Coffee And Tea Market: 2001
Sep 1, 2001
442 Pages - Pub ID: LA419171
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  1. Executive Summary
    Scope and Methodology
    • Market Parameters
    • Study Methodology

    The Coffee/Tea Overall Market
    • Overall Market Size and Growth
    • Coffee vs. Tea Share
    • Factors in Future Growth
    • The Major Marketers
    • Little Coffee/Tea Crossover
    • Starbucks a Volatile Factor
    • C/T Product Trends
    • Coffee/Tea at Retail
    • A Note on Coffee (and Tea) Cafes

    The Coffee Market
    • Four Major Product Types
    • Mass vs. Specialty Coffee
    • Coffee Market Size and Growth
    • Specialty Coffee Driving Market
    • Ground Regular the Leading Product Type
    • But Whole Bean Is Gaining
    • Factors in Future Growth
    • Figure 1-1: Share of Coffee Dollar Sales in FDM Outlets: By Product Type, 2000 (percent): 5 types
    • Mass Coffee Controlled by P&G and PM/Kraft
    • Second Tier in Flux
    • Specialty Coffee: Major Marketers
    • The Competitive Situation
    • New Product Trends
    • Consumer Ad Expenditures
    • Retail: Mass vs. Specialty Stores
    • Food Stores Lead in Mass Outlets
    • Coffee/Tea Stores Lead in Specialty Outlets
    • The Consumer

    The Tea Market
    • Five Major Product Segments
    • Tea Market Size and Growth
    • RTD the Dominant Segment
    • Growth by Product Segment
    • Figure 1-2: U.S. Tea Market: Estimated Dollar Share by Product Category, 2000 (percent): 5 categories
    • Factors in Future Growth
    • Lipton the Dominant Marketer
    • Nestlé No. 2
    • Other Major Tea Marketers
    • The Competitive Situation
    • New Product Trends
    • Consumer Advertising Expenditures
    • Retail: Estimated Share of Sales by Segment and Outlet
  2. The Overall Market
    Coffee/Tea Overview
    • Scope of Study: The At-Home Retail Market
    • Excludes Foodservice/Institutional/Commercial
    • Focus Exceptions
    • Products Definitively Outside Scope

    Coffee/Tea Classifications
    • Coffee: Four Product Types
    • Coffee Packaging
    • Coffee Niche Products
    • Tea: Five Product Types
    • Tea Packaging
    • Tea Niche Products
    • Coffee/Tea Similarities: Natural Plants
    • Coffee/Tea Similarities: Product Types
    • Coffee/Tea Differences: Natural Plants
    • Coffee/Tea Differences: Product Types

    Historical Overview
    • New to Western World
    • Coffee and Tea in the USA

    Market Size, Growth, and Composition
    • Special Note: Guesswork Estimates
    • Retail Coffee/Tea Market at $11 Billion
    • Table 2-1: The U.S. Retail Coffee and Tea Market: Estimated Dollar Sales, 1996-2000 (dollars): coffee, tea
    • Coffee the Sluggard, Tea the Star
    • Coffee Share Dominant, but Tea Is Rising
    • Coffee/Tea Regionality
    • Figure 2-1: U.S. Retail Coffee and Tea Market: Dollar Share by Product, 1996-2000 (percent): coffee, tea

    Factors in Future Growth
    • Soft Drinks Rule the Beverage Universe
    • Coffee and Milk
    • Bottled Water and Tea
    • Table 2-2: U.S. Per Capita Consumption of Selected Beverages, 1980-1999 (gallons): five beverage categories
    • Beverage Trends: 1995-1999
    • Table 2-3: U.S. Per Capita Consumption of Selected Beverages, 1995-1999 (gallons): five beverage categories
    • Into 2001: Opportunities for Coffee/Tea
    • Age Demographics in Future Growth
    • What Will the Aging Baby Boomers Do?
    • Gen X and Y Embracing Coffee
    • Aging Trends Favor Coffee/Tea
    • American Beverage Attribute Preferences
    • Coffee Likely to Hold Its Own
    • Tea Faces Formidable Obstacles
    • But Health Attributes Promising

    Coffee/Tea Market: Projected Growth
    • Moderate Growth Profile Forecast
    • Table 2-4: U.S. Coffee and Tea Market: Projected Retail Sales, 2000-2005 (dollars): overall

    The Marketers
    • Little Coffee/Tea Crossover
    • Starbucks a Volatile Factor
    • C/T Product Trends
    • Consumer Advertising Expenditures

    Distribution/Retail
    • Coffee/Tea Distribution: Follows Standard Scheme
    • Distributors Play Important Role
    • Coffee/Tea at Retail
    • A Note on Coffee (and Tea) Cafes
  3. The Coffee Market
    Coffee Market Parameters
    • Market Includes Coffee Sold at Retail for Home Consumption
    • Most Away-From-Home Sales Not Covered
    • Two Gray Areas
    • The Coffee "Retail Market"
    • Market Excludes Non-Roasted-Bean Products

    Coffee: Overview
    • Botany/Chemistry
    • Geography
    • Climate and Environment
    • Two Commercial Species
    • Arabica
    • Robusta

    Coffee History
    • Mythic Origins
    • An Arab Secret for Nearly a Millennium
    • Modern History Begins with the Ottomans
    • Coffee Drinking Spreads to Europe
    • The Dutch Break Ottoman Monopoly
    • By Crook, Coffee Transplanted to Caribbean
    • By Hook, Coffee Blossoms in Brazil
    • Coffee Goes Global

    Coffee Production
    • Growing and Harvesting
    • Processing: Wet and Dry Methods
    • Sorting, Grading, Naming, and Packing
    • Blending
    • Roasting
    • Grinding
    • Packaging
    • Three Value-Added Variations
    • Instant/Soluble Coffee
    • Decaffeinated Coffee
    • Flavored Coffee

    Coffee Classifications
    • Four Major Product Types
    • Ground Coffee
    • A Note on Ground Specialty
    • Instant Coffee
    • Commercial Whole Bean Coffee
    • Specialty Coffee
    • Retail Product Classifications: Mass-Market vs. Specialty Coffee

    Overall Retail Coffee Market: Size, Growth, and Composition
    • Difficulties in Estimation
    • NCA Says Overall Coffee Market at $18.5 Billion
    • Calculating Mass-Retail Coffee Sales
    • Calculating Specialty Coffee Sales
    • Methodology for Specialty Calculus
    • At-Home Retail Coffee Market at $6.9 Billion in 2000
    • At-Home Pound Volume Near 1.2 Billion
    • Table 3-1: U.S. Retail Coffee Market: Estimated Dollar Sales and Pound Volume, 1996-2000 (dollars, pounds)
    • At-Home Sales: Mass vs. Specialty Coffee
    • Table 3-2: U.S. Retail Coffee Market: Estimated Dollar Sales and Pound Volume of Mass-Market and Specialty Coffee, 1996-2000 (dollars, pounds): mass-market coffee, specialty coffee
    • Specialty Gains Great in Dollar Share, Good in Pound Share
    • Table 3-3: U.S. Retail Coffee Market Share of Dollar Sales: Mass-Market vs. Specialty Coffee, 1996-2000 (percent): mass-market coffee, specialty coffee
    • Table 3-4: U.S. Retail Coffee Market Share of Pound Volume: Mass-Market vs. Specialty Coffee, 1996-2000 (percent): mass-market coffee, specialty coffee

    Mass-Retail Coffee Market: Size, Growth, and Composition
    • Preliminary Explanations
    • Note on RTD Coffee
    • FDM Dollars in the Doldrums
    • FDM Pounds Treading Water
    • Table 3-5: Total Coffee Dollar Sales and Pound Volume in FDM Outlets, 1997-2000 (dollars, pounds): FDM outlets
    • Food Stores: Dominant But Down
    • Mass Merchandisers: Gaining Steadily
    • Drugstores: Also-Rans Up
    • Table 3-6: Coffee Dollar Sales in FDM Outlets by Outlet Type: 1997-2000 (dollars): food stores, drugstores, mass merchandisers
    • FDM Pound Volume Dynamics
    • Table 3-7: Coffee Pound Volume in FDM Outlets: By Outlet Type, 1997-2000 (pounds): food stores, drugstores, mass merchandisers
    • FDM Dollar/Pound Share Dynamics
    • Table 3-8: U.S. Coffee Sales in FDM Outlets: Dollar Share by Outlet Type, 1997-2000 (dollars, percent): food stores, drugstores, mass merchandisers
    • Table 3-9: U.S. Coffee Sales in FDM Outlets: Pound Share by Outlet Type, 1997-2000 (dollars, percent): food stores, drugstores, mass merchandisers
    • FDM Sales by Product Type
    • Dollar Sales: Traditional Types Down, Whole Bean Up
    • Table 3-10: Coffee Dollar Sales in FDM Outlets: By Product Type, 1997-2000 (dollars): ground, ground decaf, instant, instant decaf, whole bean
    • Pound Sales: Similar Picture, Less Drastic
    • Table 3-11: Coffee Pound Volume in FDM Outlets: By Product Type, 1997-2000 (pounds): ground, ground decaf, instant, instant decaf, whole bean
    • FDM Dollar Share by Type
    • FDM Pound Share by Type
    • Figure 3-1: Share of Coffee Dollar Sales in FDM Outlets: By Product Type, 2000 (percent): five types
    • Figure 3-2: Share of Coffee Pound Volume in FDM Outlets: By Product Type, 2000 (percent): five types
    • Ground Coffee on Top in Dollar Share, But Lead Is Slipping
    • Table 3-12: Coffee Share of Dollar Sales in FDM Outlets: By Product Type, 1997-2000 (percent): ground, ground decaf, instant, instant decaf, whole bean
    • In Pound Share, Ground Losing Less Ground
    • Table 3-13: Coffee Share of Pound Volume in FDM Outlets: By Product Type, 1997-2000 (percent): ground, ground decaf, instant, instant decaf, whole bean

    Food Store Coffee Market: Size, Growth, and Composition
    • Food Stores by Far the Leading Outlet Type
    • Dollar and Pound Sales Patterns from 1992
    • Table 3-14: U.S. Coffee Sales in Food Stores: Dollar Sales and Pound Volume, 1992-2000 (dollars, pounds)
    • Classic Price Inelasticity
    • Food Store Pricing Travails Signal Trouble for Mass-Coffee Category
    • Product Type Sales Trends Since 1994
    • Dollar Sales: Instant Biggest Loser
    • Figure 3-3: Average Coffee Prices in Food Stores: 1992-2000 (prices): average in food stores
    • Table 3-15: Coffee Dollar Sales in Food Stores: By Product Type, 1994-2000 (dollars): ground, ground decaf, instant, instant decaf, whole bean
    • Pounds: Ground Regular Down
    • Surprisingly Small Gain for Whole Bean Pounds
    • Table 3-16: Coffee Pound Volume in Food Stores: By Product Type, 1994-2000 (pounds): ground, ground decaf, instant, instant decaf, whole bean
    • Food Store Dollar Share Trends by Type
    • Table 3-17: Coffee Share of Dollar Sales in Food Stores: By Product Type, 1992-2000 (percent): ground, ground decaf, instant, instant decaf, whole bean
    • Food Store Pound Share Trends by Type
    • Table 3-18: Coffee Share of Pound Volume in Food Stores: By Product Type, 1992-2000 (percent): ground, ground decaf, instant, instant decaf, whole bean
    • Food Store Pricing By Type
    • Disinflation and Deflation Since 1994
    • Table 3-19: Coffee Prices in Food Stores: Average Price per Pound by Product Type, 1992-2000 (price per pound): ground, ground decaf, instant, instant decaf, whole bean

    Compositional Briefs
    • Ready-to-Drink (RTD) Coffee
    • Flavored Coffee
    • Single-Origin Specialty Coffee
    • Sustainable Coffee

    The World Coffee Market
    • Record Production in 2000/2001
    • Arabica vs. Robusta
    • Top Three Producers: Brazil, Vietnam, Colombia
    • Second Tier Headed by Indonesia
    • Significant Minor Producers
    • Table 3-20: Top Ten Coffee-Producing Countries: By Share of World Production, 2000/2001 (percent share): ten countries
    • Majors in Arabica
    • Majors in Robusta
    • Current Production Trends
    • Tough Times in the Macroeconomy

    Factors in Future Growth
    • U.S. Coffee Consumption in the 20th Century
    • Daily Drinkers Since 1950
    • Figure 3-4: U.S. Per Capita Consumption of Regular and Instant Coffee, 1910-1995 (pounds): per capita consumption
    • Resurgence Since 1996 Sparked by Specialty Coffee
    • Can Specialty Coffee Keep It Up?
    • Good Reasons to Be Optimistic
    • Specialty Coffee Consumption Ballooning
    • Supply Infrastructure in Place
    • Specialty Coffee Distribution Exploding
    • Having Tasted of the Fruit, Consumers Demand Quality
    • Specialty Challenging Mass Coffee for Supremacy
    • Is Conventional Canned Coffee a Dinosaur?
    • Specialty Must Overcome Obstacles
    • A Major Obstacle: The Shaky Economy
    • Potential Supply Limitations
    • Will Global Warming Be a Problem?
    • Specialty's Connection to the Away-from-Home Experience
    • Good Signs for At-Home Sales
    • Young Adult Embrace of Specialty Coffee Extremely Positive
    • But Some Good News/Bad News
    • Generation Y and the Caffeine Kick
    • Note on Gen Y's Ethnic Diversity
    • What About the Baby Boomers?
    • Race/Ethnicity Factor Uncertain
    • Asian-Americans a Good Target Group
    • A New Cultural Perception of Coffee Taking Shape
    • Old Coffee Culture vs. New Coffee Culture
    • Liberals vs. Conservatives
    • Hip vs. Square
    • The Sustainable Coffee Phenomenon
    • Its Genesis
    • Sustainable Coffee: What It Means
    • Can Sustainable Sustain Through Rough Economics?
    • Mass Coffee's Wistful Fate
    • Niche Potential: RTD Coffee
    • Niche Potential: Flavored Coffees
    • Other Potentially Promising Niches
    • A Final Note on a Languishing Segment: Decaf

    Projected Market Growth
    • Coffee Market to Grow, But Very Slowly
    • Table 3-21: U.S. Coffee Market: Projected Retail Sales, 2001-2005 (dollars)

    The Marketers
    • Complex International Marketing Structure
    • The "C" Market
    • Marketers the Central Actors in This Study
    • Marketers: Size and Scope
    • Mass-Market Coffee: Major Marketers
    • Second-Tier Marketers
    • Significant Minor Marketers
    • Coca-Cola and PepsiCo
    • Private Labels
    • Specialty Roasters: Another Universe
    • Number of Specialty Roasters
    • Specialty Coffee: Major Marketers
    • Table 3-22: List of Selected Coffee Marketers and Brands, 2000-2001 (list): marketers and brands, product segments

    Marketer and Brand Shares
    • Explanatory Note
    • Duopoly: P&G and PM/Kraft
    • Table 3-23: Marketer Shares: Dollar Sales of Coffee in FDM Outlets, 2000 (percent share): five marketers, private label, other
    • Second-Tier Shakeup: Nestlé, Sara Lee, and Starbucks
    • A&P Off a Bit
    • Starbucks Sweeps the Field
    • Marketer Shares: Ground Regular—Flux at the Top
    • Figure 3-5: Leading Coffee Marketers in FDM Outlets: Dollar Share Comparisons, 1998 vs. 2000 (percent change)
    • Table 3-24: Marketer Shares: Dollar Sales of Ground Regular Coffee in FDM Outlets, 2000 (percent share): seven marketers, private label, other
    • Out of the Marketer Picture: Nestlé, Chock Full O' Nuts, and Tetley
    • Starbucks Shakes Up Ground Regular
    • Community Coffee and Private Label
    • F. Gavina & Sons and Reily Foods
    • Marketer Shares: Ground Decaf—P&G Virtually Owns Segment
    • Table 3-25: Marketer Shares: Dollar Sales of Ground Decaffeinated Coffee in FDM Outlets, 2000 (percent share): six marketers, private label, other
    • Marketer Shares: Instant Regular—Ruled by PM/Kraft
    • Table 3-26: Marketer Shares: Dollar Sales of Instant Regular Coffee in FDM Outlets, 2000 (percent share): three marketers, private label, other
    • Marketer Shares: Instant Decaf—Kraft, P&G, Nestlé Own Segment
    • Table 3-27: Marketer Shares: Dollar Sales of Instant Decaffeinated Coffee in FDM Outlets, 2000 (percent share): three marketers, private label, other
    • Marketer Shares: Whole Bean—Situation Topsy-Turvy
    • Starbucks' Astounding Ascent
    • P&G's Amazing Success
    • Whole Bean Significant Minors
    • Table 3-28: Marketer Shares: Dollar Sales of Whole Bean Coffee in FDM Outlets, 2000 (percent share): ten marketers, private label, other
    • Whole Bean Marketers Under a Microscope
    • Table 3-29: Marketer Shares: Dollar Sales of Whole Bean Coffee in FDM Outlets, 1998-2000 (percent share): ten marketers, private label, other
    • Brand Shares: Ground Regular—Folgers and Maxwell House Rule the Roost
    • Starbucks Heads up Second Tier
    • Table 3-30: Brand Shares: Dollar Sales of Ground Regular Coffee in FDM Outlets, 2000 (percent share): 11 brands, private label, other
    • Brand Shares: Ground Decaf—Folgers, Maxwell House, and Private Label
    • Table 3-31: Brand Shares: Dollar Sales of Ground Decaffeinated Coffee in FDM Outlets, 2000 (percent share): eight brands, private label, other
    • Brand Shares: Instant Regular—Folgers, General Foods International Coffees, Taster's Choice, Maxwell House
    • Table 3-32: Brand Shares: Dollar Sales of Instant Regular Coffee in FDM Outlets, 2000 (percent share): 12 brands, private label, other
    • Brand Shares: Instant Decaf—Folgers, Tasters Choice
    • Table 3-33: Brand Shares: Dollar Sales of Instant Decaffeinated Coffee in FDM Outlets, 2000 (percent share): ten brands, private label, other
    • Brand Shares: Whole Bean—Eight O' Clock, Starbucks, Folgers Select, Millstone
    • Table 3-34: Brand Shares: Dollar Sales of Whole Bean Coffee in FDM Outlets, 2000 (percent share): four brands, private label, other
    • Minor Brands: Whole Bean Trends

    The Competitive Situation
    • A Profound Shift in the Upper Reaches
    • Starbucks/Kraft Engineer Shakeup
    • Yet Starbucks Is Just the Messenger
    • Current Shakeup Has Roots in Post-War Demand Decline
    • Top Eight in '60s Boils Down to Top Two in '80s
    • Whole Bean Signals Trouble in Mid-80s
    • Days of Reckoning Come in 1990s
    • Majors Basically Blindsided by Specialty Coffee
    • The Majors Take Defensive Steps in Mid-1990s
    • But Token Efforts Ineffective to Stem Decline
    • Drastic Steps Now Being Taken
    • Do the Majors Have a Clue?
    • Perhaps They Must Radically Recast the Market

    Competitive Profile: Procter & Gamble
    • P&G Profile
    • The Folgers Story
    • P&G Acquires Folgers in 1963—Epic Slugfest Ensues
    • P&G's Marketing Genius Boosts Folgers to Top
    • Folgers: A Focused Brand
    • Focused on a Declining Category
    • Struggling to Adapt
    • The Classic Roast Line
    • Extensions Aimed at Middle-Agers
    • Folgers Café Latte
    • Specialty Strategy: Millstone Acquisition
    • Is Folgers Franchise in Trouble?

    Competitive Profile: Philip Morris/Kraft Foods
    • Parent Philip Morris
    • Kraft Foods Profile
    • Philip Morris Acquires Nabisco
    • IPO Spin "Out" of Kraft/Nabisco
    • PM Machinations Impact Kraft Coffee Moves
    • Kraft Coffee Brands
    • Maxwell House Origins
    • The Maxwell House Line
    • Kraft's Mysterious Coffee Strategy
    • Joint-Venture with Starbucks
    • Overseas Coffee Interests
    • The Gevalia Mail-Order Brand
    • Kraft Partners with Choice Hotels

    Competitive Profile: Nestlé
    • Nestlé USA-Beverage Division
    • Global Partnership with Coca-Cola
    • Nestlé Sells Off Ground Coffee Brands
    • Nestlé's Instant Orientation Makes Move Inevitable
    • Nestlé Has U.S. Impact with Taster's Choice
    • The Taster's Choice Brand Line
    • The Nescafe Line
    • Nescafe Frothé

    Competitive Profile: Sara Lee
    • Sara Lee Coffee & Tea Enters U.S. Market
    • Acquires Chock Full O' Nuts
    • Acquires Nestlé Ground Brands: Hills Brothers, Chase & Sanborn, MJB
    • Acquires Superior, Wechsler, Continental
    • Sara Lee Just Keeps Acquiring
    • Sara Lee Positions for World Dominance
    • Restructuring Superior Coffee
    • Promoting Chock and Hills Brothers

    Competitive Profile: Starbucks
    • The Most Dynamic Force in Coffee
    • Expanding Like Crazy
    • Widely Extending Distribution Network
    • Beyond Coffee
    • Two Major Joint Ventures
    • J-V with PepsiCo Yields "Gatorade" of RTD Coffee
    • J-V with Kraft Yields Major Shakeup at Mass Retail
    • The Phenomenal Success of Starbucks' Rollout
    • Most Mass Gains Made in Ground
    • The Permanent Starbucks Effect
    • New CEO
    • New Issues, Old Momentum

    Competitive Profile: Seattle Coffee Co.
    • Multifaceted Coffee Roaster/Marketer/Retailer
    • Seattle's Best
    • Seattle's Best in Supermarkets

    Competitive Profile: Green Mountain Coffee
    • A Leading Specialty Marketer
    • Focus on Foodservice
    • Concentrating on Gas Stations and OCS
    • Expanding into Supermarkets

    Competitive Profile: Rowland Coffee Roasters
    • Rowland Owned by Souto Family of South Florida
    • Tetley's Major U.S. Espresso Operation
    • Café Bustelo vs. Café Pilon
    • Consolidation of Cuban Espresso Empire

    Competitive Profile: Mother Parker's Tea and Coffee
    • Tetley's Anglo Brands to Mother Parker's
    • State-of-the-Art Roasting Facilities
    • But Can It Advertise?

    Competitive Focus: RTD Coffee Marketers
    • A Segment Just Waiting to Happen
    • The Next Iced Tea? No, Not Yet
    • Table 3-35: RTD Coffee: Marketers and Brands, 1990-1999 (list): marketers, brands, descriptions
    • Optimists Keep the Faith
    • Missing Piece of the Puzzle: Advertising
    • Profile: East Coast Beverage Corp. (Coffee House USA)
    • Profile: Coca-Cola (Planet Java)
    • Other Marketers Entering RTD
    • Nestlé Not Entering

    Competitive Focus: Sustainable Coffee Marketers
    • A Niche Rapidly Gaining Momentum
    • The Meaning of Sustainability
    • But Who Decides What Meets Criteria?
    • Certifying Organizations Arise
    • The Rainforest Alliance
    • The Smithsonian Migratory Bird Center
    • TransFair USA
    • TransFair's Pressure Tactics vs. Starbucks
    • TransFair Converts Green Mountain
    • Equal Exchange
    • Sustainability Critique: On Price, Quality, and Credibility
    • One Sustainable Offshoot: The Native American Hookup
    • Maya Gold from Oneida/Kekchi
    • Another Offshoot: A "Faith-Based" Coffee Charity

    New Product Trends
    • Whole Bean Intros Proliferate
    • Organic Coffees a Big Trend
    • Fair Trade Coffee
    • Flavored Coffees a Perennial Trend
    • Flavored Single-Packs an Active Niche
    • The Valve-Pack
    • Instant Cappuccinos/Lattes Gain Momentum
    • Minor Decaf Trend to Swiss Water
    • Little Activity in Extracts
    • Plenty of Entries in RTD
    • "Alternative" Coffees Abound
    • Alternative Star: Kick-N-Koffee
    • On the Horizon: Coffee Mimics Tea in Health Effects
    • Selected New Products
    • Table 3-36: Coffee: Selected New Product Introductions, 2000-2001 (list): 59 marketers, brands, descriptions

    Consumer Advertising Expenditures: Coffee
    • Amount Spent in 2000
    • PM/Kraft Expenditures
    • P&G Expenditures
    • Nestlé Expenditures

    Advertising Positioning
    • Good Taste
    • Positive Stimulation
    • Internal vs. Social Stimulation
    • Targeting Adults: The Older Crowd
    • Cross-Demographic Appeal
    • Targeting Adults: The Younger Crowd
    • Low-Key Approach
    • Music and Parents
    • RTD Positioning

    Consumer Promotions
    • Standard Techniques Utilized
    • Coupon Offers
    • Game Promotion
    • Gift with Purchase
    • Music Sponsorships
    • Broadway/Entertainment Promos
    • Charity Promos
    • Direct Mail Promos
    • Newspaper Promos
    • Free Merchandise to Lure Subscription Customers

    Trade Advertising and Promotions
    • Coffee Marketers Are Heavy Trade Advertisers
    • Trade Promotions

    At the Retail Level
    • Mass-Retail Channels
    • Specialty Retail Channels
    • Food Store Margins Fall
    • Food Stores Fighting a Two-Front War
    • The Price Front
    • Significantly Lower Discounter Price Structure
    • Table 3-37: Average Price Per Pound of Coffee: Food Stores vs. Mass Merchandisers, 1997-2000 (prices, percent differential)
    • Discounter Supercenters Poised to Make Gains
    • Warehouse Clubs Also Challenge Food Stores
    • Food Stores Losing on Quality/Convenience
    • Supermarkets' Defense
    • Some Install In-Store Coffee Bars
    • Specialty Outlets Led by Coffee/Tea Stores
    • Upscale Stores Losing At-Home Sales
    • Reasons Proffered by Gourmet Retailer
    • Natural Foods Stores Gain in Organic/Sustainable Coffee

    Retail Focus: Coffee Cafes
    • Explosion of Locations
    • Distinctions: Cafes, Bars, Kiosks, Carts
    • Based on Quality, Coffee, Service
    • Not Necessarily Money Machines
    • Starbucks in a Class by Itself
    • Second-Tier Chains
    • Chains Press Independents
    • Coffee Cafes a Victim of Success
    • New Constraints on Expansion
    • Big Chains Triumph
    • Small Chains Differentiate
    • Larger Chains Try to Expand
    • Brief Profiles
    • Diedrich Coffee Co.
    • Caribou Coffee Co.
    • Peets Coffee and Tea
    • Tully's Coffee Corp.
    • Seattle Coffee Co.
    • McDonald's McCafe
    • Selected Coffee Cafe Chains
    • Table 3-38: Selected Coffee Cafe Chains: 2000 (list): coffee cafe chains, headquarters, number of units

    The Consumer
    • Number of Users: Ground, Instant Whole Bean
    • Different Dynamics for Ground/Instant
    • Frequency of Use: Ground Coffee
    • Frequency of Use: Instant Coffee
    • Number of Users: International-Flavored Instant
    • Factors Favoring Use: Ground, Instant, and Whole Bean Forms
    • Factors Favoring Use: Ground Regular
    • Factors Favoring Use: Ground Decaf
    • Factors Favoring Use: Major Ground Brands
    • Factors Favoring Use: Instant Coffee
    • Factors Favoring Use: Major Instant Brands
    • Factors Favoring Use: Espresso/Cappuccino
    • Factors Favoring User: Starbucks and Gevalia
    • Table 3-39: Demographic Characteristics Favoring Use of Coffee: By Product Form (listing): 9 factors
    • Table 3-40: Demographic Characteristics Favoring Use of Ground Regular and Decaffeinated Coffee: All vs. Heavy Users (listing): 9 factors
    • Table 3-41: Demographic Characteristics Favoring Use of Ground Coffee: By Brand (listing): 9 factors
    • Table 3-42: Demographic Characteristics Favoring Use of Instant Coffee: By Product Type (listing): 9 factors
    • Table 3-43: Demographic Characteristics Favoring Use of Instant Coffee: By Brand (listing): 9 factors
    • Table 3-44: Demographic Characteristics Favoring Use of Specialty Coffee: By Type and Brand (listing): 9 factors
  4. The Tea Market
    Tea Market Parameters
    • Market Includes Tea Products Sold at Retail
    • Tea Market Parameters Simpler Than Coffee
    • Apparent Complexity: RTD Teas
    • Actual Complexity: Herbal Teas ("Tisanes")
    • Market Excludes Tea Additive Products

    Tea: Overview
    • Botany/Taxonomy
    • Botany/Chemistry
    • Geography
    • Climate/Environment

    Tea History
    • Etymology
    • Legendary Origin in China
    • Tea May Go Back to the "Stone Age"
    • Historical Record Begins in Sixth Century
    • Use in Ceremonial Rituals
    • Dutch Bring Tea to Europe
    • British and Dutch Break China Monopoly
    • Tea a Negative Symbol in American Folklore
    • America as Tea Innovator
    • Is Tea on the Brink of a Breakthrough?

    Tea Production
    • Growing/Harvesting
    • Tea Leaf Classifications
    • Processing Determines Form
    • Black Tea (Fermented)
    • Green Tea (Unfermented)
    • Oolong Tea (Semi-Fermented)
    • Grading, Packing, Value-Adding

    Tea Classifications
    • Five Product Segments
    • Regular Tea
    • Instant/Mix Teas—and Chai
    • Ready-to-Drink (RTD) Tea
    • RTD Characteristics
    • Cold-Fill RTDs
    • Hot-Fill RTDs
    • RTD Tea Highly Subsegmented
    • Specialty Tea
    • Herbal Teas
    • Flavor vs. Health Herbals
    • An Emerging Segment: Organic Tea
    • Two New Types of "Tea": Rooibos and Yerba Mate

    Overall Market: Size, Growth, and Composition
    • Overview
    • Methodology
    • U.S. Tea Market at $4.2 Billion in 2000
    • Table 4-1: U.S. Retail Tea Market: Overall Estimated Size and Growth, 1996-2000 (dollars)
    • Sales: RTD Tea
    • Table 4-2: U.S. Retail Tea Market: Overall Estimated Size and Growth by Product Category, 1996-2000 (dollars): RTD, regular, specialty, herbal, instant mix
    • Sales: Regular Tea
    • Sales: Specialty Tea
    • Sales: Herbal Tea
    • Sales: Instant/Mix Tea
    • RTD Leads in Share by Category
    • Figure 4-1: U.S. Tea Market: Estimated Dollar Share by Product Category, 2000 (percent): five categories

    Mass Market: Size, Growth, and Composition
    • Overview: Monitored FDM Sales
    • FDM Sales Near $1.6 Billion
    • Table 4-3: Tea Dollar Sales by Product Category in FDM Outlets,
    • 1996-2000 (dollars): bag/loose, RTD, instant/mix
    • Sales: Bagged/Loose
    • Sales: RTD
    • Sales: Instant/Mix
    • Trends in FDM Product Share
    • Table 4-4: Dollar Share of Tea Sales in FDM Outlets: By Product Category, 1996-2000 (percent): three categories
    • Trends in Unit Volume Sales
    • Table 4-5: Tea Unit Volume in FDM Outlets: By Product Category, 1996-2000 (units): bag/loose, RTD, instant/mix
    • FDM Share by Outlet Type
    • Food Stores Dominate All Three Categories
    • Figure 4-2: U.S. Tea Market: Estimated FDM Dollar Share, 2000 (percent): food stores, drugstores, mass merchandisers
    • Table 4-6: Retail Share of Product Category Dollar Sales: By FDM Outlet Type, 2000 (percent): food stores, drugstores, mass merchandisers
    • RTD Tea: FDM vs. Non-FDM Outlets
    • "Alternative" RTDs Flat
    • Sales: Refrigerated Teas
    • RTD Consumption by Region

    The World Market
    • World Production
    • Leading Tea Producers
    • Table 4-7: Top Ten Tea-Producing Countries: By Share of World Production, 2000 (percent share): ten countries
    • Africa Arising
    • Top World Tea Markets

    Factors in Future Growth
    • Tea Finally Poised to Take Off
    • Health Most Positive Factor
    • Another Positive: Aging Baby Boomers
    • What About Gen X and Y?
    • The Race/Ethnicity Factor
    • Tea and the Economy
    • "Globalization" Good for Tea
    • Tea Supply Favorable
    • Tea Could Better Weather Climate Change
    • Cold Tea Still Holds Sway
    • Tea Makes Waves at Colleges
    • Green Tea: Positive Past, Positive Future
    • Chai Continues to Hold Promise
    • Sustainable Tea Could Well Grow
    • Rooibos: A Promising Niche
    • Yerba Mate: An All-New U.S. Possibility
    • Alternative RTD Teas: A Marketing Challenge

    Projected Market Growth
    • Positive Growth for Tea Foreseen
    • Table 4-8: U.S. Tea Market: Projected Retail Sales, 2001-2005 (dollars)

    The Marketers
    • Lipton Dominates U.S. Tea
    • Nestlé a Solid Second
    • No Others with Cross-Category Strength
    • RTD Tea: Lipton and Nestlé Lead
    • Cadbury-Schweppes/Snapple and FV&S/Arizona Form Second Tier
    • RTD Tea: Significant Minors
    • Regular Tea: Significant Minors
    • Specialty Tea Leaders
    • Herbal Tea Leaders
    • Players in Instant/Mix
    • Table 4-9: Selected List of Tea Marketers and Brands (list): 123 marketers and brands, product segments

    Marketer and Brand Shares
    • Introductory Note
    • Lipton Leads in FDM Share, Followed by Nestlé
    • Snapple, Celestial, and Bigelow in Second Tier
    • Ferolito, Vultaggio a Major in Convenience Outlets
    • Private Label with Strong FDM Presence
    • Table 4-10: Marketer Shares: Tea Dollar Sales in FDM Outlets, 2000 (percent share): five marketers, private label, other
    • Marketer Shares: Bag/Loose Tea
    • Table 4-11: Marketer Shares: Dollar Sales of Bag/Loose Tea in FDM Outlets, 1998 vs. 2000 (percent share): 11 marketers, private label, other
    • Brand Shares: Bag/Loose Tea
    • Table 4-12: Brand Shares: Dollar Sales of Bag/Loose Tea in FDM Outlets, 1998 vs. 2000 (percent share): 15 brands, other
    • Marketer Shares: RTD Tea
    • Table 4-13: Marketer Share: Dollar Sales of RTD Tea in FDM Outlets, 1998 vs. 2000 (percent share): six marketers, private label, other
    • Brand Share: RTD Tea
    • Table 4-14: Brand Shares: Dollar Sales of RTD Tea in FDM Outlets, 1998 vs. 2000 (percent share): 11 brands, other
    • Marketer Shares: Instant/Mix Tea
    • Table 4-15: Marketer Share: Dollar Sales of Instant/Mix Tea in FDM Outlets, 1998 vs. 2000 (percent share): six marketers, private label, other
    • Brand Shares: Instant/Mix Tea
    • Table 4-16: Brand Share: Dollar Sales of Instant/Mix Tea in FDM Outlets, 1998 vs. 2000 (percent share): nine brands, private label, other

    The Competitive Situation
    • Big Three Soft Drink Giants Now with Significant Stake
    • Lipton/Pepsi, Nestlé/Coke, Snapple/Cadbury
    • Cadbury Takeover of Snapple Marks New Phase in Competition
    • The Alternative Beverage Scramble
    • Hain Celestial and Tata/Tetley
    • FV&S and Bigelow Remain Independent—For Now
    • Competing by Fielding New Products

    Competitive Profile: Thomas J. Lipton Co.
    • Overview
    • Dominates U.S. Tea Sales
    • Product Activity: 1994-2000
    • Lipton Cold Brew
    • Lipton, Pepsi, and RTD Tea
    • Lipton Brisk
    • Lipton Iced Tea
    • PepsiCo Acquires SoBe

    Competitive Profile: Hain Celestial Group
    • Celestial Preeminent in Herbal Tea
    • An Entrepreneurial Company
    • Wide-Ranging Retail Presence
    • Product Line
    • International Scope
    • Ownership Changes in the 1980s
    • Founder Mo Siegel Returns in 1990s
    • Branching into Herbal Supplements
    • A New CEO Invigorates Celestial
    • Extremely Active in 1999/2000
    • Enter Hain Foods
    • Hain Celestial a Powerhouse in Natural Foods
    • Will Celestial Be Neglected?
    • Profile: Hain Foods
    • From Trade to Consumer Advertising
    • Hain and Heinz

    Competitive Profile: Snapple Beverage
    • Pioneered Alternative Beverages
    • A Bad Move: Snapple Acquired by Quaker Oats in 1994
    • Flourished Under Triarc
    • Stewart's and Mistic
    • The Snapple RTD Tea Line
    • Snapple Acquired by Cadbury-Schweppes

    Competitive Profile: Ferolito, Vultaggio & Sons
    • A Huge Success with Arizona
    • Artful Bottles
    • Cutting-Edge Formulations
    • FV&S Collaborates with Celestial
    • The AriZona Rx Line

    Competitive Profile: R.C. Bigelow
    • Founded by Socialite/Entrepreneur Ruth Campbell Bigelow
    • A Leader in Specialty Tea
    • Mass-Retail Sales

    Competitive Profile: Tata Tea/Tetley
    • Tetley No. 2 in World Tea
    • Tetley in the U.S. Market
    • Tetley Acquired by Tata
    • Great Synergistic Potential

    Competitive Focus: Specialty/Herbal Marketers
    • A New Breed of Alternative-Style Tea Marketers
    • Stash Tea Co.
    • The Republic of Tea
    • Tazo
    • Oregon Chai

    New Product Trends
    • Tea Market Deluged with New Products
    • Spilling over to Other Consumer Categories
    • Key Trends
    • Specialty Teas
    • Two Examples of Specialty Lines
    • Table 4-17: Selected List of Specialty Tea Marketers Offering New Products: In Traditional Variations, 2000-2001 (list): 21 marketers
    • Green Teas
    • Table 4-18: Selected List of Specialty/Herbal Tea Marketers Offering New Products: In Green Tea Variations, 2000-2001 (list): 14 marketers
    • Organic Teas
    • Table 4-19: Selected List of Specialty/Herbal Tea Marketers Offering New Products: In Organic Variations, 2000-2001 (list): 15 marketers
    • Herbal Teas Proliferating—Mainly Health Herbals
    • Table 4-20: Selected List of Herbs Used in Recent Tea Introductions, 1998-2001 (list): 41 herbs
    • Examples of "Wellness" Tea Lines
    • A Variation: Women's Teas
    • A Deluge of Chais
    • In Concentrates/Lattes
    • In Teabags
    • In Instant/Mix Form
    • In Novel Flavors
    • Chai Organic Teas
    • Novel Chai Variations
    • Trends in Instant/Mix
    • Iced Teabags
    • Offbeat Tea Forms
    • Diet Teas
    • Trends in Rooibos Teas
    • Trends in Yerba Mate
    • Selected New Product Introductions

    New Product Trends: RTD Tea
    • Exciting Trends Are in Specialty/Herbal RTDs
    • Table 4-21: Selected List of Tea Marketers Offering New Products: In RTD Tea, 2000-2001 (list): 31 herbs
    • Trends at the Top
    • Key Specialty/Herbal Trends
    • Green Herbals
    • Functional Herbaceuticals
    • Specialty RTDs
    • Organic RTDs
    • MicroBrew Tea
    • Tea/Cola, Tea Smoothie, Frozen Tea
    • Recovery RTDs
    • Unique Bottles
    • Table 4-22: Selected New Tea Product Introductions, 2000-2001 (list): marketers, brands, descriptions

    Consumer Advertising Expenditures
    • Consumer Advertising Expenditures: Tea
    • Lipton Expenditures
    • PM/Kraft Expenditures
    • Nestlé Expenditures
    • Snapple Expenditures

    Advertising Positioning
    • Hot Tea: No Strong Theme
    • Cold Tea: Convenience
    • RTD Tea: Cold, Convenient—Add Action
    • RTD Pitched to Youth
    • Lipton Brisk's "Popeye" Ads
    • Nestlé's Cool "Snowman" Ads
    • No Adult RTD Ads As Yet

    Consumer Promotions
    • Most Standard Techniques Used
    • Lipton Promos
    • Snapple's Promos

    At the Retail Level
    • Almost Two-Thirds of Sales Through Untracked Outlets
    • Tea Margins in Supermarkets
    • Shelf Space in Supermarkets
    • Supermarkets: Multi-Location Merchandising
    • Supermarket Retailer Attitudes
    • Tea in Warehouse Clubs
    • Tea in Natural Foods Stores
    • Tea in Gourmet/Specialty Stores
    • Focus: Tea Cafes
    • Why Tea Cafes Have Yet to Take Off
    • Little Capital for Expansion
    • Tealuxe
    • Most Located on West and East Coasts
    • Examples of Tea Cafes
    • Some Common Tea Cafe Characteristics
    • Some Divergences
    • Can Be Quite Profitable
    • Optimists vs. Realists

    The Consumer
    • Number of Users: Bag/Loose
    • Number of Users: Hot vs. Iced
    • Number of Users: Regular vs. Decaf
    • Use by Sex
    • Number of Users: Loose Tea
    • Frequency of Use: Bag/Loose
    • Number of Users by Type/Flavor
    • Number of Users: Instant/Mix
    • Frequency of Use
    • Number of Users: By Sweetener Type
    • Factors Favoring Use: Bag/Loose Tea
    • Factors Favoring Tea Bag Use: Regular/Decaf
    • Factors Favoring Loose Use: Regular/Decaf
    • Factors Favoring Use: Regular vs. Herbal and Fruit/Spice
    • Factors Favoring Bag/Loose Use: Major Brands
    • Factors Favoring Use: Instant/Mix Tea
    • Factors Favoring Instant/Mix Use: By Sweetener Type
    • Factors Favoring Instant/Mix Use: Major Brands
    • RTD Tea: Number of Users
    • Use by Sex
    • Factors Favoring Use: RTD Tea
    • Factors Favoring Use: Regular vs. Diet RTD Tea
    • Factors Favoring Use: By Major Brands
    • Table 4-23: Demographic Characteristics Favoring Use of Bag/Loose Tea: By Hot vs. Iced (listing): 9 factors
    • Table 4-24: Demographic Characteristics Favoring Use of Regular and Decaffeinated Tea: Bags vs. Loose (listing): 9 factors
    • Table 4-25: Demographic Characteristics Favoring Use of Bag/Loose Tea: Regular vs. Herbal and Fruit/Spice Tea (listing): 9 factors
    • Table 4-26: Demographic Characteristics Favoring Use of Bag/Loose Tea: By Major Brands (listing): 9 factors
    • Table 4-27: Demographic Characteristics Favoring Use of Instant/Mix Tea: Sweetened vs. Unsweetened (listing): 9 factors
    • Table 4-28: Demographic Characteristics Favoring Use of Instant/Mix Tea: By Major Brands (listing): 9 factors
    • Table 4-29: Demographic Characteristics Favoring Use: RTD Tea (listing): 8 factors
    • Table 4-30: Demographic Characteristics Favoring Use: Major RTD Brands (listing): 8 factors

    Appendix I: Examples of consumer and trade advertising and promotions
    Appendix II: Addresses of selected marketers
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