Coffee Plus (English)
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Appendix C: <strong>Coffee</strong> & Tea Industry Overview<br />
Competitive Landscape<br />
Canada is a more competitive market.<br />
Specialist <strong>Coffee</strong> Shop Value Sales Brand Share Breakdown<br />
US Canada<br />
Others Others<br />
Starbucks<br />
Peet’s<br />
<strong>Coffee</strong> &<br />
Tea<br />
<strong>Coffee</strong><br />
Bean &<br />
Tea leaf<br />
Starbucks<br />
Cafe<br />
Depot<br />
Timothy’s<br />
Blenz<br />
Van Houtte<br />
Second<br />
Cup<br />
Important Economic Sector - Sector Size – <strong>Coffee</strong> Driven Revenue Only<br />
• Grocery / Retail (Future Consumption) estimated $900,000,000<br />
• Foodservice estimated $3.5-4,000,000,000<br />
• Office <strong>Coffee</strong> Sector estimated $325-400,000,000<br />
• Total Sector Value – estimated total $4.7-5,000,000,000+<br />
There are between four and five thousand independent cafés and coffee shop owners and nearly several thousand franchise<br />
owner-operators. Some six to eight thousand small business owners are directly involved in the coffee focused sector, generating<br />
jobs, considerable economic and community activity and paying taxes to all levels of government. <strong>Coffee</strong>-focused operations<br />
can be found in all major cities, towns, important crossroads and increasingly in smaller and smaller centres across the country,<br />
making it part of the Canadian lifestyle.<br />
Kraft Canada remains the leading player in coffee in Canada, with a 31% share of retail value sales in 2014. Market saturation is<br />
pushing major companies like Kraft Canada to be more flexible in terms of their offer to reach more consumers.<br />
McDonald’s, one of the strongest players in Canadian foodservice, is still trying to make moves in retail coffee. McDonald’s is<br />
improving its in-restaurant design to highlight the McCafé brand more efficiently and grow visibility. Different shelf designs have<br />
been created to support the different McCafé offerings.<br />
The Second Cup <strong>Coffee</strong> Co. has aggressively restructured its brand in both the retail and foodservice channels. The recently hired<br />
CEO, Alix Box, has emphasized restructuring and improving below-average performing cafés. Some of its outlets have found it<br />
difficult to remain financially healthy and attract customers.<br />
9<br />
The Role of the <strong>Coffee</strong> Sector in Canada, <strong>Coffee</strong> Association of Canada<br />
9<br />
26