Hispanic Americans and African Americans. Comparisons to previous years are directional only. Not Gourmet 54 Base: Past-Day Coffee Drinkers Age 18+ (n=1523, 2010, n=1,555, 2011, n=1,814, 2012) Was the [COFFEE/COFFEE BEVERAGE] gourmet coffee - that is, brewed from premium whole bean or ground varieties? 12 Share of Coffee By Location Consumed Share of Past Day Coffee Cups Travelling, 4 Eating Place, 7 Where coffee consumed at work is prepared Work, 12 Other, 2 Other locations, 36 Home, 76 Base: Total coffee consumed (n=5147, 2012) Where did you drink the [COFFEE/COFFEE BEVERAGE]? Where was the [COFFEE/COFFEE BEVERAGE] prepared you had yesterday [TIME OF DAY]? Workplace coffee area, 64 13 How is coffee being prepared? 14 Brewing Systems – Past-Day Penetration PERCENT USING BREWING SYSTEM PAST DAY Drip coffee maker Single cup brewer Instant coffee from can or Jar Espresso machine Ready-to-drink Percolator Single cup stick pack French press/plunger Moka stove top Coffee Strainer 4 43 42 39 7 12 5 5 6 3 3 6 NA 2010 3 4 2011 1 2 2012 2 1 1 2 1 1 2 1 2 NOTE: NCDT 2012 includes a representative NA NA 1 sample of Hispanic Americans and African Americans. Comparisons to previous years are directional only. 18-24 Age – 2012 Data 25-39 40-59 n=451 n=816 n=1050 n=638 22 35 42 48 12 15 11 11 5 5 7 8 5 10 5 2 8 5 4 1 2 1 2 2 1 2 2 1 1 3 1 1 3 2 1 1 2 2 1 2 60+ Significantly higher / lower vs. previous year Base: Total sample (n=2,740 ,2010, n=2,663, 2011, n=2,955, 2012) Thinking of the [COFFEE/COFFEE BEVERAGE] you had yesterday [TIME OF DAY], how was the [COFFEE/COFFEE BEVERAGE] prepared? 15 Single-Cup Brewing Systems – Ownership PERCENT OWN A SINGLE-CUP SYSTEM 10 1 2005 2 3 2006 2007 NA NA NA 7 2008 2009 2010 2011 Base: Total sample aged 18+ (n=2,950, 2005, n=2,954, 2006, n=2,951, 2007, n=2,663, 2011, n=2,955, 2012) In the next six months, how likely are you to buy this type of single-cup brewer for use in your home? 2012 16 Single Cup Brewing Systems – Time Owned PERCENT OF TIME OWNED 29 Less than 6 months 6-12 months 17 1-2 years More than 4 years 31 21 7 16 N/A N/A 4 2007 33 23 24 2-4 Years (Previously More than 2 years) 35 36 2011 2012 27 NOTE: NCDT 2012 includes a representative sample of Hispanic Americans and African Americans. Comparisons to previous years are directional only. Significantly higher / lower vs. previous year Base: Those who have a single cup brewing system at home (n=75 2007, n=173 2011, n=255 2012) Note: More than 4 years was added as an option in 2012 How long have you owned this single-cup brewer? 17 Country of Origin Associations 18 Countries Associated with Producing Coffee Awareness numbers for several key coffee producing countries was lower in 2012 vs. numbers reported previously. This may reflect declines in awareness or differing levels of awareness among the ethnic groups that are now better represented in the 2012 NCDT. 19 Countries Associated with Producing Coffee PERCENT WHO STRONGLY OR SOMEWHAT ASSOCIATE THE COUNTRY WITH PRODUCING COFFEE Vietnam Ethiopia Indonesia Sumatra Kenya Nicaragua Mexico Guatemala Hawaiian Kona Costa Rica Brazil Colombia N/A 14 11 12 26 26 24 23 33 34 30 30 37 36 3032 40 41 37 34 4447 45 44 4850 4145 NOTE: NCDT 2012 includes a representative sample of Hispanic Americans and African Americans. Comparisons to previous years are directional only. 62 63 58 51 6466 5962 2008 2009 2010 2012 80 79 70 77 91 90 85 91 % Based on total sample 18+ - 2008 (n=3042), 2009 (n=3118), 2010 (n=2740), 2012 (n=2955) Thinking of what you, personally, know about each of the following regions or countries, to what extent do you associate each of them with producing coffee? 20 Quality Associations with Coffee Producing Countries Awareness and quality associations are connected, with origins that perform well on awareness also having an advantage in terms of perceived quality. This indicates that the primary opportunity for coffee producing countries is to boost awareness of their countries association with coffee production. 21 Quality Associations with Coffee Producing Countries Vietnam N/A n=355 Mexico n=1335 Nicaragua n=977 Guatemala N=1188 Ethiopia n=665 Kenya n=825 Indonesia Sumatra n=824 Costa Rica n=1679 Brazil n=2010 Hawaiian Kona n=1406 Colombia n=2416 % Based on total sample 18+ aware of each country 2008 (n=3042), 2010 (n~2740) And do you think that each of these countries produces coffee that is… NOTE: NCDT 2012 includes a representative sample of Hispanic Americans and African Americans. Comparisons to previous years are directional only. 74 78 79 78 77 83 80 82 85 83 85 85 84 84 87 89 86 89 90 89 90 90 91 96 95 95 96 97 95 98 98 97 2008 2010 2012 22 Graham R. Hill Director of Knowledge Management National Coffee Association 45 Broadway Suite 1140 New York, NY 10006 212-766-4007 http://www.ncausa.org