STiR coffee and tea magazine

Volume 3, Number 2

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8 STiR tea & coffee industry international Canada is Special anada's robust hot drinks market is a good predictor of global retail trends. Canadians drink a lot of coffee, 65% say they had a cup the previous day. Three fourths of those 18 and older (78%) had a cup of coffee in the past week, averaging 3.2 cups per day and 54% drink at least one cup of tea a week with 37% drinking tea daily. According to the Tea Association of Canada "specialty tea is fuelling growth of total tea in Canada, driven by black, green & herbal tea." Since 2011 sales of specialty tea has exceeded sales of regular tea in dollar volume. Regular tea bags dominate in tonnage (73%) but specialty tea is growing much faster and now accounts for 26.9 % share of tonnage. This month STiR Tea & Coffee Industry International introduces the first in a series of country mar- ket reports as reporter Jane Pettigrew visits Canada, a leading global market in coffee and specialty tea. These detailed reports, appearing in each issue, describe market trends, business opportunities and pitfalls. North of the 40th Parallel the preferences are clear. While tea drinkers choose hot tea over coffee, most Canadians start their day drinking coffee. Many then switch to tea in the afternoon. Women favor tea 60% to men, 45%. During a typical day prepared drinks are the rule. Water accounts for only 20% of volume consumed. Canadian tea drinkers told surveyors that 18% of their beverage intake is tea followed by coffee (16%) and milk (12%). This is consistent with research by Euromonitor International, which found that for most markets, consumers who are primarily coffee drinkers are less likely to drink much tea, and vice versa, a gener- alization true of North America, Western Europe, the Middle East and Africa. It may not be the largest market but Canada's 35 million residents drink 9.7 billion cups of tea a year. One in three is classified as a heavy tea drinker, consuming eight or more cups per week. At 1.21 pounds per capita, Canada ranks just behind China (1.248 lbs.) in tea consumption, according to Euromonitor. Coffee drinkers told researchers they mainly enjoy their brew at home (78%) with 37% reporting they drink their coffee out of home. Drip brew predominates but 25% of coffee drinkers now use single- serve machines, according the 2013 Canadian Coffee Drinking Study. Single-cup ownership is mark- edly higher in Canada (20%) than in the U.S. (12%), according to the Canadian Coffee Association. Here are some useful takeaways: • At $130 billion, the U.S. in 2013 was the world's biggest coffee market in terms of retail value, followed by Brazil, Germany, Japan and France. Canada ranks 9th. • Convenience is important on mornings when the day's high is 10 below. Young coffee and tea drinkers are three times more likely to have a single-serve brewer in their home. • Espresso based coffee is popular with 12% of Canadians while 9% reported choosing instant coffee the previous day. Only 6% drank an siced or chilled blended coffee. • Boutique roasters are gaining share in niches such as Fairtrade and organic, where British Columbia based Kicking Horse dominates. • Immigration is driving green tea growth in the Pacific region and herbals are on the rise with annual sales of South African Rooibos in double digits. • NDP research shows a great opportunity for quality tea in foodservice as many Canadians say they make a better cup of tea at home than they can get elsewhere. • Canada is second only to Italy in terms of menu importance coffee drinkers dining out. Thomas Edison remarked that "We often miss opportunity because it's dressed in overalls and looks like work." So roll up your sleeves and take notes as you read, there is much to learn from Canada's Passion for Specialty Tea, beginning on Pg. 38. Opportunity knocks. C © 2014 October Multimedia Inc. STiR Tea & Coffee Industry International is published bi monthly in January, March, May, July, September and November by October Multi- media Co., Ltd., with production and distribution overseen by October Inter Co., Ltd., 1126/2 New Petchburi Road, Vanit Bldg. 2 Room 1403A, Bangkok 10400 THAILAND. Tel +66 22 55 66 25, Fax +66 26 55 22 11 E-mail: Visit: for the latest news. From the Editor Editor & Publisher Glenn Anthony John Managing Editor Dan Bolton Art Director Somjet Thitasomboon Tea Correspondent Jane Pettigrew Coffee Correspondent Jenny Neill Contributing Writers Lindsey Goodwin Sherri Johns Alf Kramer Larry Luxner Sunalini Menon Katrina Munichiello Peter Surowski Helen Xu Fei Translations (Chinese) Helen Xu Fei Director, October Inter Co., Ltd. Boonthin Tubsongkroh Administrative Assistant Sayaporn Wattanaking Sales Director Emerson Leonard Sales Representatives Jonathan W. Bell Chris Michaelides Editorial/Circulation Offices STiR Tea & Coffee Industry International c/o October Inter Co. Ltd. Vanit Building 2, Room 1403A 1126/2 New Petchburi Rd. Bangkok 10400 THAILAND Tel +66 2255 6625 Fax +66 2655 2211 Published by: A Member of:

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