1. United States Coffee Demand Consumption Patterns and Key Marketing Issues Robert F. Nelson President and CEO National Coffee Association of USA

2. Destiny is not a matter of chance, it is a matter of choice

3. Knowledge

4. Methodology Nationally representative sample 2,950 persons, 18 years and older Random digit telephone interviews January 2002

5. Definitions Total coffee –All coffee types - traditional and gourmet coffee beverages Gourmet coffee beverages –Espresso based beverages – cappuccino, espresso, latte and café mocha –Iced/iced blended coffee – blended and frozen coffee drinks –Gourmet coffee Gourmet coffee –Premium whole bean or ground varieties

6. Total Coffee Number Drinking in Thousands 19912002

7. Renewed Consumer Focus

8. 1990S Transition Staple Beverage Social & Gourmet Beverage

9. Percent of Population Drinking Gourmet Coffee Beverages Daily

10. Occasional Consumption of Gourmet Coffee Beverages

11. 10 Percent of Americans Drink Gourmet Coffee Daily

12. 13 percent of Americans Drink Gourmet Coffee Beverages Daily

13. Cups per Drinker – Gourmet Coffee Beverages

14. Gourmet Market

15. Purchase of Cause-Related Coffee Percent of Past Week Traditional Coffee Only Drinkers

16. Long Term Trends Total Coffee Percent of Population Drinking Yesterday

17. Percent of Population Drinking Coffee (Total) Daily

18. Cups per Drinker – Total Coffee

19. Occasional Consumption of Coffee (Total)

20. Occasional Drinkers Daily Drinkers

21. Market Strategy

22. COMMODITY Product in The Market Place

23. Market Place Taste profiles Types and varieties used Consumer attributes Embrace differentiation

24. Knowledge