STiR coffee and tea magazine

6 STiR coffee and tea / Issue 2, 2017 (April/May) Incorporating Representation for STIR Asia / Middle East / Southern & Eastern Europe Glenn Anthony John October Inter Co. Ltd. Interchange 21 Bldg., Room 3225, 399 Sukhumvit Road 32nd Fl. Bangkok, 10110, Thailand Tel +662 660 3789, Fax +662 660 3881 Mobile +1 917 843 0000 or +66 818 299 409 gaj@octobermultimedia.com The Americas / Northern Europe Emerson Leonard Cardinal Media LLC 2 Glenfield, Barrington RI 02806 United States Tel +1 917 680 1050 edl@octobermultimedia.com Printing/Distribution overseen by: October Inter Co. Ltd. Distribution by: DHL Express International (Thailand) Ltd. Published by: October Multimedia Co., Ltd. Printed in Thailand Up Front ON THE COVER *The "i" in STiR is a Kladi roast coffee scoop. The cover depicts a member of Gen Z, (born 1994-2010) a group with a newfound love of coffee that makes up 25.9% of US Gourmet beverages are key to the ongoing relevance of the coffee category. Only 21% of consumers aged 18-21 drank a cup of traditional coffee the previous day, compared to 42% of those aged 60+, according the National Coffee Association's National Coffee Drinking Trends (NCDT) tracking report. Young coffee drinkers and "soaring consumer enthusiasm" across all demographics has reversed a three-year decline in US coffee consumption, according NCA. The annual NCDT survey shows the number of Americans drinking coffee on a daily basis increased to 62% this year, up from 57% in 2016. Unflavored bottled water is now the second most commonly consumed beverage (55%) and past-day consumption of tea rose from 44% to 50%. Consumption of carbonated soda fell to fifth place. "More of us are drinking coffee, and younger consumers appear to be leading the charge," said Bill Murray, NCA president and c.e.o. During his presentation of survey results at NCA's annual convention, Michael Edwards, founder of DIG Insights, explained that "lattes and espresso-based drinks are driving growth. Where we see gains in tradition- al [coffee] is due to the introduction of new brewing methods." Young coffee drinkers prefer gourmet preparations especially espresso-based beverages. Past-day penetration grew overall from 18% to 24% in 2017, the largest one-year jump since NCA first began its survey in 1950. In January NCA asked a nationally representative sample of more than 3,400 coffee drinkers, aged 13 and older, to describe the beverages they drank the previous day. While the frequency of daily con- sumption continued to grow for all age groups, the most robust increase occurred among those 13-18, whose daily con- sumption rose to 37% in 2017 from 31% in 2016, capping a 14-point increase over 2014's 23%, according to the NCDT. Looking only at those with a prefer- ence for groumet coffee, 29% of those aged 13-18 drank a gourmet coffee beverage yesterday and a 70% share of the cups they drank were gourmet versus 30% non-gourmet, according to the tracking report. Specifics are detailed in a separate report, Generational Report: Coffee Through the Ages." Other findings include: • More than half of all cups of coffee consumed in the past day were gourmet – 59% in 2017 versus 46% in 2012. • "Non-espresso-based beverages," a new category for 2017 consisting of non-espresso, gourmet coffee-based beverages, made a strong debut in past-week consumption: - frozen blended - 14% - cold brew – 11% - nitrogen-infused - 3%. Single-cup brewing continues to grow exponentially in 2017. New data shows that nearly one-third of American households (33%) now own a single-cup brewer, up from 29% in 2016. That means since 2012, ownership has grown nearly five-fold. Thirteen- to eighteen- year-olds reported that single-cup ownership in their households jumped from 23% to 31% over the last two years. Purchase intent also increased – those who would "definitely or probably buy" a single-cup brewer jumped to 17% in 2017, up from 10% in 2016. Similarly, definite or probable gifting intent jumped by 5 percentage points over last year. "This argues for continued growth of the systems," said Edwards. Out-of-home consumption continues to rise to 40% of past-day coffee drinkers. The 2012 survey showed 30%. Edwards noted a weakening associa- tion between coffee and health. "We see lower levels of agreement in 2017 with the statements 'in the past year, I have heard information about the health benefits of drinking coffee' and 'coffee is good for my health.' "Reinforcing these messages may be an opportunity for the coffee industry overall," said Edwards. Data in the NCDT report is available on an interactive, online platform that enables customization by applying multiple demographic filters. Learn more: www.ncausa.org Youth Invigorate US Coffee Consumption

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