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Feb 14, 2012

Coffee, Tea Sales Percolate at Retailer Establishments

PrintCoffee, Tea Sales Percolate at Retailer Establishments  

NEW YORK -- Coffee and tea sales continue to percolate at retailer establishments, according to "Coffee and Tea Foodservice Trends in the U.S.," a just-released Packaged Facts study. Sales of coffee and tea at convenience stores, quick-service restaurants (QSRs) and other dining establishments are expected to reach $18.7 billion in 2012, the market research firm said.

Sales of the beverages -- c-store staples -- rose 11 percent during 2011. Packaged Facts attributed the 2011 increase and expected 2012 brisk sales figures to consumers beginning to eschew the stay-at-home approach brought on by the Great Recession.

Sales in 2011 were led by Dunkin' Donuts, Green Mountain Coffee Roasters, McDonald's and Starbucks, which each earned more than $1 billion in U.S. coffee and tea revenues.

Most top coffee purveyors have grown their same-store sales since 2005, led by Tim Hortons, which achieved a 21-percent cumulative increase, according to the data.

More than half of all Americans drink coffee and/or tea, said David Sprinkle, publisher of Packaged Facts. Some 173.5 million consumers drink tea, while 183 million drink coffee.

The average price for coffee on restaurant menus has risen 25 percent since 2007, with the highest increase seen at QSRs, the study shows. The price hike is due to operators passing on commodity price hikes to their customers. Tea has been more price stable than its coffee counterpart and therefore, retailers have seen higher margins in tea than in coffee.

There is perhaps a potential fly in the ointment, however. The U.S. coffee and tea market is so mature that it is difficult to maintain the growth potential, the study concluded. To help counteract its maturity, the research firm recommends that foodservice operators expand the variety of their offerings and occasions for use while converting home-office coffee and tea users into foodservice users.

As CSNews previously reported, c-store retailers also have been offering fresh food, such as sandwiches and fruit, to help grow their overall foodservice operations.






Find Reports & Data

CSNews 2009 Foodservice Study

Foodservice sales rose 7.7 percent on a per store basis in 2008, and prepared foods led the way with a 9.1 percent sales gain per store, according to Convenience Store NewsĂ˝ 2009 Foodservice Study.

CSNews 2010 Industry Forecast Study

CSNews' 8th annual Forecast Study includes a macroeconomic projection of market conditions in 2010 and the impact they will have on sales and growth of key convenience store categories: motor fuel, tobacco, malt beverages, confectionery, and snacks.

CSNews' 2009 Industry Report Study

Industry sales climbed 11.4% to an all-time high of $633.9 billion last year, according to the Convenience Store News 2009 Industry Report, the longest-running compilation of sales and operational results in c-store retailing. 40 pages, including 69 charts.

CSNews' 2009 Realities of the Aisle Consumer Study

Food quality and in-store execution greatly impact a consumer's choice to purchase and consume prepared food from a convenience store, according to the new Realities of the Aisle consumer research study conducted by Convenience Store News, in partnership with Nielsen Homescan. Study is 11 pages and includes 14 charts.

CSNews 2010 FIRST LOOK Report

CSNews' 2nd annual FIRST LOOK report provides convenience store retailers with a first glimpse of industry dollar and volume sales changes in five major product categories, based on data provided exclusively to CSNews by The Nielsen Co. The report includes sales, unit and regional market share percentage changes for packaged beverages, other tobacco products, candy and snacks, and beer.

CSNews 2010 Industry Forecast Study

The Great Recession has caused a fundamental shift in consumer spending. How will this affect the c-store industry and your business in the year ahead? The CSNews 2010 Industry Forecast Study provides a glimpse of the rough conditions ahead and critical insight for you to make the right buying decisions.

CSNews HR & Labor Study 2010

Likely owing to the economic recession, 40 percent of retailers responding to the Convenience Store News 2010 Human Resources (HR) & Labor Study said store associates turnover decreased over the past two years.


Today's New Product


Insulated Beverage Dispensers
These stainless-steel insulated beverage dispensers provide greater performance and durability in the coffee, tea and beverage category, the manufacturer stated.
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