STiR coffee and tea magazine

Volume 3, Number 2

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STiR tea & coffee industry international 45 anadians drink more coffee than tap wa- ter according to market researchers. Sandy McAlpine, president of the Coffee Association of Canada, shared his views of what is driving Canada's coffee market growth at the 27th Sintercafé in Costa Rica. McAlpine acknowledged that by traditional measures such as import volume, Canada ranks low among the world's coffee markets but the country's high per- capita consumption and shifts in consumer pref- erence are bellwethers for developed countries. After all, something must account for the fact that Canada is second only to Italy in the importance of coffee selections on restaurant menus. Though most eat breakfast at home, a grow- ing number of Canadian adults buy their first meal of the day at quick service restaurants. Tim Hortons, Canada's best known coffee brand, is among many national chains to entice new cus- tomers with promotional offers. The company, now helmed by Marc Caira, who previously served as global ceo of Nestlé Professional, was named one of the top 20 best franchises for travelers by CNN. "Tim's" dominates Canada's coffee market where the chain operates more than 3,500 stores – three times the number of Starbucks locations. And where the big brand leads, many others have followed. Sixty-five percent of breakfast vis- its include the piping hot brew, a clear signal such campaigns are working. A 2013 Nielsen study of Canadian consumers found that coffee amounted to 16% of their daily beverage intake on weekends and week days. On weekends hot tea rises from 11% to 16% share of C By Jenny Neill throat. Iced tea accounts for 3% share. A third of those responding prefer coffee over hot tea when at home with 14% reporting they do not order any hot beverages outside their home. McAlpine noted that consumer preference for the traditional drip grind "good to very-good" cof- fee category may be starting to lose ground to two emerging trends. Convenience and variety are key characteristics for both contenders: single cup and specialty. Use of single-serve machines for in-home brewing has grown 45% according to McAlpine. Almost three-fourths of those who make their morning java at home indicate a preference for premium blends in grocery stores. Lattes and espresso drinks remain a small por- tion of the overall coffee market in Canada at just over 6% while nearly 51% opt for "at-home" cof- fee and nearly 37% for "away-from-home main- stream." McAlpine suggests specialty is poised to take off. Disposable income continues to increase, though modestly, since 2009. Population growth and a slight uptick in specialty consumption sup- port his assertion. The biggest loser in the past five years is in- stant coffee due to a shift in preference for gour- met and fresh brewed espresso-based beverages and single-origin pour-over brews. Will coffeehouses and restaurants be able to woo more Canadians by updating coffee options to cater to today's trends? Based on tea's meteoric rise in popularity, it seems such venues would do well to offer thoughtful selections in both bever- age categories. Sandy McAlpine, president of the Coffee Association of Canada Coffee More Popular than Water Canada's preference for good, get-it-on-the-go brews may soon be outpaced by convenient in-home options and a taste for specialty coffee. Photo courtesy Matias Suater and Daniela Linares

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