Are you brewing your own coffee? If so, you might be part of fast developing minority, at least if the industry lead by Pepsi can decide. They are selling cans and bottles of coffee drinks, aimed at convenience-obsessed Americans who want an indulgence and an energy boost, but don’t want to actually dump grounds in a pot, add water or even worse- wait. And soon, the Chinese might be following suit…
A new report finds a number of multinationals overcoming obstacles that once threatened to make the drink appear unhealthy, opening up consumption opportunities and broadening the target market by turning the original ready-to-drink-coffee concept on its head.
Tracey Doucette, who runs North American Coffee Partnership, a joint venture between Pepsi and Starbucks that sells ready-to-drink coffee drinks is quoted on SeattlePi’s website saying: “It is about converting users from the coffee form they have today to a new form that is ready to drink.”
Pepsi and Starbucks controls about 90% of the U.S. market for ready-to-drink coffee, which is worth $1 billion.
Apparently, the companies have moved on from merely tweaking the coffee-sugar-milk ratio to appeal to different consumer tastes. They are now focusing on a whole new generation of consumers by balancing sometimes conflicting demands for products that are weight and health conscious, energy boosting, indulgent and perhaps also offer added functionality.
While The Coca-Cola Company leads in Japan with innovative products such as the Georgia brand’s GABA coffee, it has struggled to break the US stranglehold of the PepsiCo/Starbucks Coffee Company partnership. The report says many eyes are now on China as the alliance rolls out Starbucks Frappuccino across the country. Reuters write that Starbucks will add at least 80 coffee shops each year in China, where annual sales growth is significantly higher than the company’s 18 percent global target. Starbucks will first sell bottled coffee in Shanghai, Beijing and Hong Kong, before expanding to other Chinese cities.


(3 votes, average: 4.67 out of 5)
January 31st, 2008 at 6:54 pm
Marketing wonks have been telling us all that the Chinese are going to turn into mega-consumers and make us all billionaires for about 40 years now.
Good luck this time around.
February 26th, 2008 at 3:02 am
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