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

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

Knowledge

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

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

Total Coffee Number Drinking in Thousands

Renewed Consumer Focus

1990S Transition Staple Beverage Social & Gourmet Beverage

Percent of Population Drinking Gourmet Coffee Beverages Daily

Occasional Consumption of Gourmet Coffee Beverages

10 Percent of Americans Drink Gourmet Coffee Daily

13 percent of Americans Drink Gourmet Coffee Beverages Daily

Cups per Drinker – Gourmet Coffee Beverages

Gourmet Market

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

Long Term Trends Total Coffee Percent of Population Drinking Yesterday

Percent of Population Drinking Coffee (Total) Daily

Cups per Drinker – Total Coffee

Occasional Consumption of Coffee (Total)

Occasional Drinkers Daily Drinkers

Market Strategy

COMMODITY Product in The Market Place

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

Knowledge