2008-03-28 22:25:03 -

www.researchandmarkets.com - Research and Markets (www.researchandmarkets.com/reports/c86842) has announced the addition of Euromonitor International's new report: Coffee in Canada to their offering.

Our Coffee in Canada report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data (2001-2006), allowing you to

identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they legislative, distribution or pricing issues. Forecasts to 2011 illustrate how the market is set to change.

Product coverage includes: fresh coffee; instant coffee.

Data coverage: market sizes (historic and forecasts), company shares and brand shares.

Why buy this report?

- Get a detailed picture of the hot drinks industry

- Pinpoint growth sectors and identify factors driving change

- Understand the competitive environment, the market's major players and leading brands

- Use five-year forecasts to assess how the market is predicted to develop

With a network of over 600 analysts worldwide, we have the unique capability to develop reliable information resources to help drive informed strategic planning.

Extract from Executive Summary

On-trade outlets help maintain hot drinks growth

Although the off-trade remains sluggish for hot drinks, total volume growth in 2006 was good, due to the rapid expansion of on-trade coffee outlets, such as Tim Hortons and Starbucks. By offering premium coffee - or, in the case of Tim Hortons, fresh coffee - and by creating a "third place" that consumers find welcoming between home and work, on-trade outlets managed to get consumers to shift their consumption out of home or away from their office. Tea and other hot drinks, in contrast, suffered flat growth in both the on-trade and off-trade channels.

Organic and fair-trade trends in foodservice spread to off-trade

On-trade outlets not only diverted sales away from the off-trade, they began to influence and boost sales in the off-trade as well. This was primarily through premium coffee: before Starbucks and similar speciality cafes, most coffee sold in Canada was ground and whole bean sales were marginal. By the end of the review period, most standard groceries feature whole bean "silos" and sales of whole beans are the fastest growing within coffee. Organic and fair-trade coffee, which first made an appearance in the on-trade, also began to spread to the off-trade, with organic off-trade coffee witnessing amazing growth during the review period. Speciality teashops, although limited, began to have an effect as well.

The mid-priced segment erodes as consumers trade-up or economise

Like many commodities, coffee and tea are seeing a stratification of their unit prices: sales are increasingly being divided between economy-priced products and premium products. For instance, in tea, sales 227g boxes of Orange Pekoe remain strong while small packets of rooibos tea also do well. In coffee, Maxwell House and private label hold the majority of sales, but Starbucks and high-end Van Houtte Inc whole bean coffee saw robust sales. The result is an erosion of the mid-priced segment.

The reason for this trend is the fact that consumers are beginning to feel the pinch of trading up. Although the strong economy encourages consumers to forsake value in exchange for convenience and an indulgent experience, many people from this group are also trying to save money on their everyday expenses. On-trade coffee outlets encourage consumption of high-end organic and fair trade coffees, but they also encourage consumers to buy private label for drinking at home in order to be able to afford the on-trade coffee.

Companies Mentioned:

Van Houtte Inc

Kicking Horse Coffee Co Ltd

For more information visit www.researchandmarkets.com/reports/c86842.

Research and Markets
Laura Wood
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