February 6, 2012

Single Serve Coffee On the Rise in the US and Europe

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The Business Standard has a very exhaustive article Single-cup coffee sales seen growing and we've taken a bunch of the best bits out of it on the topic of single serve coffee growth.

  • Sara Lee will discontinue Senseo in North America as of March 31, except on select websites. It is working to make the machine more appealing, especially for young people, to tap growth overseas.
  • Wal-Mart Stores Inc will add the Esio Beverage System to its lineup of coffee machines.
  • Green Mountain, which controls more than three-quarters of the US market, ranks fourth globally with less than eight per cent.
  • Green Mountain is bound to maintain its grip on the United States, since its machines exclusively carry many of the nation's biggest coffee brands, including Starbucks, Dunkin Donuts and Folgers.
  • The vast majority of US households still use traditional ground or instant coffee, and about 36 per cent of people who do not use single-cup brewers said these machines were too expensive.
  • Worldwide sales of coffee, including fresh and instant, reached $70.86 billion last year, according to Euromonitor, a rise of 17.5 per cent. Sales of single-serve packets accounted for $5.75 billion of that, or 8 per cent, but saw a jump of 31.3 per cent.

So single serve coffee as a category is only at 8% of the total coffee market and growing? Wow - we've come a long way and have a long way to go. It's also interesting to note the Esio Beverage System going to be featured at Walmart. Walmart and other retailers seem to feel that even though K-Cups have taken 75% of the US single serve coffee market there is room for more players.

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Posted by Jay Brewer at February 6, 2012 7:43 AM

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