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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

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