Coffee Market Perks up to New Drinkers

A recent survey reports an increase of 1.8 million new daily coffee drinkers over 2001. Seventy-seven 77 percent of U.S. adults, representing 161 million people, drink coffee on a daily or occasional basis, according to Michelle Eichhorn, associate research director at Kraft Foods' Coffee Division. A larger increase of 10.2 million weekly drinkers over 2001 figures was even more remarkable. The National Coffee Association's 2002 drinking trends survey of 2,950 people over the age of 18 was conducted in January by telephone.

The success of the gourmet or specialty coffee roasters and retailers has not been missed by the NCA. "The gourmet coffee sector has helped maintain overall market penetration by bringing in younger consumers, who are more likely to drink coffee in bigger cups and more often out-of-home and outside the traditional breakfast period," said Eichhorn.

Moderator Comment: Identify ways that retailers can use coffee to drive incremental sales of other products.

A few years back, Nabisco (if memory serves) conducted a study that measured the effect of cross-merchandising breath mints at self-serve coffee stations. Simple concept that was easy to execute and total mint sales achieved double digit gains. [George Anderson - Moderator]

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