Business Overview
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U.S. Retail Coffee Market
Folgers • Dunkin’ Donuts • Millstone
Sales and profits within our U.S. Retail
Folgers core products continue to be a popular choice across
the U.S. as families brew and enjoy more coffee at home. Consumers
believe The Best Part of Wakin’ Up starts with a freshly brewed,
hot cup of Folgers coffee. That’s why we continue to focus our
investments and efforts on growing Folgers core products and
ensuring the right marketing mix, distribution, and packaging.
We also continue to strengthen our Folgers brand equity through
our new television advertising, promotions, digital, and in-store
marketing initiatives.
Dunkin’ Donuts coffee is the fastest growing brand in the
Company’s portfolio. More and more consumers are turning
toward Dunkin’ Donuts coffee — including our bold tasting
Dunkin’ Turbo variety — which was successfully launched this
past year and will continue to build our presence and support
our success in the growing gourmet category.
We also entered into a manufacturing and distribution agreement with Green Mountain Coffee Roasters, Inc. The agreement
will enable consumers to enjoy our Folgers Gourmet Selections and
Coffee Market segment grew by 99 percent and 129 percent, respectively, in
fiscal 2010.
We are the clear market leader in the
coffee category and the momentum of
the business is strong. Since the close
of the Folgers transaction in November
2008, we have realized the first full year of synergies, completed all
of the integration milestones, and fully integrated the business into
the Company. Our results from Folgers and Dunkin’ Donuts coffee
exceeded the expectations we had for the business at the time
of the acquisition.
In fiscal 2010, we produced 11 new television commercials to
support the coffee business and made a significant marketing
investment in its brands. Consistent with our strategic rationale for
the acquisition, Folgers coffee has created scale and fueled growth
across our entire portfolio of brands as we have capitalized on
multi-brand marketing and merchandising opportunities.
Frozen Caramel Coffee (recipe on page 13)
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