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  • 2007 OPPORTUNITIES FOR GROWTH IN THE COFFEE MARKET Keeping it hot. Take a look at the trend and issues affecting the coffee industry, plus the constant innovation required to keep this former commodity product from losing its cachet. U.S. market focused, with global perspective. The report quantifies the global market and examines current trends and developments. Enhanced with IRI data. More than 150 pages, with extensive text, charts, tables and graphs. Printed volume $5,195; single-user CD $5,395; $5,595 for both. BMCDataDirect Internet delivery: 3-user license $6,095; $400 per additional user. Call for multi-user discount prices. On the pages to follow, view table of contents and exhibits as well as sample text from this comprehensive report. Order Report Home
  • Opportunities for Growth in the Coffee Market 2007 Edition December 2007 R ES E AR CH  D AT A  C ON S U LT IN G NOTE: The information contained in this report is confidential and solely intended for the benefit of the immediate recipient hereof. Copyright © 2007 Beverage Marketing Corporation of New York, 850 Third Avenue, New York, New York 10022, (212) 688-7640. All rights reserved. Reproductions in any form prohibited by law.
  • Contents Table of Contents
  • Opportunities for Growth in the Coffee Market TABLE OF CONTENTS TABLE OF CONTENTS----------------------------------------------------------------------------------------------------------------------- i DEFINITIONS USED IN THIS REPORT--------------------------------------------------------------------------------------------------- ix INTRODUCTION------------------------------------------------------------------------------------------------------------------------------- xi Chapter 1. THE U.S. COFFEE MARKET The National Coffee Market---------------------------------------------------------------------- 1 • Overview------------------------------------------------------------------------------ 1 • Per Capita Consumption-------------------------------------------------------------- 2 U.S. Coffee Trends-------------------------------------------------------------------------------- 3 • Overview------------------------------------------------------------------------------ 3 • Consumption by Location------------------------------------------------------------- 5 • New Products------------------------------------------------------------------------- 7 • Premiumization----------------------------------------------------------------------- 8 • Prices---------------------------------------------------------------------------------- 10 • Single-Serve Appliances-------------------------------------------------------------- 12 Exhibits-------------------------------------------------------------------------------------------- 15 2. THE IN-HOME VS. AWAY-FROM-HOME COFFEE MARKET The U.S. Coffee Market by Location------------------------------------------------------------- 22 • Overview------------------------------------------------------------------------------ 22 • In-Home Consumption--------------------------------------------------------------- 24 • Away-from-Home Consumption------------------------------------------------------ 25 Exhibits-------------------------------------------------------------------------------------------- 28 3. THE U.S. COFFEE MARKET BY DISTRIBUTION CHANNEL Coffee Distribution-------------------------------------------------------------------------------- 42 • Overview------------------------------------------------------------------------------ 42 Exhibits-------------------------------------------------------------------------------------------- 45 4. THE U.S. COFFEE MARKET BY SEGMENT Coffee Segments---------------------------------------------------------------------------------- 48 • Overview------------------------------------------------------------------------------ 48 • Roast/Ground------------------------------------------------------------------------- 49 • Instant--------------------------------------------------------------------------------- 50 • Ready-to-Drink----------------------------------------------------------------------- 51 Exhibits-------------------------------------------------------------------------------------------- 53 i Copyright © 2007 Beverage Marketing Corporation of New York Reproduction without written permission is strictly prohibited
  • Opportunities for Growth in the Coffee Market TABLE OF CONTENTS Chapter 5. THE LEADING COFFEE COMPANIES AND THEIR BRANDS The Leading Companies-------------------------------------------------------------------------- 57 • Overview--------------------------------------------------------------------------------- 57 • Leading Coffee Roasters----------------------------------------------------------------- 60 • Leading Coffee Cafes-------------------------------------------------------------------- 62 Exhibits-------------------------------------------------------------------------------------------- 65 6. THE U.S. SPECIALTY COFFEE MARKET Specialty Coffee----------------------------------------------------------------------------------- 80 • Overview--------------------------------------------------------------------------------- 80 • Specialty Coffee Sales------------------------------------------------------------------- 82 • Specialty Coffee Locations--------------------------------------------------------------- 83 Exhibits-------------------------------------------------------------------------------------------- 84 7. THE U.S. READY-TO-DRINK COFFEE MARKET The National RTD Coffee Market----------------------------------------------------------------- 89 • Overview------------------------------------------------------------------------------ 89 • Per Capita Consumption-------------------------------------------------------------- 91 • Leading RTD Coffee Brands---------------------------------------------------------- 92 Exhibits-------------------------------------------------------------------------------------------- 99 8. U.S. COFFEE IMPORTS, EXPORTS AND STOCKS Coffee Imports------------------------------------------------------------------------------------105 • Overview------------------------------------------------------------------------------105 • Green Coffee--------------------------------------------------------------------------105 • Imports by Countries of Origin-------------------------------------------------------107 • Arabica and Robusta------------------------------------------------------------------109 Coffee Exports------------------------------------------------------------------------------------114 • Overview------------------------------------------------------------------------------114 Coffee Stocks-------------------------------------------------------------------------------------115 • Overview------------------------------------------------------------------------------115 Exhibits--------------------------------------------------------------------------------------------117 9. COFFEE INDUSTRY PRICING IN THE U.S. Coffee Pricing-------------------------------------------------------------------------------------140 • Overview------------------------------------------------------------------------------140 • Consumer Price Index----------------------------------------------------------------140 • Producer Price Index------------------------------------------------------------------142 Exhibits--------------------------------------------------------------------------------------------144 ii Copyright © 2007 Beverage Marketing Corporation of New York Reproduction without written permission is strictly prohibited
  • Opportunities for Growth in the Coffee Market TABLE OF CONTENTS Chapter 10. U.S. COFFEE MARKET ADVERTISING EXPENDITURES Coffee Advertising--------------------------------------------------------------------------------146 • Overview------------------------------------------------------------------------------146 • Leading Coffee Advertisers-----------------------------------------------------------148 • Spending by Media-------------------------------------------------------------------151 Exhibits--------------------------------------------------------------------------------------------153 11. DEMOGRAPHICS OF THE U.S. COFFEE CONSUMER The Coffee Consumer-----------------------------------------------------------------------------160 • Overview------------------------------------------------------------------------------160 The Specialty Coffee Consumer------------------------------------------------------------------162 • Overview------------------------------------------------------------------------------162 The RTD Coffee Consumer-----------------------------------------------------------------------164 • Overview------------------------------------------------------------------------------164 Exhibits--------------------------------------------------------------------------------------------166 12. THE GLOBAL COFFEE MARKET The International Coffee Market-----------------------------------------------------------------168 • Overview------------------------------------------------------------------------------168 • Consumption--------------------------------------------------------------------------169 Consumption by Selected Countries-------------------------------------------------------------171 • Overview------------------------------------------------------------------------------171 • Brazil----------------------------------------------------------------------------------173 • Germany------------------------------------------------------------------------------173 • India-----------------------------------------------------------------------------------174 • Japan----------------------------------------------------------------------------------174 • China----------------------------------------------------------------------------------175 • Russia---------------------------------------------------------------------------------176 The International Fairtrade Coffee Market-------------------------------------------------------177 • Overview------------------------------------------------------------------------------177 • Volume--------------------------------------------------------------------------------179 Exhibits--------------------------------------------------------------------------------------------182 13. THE PROJECTED U.S. COFFEE MARKET The Projected National Coffee Market-----------------------------------------------------------189 • Overview------------------------------------------------------------------------------189 • Volume--------------------------------------------------------------------------------190 • Per Capita Consumption--------------------------------------------------------------191 • Growth--------------------------------------------------------------------------------192 iii Copyright © 2007 Beverage Marketing Corporation of New York Reproduction without written permission is strictly prohibited
  • Opportunities for Growth in the Coffee Market TABLE OF CONTENTS Chapter 13. THE PROJECTED U.S. COFFEE MARKET (cont’d) The Projected National RTD Coffee Market------------------------------------------------------193 • Overview------------------------------------------------------------------------------193 • Per Capita Consumption--------------------------------------------------------------193 Exhibits--------------------------------------------------------------------------------------------194 Exhibit 1. THE U.S. COFFEE MARKET 1.1 U.S. Coffee Market Volume and Growth 1987 – 2006----------------------------------- 15 1.2 U.S. Coffee Market Producers’ Dollars Sales and Growth 1998 – 2006----------------- 16 1.3 U.S. Coffee Market Price Per Gallon 1998 – 2006---------------------------------------- 17 1.4 U.S. Coffee Market Compound Annual Growth 1995 – 2006---------------------------- 18 1.5 U.S. Coffee Market Per Capita Consumption 1987 – 2006------------------------------- 19 1.6 U.S. Coffee Market Per Capita Consumption by Type 1999 – 2006--------------------- 20 1.7 U.S. Coffee Market New Product Introductions 2000 – 2006---------------------------- 21 2. THE IN-HOME VS. AWAY-FROM-HOME COFFEE MARKET 2.8 U.S. Coffee Market In-Home vs. Away-from-Home Volume 1994 – 2006-------------- 28 2.9 U.S. Coffee Market Share of In-Home vs. Away-from-Home Volume 1994 – 2006- - - - 29 2.10 U.S. Coffee Market Change in In-Home vs. Away-from-Home Volume 1995 – 2006 30 2.11 U.S. Coffee Market Estimated In-Home vs. Away-from-Home Dollar Sales 1998 – 2006-------------------------------------------------------------------------------- 31 2.12 U.S. Coffee Market Estimated Share of In-Home vs. Away-from-Home Dollar Sales 1998 – 2006-------------------------------------------------------------------------------- 32 2.13 U.S. Coffee Market Estimated Change in In-Home vs. Away-from-Home Dollar Sales 1999 – 2006------------------------------------------------------------------------- 33 2.14 U.S. Coffee Market In-Home Dollar Sales by Type 2006--------------------------------- 34 2.15 U.S. Coffee Market Away-from-Home Coffee Consumption by Location 2006---------- 35 2.16 U.S. Coffee Market Estimated Away-from-Home Dollar Sales by Type 2006----------- 36 2.17 U.S. Coffee Market Per Capita In-Home Consumption 2000 – 2006-------------------- 37 2.18 U.S. Coffee Market Per Capita Away-from-Home Consumption 2000 – 2006----------- 38 2.19 U.S. Coffee Market Top Retailers by Number of Locations 2006------------------------ 39 2.20 U.S. Coffee Market Share of Places to Purchase Coffee 2006--------------------------- 40 2.21 U.S. Coffee Market Share of Fast-Food Coffee Sales 2006------------------------------ 41 3. THE U.S. COFFEE MARKET BY DISTRIBUTION CHANNEL 3.22 U.S. Coffee Market Volume by Distribution Channel 2001 – 2006---------------------- 45 3.23 U.S. Coffee Market Share of Volume by Distribution Channel 2001 – 2006------------ 46 3.24 U.S. Coffee Market Change in Volume by Distribution Channel 2002 – 2006----------- 47 iv Copyright © 2007 Beverage Marketing Corporation of New York Reproduction without written permission is strictly prohibited
  • Opportunities for Growth in the Coffee Market TABLE OF CONTENTS Exhibit 4. THE U.S. COFFEE MARKET BY SEGMENT 4.25 U.S. Coffee Market Estimated Consumption by Segment 2001 – 2006----------------- 53 4.26 U.S. Coffee Market Estimated Share of Consumption by Segment 2001 – 2006------- 54 4.27 U.S. Coffee Market Estimated Change in Consumption by Segment 2002 – 2006----- 55 4.28 U.S. Coffee Market Estimated Per Capita Consumption by Segment 2001 – 2006----- 56 5. THE LEADING COFFEE COMPANIES AND THEIR BRANDS 5.29 U.S. Coffee Market Retail Volume and Growth by Leading Manufacturers in Food, Drug and Mass Merchandisers 2005 – 2006---------------------------------------------- 65 5.30 U.S. Coffee Market Retail Dollars and Growth by Leading Manufacturers in Food, Drug and Mass Merchandisers 2005 – 2006---------------------------------------------- 66 5.31 U.S. Coffee Market Retail Volume and Growth by Leading Brands in Food, Drug and Mass Merchandisers 2005 – 2006--------------------------------------------------------- 67 5.32 U.S. Coffee Market Retail Dollars and Growth by Leading Brands in Food, Drug and Mass Merchandisers 2005 – 2006--------------------------------------------------------- 68 5.33 U.S. Whole Bean Coffee Market Retail Volume and Growth by Brand in Food, Drug and Mass Merchandisers 2005 – 2006---------------------------------------------------- 69 5.34 U.S. Whole Bean Coffee Market Retail Dollars and Growth by Brand in Food, Drug and Mass Merchandisers 2005 – 2006---------------------------------------------------- 70 5.35 U.S. Ground Coffee Market Retail Volume and Growth by Brand in Food, Drug and Mass Merchandisers 2005 – 2006--------------------------------------------------------- 71 5.36 U.S. Ground Coffee Market Retail Dollars and Growth by Brand in Food, Drug and Mass Merchandisers 2005 – 2006--------------------------------------------------------- 72 5.37 U.S. Ground Decaffeinated Coffee Market Retail Volume and Growth by Brand in Food, Drug and Mass Merchandisers 2005 – 2006--------------------------------------- 73 5.38 U.S. Ground Decaffeinated Coffee Market Retail Dollars and Growth by Brand in Food, Drug and Mass Merchandisers 2005 – 2006--------------------------------------- 74 5.39 U.S. Instant Coffee Market Retail Volume and Growth by Brand in Food, Drug and Mass Merchandisers 2005 – 2006--------------------------------------------------------- 75 5.40 U.S. Instant Coffee Market Retail Dollars and Growth by Brand in Food, Drug and Mass Merchandisers 2005 - 2006--------------------------------------------------------- 76 5.41 U.S. Coffee Market Estimated Dollar Sales by Leading Cafes 2002 - 2006------------- 77 5.42 U.S. Coffee Market Estimated Share of Dollar Sales by Leading Cafes 2002 – 2006 78 5.43 U.S. Coffee Market Estimated Change in Dollar Sales by Leading Cafes 2003 – 2006 79 6. THE U.S. SPECIALTY COFFEE MARKET 6.44 U.S. Specialty Coffee Market Estimated Retail Sales and Growth 1999 – 2006-------- 84 6.45 U.S. Specialty Coffee Market Estimated Retail Sales by Type of Retailer 2003 – 2006-------------------------------------------------------------------------------- 85 v Copyright © 2007 Beverage Marketing Corporation of New York Reproduction without written permission is strictly prohibited
  • Opportunities for Growth in the Coffee Market TABLE OF CONTENTS Exhibit 6. THE U.S. SPECIALTY COFFEE MARKET (cont’d) 6.46 U.S. Specialty Coffee Market Estimated Share of Retail Sales by Type of Retailer 2003 – 2006-------------------------------------------------------------------------------- 86 6.47 U.S. Specialty Coffee Market Estimated Change in Retail Sales by Type of Retailer 2004 – 2006-------------------------------------------------------------------------------- 87 6.48 U.S. Specialty Coffee Market Number of Locations by Type of Retailer 2003 – 2006 88 7. THE U.S. READY-TO-DRINK COFFEE MARKET 7.49 The National RTD Coffee Market Wholesale Dollars and Case Volume 1993 – 2006- - - 99 7.50 The National RTD Coffee Market Wholesale Dollars and Case Volume Growth 1994 – 2006--------------------------------------------------------------------------------100 7.51 The National RTD Coffee Market Per Capita Consumption 1993 – 2006----------------101 7.52 Leading RTD Coffee Brands Estimated Wholesale Dollars 2001 – 2006-----------------102 7.53 Leading RTD Coffee Brands Estimated Share of Wholesale Dollars 2001 – 2006-------103 7.54 Leading RTD Coffee Brands Estimated Change in Wholesale Dollars 2002 – 2006----- 104 8. U.S. COFFEE IMPORTS, EXPORTS AND STOCKS 8.55 Imported Coffee Market All Countries and Types 1998 – 2006--------------------------117 8.56 Imported Coffee Market Volume by Coffee Type 2001 – 2006--------------------------118 8.57 Imported Coffee Market Share of Volume by Coffee Type 2001 – 2006----------------119 8.58 Imported Coffee Market Change in Volume by Coffee Type 2002 – 2006--------------120 8.59 Imported Coffee Market Volume by Country of Origin 2001 – 2006--------------------121 8.60 Imported Coffee Market Share of Volume by Country of Origin 2001 – 2006----------122 8.61 Imported Coffee Market Change in Volume by Country of Origin 2002 – 2006---------123 8.62 Imported Coffee Market Arabica, Not Roasted, Not Decaffeinated Volume by Country of Origin 2001 – 2006------------------------------------------------------------124 8.63 Imported Coffee Market Share of Arabica, Not Roasted, Not Decaffeinated Volume by Country of Origin 2001 – 2006---------------------------------------------------------125 8.64 Imported Coffee Market Change in Arabica, Not Roasted, Not Decaffeinated Volume by Country of Origin 2002 – 2006------------------------------------------------126 8.65 Imported Coffee Market Not Roasted, Not Decaffeinated Volume by Country of Origin 2001 – 2006------------------------------------------------------------------------127 8.66 Imported Coffee Market Share of Not Roasted, Not Decaffeinated Volume by Country of Origin 2001 – 2006------------------------------------------------------------128 8.67 Imported Coffee Market Change in Not Roasted, Not Decaffeinated Volume by Country of Origin 2002 – 2006------------------------------------------------------------129 8.68 Imported Coffee Market Not Roasted, Decaffeinated Volume by Country of Origin 2001 – 2006--------------------------------------------------------------------------------130 8.69 Imported Coffee Market Share of Not Roasted, Decaffeinated Volume by Country of Origin 2001 – 2006------------------------------------------------------------------------131 vi Copyright © 2007 Beverage Marketing Corporation of New York Reproduction without written permission is strictly prohibited
  • Opportunities for Growth in the Coffee Market TABLE OF CONTENTS Exhibit 8. U.S. COFFEE IMPORTS, EXPORTS AND STOCKS (cont’d) 8.70 Imported Coffee Market Change in Not Roasted, Decaffeinated Volume by Country of Origin 2002 – 2006------------------------------------------------------------132 8.71 Imported Coffee Market Roasted, Not Decaffeinated Volume by Country of Origin 2001 – 2006------------------------------------------------------------------------133 8.72 Imported Coffee Market Share of Roasted, Not Decaffeinated Volume by Country of Origin 2001 – 2006------------------------------------------------------------------------134 8.73 Imported Coffee Market Change in Roasted, Not Decaffeinated Volume by Country of Origin 2002 – 2006----------------------------------------------------------------------135 8.74 Imported Coffee Market Roasted, Decaffeinated Volume by Country of Origin 2001 – 2006--------------------------------------------------------------------------------136 8.75 Imported Coffee Market Share of Roasted, Decaffeinated Volume by Country of Origin 2001 – 2006------------------------------------------------------------------------137 8.76 Imported Coffee Market Change in Roasted, Decaffeinated Volume by Country of Origin 2002 – 2006------------------------------------------------------------------------138 8.77 Exported Coffee Market All Countries and Types 1998 – 2006--------------------------139 9. COFFEE INDUSTRY PRICING IN THE U.S. 9.78 Consumer Price Index Changes for Coffee and Other Items 1995 – 2006--------------144 9.79 Producer Price Index Changes for Coffee and All Commodities 1995 – 2006-----------145 10. U.S. COFFEE MARKET ADVERTISING EXPENDITURES 10.80U.S. Coffee Market Estimated Advertising Expenditures 2000 – 2006------------------153 10.81U.S. Coffee Market Advertising Expenditures by Leading Advertisers 2001 – 2006----154 10.82U.S. Coffee Market Share of Advertising Expenditures by Leading Advertisers 2001 – 2006--------------------------------------------------------------------------------155 10.83U.S. Coffee Market Change in Advertising Expenditures by Leading Advertisers 2002 – 2006--------------------------------------------------------------------------------156 10.84U.S. Coffee Market Advertising Expenditures by Media 2001 – 2006-------------------157 10.85U.S. Coffee Market Share of Advertising Expenditures by Media 2001 – 2006--------- 158 10.86U.S. Coffee Market Change in Advertising Expenditures by Media 2002 – 2006------- 159 11. DEMOGRAPHICS OF THE U.S. COFFEE CONSUMER 11.87Demographics of the Coffee Consumer 2006---------------------------------------------166 12. THE GLOBAL COFFEE MARKET 12.88Global Green Coffee Market Volume and Growth 1994 – 2006--------------------------182 12.89Global Green Coffee Market Estimated Consumption by Country 2001 – 2006---------183 12.90Global Green Coffee Market Share of Consumption by Country 2001 – 2006---------- 184 12.91Global Green Coffee Market Change in Consumption by Country 2002 – 2006--------185 12.92Global Fairtrade Coffee Market Sales Volume by Country 2001 – 2006-----------------186 vii Copyright © 2007 Beverage Marketing Corporation of New York Reproduction without written permission is strictly prohibited
  • Opportunities for Growth in the Coffee Market TABLE OF CONTENTS Exhibit 12. THE GLOBAL COFFEE MARKET (cont’d) 12.93Global Fairtrade Coffee Market Share of Sales Volume by Country 2001 – 2006-------187 12.94Global Fairtrade Coffee Market Change in Sales Volume by Country 2002 – 2006-----188 13. THE PROJECTED U.S. COFFEE MARKET 13.95Projected U.S. Coffee Market Volume and Growth 1987 – 2011------------------------194 13.96Projected U.S. Coffee Market Per Capita Consumption 1987 – 2011--------------------195 13.97Projected U.S. Coffee Market Compound Annual Growth 1995 – 2011-----------------196 13.98Projected U.S. RTD Coffee Market Volume and Growth 1993 – 2011-------------------197 13.99Projected U.S. RTD Coffee Market Per Capita Consumption 1993 – 2011--------------198 13.100 Projected U.S. RTD Coffee Market Compound Annual Growth 1995 – 2011----------199 viii Copyright © 2007 Beverage Marketing Corporation of New York Reproduction without written permission is strictly prohibited
  • Exhibit 12.94 GLOBAL FAIRTRADE COFFEE MARKET CHANGE IN SALES VOLUME BY COUNTRY 2002 ─ 2006 Countries 2001/02 2002/03 2003/04 2004/05 2005/06 United States 46.8% 92.8% 84.0% 70.9% 109.7% United Kingdom 25.7% 18.1% 44.7% 34.2% 39.2% France 45.9% 70.1% 18.1% 91.9% 15.6% Germany -6.0% -3.7% 5.2% 10.0% 19.2% Netherlands 1.1% -1.4% -3.7% -4.1% -0.5% Canada 53.4% 56.2% 24.4% 69.6% 61.9% Switzerland -4.6% 21.5% -3.4% 1.7% 3.2% Belgium 8.6% 27.4% 7.5% 5.4% 14.8% Sweden 13.8% 1.7% 27.6% 38.7% 83.3% Austria 22.8% 13.2% 12.1% 10.0% 30.8% Denmark -8.0% -17.1% 1.3% 9.1% 22.2% Norway 29.6% 33.2% 18.4% 16.4% 13.6% Ireland -3.2% 66.7% 26.0% 31.0% 84.2% Australia/NZ -- -- -- -- 202.0% Finland 12.4% 3.7% 6.2% 14.2% 105.8% Italy -46.4% -5.3% -2.2% 8.0% 7.0% Spain -- -- -- -- 1384.6% Japan 42.9% 120.0% 150.0% 136.4% 13.1% Luxemburg -11.7% 0.0% 2.9% 25.7% 3.4% TOTAL 9.2% 23.3% 25.5% 40.3% 53.2% Source: Beverage Marketing Corporation Copyright © 2007 Beverage Marketing Corporation of New York Reproduction without written permission is strictly prohibited
  • The retail sales price of coffee tends to mirror that of changes in the international price of coffee, although on a somewhat lagged basis, with roasters hesitant to change prices too hastily and too frequently. • Prices of coffee have been trending higher the past five years after skidding to historically low levels earlier this decade when prices fell well below the cost of production for most farmers. • Global production is dominated by Brazil, then Vietnam, and to a lesser extent Colombia. Combined these three producers account for nearly 60% of total world supply and so weather problems in any of these countries, particularly Brazil, could have a pronounced impact on prices. • About once every 10 years or so, Brazilian coffee production has been drastically reduced due to a frost or a drought. The risk of frost damage has been somewhat lessened due to the migration of the major coffee areas further north away from the traditional cold spots. • However, these new areas are more prone to drought and coffee traders can be rattled by this at times, with prices become very sensitive to any delays in the onset of the rainy season and possible harm to the crop resulting from this. • The most noted examples of weather induced bull markets in coffee was in 1975 as a result of frost in Brazil, 1985 due to Brazilian drought and then in 1994 frost again in Brazil. • Prices percolated in 1997 to all time highs as the supply shortfall brought on my by the 1994 frost became acute. Arabica futures prices shot up to more than $3.00 per pound, but robusta prices languished as Vietnam emerged as a dominant producer and had record output. • The sky high prices encouraged a rapid expansion in planted area and good husbandry which then in turn caused massive oversupply several seasons later and prices tanked accordingly. From an average per unit selling price fell of $3.77 in 1998 prices fell to $2.92 by 2002. It remained unchanged in the following year. • Since then, the market has been able to recover with average prices rising each year since they hit rock bottom earlier in the decade. In 2004, the average per unit selling price rose to $2.85 and with the increase in the futures prices guiding retail prices, there was a further 14% increase in retail prices in 2005 to $3.26 and then climbed further to $3.30 in 2006 and hit a high of $3.41 in 2007. The gain in green coffee prices has been passed on to consumers. Copyright © 2007 Beverage Marketing Corporation of New York Reproduction without written permission is strictly prohibited
  • BRAZIL PRODUCES ONE-THIRD OF ALL COFFEE Share of global coffee production by country, 2006 Others Brazil 34.8% 33.3% Mexico 3.7% Viet Nam Indonesia 11.0% C olombia 8.4% 8.9% Source: Beverage Marketing Corporation; FAO; FAS/USDA Copyright © 2007 Beverage Marketing Corporation of New York Reproduction without written permission is strictly prohibited