Greater Houston Coffee Association Keynote

1. MELISSA J. PUGASH
Results-Oriented Marketing Communications
& Social Media for the Global Coffee & Tea Trades
linkedin.com/in/melissapugash
New Business Opportunities
“Thinking Outside of the Coffee Cup”
Annual Luncheon
October 10, 2013
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2. TODAY’S PRESENTATION
New Business Opportunities -- Thinking Outside of the
Coffee Cup.
PART I. COFFEE PART II. TEA
- Production / Imports - Production / Imports
- Consumption Statistics - Consumption Statistics
- Trends - Trends
PART III. Simple ways your company can build your brand identity & capture
your share of the growth opportunities.
- Business Strategy & Mar/Com Plan
- Customer Value Proposition
- Web Presence
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3. U.S. Coffee & Tea Consumption Data
US CENSUS BUREAU
Helping you make informed Decisions
~~~~~~~
Due to the lapse in government funding, census.gov sites, services,
and all online survey collection requests will be unavailable until
further notice.
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4. Grounds for Celebration for GHCA Members...
Specialty Coffee Association of America (SCAA)
2012 Coffee Facts & Statistics
"While a tremendous amount of effort and attention is directed toward
selecting the right bean, the industry recognizes that transportation,
storage, roasting, packaging, brewing and preparation all affect the
quality of the final product…”
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5. U.S. Coffee Import Update
Source: International Coffee Organization
Top coffee importers are:
1. USA
2. Germany
3. Japan
4. Italy
5. France
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6. Overall U.S. Coffee Consumption
Overall coffee consumption jumped by 5 percentage points this year, with 83% of
the U.S. adult population drinking coffee within the past year.
NCA's study also notes that daily coffee consumption in the US remained strong
and steady - 63% of Americans drink coffee daily.
U.S. Coffee Consumption by Ethnic Group
Hispanic-Americans helped drive growth in the US - According to the National
Coffee Association, consumption in that demographic outpaces that of other
American groups surveyed.
76% Hispanic-Americans
64% Caucasian-Americans
47% African-Americans
Source: National Coffee Association 2013 Coffee
Drinking Study
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7. U.S. Coffee Consumption by Age
The number consumers aged 60 and older increased their daily intake
with 76 % reporting that they drink coffee very day.
The number of young adults under 40 who enjoy coffee on a daily basis
has dropped.
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8. Current Coffee Growth Trends
*Single Serve is a Significant Growth Area
“The "single-serve format...continues to grow with 13% of the population drinking coffee
made in a single cup brewer the previous day, up from 10 % in 2012
National Coffee Association (NCA) 2013 Coffee Drinking Study
“Convenience is the top factor driving 17% of coffee drinkers to opt for single-cup
coffee. More than half (55%) said they like the variety available in single-portion pods.
"Those aged 18 to 44 are notably more likely than their older counterparts to cite
convenience as a reason for using pod-style machines.”
Mintel, Food & Drink Report January 30, 2012
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9. More Coffee Growth Trends
Specialty Coffee Sales are Still Strong
“The retail value of the U.S. Coffee market is estimated at $30 - 32 billion dollars,
with specialty compromising approximately 37% volume share but nearly 50% value
share.
Specialty Coffee Association of America 2012 --Coffee Facts &
Statistics
Ready-to-Drink -- Bottled / Canned Beverages
"Growth is attributed to strength in the economy. Ready-to-drink tea and coffee as
well as energy drinks were the beverages that grew the most, while established
segments like carbonated soft drinks and fruit beverages did not grow as much in
2012.
Beverage Marketing Corporation
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10. Can Tea help your Business “Make a Splash?”
“Even if you are a coffee lover, there is no escaping the fact that tea's*
popularity is ever-increasing. One only has to note the growing availability of
Specialty Teas in coffee shops…”
Joe Simrany, President of the Tea Association of the U.S.A. 2012
*The USTA defines tea as the leaves of Camellia Sinensis, a plant that produces
Black, Green, Oolong and White teas.
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11. Opportunities in Tea for U.S. Coffee Companies
You may not have noticed but Starbucks dropped the word COFFEE from its
name.
In 2012 Starbucks opened a TAZO brand tea boutique in America’s
coffee capital -- Seattle.
Earlier this year Starbucks acquired TEAVANA HOLDINGS, Inc. a specialty
retailer of tea with more than 300 outlets.
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12. Tea Consumption / View from the Tea Sector
Americans still drink far more coffee than tea. In 2011 the average US
coffee consumption was 9.39 pounds per person, while tea was at .9
pounds per person.
However, the USTA expects that the dollar value of tea in the U.S. will
grow from $8.20 billion in 2011 to $15 billion by the end of 2016. That’s
HUGE!
Source: Tea Association of the U.S.A. (USTA)
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13. Global Tea Exports 2012
Where is this Tea Coming From?
* Note: Includes tea that was imported for re-export /The exports may include teas that were imported to a country of
origin, blended and then re-exported. So, there may not be a one-to-one ration on teas produced and teas exported.
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14. Global Tea Imports 2012
Who is Consuming Tea Today? Tea is the most widely consumed beverage globally
after water.
“The U.S. market for tea* is vibrant and one of the few in the world where tea
sales are growing. Relative to other countries, the market for tea in the U.S. is
underdeveloped.”
SOURCE: Tea Association of the U.S.A. (2011)
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15. U.S. Tea Consumption
• 2011 was the 20th consecutive year that consumer purchases of tea increased.
• The tea industry anticipates strong, continuous growth over the next 5 years.
This growth will come from all segments driven by convenience, interest in the
healthy properties of tea, and by the continued innovation in Ready-to-Drink and
Specialty Teas.
• On any given day, about one half of the American population drinks tea.
• Approximately 85% of tea consumed in the U.S. is iced.
• The Southern and Northeastern US have the highest concentration of tea
drinkers.
Source: Tea Association of the U.S.A (USTA)
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16. US Tea Consumption by Sector
“Tearooms are no longer doilies and lace. Most coffee houses now are
offering specialty tea.”
Joe Simrany, President, Tea Association of the U.S.A
This data from the Tea Association of the U.S.A. reveals growth in various
industry sectors from 1990 to 2011.
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17. Current U. S. Tea Trends
Here’s where we expect to see the most growth.
• Traditional Tea is expected to realize annual growth in the 2-3% range.
• Specialty Tea will become the fastest growing segment with annual increases in the
10-20% range.
• Ready to Drink (RTD) Tea will continue to experience robust growth in the range of
5-10% annually Tea in bottles, cans, aseptic packaging, plastic containers or any
other packaging configuration brings the greatest convenience
• Green Tea consumption is growing at a much higher rate than black tea.
• Single Serve - (Automatic single serve brewers such as Keurig) Offerings in the tea
category lag behind coffee. Keurig offers 161 coffee types and only 44 tea products
dominated by green and black teas with herbal offerings.
• Loose Leaf Tea is gaining in popularity.
• Instant Tea - is declining.
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18. Current U. S. Tea Trends
Supermarkets – Grocery sales alone surpassed the $2.20 billion dollar mark.
Where can you find tea in the grocery aisle?
• It’s no longer found “just in the coffee aisle”
• Ready-to-drink teas are in the 'soft drink, water and functional beverage'
aisles.
• Tea is often found in the dairy case in both bottles and gallon jug containers.
Hotels – Afternoon Tea Service used to be only a British Tradition – now nearly all upscale US hotels
offer High Tea
Health Spas & Resorts – Chilled and hot tea as well as tea infused fruit drinks and tea-based
functional beverages are offered to health-conscious patrons
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19. It May be Time for Businesses to
Think Outside the Coffee Cup
“Tea sales are expected to grow about 50-percent in the next 3 years in
the United States. Experts believe that by 2017 the ancient brew may
even outsell coffee.”
George Jage,
Founder and Director of the World Tea Expo, 2013
The best news yet... Harlingen, TX has
the highest percentage of iced tea
drinkers in the country!
Scarborough USA , February 2012
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20. Opportunities in Both Coffee & Tea
Quality, Variety, Convenience and interest in Healthy Beverages
What are the key observations from this presentation?
• In post-recession America, quality and variety are especially important to consumers.
• Upscale specialty products in both coffee and tea are significant growth areas in
consumption & dollars.
• Convenience, especially among younger consumers is driving growth in both beverages
• In coffee, it’s single serve and RTD and in tea it’s RTD.
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21. Simple Tips for Success
Building a Strong B-2-B Brand
Today, the old adage, if you build it they will come, no longer works...
If you have even one competitor, I suggest you have a these three business
elements in place for maintaining your visibility and your competitive edge.
Tools for success include....
1. Business Strategy and Marketing Plan
2. Customer Value Proposition
3. Web Presence
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22. Business Strategy & Marketing Plan
Your Business Strategy & Marketing Plan is your
“Roadmap.”
I. SITUATION ANALYSIS: What’s happening externally and internally?
II. OBJECTIVES: What are the desired outcomes?
III. TARGET MARKETS: Who / Where are your ideal customers?
IV. PROPOSED STRATEGIES: How can achieve the desired results?
V. PROGRAM ELEMENTS: What specific actions will best enable you to
achieve your objectives?
VII. TIMELINE: What is the schedule of events?
VIII. BUDGET: How much of an investment (time &
dollars) is required to achieve the desired results?
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23. Grounds for Attracting & Keeping Customers
CUSTOMER VALUE PROPOSITION
The CVP has become one of the most widely used terms in business in recent
years. If you have one competitor, you need a CVP.
It’s a statement or two that demonstrates your company’s unique features,
benefits and values that will satisfy your customers’ needs better than anyone
else.
Your company may actually provide superior products, service and value—But
if you don’t communicate these strengths to customers and prospects, you’re
missing out on business opportunities.
In other words, you must articulate the most compelling reason(s) customers
should select your brand over your competition.
Your CVP is the key to opening the door to success.
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24. Grounds for Creating B-2-B Buzz
Web Presence - It can be one or a combination of these elements
- Company Website
- Linked-In Business Profile
- Facebook Business Profile
• SEO -- Make sure people who are looking for your products / services can
find you through Search Engine Optimization
• Home Page -- Start with your Customer Value Proposition..
• Content – Your text must be current and compelling
• Contact Us -- Make it super easy for customers to contact you anytime
.
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25. MELISSA J. PUGASH
Results-Oriented Marketing Communications
& Social Media for the Global Coffee & Tea Trades
linkedin.com/in/melissapugash
New Business Opportunities for GHCA Members
Thinking Outside of the Coffee Cup
Annual Luncheon
October 10, 2013
THANK YOU!
Special thanks to Bill Diehl, Maria Echeverry, Al Hernandez & Patrick Seeba!
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