Recently, Coca-Cola Co. acquired 10% of Green Mountain Coffee Roaster (GMCR) as its first step towards a major shift away from unhealthy beverages like soda. Coke spent $1.25 Billion to piggy-back Green Mountain’s “Keurig Cold” machine at home market that dispense beverages like coffee, teas, juice and lattes. The new GMCR Keurig Cold machine is set for 2015 market roll-out. It will offer multiple beverage serving technology that on-average cost consumers just $17 per cup.
Overall, the “at-home-beverage production market” has jumped 85% reports Director, James Dean @ IHUMANMEDIA.COM. Coca-Cola will add to its investment in Green Mountain by another 10% equity buy-in within the next 24-months. Its the initial step by Coca-Cola to expand growth through “at home” distribution.
The cost savings of brewing at home beverages versus Starbucks Coffee is great. For example, a 6-ounce cup of coffee made at home costs about 17 cents a cup per day, adds up to $1.19 a week and $62.05 a year. But Starbucks 16-ounce grande coffee from at $2.29 per day, adds up to $16.03 per week, and a hefty $835.85 per year — the price of a mini vacation. So the savings (about $835.85 per year) of home brewing is significant to the average family budget.
The beverage industry will hit $1.9 Trillion globally by 2015 says Mr. Rickman. Although, growth remains weak at 2% so we expect consolidation and technology innovations like “at-home-cold-machines” to continue.
We expect Coca-Cola to acquire a tea beverage maker to fill-out its brand offerings in the at-home-beverage market adds Mr. Rickman. Tea consumption in the United States is a $15 Billion industry versus coffee $18 Billion; although worldwide tea has a more drinkers than coffee.
|Beverage Industry Statistics||Data|
|Total retail dollars from the sale of wine, beer and distilled spirits||$113.5 billion|
|Total annual sales in beer industry / category||$91.6 Billion|
|Percent beer accounts for the share of total beverage alcohol retail dollar sales||52%|
|Bottled water consumed in U.S. in 1997||3.2 billion gallons|
|Percent of 8-year-olds that drink at least one can of soda pop daily||56%|
|Percent of schools that sell soda||60%|
|Soft Drink Annual Sales||$60 billion|
|The average number of cans of soda drank by males in the 12- to 19-year age group||868 cans a year|
|The world’s second most consumed drink (Non-Water)||Tea|
|The world’s most popular / consumed drink||Water|
|Beverage industry’s revenue for the year 2007 and estimated gross profit of %||$42.5 billion|
|Beverage Industry Gross Profit||35.15%|
|Coffee Drinking Statistics|
|Total percentage of Americans over the age of 18 that drink coffee everyday||54%|
|Average size of coffee cup||9 ounces|
|Average price of an espresso-based drink||$2.45|
|Average price for cup of brewed coffee||$1.38|
|Total percentage of coffee drinkers who prefer their coffee black||35%|
|Total percentage of coffee consumption that takes place during breakfast hours||65%|
|Total amount of money spent by importing coffee in U.S. each year||$4 billion|
|Total percentage of coffee Brazil produces of entire worlds output||30%|
|Total amount of cups of coffee (9 ounces) a coffee drinker consumes daily||3.1|
|Total average of money spent on coffee each year by coffee drinker||$164.71|
|Total number of U.S. daily coffee drinkers||100 million|
|Total number of U.S. daily coffee drinkers who drink specialty beverages (lattes, cappuccinos, mochas, etc.)||30 million|
|Total percentage of coffee drinkers who drink 13 or more cups of coffee each week||24%|
|Total percentage of coffee drinkers who go to premium places (Starbucks, Coffeebean, etc.) when they get coffee out||34%|
|Total percentage of people who go to lower-price outlets (Mcdonalds, Dunkin Donuts, etc.) when out||29%|
|Total percentage of coffee consumed between meals||30%|
|Total percentage of coffee drinkers who add cream and/or sugar||65%|
|Total amount of U.S. coffee drinkers who claim to need a cup of coffee to start their day||60%|
|Total percentage of coffee drinkers who say coffee makes them feel more like their self||54%|
|Total percentage of coffee drinkers who have a a cup within the first hour of waking up||68%|
|Total amount of yearly money spent on specialty coffee in the U.S.||$18 billion USD|
|Pounds of tea imported to the U.S. each year||519 million pounds|
|Total amount of tea consumed in the U.S. every day||1.42 million pounds|
|Number of men and women who drink tea every morning||2 billion|
|Total projected sales of tea for U.S. in 2012||$15 billion|
|Total amount of cups 1 pound of loose tea can make||200 cups|
|Total amount of tea produced every year worldwide||3,000 million tons|
Products manufactured by the beverage industry include: bottled water, juice, sparkling and still drinks, syrups, nectars, ready-to-drink and regular teas and coffees, dairy drinks, energy drinks, sports drinks, fruit powders, and alcoholic drinks such as beer, wine, cider and spirits.