Coffee Industry in the UK The coffee industry has grown rapidly since the 1990s; before Starbucks emerged, people were used to drinking low quality coffee from tins. Starbucks introduced fresh coffee made from top quality beans that have excellent taste and drinks such as the caffe latte and cappuccino, which have helped to fuel the development of the coffee market into a multi million pound industry. The size of UK branded coffee chains have quadrupled from 1999 to 2004, with a current market turnover of over £1 billion. 2 Market Forecasts The coffee market is forecast for continued growth and expansion, without threat of saturation in the near future. In 2004 the coffee market was estimated at having around 2,299 outlet units and it 2006 it is predicted that the number of units will have increased to an estimated 2,965, with the growth of the branded coffee sector predicted to increase by 11% between 2004 and 2006. Indeed, branded chain outlets have accounted for most of the coffee market growth according to forecasts by industry analysts Allegra Strategies. Allegra claims that although there are more independents than branded coffee chains, in 2005 and 2006 it is expected that more branded than independent chains will be opening. Indeed, some independents. such as Bewley’s in London, have had to close down. 3 Macro - environment analysis of the market Social The coffee market must adapt to a change in consumer attitudes or else it may be threatened by health and lifestyle issues. In 2003 the hot drinks market declined by an estimated 2.3%. Consumers, especially young people, are becoming more health conscious which makes coffee a less attractive choice; the increasing number of alternatives available such as health and energy drinks are becoming competitors in the coffee industry. Research carried out by Mintel shows that there is an increased diversification of tea, with a trend towards premium and herbal teas. The coffee industry are responded to this change in attitude by provision of de-caf drinks, options such as soy milk, and alternative drinks such as freshly squeezed fruit juices, chai lattes and herbal teas. People are now working harder than ever before but have more leisure time; they now use coffee shops to socialise. Allegra research claims that dwelling time in coffee shops has increased; 44.9% of consumers stay... ... middle of paper ... ...au then tic cost a coffee e www.dandad.org/inspiration/ creativityworks/pdf/authentic.pdf UK coffee shop market statistics 14 Mar 2005, Caterer & Hotelkeeper magazine, http://www.caterer-online.com/archive/articledetail.asp?articleID=57531 Nestle Caterer & Hotelkeeper magazine, http://www.caterer-online.com/archive/articledetail.asp?articleID=50580 Branded coffee bars are squeezing independents http://www.thehospitalitysite.com.au/article/44/OcO2db44.asp 2005 Allegra Strategies Ltd. No.1 Northumberland Av, Trafalgar Square. London, http://www.allegra.co.uk/project-cafe5-keyfindings.html Oxfam to open coffee shops BB News May 2004 Http://news.bbc.co.uk/1/hi/magazine/3708585.stm Starbuck’s success - More than just coffee ICFAI University Press http://www.icfaipress.org/304/AN-Starbuckway_72.asp The Coffee Market ‘A Background Study’ Oxfam International Commodity Research http://www.maketradefair.com/en/assets/english/BackgroundStudyCoffeeMarket.pdf . The State of Sustainable Coffee Executive Summary http://www.ico.org/libser/executive%20summary.pdf . Whitbread Briefing Book 2005 Volume 1 http://www.whitbread.co.uk/docs/Briefing_Book_2005_voll.pdf
Coffee shop are seen as a social place. Yeah right, more like the ‘social media’ side of being social. There are so many effects that this can have on your brain, not to mention what has already happened to our brains.
Coffee is a growing part of people’s daily lives. Just before the 9-5 weekdays, and even during the 9-5, it is common for the working class to drink a cup of coffee. To support this accustomed part of our culture, it involves a complex supply chain that allows those coffee beans to turn into a cup that can be consumed. This paper is structured on how Starbucks, the top coffee supplier in the world, can supply its stores, from raw materials to manufacturing, right to the start of someone’s day.
Scrutiny of caffeine and its effects has increased dramatically in the last 20 years, due in part to an increase in consumption of caffeine. In fact, coffee consumption among young adults rose to 3.2 cups per day in 2008 from 2.4 cups per day in 2005 (Rokerya 1). For instance, in a one hour period, on Richland College’s on-campus Starbucks, the author took note of how many customers arrived and purchased a cup of coffee. Between 8:00 and 9:00 AM, there were 51 customers, implying that – especially at college - many people are dependent on coffee in the mornings. However, the results from these studies are inconclusive and often somewhat contradictory – many studies (such as that by Tetsuya Ohara et al.) show that caffeine is a great boon to
Indeed, Durevall (2007) investigated whether the major multinational coffee exporters were exploiting their market power in national coffee markets by limiting the demand for imports of coffee beans by keeping consumer prices too high to enable mass market penetration. Durevall found that the Swedish market structure was “typical of many consumer markets for coffee, with four very large roasting companies, two of which are multinationals, plus many small ones.” (Durevall, 2007) As a result of this study, Durevall found that there was evidence of some market power in the short run, but none in the long run. This implies that better management of operations and branding could give a company long term market power.
According to the CAC’s newly released 2013 Canadian Coffee Drinking Study, coffee is a dominant beverage in the Canadian market. Only tap water enjoys equally high past-day penetration. The results of the research show that approximately two-thirds of adult Canadians (65%) consumed coffee in the past day. Approximately three-quarters of Canadians aged 18-79 (78%) indicate they’ve consumed coffee in the past week. (Coffee, 2013) Also, through the survey, coffee is the second most traded commodity in the world after oil. The children aged under 18 is usually supervised by their parents. They are not allowed to drink coffee every day. Thus, this report is written for the adults who drink coffee as their daily routine and help them understand how
Mauricio Font, a sociologist, depicts in his novel a detailed study of São Paulo’s coffee plantations in the 1920s, in an attempt to evaluate the impacts of coffee on Brazilian society. Part one, subsection 4, “Coffee and Industrialization,” was relevant to my research because this section of his novel is where he explicitly rejects previous scholar’s theories that coffee caused underdevelopment in Brazil. Instead, he agrees that “internal factors in São Paulo’s export system helped to form a dynamic process of social and economic diversification, which resulted in a more capitalist competitive market.” He cites how coffee estates were not fully capitalist programs early on, however, planters were able to establish contracts with immigrant
Starbucks is currently the industry leader in specialty coffee. They purchased more high quality coffee beans than anyone else in the world and keep in good standings with the producers to ensure they get the best beans. Getting the best beans is only the first part, Starbucks also has a “closed loop system” that protects the beans from oxygen immediately after roasting to the time of packaging. They did this through their invention of a one-way valve which let the natural gasses escape but keeping oxygen out. This gave them the unique ability to ensure freshness and extended the shelf life to 26 weeks. Starbucks isn’t only about the coffee, it’s also about a place where people can escape to enjoy music, reflect, read, or just chat. It is a total coffee experience. The retail outlet has been responsible for much of Starbucks growth and has contributed substantially to their brand equity.
Picture this, the alarm goes off at 5 am, you have to get up for work or school but you are mentally and physically exhausted from not getting enough sleep. What could start your morning better than the smell and taste of a large cup of coffee? Come time of the age 18, the reliance on coffee is significantly high in getting through the day. Does the majority of society actually take the time to sit down and think exactly what they are drinking? Is this beverage that we consume actually as good as we make it out to be?
In the United States, coffee is the second largest import (Roosevelt, 2004). Furthermore, the United States, consumes one-fifth of all the worlds¡¦ coffee (Global Exchange, 2004). The present industry is expanding. It is estimated that North America¡¦s sector will reach saturation levels within 5 year (Datamonitor. n.d.). According to National Coffee Association (NCA), 8 out of 10 Americans consume coffee. In addition, it is estimated that half of the American population drinks coffee daily. The international market remains highly competitive. It is estimated that 3,300 cups of coffee are consumed every second of the day worldwide (Ecomall, n.d.). The latest trends included dual drinkers, an increase in senior citizens...
Coffee market in Taiwan is also important. Since 1998, Starbucks enter the Taiwan coffee market, more people have adapted the habit of drinking coffee (De Pelsmacker, Driessen and Rayp, 2005). Taiwanese consumers have more opportunities to face different types of coffee options. Consumers usually have positive attitudes for ethically made products. Most of consumer would be willing to pay a higher price for fair trade coffee, but they care more about the brand, label, and taste of the coffee
When starbucks enter the Australian market in 2000, It was successful. Starbucks targeted the capital cities before going into regional centers. The reason is simple, as demand for pricey coffee is higher in the capital cities, and during that time less competition are expected. Starbucks became the leading and competitive company in the coffee chains globally. By 2007, Starbucks has opened more than 84 company-operated stores across the country. It was until mid 2008, that Starbucks realise its peak of success has ended in the Australian market.
Caf? Expresso, as the first mover in the coffeehouse marketplace, which has expanded quickly and become one of the ?big three? players in the global coffee shops chain. However, recently this company is continuously facing a lot of problems in terms of its staff, easy-copied business model and product range, resulting this company lost its leading position to the number three. Therefore, its adjusted visionary goal is ?return Caf? Expresso to the number one position in the marketplace? (Beardwell, 2010). To achieve this goal, Caf? Expresso identifies ?the coffee drinking experience? is significant to achieve competitive advantage and customer value-added, which was delivered through three key elements (graph 1),
Starbucks Financial Analysis Company Overview Starbucks is the world’s largest specialty coffee retailer, with more than 16,000 retail outlets in more than 35 countries. Starbucks owns more than 8,500 of its outlets, while licensees and franchisees operate more than 6,500 units worldwide, primarily in shopping centers and airports. The outlets offer coffee drinks and food items such as pastries and confections, as well as roasted beans, coffee accessories, teas and a line of compact discs. The company also owns the Seattle's Best Coffee and Torrefazione Italia coffee brands. In addition, Starbucks markets its coffee through grocery stores and licenses its brand for other food and beverage products.
The value of coffee is mainly symbolic — it serves as a liaison to my vocational and cultural community. People claim to drink coffee because it keeps them awake. That never works for me. If I am drowsy, caffeine makes me drowsy with a headache, at best. It has less consciousness-raising effect for me than does a breath of fresh air. The effect of this substance is not neurochemical; it is psychological. With each long swallow of a steaming brew, I savor the pungent, rich first flavor, the appealingly bitter aftertaste, and the feeling of knowing who and where I am.
This Marketing report comprises of information regarding Coffee Bean and Tea Leaf, a renowned coffee retailer founded in the US. This report begins with an introduction of the company that discuss the origin and elements that this report focuses on, then followed by the vision, mission and values of the coffee retailer for the coming years. Then, it discusses the situational audit of the company where in it provides information about the internal analysis using the strengths and weaknesses of the company. The external analysis continues in the form of a PESTEL analysis which focuses on the factors that affect Coffee Bean and Tea Leaf course of business. A further analysis will take the form of Porter analysis that defines the competition the