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Copyright 2016 by The National Coffee Association of U.S.A. Inc.

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TABLE OF CONTENTS 1

STUDY HIGHLIGHTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

BACKGROUND . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

RESEARCH METHODOLOGY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

PAST-DAY CONSUMPTION

PAST-WEEK AND PAST-YEAR CONSUMPTION

HOW COFFEE IS CONSUMED

WHERE AND WHEN COFFEE IS CONSUMED

SINGLE-CUP AWARENESS AND ACQUISITION

WORKPLACE COFFEE

HOW THE ECONOMY IS AFFECTING COFFEE CONSUMPTION

COUNTRY OF ORIGIN ASSOCIATIONS

COFFEE CERTIFICATION PROGRAM EXPERIENCE

COFFEE EQUITIES

BARRIERS AND DRIVERS OF COFFEE CONSUMPTION

ANNEX TABLES

Founded in 1911, The NationalCoffee Association was one ofthe first trade associationsorganized in the United States.National Coffee Associationmembership is comprised ofproducers, importers, roasters,wholesalers/distributors, retailersand allied trade.

The National CoffeeAssociation is the mostexperienced, broadly based and reliable advocate for thecoffee industry, drawing on over100 years of experience toaddress the multiple interests and concerns of our members.

The mission of The NationalCoffee Association is to be theforemost trade associationrepresenting the entire coffeeindustry in the United States. We are committed to the growthand well-being of the industrythrough our roles as:• A proactive advocate for

the industry, acting as the industry’s recognized spokesperson and voice for promoting consumption.

• An educator for our members and consumers who lead the industry in facilitating research, and gathering and disseminating relevant research data.

• A forum for interaction that addresses key issues confronting the domestic and international industry.

Overall Themes

Some shifts are occurring in 2016 versusprevious years. Overall, behaviors thatskew younger (seen most amongconsumers aged age 18-39) are growing,while behaviors that are less commonamong younger consumers are flat ordeclining. Behaviors that are slowlygrowing include lighter coffeeconsumption (slightly fewer drinkers andslightly lighter cups per drinker per day),drinking espresso-based coffee anddrinking coffee out-of-home. Behaviorsthat are slowly declining include drinkingtraditional coffee and drinking coffee athome. Note that most of these shifts areoccurring over the last few years.We don't yet know if this is part of alonger-term fundamental shift in coffeeconsumption. Future years of tracking willreveal this longer-term perspective.

We are specifically seeing past-daycoffee consumption declines among40-59 year olds. This may be related toeconomic uncertainty. In this study, 40-59year olds are more likely than youngerconsumers to report feeling negativeabout their personal financial situationand people who feel negative about theirpersonal financial situation are more likelyto report drinking less coffee away fromhome or to not drink coffee away fromhome at all.

Single-cup system ownershipcontinues to grow, while drip continues to slowly decline.

What People Are Drinking

Past-day coffee penetration is slightly soft — it sits at 57% in 2016 versus 59%in 2015. It is important to note that themove from 59% in 2015 to 57% in 2016 isnot a statistically significant decline.However, past-day coffee penetration was61% in 2014. The move from 61% in 2014to 57% in 2016 is a statistically significantdecline. Although we can't make directcomparisons to data from before 2012because of a change in the datacollection methodology, we want to point

out that past-day penetration in 2009-2011 ranged from 56% to 59%, so the 57% is similar to numbers we haveseen in the recent past.

Past-day coffee penetration is stablefrom 2015-2016 across age groupsexcept 40-59 year olds. Among 40-59year olds, past-day penetration declinedfrom 62% in 2015 to 53% in 2016.

Traditional coffee is soft. Past-daypenetration of total traditional coffee isdown from 48% in 2015 to 43% in 2016.Past-week penetration of total traditionalcoffee is down from 68% in 2014 to 65%in 2015 to 61% in 2016. Past-yearpenetration of total traditional coffee isdown from 73% in 2015 to 70% in 2016.

At the same time, past-daypenetration of espresso-based beveragesis slightly up, moving from 16% in 2015to 18% in 2016. It is too early todetermine if this is a fundamental shift orone year of volatility, but we are seeing,at minimum in the context of 2016, a shiftfrom traditional coffee to espresso-basedbeverages.

We are also seeing consumersexploring new coffee types. On a past-year basis, 8% of consumers say thatthey have tried flat white, 10% claim tohave tried nitrogen carbonated coffeeand 15% claim to have tried cold brewcoffee.

Espresso-based beverages skewyounger. Within the past week, 44% of18-24 year olds and 50% of 25-39 yearolds drank espresso-based beverages.This contrasts with 26% of 40-59 year oldsand 19% of those aged 60+. At the sametime, younger consumers are less likely todrink traditional coffee — a total of 49%of 18-24 year olds claim to have drunktraditional coffee in the past weekcompared to 70% of those aged 60+. So the shift from traditional coffee toespresso-based beverages may reflect thegrowing importance of youngerconsumers to the coffee market.

Coffee penetration past-week isslightly soft, but not showing statisticallysignificant declines. Past-week coffee

STUDY HIGHLIGHTS 2

© 2016 National Coffee Association USA / National Coffee Drinking Trends Study

penetration was 71% in 2015 and 69% in2016. Past-year coffee penetration isslightly down, moving from 78% in 2015to 76% in 2016.

How Coffee Is Prepared

Overall, coffee additive behavior is stable.However, we are seeing the emergenceof new whitening options. In total, 5% of past-day coffee drinkers added a non-dairy milk to their coffee (e.g.,almond, coconut, soy, rice, etc.). Whilestill niche, this reflects an evolving way toconsume coffee. This behavior is drivenby younger drinkers, who are redefininghow coffee is traditionally consumed. Intotal, 7% of past-day coffee drinkers aged18-24 and 9% of past-day coffee drinkersaged 25-39 added non-dairy milk to thecoffee they drank yesterday. Thiscompares to 4% among those aged 40-59 and 2% among those aged 60+.

The percent of households that own asingle-cup machine increased from 27%in 2015 to 29% in 2016. We also seeincreasing penetration of single-cupmachines at work. In 2016, 1/3 (33%) ofthose who have a workplace coffee areahave a single-cup machine. Thiscompares to 30% in 2014-2015.

Drip coffee makers continue to declineslowly. A total of 50% of those who drankcoffee yesterday claim to have drunkcoffee prepared in a drip coffee machine.For the first time in recent NCDT history,

only half of people who drank coffeeyesterday drank drip coffee. The presenceof the drip coffee maker at work is alsodeclining — from 59% of workplacecoffee areas in 2015 to 55% of workplacecoffee areas in 2016.

Where People Are Drinking

Coffee preparation out-of-home is up. In2016 34% of consumers drank coffee out-of-home. This compares to 30% in2015. The increase is driven byfoodservice, and specifically “café/coffeeshop/donut shop”; in 2016, 13% of past-day drinkers drank coffee prepared in thischannel. This compares to 9% in 2015.

Consistent with this, a small butgrowing percentage of consumers arepreparing coffee at home that they claimto have bought in coffee shops. In 2016,6% of people who prepared coffee athome claimed to be drinking coffee thatthey bought in a coffee shop. Thiscompares to 4% in 2013, 2014 and 2015.Out-of-home coffee consumption skewsyounger. In total, 50% of those aged 18-24 and 51% of those aged 25-39 whodrank coffee yesterday drank coffee out-of-home. This compares to 42%among those aged 40-59 and 16%among those aged 60+.

Personal Financial Perception

Younger people are more likely to feelgood about their personal financialsituation. A total of 45% of those aged18-39 feel that their personal financialsituation is much or somewhat betterversus six months ago. This compares to21% among those aged 40+. Those whofeel that their personal financial situationis better are more likely to claim that theyare drinking more coffee — both at homeand away from home.

STUDY HIGHLIGHTS 3


Since 1950, the National CoffeeAssociation of U.S.A. hascommissioned an annual survey ofAmericans regarding their consumptionof coffee and, since 1993, their habitsand practices related to espresso-based beverages, includingcappuccino, espresso, latte,iced/coffee blended with ice, cafémocha and macchiato.

The study provides the longestavailable statistical series on consumerdrinking patterns related to coffee andother beverages. In the earliest years,the study was sponsored by the Pan American Coffee Bureau and thenthe International Coffee Organization.Since 1991, the study has beenfinanced and conducted by theNational Coffee Association of U.S.A.

Recent Enhancements

The tracking of habits and practices as they relate to the consumption ofcappuccino, espresso, latte andiced/coffee blended with ice began in1993, café mocha was added in 1999,Macchiato was added in 2009, caffè Americano was added in 2014,and flat white, cold brew coffee andnitrogen carbonated coffee wereadded in 2016. In the past, thesecoffee types had been presentedseparately from what was historicallydefined as coffee: regular, soluble(instant) and decaffeinated coffee. Thisseparation was maintained to ensurecomparable historical trends. Given theincrease in consumption of thesecoffee types, however, their data hasbeen, since 1999, aggregated with thetraditionally defined coffeeconsumption data in defining the totalU.S. market and in tracking theconsumption of total coffee. Statisticsbreaking out these newer additions tothe market are also presentedseparately and titled accordingly.

As a result, since 1999, the totalcoffee market includes all coffee types:regular, instant and decaffeinated

coffee and Gourmet Coffee Beverages,which includes gourmet (premiumwhole bean or ground) coffee,iced/coffee blended with ice, coldbrew coffee, nitrogen carbonatedcoffee and espresso-based beverages,such as cappuccino, espresso, latte,café mocha, macchiato, caffèAmericano and flat white.

Beginning in 2006, profiling non-drinkers of coffee was added to the study.

In 2010, several changes were madeto the way in which coffee types areprofiled:

• Previously, Gourmet coffee was treated as a format (equivalent to Regular coffee or Cappuccino for example). Since 2010, Gourmet is treated as an option for every brewed coffee format. As a result, the questionnaire now asks if each cup of brewed coffee was or was not Gourmet (defined as brewed from premium whole bean or ground varieties).

• Previously, iced coffee was also treated as a format. Now, iced is treated as an option for every coffee format (e.g., a consumer can have an Iced regular coffee, Iced Cappuccino, Iced Latte, etc.). As a result, the questionnaire now asks if each cup of coffee was hot or iced.

In 2011, several questions were addedthat have been retained:

• Questions were added around amount of coffee wasted when preparing coffee at-home.

• Questions were also added around preparation of single-cup — both brewed single-cup and instant stick pack.

• Questions were added to profile how coffee use evolves as consumers age and change life stages.

In 2012, there were a few additionalquestionnaire changes:

• Café con leche was added as adistinct coffee type.

• Coffee strainer was added as a coffee preparation method.

• Alcohol, water and condensed milk were included as something that could be added to prepared coffee.

• “Small corner store” and “given as a gift or sent to me” were added as purchase options for coffee prepared at-home.

• A section on workplace coffee was added.

• The section on understanding the effect of the economy on coffee consumption was changed.

In 2013, a few changes were made:

• Other natural sweeteners (e.g., stevia, honey, etc.) were added as options that might be added to coffee.

• An espresso-sized cup was added as a cup size.

• Questions were brought back on coffee certifications and coffee equities.

• A statement was added aboutsingle-cup brewers, “This brewer is able to make a wide variety of coffee flavors or roasts.”

• For single-cup brewers, attitudinal statements with wording referring to “coffee packets” were changed to “coffee disks/capsules.”

In 2014, there were somequestionnaire changes:

• Pour over (e.g., Chemex) was added as a preparation method.

• A question about coffee roast (e.g., Light, Medium, Dark) was added.

• For instant coffee, respondents were asked about how the water used for the coffee was heated.

BACKGROUND 4


BACKGROUND 5


ClassificationUpdates 2010-2016 Previously, coffee was classified as “instant” or “brewed.” This list was

expanded in 2012 to include nine preparation options, in 2014 to include tenpreparation options, and in 2016 to include twelve preparation options. Nine ofthese preparation options are classified as “brewed” during the results analysis,two are classified as “instant” and one as “ready-to-drink.”

Classified as Brewed• Drip coffee maker• Espresso machine• French press/plunger• Moka stove top (octagonal

Italian style brewer)• Percolator• A machine that uses a

pre-measured, sealed disk or

capsule of coffee to make a single-cup

• Coffee strainer• Pour over (e.g., Chemex)

(added in 2014)• Cold brewing (brewed without

heat for a long period of time) (added in 2015)

Classified as Instant• Instant coffee (adding hot water

to coffee granules, powder or syrup in a cup)

• Coffee concentrate (that you buy in a bottle and add water or milk to) (added in 2015)

Classified as Ready-to-Drink• Purchased ready-to-drink in a bottle,

can or carton

• Milk alternatives (e.g., soy milk), evaporated milk and espresso shot were added as something that might be added to coffee.

• The type of liquid and powdered creamers (e.g., dairy, non-dairy, flavored, unflavored) was probed.

• If coffee was bought at a QSR, café, donut shop, convenience store or gas station, consumers were asked if they purchased it at adrive-through.

• Whole bean or ground coffee was asked if coffee was prepared at-home.

• Wasteful packaging/not environmentally friendly added to list of disadvantages of usingstick packs.

• Quality of taste (e.g., tastes very good, somewhat good, etc.) was asked for coffee producing countries.

• Utz Certified was added to list of coffee certifications.

• “Worth paying a little more for” was added to the list of certification program meanings and “Better price for coffee” was removed from the list.

• Questions were added asking about different reasons and situations for drinking coffee.

• Single-cup brewer owners are now asked which brewing method they used most often prior to owning the single-cup brewer.

• Caffè Americano, Lemonade and Soup were added to the list of beverages consumers could make with their single-cup brewer.

• In the list of single-cup attitudes, this statement was added: “A single-cup brewer is a good way to make tea and other beverages.”


• Lemonade was added to the beverages that consumers could drink past-day.

• Cold brewing was added as a preparation method.

• Coffee concentrate was added as a preparation method.

• Coffee roast (light, medium, dark) was asked of all coffee. Previously it was asked for brewed coffee only.

• Condensed milk (as a coffee additive) was changed to Sweetened condensed milk.

• Whole bean coffee that you ground at home, Whole bean coffee that you ground in the store, Already ground before you bought it were options consumers could select for ground coffee purchased for at-home use.

• “Most coffee is grown in an environmentally sustainable way” was added as a statement in the coffee equity section where consumers were asked agreement/disagreement.

• When working or studying at a coffee shop was added to the list of situations when consumersdrink coffee.

• Respondents were allowed to enter 'other' reasons for limiting the amount of coffee they drink.

• Consumers were directly asked if they own a single-cup brewer. Prior to this, the option “Already have this brewer in my home” was a response option in a question around purchase intent for single-cup brewers.

• Chai latte was added to the list of beverages that consumers could make with their single-cup brewer.

• Cold brewing and Coffee concentrate were added to the list of brewing methods that single-cup owners could have used prior to using their single-cup machine.

• Those who own a single-cup brewer were asked how likely they are to buy a new single-cup brewer in the next six months.


• Unflavored bottled water was split into two types (not carbonated versus carbonated).

• Coffee options were expanded to include flat white, cold brewed and nitrogen infused.

• Hot chai tea latte, iced chai tea latte, hot tea latte (not chai), iced tea latte (not chai) and matcha tea were added to the tea beverage list.

• Coffee additives options were expanded to include “other natural sweeteners (honey, maple syrup, Stevia), milk, and milk alternatives (soy milk, almond milk, etc.).

• A new question polled respondents on the types of milk and milk alternatives they add to their coffee.

• Additional questions on instant coffee stick pack advantages and disadvantages were removed. Certifications were expanded to include Bird Friendly and coffee produced from a single origin.

• A question on the effect of certifications on purchase interest was added.

• Need states were expanded to include when consumers “need a moment to myself,” “when I need energy that lasts a long time,” and “when I need to cool down.”

• Situations during which coffee is consumed were expanded to include “something to drink with dessert,” and “when getting ready for my day.”

• Factors that limit consumers' coffee consumption were expanded to include “It's too much work to prepare at home” and “I'm concerned about developing a coffee habit.”

• The following attitudinal statements were added for single-cup brewers: –It makes a large enough

cup of coffee.–There is less leftover, wasted

coffee.–No one has to compromise —

we each have whatever coffee we want.

–A single-cup brewer is the only way I know how to make coffee.

• A new question was added on the reasons consumers choose to drink coffee at restaurants or cafés, while another new question asked for reasons consumers choose to drink coffee at home.

• Additional demographic information was collected on the ages of members of the respondent's household and the nature of the household's

geographic area (such as city, suburban, rural, etc.).

Changes were made to the datacollection dates. In 2015 and 2016,interviewing occurred in mid-to-lateJanuary. Previously, field dates tendedto be late-January to late-February.

Data collection continues to evolve toreflect the changing reality of themarketplace:

• Interviewing for the NCDT was initially conducted face-to-face.

• The study transitioned to a telephone methodology in 1979.

• Starting in 2010, the study migrated to online data collection (a self-completed online survey). This was preceded by two years (2008 and 2009) in which the same questionnaire was administered on the telephone and online.

• In 2012, the study remained online but the sample profile changed; in previous years, quotas were used to ensure that the study mirrored the U.S. population in terms of age, gender and region. Ethnicity quotas were not used. In 2012, quotas for Hispanic-American and African-American ethnicity were introduced for the first time. The survey was also offered in Spanish, which allowed for the inclusion of less acculturated Hispanic-Americans, and the additional breakdown of results by level of acculturation.

• In 2013, the sample profile was structured to include a representative sample of the U.S. population with quotas for Hispanic- Americans and African-Americans without oversampling for these groups. The survey also continued to be offered in Spanish.

BACKGROUND 6


Ethnic Sample andWeighting

In order to obtain a solid read of coffee consumption andattitudes among the Hispanic-American population, a total ofn=452 Hispanic-Americanconsumers were interviewed inthe 2016 NCDT.

The final dataset was weightedbased on age, gender, region and ethnicity to match the U.S.population based on the 2010U.S. census. Because the sampleprofile was structured to mirrorthe population on theseattributes, the weighting did not significantly affect the sampledistribution.

Data Collection

The 2016 National Coffee Drinking Trendsstudy was conducted among both malesand females, 18 years of age or older,who consumed a beverage other than tapwater the day prior to being interviewed.The samples are representative of thepopulation of the U.S. (235,016,000 aged18 years or older).

The methodology for the online survey was:

• Nationally representative sample of 2,782 people aged 18 years and older.

• Respondents randomly selected from online panels.

• Interlocking quotas were used for age, gender, region, Hispanic-American ethnicity and African-American ethnicity.

• Within the Hispanic-American sample, quotas were established for languages spoken at-home (English dominant, bilingual and Spanish dominant). This was used as a proxy for acculturation.

• For the fifth time, the survey was available in English and Spanish.

• All respondents drank a beverage other than tap water past-day. Drinking coffee is not a requirement to participate in the research.

• Data collection: January 11- January 26, 2016 with daily quotas to ensure a balanced mix of days of the week. This is earlier than in previous years, when field dates tended to be late-January to late-February.

RESEARCH METHODOLOGY 7


Base Percent Base Percent Un-weighted Un-weighted Weighted Weighted

Total 2782 100 2779 100

Ethnicity

Total Non-Hispanic 2330 84 2328 84

Total Hispanic-American 452 16 451 16

Caucasian-American 1908 69 1904 69

African-American 370 13 369 13

Asian and Other 133 5 133 5

Hispanic Country of Heritage

Puerto Rican 69 2 70 3

Mexican 202 7 199 7

Cuban 40 1 39 1

Dominican 14 1 14 0

Some other Hispanic or

Spanish-speaking ethnicity 134 5 135 5

Hispanic Acculturation

English Dominant 143 5 142 5

Bilingual 166 6 165 6

Spanish Dominant 137 5 138 5

8

MethodologySummary

Online data collectionJanuary 11 – January 26, 2016n=2,782 respondents

Respondents were screened tomeet the following criteria:

• Aged 18+.• All respondents drank a

beverage other than tap water past-day (drinking coffee is not a requirement to participate in the research).

• The weighted sample profile reflects the American population 18+, with interlocking quotas for age, gender, region and ethnicity.

• Also, there were daily quotas to ensure a balanced sample by day of week.

RESEARCH METHODOLOGY


Regions

The region breaks used in thisreport are based on the U.S.Census Regions and Divisions.

Dayparts

Each respondent was interviewedregarding the beverages that theyconsumed “yesterday”— i.e., the daybefore being contacted. Specifically,consumption information was collectedfor each of six time periods:

Breakfast – defined to respondents as“the first meal after rising, even if youonly had fruit juice or coffee”

Morning – defined as “between breakfastand lunch”

Lunch

Afternoon – defined as “between lunchand dinner”

Dinner

Evening – defined as “after dinner”

If coffee was consumed during one ormore of these time periods, details ofcoffee consumption practices for eachtime period were collected. In addition tothis time-period-specific information,coffee drinkers were asked in detail aboutmore general coffee consumptionpractices, as well as attitudes and

perceptions with respect to coffeebeverages.

Past-Week and Past-Year Consumption

All survey participants were asked about the length of time since lastdrinking coffee:

• For each coffee beverage not consumed yesterday, respondents were asked if they consumed any in the past-week. For each coffee beverage consumed in the past-week, they were asked about the details of their consumption.

• For each coffee beverage not consumed yesterday or in the past week, respondents were asked if they consumed any in the past year.

• Finally, a demographic profile of all survey participants — whether coffee drinkers or not — was collected.

• The salient highlights of the data are included in this summary report. At the conclusion of this report are Annex tables that summarize critical consumption measures from 1950 to the present.

RESEARCH METHODOLOGY 9


10RESEARCH METHODOLOGY

Nomenclature

Total Coffee: includes all coffee types.

Traditional Coffee – Not Gourmet:Traditional Coffee (Traditional Coffee,drunk hot or iced) that is not brewed frompremium whole bean or ground varieties.

Instant Coffee: instant coffee from a can or jar (adding hot water to coffeegranules or syrup in a cup) or instantcoffee from single pre-measured stickpack (adding hot water to coffee granulesin a cup) or instant coffee from coffeeconcentrate (that you buy in a bottle andadd water or milk to).

Decaffeinated Coffee: a cup of coffeethat was decaffeinated or a combinationof decaffeinated and caffeinated.

Gourmet Coffee Beverages: TraditionalCoffee – Gourmet, espresso-basedbeverages and iced/frozen blendedcoffee.

• Traditional Coffee – Gourmet: Traditional Coffee drunk hot or iced that is brewed from premium whole bean or ground varieties.

• Espresso-based beverages: includes cappuccino, espresso, latte, café mocha, macchiato, flat white and caffè Americano.

• Iced/Frozen blended coffee: includes Iced and Frozen blended coffee.

• Cold brew coffee (brewed without heat for a long period of time).

• Iced coffee infused with Nitrogen (carbonated).

Café con leche can be included in:Traditional Coffee – Gourmet; orTraditional Coffee – Not Gourmet. Thedistinction is based on the respondentbelieving that the Café con leche was orwas not gourmet coffee — that is,brewed from premium whole bean orground varieties.

“Daily” or “Past-Day” penetration refersto respondents who drank coffee or

Gourmet Coffee Beverages the daybefore they were interviewed. Theserespondents may not necessarilyconsume coffee or Gourmet CoffeeBeverages every day.

Caveat

Data collected using differentmethodologies should be compared with caution, as the data collectionmethodology itself can affect the results.

The 2012 NCDT data collectionmethodology is different versus previousNCDT research because: previousethnicity imbalances have been corrected;the survey is now offered in Spanish; and there are quotas within the Hispanic-American sample for languageuse at-home.

As such, any changes in reportedcoffee behavior in 2012 versus previous years may stem from the different sample profile and not from changes inthe market.

For this reason, refrain from makingdirect comparisons between 2012 dataand data from previous years.

Comparisons can however be madebetween 2012 – 2016 data.


PAST-DAY CONSUMPTION 11

Past-Day Beverage Penetration – Trending

Coffee clearly dominates anincreasingly fragmented beveragemarket. More Americans aged18+ drink coffee on a given daythan any other beverage.However, daily penetration hassoftened over the past five years— it was 57% in 2016, 59% in2015, 61% in 2014, 63% in 2013and 64% in 2012. Each year-to-year shift has been within thestudy's margin of error. However,if we look at the five year period,there has been a significantdecline in past-day penetration.

Between 2012 and 2016,jockeying for the number twoposition has been intense: softdrinks held it in 2012, but havesince slipped to fifth place. In2016, 19% more American adultsdrank coffee than soft drinks. This compares to 20% in 2015and 2014, 17% in 2013 and 14% in 2012.

Tap water had been gainingon coffee. However, 2016 sawdeclines in tap water as it movedfrom 54% past-day penetration in 2014 to 49% in 2015 and 46% in 2016.

Unflavored bottled water has seen strong growth in 2016. It moved from 40% past-daypenetration in 2015 to 48% in2016. It now sits in second place(only slightly ahead of tap water)in terms of the percent ofAmericans who drink it on a givenday. It must be noted that someof the growth in bottled watermight be linked to the fact that, in 2016, the survey split bottledwater into carbonated and un-carbonated. This gaverespondents two bottled wateroptions.

In 2016, tea sits in fourth placewith 44% past-day penetration.Soft drinks rank fifth, with 58%penetration and juice ranks #6,with a new low of 27% dailypenetration.

* The NCDT, beginning in 2012, includes a representative sample of Hispanic-Americans and African-Americans. Comparisons to years prior to 2012 must be made with caution, since the panelenhancement may impair direct tracking.

Base: Total sample aged 18+ (2008 n=3,042, 2009 n=3,118, 2010 n=2,740, 2011 n=2,663, 2012 n=2,955, 2013 n=2,840, 2014 n=2,741, 2015 n=2,771, 2016 n=2782).

What did you drink yesterday during each of the following times? This may include any beveragethat you drank at home or outside your home and may have come in a cup, can or bottle.


Past-Day Coffee Penetration – Long-Term Trending

Tracking U.S. coffee consumptionfor over 60 years, the NationalCoffee Drinking Trends study firstlogged more than 75% ofAmericans aged 18+ drinkingcoffee on any given day. Thesenumbers slowly declined until themid-1990s, when the percentageof Americans aged 18+ drinkingcoffee on any given day dippedbelow 50%. Since then, thenumbers have rebounded andslightly retracted. In 2016, thepercent of Americans aged 18+who drink coffee on any givenday is 57%, which is consistentwith numbers seen in the mid-1970s and about 80% of1954 levels.


NOTE: Starting in 2010, data collection was completed online instead of by telephone. In 2008 and2009, data was collected separately by telephone and online; the numbers on the chart are from theonline survey in order to promote direct forward tracking from 2010 on.

Base: Total sample aged 18+ (2016 n=2,782).




12

13PAST-DAY CONSUMPTION

Past-Day Beverage Penetration – by Age

The strong lead in past-daybeverage consumption that coffeehas opened up over soft drinksappears to carry across all ages in2016. Consumers 18-24 years ofage show a preference for past-dayconsumption of coffee over softdrinks by a 7 percentage-pointmargin. For other ages, thepreference persists with even widermargins: coffee leads soft drinks by 24 points for the 25-39 group, 13 points for the 40-59 group and 28 points among those 60+.

Looking back at data compiledby the NCA in prior years, past-daycoffee consumption has outpacedsoft drinks within each of the last six years among most age groups.While direct comparisons to pre-2012 data require caution giventhe methodological enhancement of adjusting the study panel tomirror U.S. population proportionsof Hispanic-Americans and African-Americans (2012 PanelEnhancement), some discussion of relative levels within prior years can be viewed as a roughindicator that enables longer-termassessment of data.

With that caveat, soft drinks'dominance among those 18-24 wassignificantly lower in 2012 versusthe levels in 2010 and 2011, withcoffee overtaking soft drinks in2014. By comparison, soft drinks'lead over coffee ran about 10 pointslower in 2010 and 2011 among the25-39 age group before coffeeovertook soft drinks in 2012 andwidened its lead in 2014. Thismargin remained relatively stable in2015 and 2016. Only for the 60+contingent did coffee lead softdrinks in each of the seven years,sustaining a fairly consistent leadthroughout.

Base: Total sample aged 18+ -2016 (n=2,782); 18-24 (n=427), 25-39 (n=798), 40-59 (n=968), 60+(n=589).



Past-Day Penetration of Coffee – byAge (see chart next page): In 2016 (andin the previous eight years of tracking),past-day coffee penetration is loweramong 18-24 year-old consumers (48%)than those aged 25+ (53-64%). Yet, past-day penetration among the 40-59age group is weaker in 2016 than it wasin 2015, reaching the lowest levels seenin the most recent eight years of tracking.It is too early to know if there is an issuewith coffee consumption among 40-59year old consumers. However, given thestrength of the decline in this age group,this needs to be monitored.

Over the last six years, NCA datatracked for the NCDT report reveal avolatile relationship to coffee, particularlyamong those aged 18 to 39. While directcomparisons to pre-2012 data dictatecaution given the 2012 PanelEnhancement, there appears to besustained, if not growing, strength amongall under 40, particularly those 18-24.Despite the panel enhancement, therelationship to coffee among those 40and over between 2010 and 2013appears steady but strong and somewhatsofter between 2014 and 2016.

Looking back at earlier NCDT datacollected by the NCA, there appears tobe a long-term tendency for volatile dailypenetration results among those in the18-24 age group, as well as for thoseaged 25-39. Despite caution due to the2012 Panel Enhancement, as well as the2008 methodological upgrade of shiftingpolling from telephone to online (2008Methodology Enhancement), thenumbers are of a dimension that likely

transcend the enhancements and point toa significant, overall shift in consumerbehavior. Between 2000 and 2016, dailypenetration among the 18-24 age cohortalmost doubled — from 25% in 2000 to48% in 2016. Among those 25-39, therewas an 18% increase, with consumptionmoving from 42% in 2000 to 60% in2016. Prior to the 2016 decline,consumption among those 40-59remained essentially stable. Over thesame period, the 60+ contingent showedminor signs of softening until reaching a15-year low in 2014, following directlytracked declines from 71% in 2012 and76% in 2013 to 65% in both 2014 and2015 and 64% in 2016.



14

Past-Day Penetration of Coffee – by Age

* The NCDT, beginning in 2012,includes a representative sample ofHispanic-Americans and African-Americans. Comparisons toyears prior to 2012 must be madewith caution, since the panelenhancement may impair directtracking.

Base: Total sample aged 18+ 2016 (18-24 n=427, 25-39 n=798,40-59 n=968, 60+ n=589).

What did you drink yesterdayduring each of the following times?This may include any beverage thatyou drank at home or outside yourhome and may have come in a cup,can or bottle.





Past-Day Penetration of Coffee – by Type

Past-day penetration of GourmetCoffee Beverages (GCB), acategory which includesTraditional Coffee – Gourmet (TC-G) and Espresso-BasedBeverages (EBB), is 31% in 2016,stable versus 31% in 2015 anddown slightly from 34% in 2014.Despite caution regarding directcomparisons to 2010 and 2011due to the 2012 PanelEnhancement, overall trendingsuggests sustained momentumfor GCB throughout the last sixyears, if not longer. The GCBdecrease in 2015 was the firstrecorded decrease for thisbeverage segment. It was drivenby decreases in past-daypenetration of both EBB and TC-G. In 2016, EBB recoveredversus 2015 (moving from 16%past-day penetration in 2015 to18% in 2016. However, in 2016,past-day penetration of TC-Gcontinued to erode. It movedfrom 19% in 2014 to 16% in 2016and 14% in 2016.

Past-day penetration ofTraditional Coffee (TC), whichincludes Traditional Coffee – NotGourmet (TC-NG) and TC-G, has been declining, coming in at43% in 2016 versus 48% in 2015,50% in 2014, 54% in 2013 and56% in 2012. The 2015 decline isdriven by a drop in past-daypenetration of TC-G and TC-NG.

* The NCDT, beginning in 2012, includes a representative sample of Hispanic-Americans and African-Americans. Comparisons to years prior to 2012 must bemade with caution, since the panel enhancement may impair direct tracking.

+ Gourmet Coffee Beverages (net) also includes Iced/Frozen Blended Coffeeand ready-to-drink coffee beverages, but is not shown in the graph.

Base: Total sample aged 18+(2010 n=2,740, 2011 n=2,663, 2012 n=2,955,2013 n=2,840, 2014 n=2,741, 2015 n=2,771, 2016 n=2,782).

Traditional Coffee – Total = traditional coffee, drunk hot or iced. This includesboth gourmet and not gourmet.

What did you drink yesterday during each of the following times? This mayinclude any beverage that you drank at home or outside your home and mayhave come in a cup, can or bottle.

Past-Day Penetration of Coffee Types –by Age (see chart next page): As notedpreviously, overall past-day coffeepenetration skews older. Forty-eightpercent of consumers aged 18-24 drinkcoffee past-day in 2016, compared with64% of those 60+. This skew is most seenin TC-Total and TC-NG. However, theskew is not seen across all coffee types.For example, TC-G is consumed past-dayat roughly equal levels across all agecohorts. EBB are significantly less popularamong the 40+ cohort at 9-13% past-daypenetration versus 22% for those 18-24 and 29% for the 25-39 group.

With added perspective from priorNCA data, we see that the magnitude ofage skew remained fairly consistent from2007 through 2010. After 2010, studydefinitions were changed to recognize thegrowing conflation of coffee made withgourmet beans as “regular coffee”because of evolving consumerperceptions, making direct datacomparisons untenable. However, somenotable shifts between 2010 and 2011and between 2012 and 2016 suggestsome potential longer-term patterns.

Total coffee consumption amongthose 18-39 increased significantlybetween 2010 and 2011, while itdecreased notably among those 60+. TC-Total also increased, as did GCB(including both TC-G and EBB sub-categories). Much smaller increases werefound for TC-NG, except among the 40-59 group, whose TC-NG consumptionincreased while its GCB consumptiondecreased. These data suggest greatproportional strengthening of gourmet

coffees, except among the 40-59 agecohort.

Tracking 2012 through 2016 data,some interesting patterns also emerge.There's been a decline in totalconsumption among those 60+, as wellas in TC-Total among those 40-59 and60+. Similarly, there was a decrease inTC-NG for the same age groups and, to a lesser degree, for those 25-39. TC consumption appeared to declinenotably among those 18-24 between2014 and 2015 and remained at thesedepressed levels in 2016. Between 2015and 2016, we see a 10% decline in past-day penetration of TC-Total among those aged 40-59 and an 8% increase in past-day penetration of EBB amongthose aged 25-39. Overall, these dataappear to suggest an overall shift intoGCB while not increasing overallconsumption.



18

Past-Day Penetration of Coffee Types – by Age

+ Gourmet Coffee Beverages (net)also includes Iced/Frozen BlendedCoffee and ready-to-drink coffeebeverages, but is not shown in thegraph.

Base: Total sample aged 18+ - 2016 (18-24 n=427, 25-39 n=798, 40-59 n=968, 60+ n=589).

Traditional Coffee – Total =traditional coffee, drunk hot or iced.This includes both gourmet and notgourmet.






Past-Day Penetration of Coffee Types – by Region

In 2016, past-day coffeepenetration is highest in the West (60%), remainingdirectionally ahead of theNortheast (57%) for the thirdstraight year. The Northeast wasin first place between 2010 and2013. Past-day coffee penetrationin 2015 is significantly higher inthe West versus the Midwest(52%) and directionally higherversus the South (57%).

There is some regionalvariance by beverage type. In 2016, those in the West aremore likely than those in theother regions to consume GCB.Those relationships essentiallyhold true for both of GCB'scomponents, EBB and TC-G.Those in the West are also lesslikely than those in the Northeastor South to drink TC-NGyesterday. In 2016, those in theMidwest are least likely to drinkdecaffeinated coffee past-day.


Base: Total sample aged 18+ - 2016 (n=2,782), Northeast (n=497),Midwest (n=614), South (n=1,019), West (n=652).



Past-Day Penetration of Coffee Types –by Ethnicity (see chart next page): Thereare some clear differences in past-daycoffee consumption by ethnicity.Hispanic-Americans are more likely thanother ethnic groups to drink coffeeoverall. Hispanic-Americans lead otherethnic groups by a wide margin in GCB.Generally, Caucasian-Americans take thesecond spot for daily consumption of TC categories. These data reveal thatCaucasian-Americans trail Hispanic-Americans by a larger margin in GCBcategories than in TC categories,including TC-G. African-Americans areless likely than the other reported ethnicgroups to drink coffee past-day and todrink EBB and TC-G.

A look back at NCA data from prioryears expands the perspective on these2016 data. Tracking back to 2012, whenthe study sample for Hispanic- andAfrican-Americans was enhanced to alignwith the U.S. population, the strength ofcoffee penetration in the Hispanic-American population quickly becameapparent, with TC-Total consumptionincreasing from 49% in 2012 to 65% in2013, slightly easing to 58% in 2014 and55% in 2015 and moving to 69% in 2016.Throughout 2012 to 2014, GCBconsumption remained steady amongHispanic-Americans, dancing within themargin of error — 46% in 2012, 44% in2013 and 48% in 2014. In 2015, GCB

consumption among Hispanic-Americanswas down significantly to 38%, butrebounded to 46% in 2016. Bycomparison, GCB consumption forCaucasian- and African-Americans was flat between 2012 and 2016. Interestingly,among Caucasian-Americans, there was aslight decrease between 2014 and 2015in EBB from16% to 13%. This has beenreversed in 2016 — returning to 17%.



22

Past-Day Penetration of Coffee Types – by Ethnicity


Base: Total sample aged 18+.Hispanic-American (n=452),Caucasian-American (n=1,908),African-American (n=370), Asian-American (n=133).


* Data for Asian-Americans must beviewed with some caution becauseproportional populationrepresentation yields a small samplesize among respondents.




PAST-WEEK AND PAST-YEAR CONSUMPTION 24

Penetration of Coffee – Past-Day/Week/Year

Overall coffee penetration on apast-day, past-week and past-yearbasis is slightly soft versus a peakin 2012-2013 but largely flat overthe eight year period reportedhere.

While pre-2012 data must beviewed with caution due to the2012 Panel Enhancement, the2012-2015 figures are consistentwith numbers seen in previousyears. There is an obvious jumpmoving from 2011 to 2012 in allthree bases, likely due to theproportionate representation ofHispanic-Americans who,according to other NCDT data,consume coffee in largernumbers. However, despite thisjump, penetration of coffee forpast-day, past-week and past-yearappear to have settled at roughlythe same levels seen between2008 and 2011. This consistencysuggests that U.S. coffeeconsumption at this macroperspective is mostly steady overthe medium term.

This suggestion, viewedtogether with other data in thisNCDT report on consumerpreferences for various traditionaland gourmet coffee options, mayindicate a marketplace with morevertical than horizontal elasticity.Such a marketplace wouldsuggest that there is moreopportunity in a strategic focuson product variety than consumerbase expansion.


Base: Total sample aged 18+ (2008 n=3,042, 2009 n=3,118, 2010 n=2,740, 2011 n=2,663, 2012 n=2,955, 2013 n=2,840, 2014 n=2,741, 2015 n=2,771, 2016 n=2782).


Now we'd like to ask you about some specific types of coffee beverages you may have consumed inthe past week. Please keep in mind that these may be coffee beverages that you drank at home orbought outside your home and may have come in a cup, can or bottle. In the past week, have you,yourself, drunk...

Here are some specific types of coffee you may have consumed in the past year. Please keep in mindthat these may be coffee beverages that you drank at home or outside your home and may havecome in a cup, can or bottle. In the past year, have you, yourself, drunk...


Past-Week Penetration of Coffee – by Type

Past-week GCB consumptionpeaked in 2014 at 50%. It was47% in 2015 and 45% in 2016.The 2014 to 2015 decline wasdriven by both a decline in EBBand TC-G consumption, whichsaw a 3 to 4 point drop versus2014. Comparing past-weekconsumption of both EBB andTC-G in 2016 versus 2015, we seethat the numbers are flat.

Tracking NCA data back to2005, there's a notable past-weekconsumption shift towardgourmet coffee varieties. GCBclimbed from 35% to 45%between 2005 and 2016 (withnegligible methodologyenhancement shifts). Both GCBcomponents EBB and non-EBBpremium coffee (“GourmetCoffee” until 2010 and “TC-G”thereafter) were also up duringthe period — 20% to 34% forEBB (with a possible nine-pointincrease at panel enhancement)and 17% to 21% for TC-G (withfive points possibly tied to thepanel shift). Conversely, coffeeregarded as non-specialty(“Regular” through 2010 and“TC-NG” thereafter), declinedappreciably from 58% in 2005 to 44% in 2016.


Base: Total sample aged 18+- 2010 (n=2,740), 2011 (n=2,663), 2012 (n=2,955),2013 (n=2,840), 2014 (n=2,741), 2015 (n=2,771), 2016 (n=2,782)

+ Gourmet Coffee Beverages (net) also includes Iced/Frozen Blended Coffee andready-to-drink coffee beverages, but is not shown in the graph.



Now we'd like to ask you about some specific types of coffee beverages youmay have consumed in the past week. Please keep in mind that these may becoffee beverages that you drank at home or bought outside your home and mayhave come in a cup, can or bottle. In the past week, have you, yourself, drunk...




Past-Week Penetration of Coffee Types– by Age (see chart next page): Patternsin past-week penetration among differentage groups are similar to patterns seen in past-day penetration. Overallconsumption tends to skew older, with64% of 18-24 year olds drinking coffeepast-week versus 75% of consumers aged60+. The shift in 2016 (also seen forpast-day consumption) is that fewer40-59 year olds are drinking coffee. Past-week coffee penetration among 40-59 year olds is 64%. This is on par with 18-24 year olds and down from 72%in 2015.

Broken out by type, TC-Total, which isan aggregate of TC-NG and TC-G (simplyput, all coffee drunk “plain” as opposedto espresso-based creations) skews older,while GCB, comprised of TC-G and EBB,skews younger.

Digging deeper, the TC-NGsubcategory of TC-Total (that is, coffeedrunk plain and not made from gourmetquality beans) also skews older than themutually exclusive category of GCB.Moreover, comparing the two subsets of TC-Total, TC-NG also skews older than TC-G.

Specifically, consumption of “plain”coffee (TC-Total) is strongest among the60+ group, 21 points ahead of those 18-24 although by only seven to 11points compared with those between 30 and 59. For TC-NG, those 60+ camein 20 points ahead of the 18-24 group,but only nine and 10 points, respectively,ahead of the 40-59 and 25-39 cohorts.

TC-G exhibits very little age skew. It continues to be most popular amongthe 25-39 group, which came in at sevenpoints ahead of the 60+ cohort, butinterestingly also six points ahead ofthose 18-24.

EBB is the one category that skewyounger, with the 18-24 and 25-39

contingents leading the pack. Past-weekEBB consumption is 44% among 18-24and 50% among 25-39. This compares to26% among 40-59 and 19% among 60+.

A look back at NCA data from prioryears shows that the same generalpattern for GCB skewing younger holdstrue. Among the 18-24 year olds, GCBconsumption increased by 12 points from2012 to 2016, reaching more than half, at56%. The same holds true for the 25-39group, with consumption reaching 58% in2016, up 5 points from 2013 and on-parcompared with 2012.

For EBB, notably, there's been asteady climb from 2012 to 2016 for mostage groups. Consumption among the 18-24 group rose by nine points, forthose 25-39 up by four points, and the60+ cohort by four points. Only amongthose aged 40-59 has past week EBBpenetration eroded between 2012 and 2016, with penetration in this group moving from 29% in 2012 to 26% in 2016.

Note that no analysis of earlierconsumer behaviors is possible since,prior to 2010, past-week penetration ofcoffee types by age was not broken out.

Past-Week Penetration of Coffee Types – by Age


Base: Total sample aged 18+ - 2016 (n=2,782); 18-24 (n=427), 25-39 (n=798), 40-59 (n=968), 60+ (n=589).


Traditional Coffee – Total =traditional coffee, drunk hot or iced.This includes both gourmet and notgourmet.


Now we'd like to ask you aboutsome specific types of coffeebeverages you may have consumedin the past week. Please keep inmind that these may be coffeebeverages that you drank at homeor bought outside your home andmay have come in a cup, can orbottle. In the past week, have you,yourself, drunk...


Past-Week Penetration of Coffee Types – by Region

On a past-week basis, the Westand the Northeast lead in totalcoffee consumption, significantlyahead of the Midwest. By type,penetration is highest in the Westfor TC-G and EBB. The Midwesttrails in terms of past-weekpenetration of EBB and Decaf.

Base: Total sample aged 18+ - 2016 (n=2,782), Northeast n=497, Midwestn=614, South n=1,019, West n=652.




Now we'd like to ask you about some specific types of coffee beverages youmay have consumed in the past week. Please keep in mind that these may becoffee beverages that you drank at home or bought outside your home andmay have come in a cup, can or bottle. In the past week, have you, yourself,drunk...



28

29PAST-WEEK AND PAST-YEAR CONSUMPTION

Past-Week Penetration of Coffee by Type – by Ethnicity

On a past-week basis, Hispanic-Americans are significantly morelikely than Caucasian-Americansand African-Americans toconsume coffee. African-Americans are less likelycompared with all other ethnicgroups reported in this study toconsume coffee on a past-weekbasis. Hispanic-Americans aresignificantly more likely than anyother group to consume TC-T,TC-NG, TC-G, EBB and Decaf.Asian-Americans report relativelyhigh past-week penetration ratesfor EBB (lower levels thanHispanic-Americans, but higherthan levels reported byCaucasian-Americans and African-Americans).

Comparing 2015 and 2016, we see stability among Hispanic-Americans and Caucasian-Americans and declines amongAfrican-Americans and Asian-Americans (note that Asian-American data is based on a smallnumber of interviews and must betreated with caution). Specifically,among Asian-Americans, reportedpast-week consumption of TC-Gis down from 29% to 19% andEBB is down from 52% to 46%.Among African-Americans, past-week penetration of GCB isdown from 40% to 32%. This isdriven by reported declines in TC-G (down from 20% to 13%)and EBB (down from 32% to27%). In contrast, past-weekpenetration of TC-NG (regularcoffee made from non-gourmetbeans) is stable among bothAfrican-Americans and Asian-Americans between 2015 and 2016.

Base: Total sample aged 18+ 2016 (n=2,782) - Hispanic-Americann=452, Caucasian-American n=1,908, African-American n=370,Asian-American n=133.

+ Gourmet Coffee Beverages (net) also includes Iced/FrozenBlended Coffee and ready-to-drink coffee beverages, but is notshown in the graph.

Traditional Coffee - Total = traditional coffee, drunk hot or iced.This includes both gourmet and not gourmet.

What did you drink yesterday during each of the following times?This may include any beverage that you drank at home or outsideyour home and may have come in a cup, can or bottle.

Now we'd like to ask you about some specific types of coffeebeverages you may have consumed in the past week. Please keepin mind that these may be coffee beverages that you drank athome or bought outside your home and may have come in a cup,can or bottle. In the past week, have you, yourself, drunk...


Past-Week Penetration of Coffee – byGourmet Sub-types (see chart nextpage): Past-week penetration of gourmetcoffee beverages is stable between 2012and 2016, moving from 44% in 2012 to 45% in 2016. The intervening years sawgrowth in this segment which has sinceeroded. Looking at individual beverages,past-week penetration of most are flatover the 2012-2016 time period. Theexceptions are Macchiato, which hasgrown from 4% past-week penetration in2012 to 8% in 2016 and frozen-blendedcoffee, which has grown from 9% past-week penetration in 2012 to 13% in 2016.

Three new Gourmet Coffee Beverageswere added in 2016; Flat white receives4% claimed past-week penetration, coldbrew receives 8% past week penetrationand nitrogen-infused coffee receives 5%claimed past-week penetration. Withfrozen blended, cold brew and nitrogen-infused, it must be remembered thatinterviewing for this study occurs inJanuary. Consumption of these coffees islikely to be higher in the summer.



30

31

Past-Week Penetration of Coffee – by Gourmet Sub-types



* The NCDT, beginning in 2012,includes a representative sample of Hispanic-Americans and African-Americans. Comparisons to years prior to 2012 must bemade with caution, since the panel enhancement may impairdirect tracking.

Base: Total sample aged 18+ (2010 n=2,740, 2011 n=2,663, 2012 n=2,955, 2013 n=2,840, 2014 n=2,741, 2015 n=2,771, 2016 n=2,782).

+ Gourmet Coffee Beverages (net)also includes Iced/Frozen BlendedCoffee and ready-to-drink coffeebeverages, but is not shown in thegraph. Note: Caffè Americano wasadded in 2014, flat white, cold brewand nitrogen-infused were added in 2016.



Past-Week Penetration of GourmetSub-types – by Age (see chart nextpage): Those aged 25-39 are particularlystrong consumers of this segment; thoseaged 25-39 are, within the past week,more likely than all other reported agegroups to have drunk EBB, cappuccino,mocha, espresso, TC-G, caffè Americano,flat white, cold brew and nitrogen-infused. Those aged 18-24 are also strongconsumers in this segment. Their past-week penetration ranks second behindthose aged 25-39 for EBB, cappuccino,mocha, espresso, cold brew and nitrogen-infused. Those aged 18-24 and 25-39 aremore likely than those aged 40+ to havedrunk latte, macchiato and frozenblended coffee within the past week.

Compared with NCA data from prioryears, there's been an overall increase inGCB from 2012 to 2015 among the 18-24year olds, as well as for EBB's including:Cappuccino, Latte, Espresso andMacchiato.

Comparing NCA data from 2013 todata from 2016 reveals that those aged18-39 are, overall, more likely to haveconsumed most gourmet coffee sub-types in the past week. In particular, past-week penetration of gourmet coffeebeverages is up 8% among 18-24 yearolds and 5% among 25-39 year olds, past-week penetration of espresso-basedbeverages is up 6% among 18-24 yearolds and 9% among 25-39 year olds, past-week penetration of cappuccino isup 4% among 18-24 year olds and 9%among 25-39 year olds, past-weekpenetration of latte is up 5% among

18-24 year olds and 6% among 25-39year olds, past-week penetration ofespresso is up 6% among 18-24 year oldsand 9% among 25-39 year olds and past-week penetration of macchiato is up6% among 18-24 year olds and 6%among 25-39 year olds.

Over the same 2013 to 2016 timeperiod, we see declines in past-weekpenetration for most gourmet coffee sub-types among 40-59 year olds.Exceptions are latte, macchiato andfrozen blended coffee, which are flat. Past-week penetration of gourmet coffeesub-types has remained essentially flatamong those aged 60+ between 2013and 2016.





Past-Week Penetration of Gourmet Sub-types – by Age


+ Gourmet Coffee Beverages (net)also includes Iced/Frozen BlendedCoffee and ready-to-drink coffeebeverages, but is not broken out inthe graph.



Past-Week Penetration of Gourmet Sub-types – by Region

On a past-week basis, the West isthe strongest market for totalgourmet coffee beverages andtraditional coffee – gourmet.Consumption of espresso-basedbeverages (EBB) is lower in theMidwest versus all other regions.Within EBB, the Midwest seeslower consumption of espresso,caffè Americano and flat white.

Base: Total sample aged 18+ - 2016 (n=2,782), Northeast n=497, Midwest n=614, South n=1,019, West n=652.

+ Gourmet Coffee Beverages (net) alsoincludes Iced/Frozen Blended Coffee andready-to-drink coffee beverages, but is notshown in the graph.

What did you drink yesterday during each of the following times? This may include anybeverage that you drank at home or outsideyour home and may have come in a cup, canor bottle.

Now we'd like to ask you about some specifictypes of coffee beverages you may haveconsumed in the past week. Please keep inmind that these may be coffee beverages thatyou drank at home or bought outside yourhome and may have come in a cup, can orbottle. In the past week, have you, yourself,drunk...



34


Past-Week Penetration of Gourmet Sub-types – by Ethnicity

On a past-week basis, penetrationof gourmet sub-types is higheramong Hispanic-Americans andAsian-Americans than it is amongCaucasian-Americans. Past-weekpenetration of gourmet sub-typesis lowest among African-Americans versus the other threereported ethnicities. In 2016,past-week consumption is highestamong Hispanic-Americans(versus the other three reportedethnicities) for: EBB, espresso,traditional coffee – gourmet andcaffè Americano. Asian-Americansare more likely than Caucasian-Americans and African-Americansto report drinking the followingbeverages within the past week:EBB, latte, mocha.

Base: Total sample aged 18+ - 2016 (n=2,782), Hispanic-American n=452, Caucasian-American n=1,908, African-American n=370, Asian-American n=133.

+ Gourmet Coffee Beverages (net) alsoincludes Iced/Frozen Blended Coffee andready-to-drink coffee beverages, but is notshown in the graph.

What did you drink yesterday during each ofthe following times? This may include anybeverage that you drank at home or outsideyour home and may have come in a cup, canor bottle.

Now we'd like to ask you about some specifictypes of coffee beverages you may haveconsumed in the past week. Please keep inmind that these may be coffee beverages thatyou drank at home or bought outside yourhome and may have come in a cup, can orbottle. In the past week, have you, yourself,drunk...



Past-Week Penetration – Traditional versus Gourmet Coffee Beverage – by Age

Assessing the mix of consumptionhabits among traditional andgourmet coffees on a past-weekbasis reveals an age-related link.As consumers age, they are morelikely to be exclusive TC-NGdrinkers. Consumers aged 18-39are more likely to have consumedGCB only than those aged 40+.Those aged 60+ are significantlyless likely to have consumed bothTC-NG and GCB within the pastweek than those in all youngerage groups.

There have been decreases inexclusive TC-NG consumptionfrom 2012 to 2016 for all groups,most pronounced among those18-24. At the same time,consumption of both traditionaland GCB increased among allage groups between 2012 and2015.

Between 2015 and 2016,the percentages within each agecohort drinking TC-NG only haveremained largely stable. Thepercentage of 40-59 year oldsdrinking GCB only has declinedfrom 24% to 19% and thepercentage of those aged 60+drinking GCB only increased from17% to 21%.



Now we'd like to ask you about some specific types of coffee beverages you may have consumed inthe past week. Please keep in mind that these may be coffee beverages that you drank at home orbought outside your home and may have come in a cup, can or bottle. In the past week, have you,yourself, drunk...




Past-Year Penetration of Coffee – by Type

Past-year penetration of coffee isdown 2% in 2016 versus 2015.This decline is statisticallysignificant.

With due caution for pre-2012data, a look at 2010 and 2011suggests a longer-term macrostability for Total Coffee. Past-yearpenetration of total coffee was77% in 2010 and is 76% in 2016.Past-year penetration oftraditional coffee — total was 71% in 2010 and 70% in 2016.Gourmet coffee beverages,traditional coffee – gourmet,instant and decaf also seeessentially unchanged past-year penetration numbers ifwe compare 2010 versus 2016.Continuing with the 2010 versus2016 comparisons, traditionalcoffee – not gourmet sees growth(47% past-year penetration in2010 versus 51% in 2016), asdoes espresso-based beverages(50% past-year penetration in2010 versus 54% in 2016).

Tracking NCA data back to2005, GCB remained steady at60% between 2005 and 2016,despite interim volatility and a six-point decline post-2008Methodology Enhancement.Regarding GCB's components,EBB increased from 51% in 2005to 54% in 2014, with no apparentmethodology change impacts.Surprisingly, non-espresso-basedgourmet coffee (“GourmetCoffee” pre-2010 and “TC-G”thereafter) fell, from 37% in 2005to 25% in 2016, with a 24%interim low in 2006. At the sametime, past-year consumption ofcoffee regarded as non-specialty(“Regular” through 2010 and“TC-NG” thereafter) remainedstable at 51% in 2009 (lastavailable data) and 51% in 2016,with a 2013 interim high of 56%,with no apparent methodologyshift impact.


Base: Total sample aged 18+ - 2010 (n=2,740), 2011 (n=2,663), 2012 (n=2,955), 2013 (n=2,840), 2014 (n=2,741), 2015 (n=2,771), 2016 (n=2,782).

+ Gourmet Coffee Beverages (net) also includes Iced/Frozen Blended Coffee andready-to-drink coffee beverages, but is not shown in the graph.

Traditional Coffee – Total = traditional coffee, drunk hot or iced. This includes bothgourmet and not gourmet.

What did you drink yesterday during each of the following times? This may includeany beverage that you drank at home or outside your home and may have come in acup, can or bottle.

Now we'd like to ask you about some specific types of coffee beverages you mayhave consumed in the past week. Please keep in mind that these may be coffeebeverages that you drank at home or bought outside your home and may havecome in a cup, can or bottle. In the past week, have you, yourself, drunk...

Here are some specific types of coffee you may have consumed in the past year.Please keep in mind that these may be coffee beverages that you drank at home oroutside your home and may have come in a cup, can or bottle. In the past year,have you, yourself, drunk...

Past-Year Penetration of Coffee – byGourmet Sub-types (see chart nextpage): Past-year consumption of mostGCB increased between 2012 and 2015.On a macro level, past-year penetrationof the overall gourmet coffee beveragessegment is slightly up from 58% in 2012to 60% in 2016. The strongest growthbetween 2012 and 2016 is associatedwith EBB (up from 49% to 54%), latte (upfrom 25% to 32%), macchiato (up from10% to 19%) and frozen blended coffee(up from 26% to 31%).

At the same time, some beverageshave remained essentially flat between2012 and 2016 (cappuccino sits at 34%past-year penetration in 2012 versus 36%in 2016, mocha sits at 24% past-yearpenetration in 2012 versus 27% in 2016,espresso sits at 23% past-year penetration

in 2012 versus 26% in 2016). Traditionalcoffee – gourmet appears to havesoftened slightly; past-year penetration oftraditional coffee — gourmet sits at 28%in 2012 and 25% in 2016.

Three new beverages were added in2016. We see 8% claimed past-yearpenetration for flat white, 15% claimedpast-year penetration for cold brew and10% claimed past-year penetration fornitrogen-infused.



38

Past-Year Penetration of Coffee – by Gourmet Sub-types


Base: Total sample aged 18+ - 2010 (n=2,740), 2011 (n=2,663),2012 (n=2,955), 2013 (n=2,840),2014 (n=2,741), 2015 (n=2,771),2016 (n=2,782).

+ Gourmet Coffee Beverages (net)also includes Iced/Frozen BlendedCoffee and ready-to-drink coffeebeverages, but is not shown in thegraph. Note: Caffè Americano was added in 2014 and flat white,cold brew coffee and nitrogencarbonated coffee were added in 2016.



Here are some specific types ofcoffee you may have consumed inthe past year. Please keep in mindthat these may be coffee beveragesthat you drank at home or outsideyour home and may have come in acup, can or bottle. In the past year,have you, yourself, drunk...




HOW COFFEE IS CONSUMED 40

Method of Preparation Among Past-Day Drinkers (see chart next page):The drip coffee maker continues to bethe dominant preparation method, but itsuse has been in decline over the lastseveral years. In 2016, a total of 50% ofpast-day coffee drinkers drank coffeeyesterday that was brewed using thismethod. This compares to 54% in 2015,53% in 2014, 58% in 2013 and 61% in2012. While pre-2012 must be viewedwith caution due to the 2012 PanelEnhancement, it is interesting to note thatthe percentages for 2010 and 2011 were77% and 70%, respectively. It seemsimportant to emphasize that only one-halfof past-day coffee drinkers drank coffeebrewed with a drip brewer yesterday. Thisrepresents a gradual but fundamentalshift in the American coffee landscape.

Single-cup brewers are the secondmost common preparation option past-day, with 28% of past-day coffeeconsumers drinking coffee brewed usingthis method yesterday. Between 2014 and2016, this number has been flat (29% in

2014, 25% in 2015 and 28% in 2016). Thisis up significantly from 20% in 2013 and19% in 2012. Again with due caution, alook at pre-2012 data shows dramaticallylower use of 9% and 7%, respectively, in2010 and 2011.

Past-day espresso machine use sits at12% in 2016. This is up from 9% in 2015and on pat with 12% in 2014. Lookingcautiously back beyond 2012, espressomachine use came in at just 1% in 2011and 5% in 2010, a similar trend noticedwith single-cup brewer usage.



4

Method of Preparation Among Past-Day Drinkers

† Cold brewing (NET): Beginning in2016, ‘Cold brewing (NET)’ includes‘Cold brew coffee (brewed withoutheat for a long period of time)’ andany coffee that brewed using coldbrewing method.

* The NCDT, beginning in 2012,includes a representative sample of Hispanic-Americans and African-Americans. Comparisons to years prior to 2012 must bemade with caution, since the panel enhancement may impairdirect tracking.

Base: Total past-day coffee drinkers aged 18+ - 2010 (n=1,523),2011 (n=1,571), 2012 (n=1,933),2013 (n=1,789), 2014 (n=1,671),2015 (n=1,644), 2016 (n=1,571)

Thinking of the [COFFEE/COFFEEBEVERAGE] you had yesterday[TIME OF DAY], how was the[COFFEE/COFFEE BEVERAGE]prepared?

Coffee Consumers – by Coffee Roast

The strong majority of past-day brewed coffeeconsumers selected dark ormedium roast, 39% and 63%,respectively. Light roast, bycontrast, was consumed by only11% of past-day consumers.

Broken out by consumer age, light roast skews towards 25-39 year olds. Eleven percentof consumers aged 18-24consume light roast, versus 18%for the 25-39 cohort, 8% and 7%for the 40-59 cohort and 6% forthe 60+ cohort. Medium roast isalso strongest among 25-39,while dark roast is strongestamong 18-24 and 25-39.

Regionally, light roast performsbetter in the Northeast.

The uppercase letters indicate that the number is significantly higher than the number in thecorresponding column.

Base: Past-day instant and brewed coffee drinkers aged 18+; 2016 (n=1,332).

What was the roast of this [COFFEE/COFFEE BEVERAGE] you had yesterday [TIME OF DAY]?



42

43HOW COFFEE IS CONSUMED

Coffee Consumers – by Additive Type

Roughly half of coffee consumers(47%) claim to have sweetenedand whitened the coffee theyconsumed yesterday. Anadditional 20% said they onlywhitened their coffee, while 9% used only sweetener and 24% used nothing.

Please note that consumersmay not consider some preparedcoffee beverages, such ascappuccino, to have anythingadded. Therefore, they mayrespond that they add nowhitener to their coffee.

Due to periodic fine tuning ofsurvey questions to optimize datautility, tracking to data prior to2012 would be imprecise. Thedata for this question hasremained mostly stable since2012. In 2016 versus 2015, wesee fewer consumers claiming tosweeten only.

Base: Past-day coffee drinkers aged 18+ - 2012 (n=1,933), 2013 (n=1,789), 2014 (n=1,671), 2015 (n=1,644), 2016 (n=1,571).

What, if anything, was added to this [COFFEE/COFFEE BEVERAGE] you had yesterday [TIME OFDAY]? Please select all that apply.


Additives Past-Day – Total Coffee

Similar to 2013 through 2015,whitening is the most commonadditive behavior for coffee, with68% of past-day coffee drinkerswhitening their coffee in 2016.Creamers are the most widelyused whitener (35%), followed byhalf and half (14%), whole milk(13%), reduced fat milk (10%) andfat free/skim milk (4%).

More than one-half ofconsumers (55%) use sweetenersor syrup in their coffee. Amongsweeteners, sugar is the mostused (38%), followed by artificialsweeteners (12%) and othernatural sweeteners (3%).

In 2016, the research askedabout an expanded list of non-dairy milk alternatives (e.g.,soy milk, rice milk, etc.). In total, 5% of past-day coffee drinkersclaim to have added milkalternatives to their coffee.

Use of many of the additives is significantly lower among thoseaged 60+ than those in youngerage groups. These additivesinclude sweeteners (sugar) andwhiteners (whole milk, dairy-based and flavored liquid andpowdered creamers). In fact, the60+ age cohort is more likely thanyounger consumers to drink theircoffee black (in the past-day, 33%drank one or more cups of coffeewithout adding anything).

Younger consumers are more likely to add flavored syrup, non-dairy milk alternatives, dairy-based and flavored creamer(both liquid and powder), anespresso shot and water. Base: Past-day coffee drinkers aged 18+ - 2016 (n=1,571).

What, if anything, was added to this [COFFEE/COFFEE BEVERAGE] you had yesterday [TIME OF DAY]? Please select all that apply.



44


Additives Past-Day – by Age – Total Coffee

Base: Past-day coffee drinkers aged 18+ - 2016 (n=1,571),18-24 (n=203), 25-39 (n=476), 40-59 (n=514), 60+ (n=378).

What, if anything, was added to this[COFFEE/COFFEE BEVERAGE] youhad yesterday [TIME OF DAY]?Please select all that apply.


PERCENT USING PAST-DAY 18-24 25-39 40-59 60+Total (A) (B) (C) (D)

(n=1,571) (n=203) (n=476) (n=514) (n=378)

NET: Sweetener + syrup 55 62C 67C 50 42Sugar 38 51C 53C 31 22 Other natural sweeteners 3 5CD 4 2 1 Artificial sweetener 12 7 10 12A 15ABA flavor or flavored syrup (not a creamer) 5 9 5D 4 2

Half & Half/Milk/Milk alternatives/Creamer (NET) 68 71 73 69 60

Whole milk 13 23C 20C 8 4 Reduced fat milk 10 13 11 11 8 Fat free/skim milk 4 4 6CD 3 2 Sweetened Condensed milk 1 2 3C 1 0 Evaporated milk 1 1 2 1 1 Flavored milk (e.g., chocolate milk) 1 2 1 0 0 All non-dairy milk 5 7D 9CD 4 2

Creamer (NET) 35 38 34 37 32Liquid creamer (SUBNET) 25 33C 26 25 18

Dairy 15 25 18C 13 8 Non-Dairy 10 8 8 13B 9 Don't know 2 2 1 2 2 Flavored 21 30 22 22 14 Unflavored 4 5 5 4 3

Powdered creamer (SUBNET) 12 8 11 13 16ABDairy 15 25 18C 13 8 Non-Dairy 10 8 8 13B 9 Don't know 2 2 1 2 2 Flavored 21 30 22 22 14 Unflavored 4 5 5 4 3

An espresso shot 3 8CD 6CD 1 0 Alcohol 1 1 3C 1 1 Water 4 5D 8CD 3 2 Stevia 7 7 11CD 7 4 Didn't add anything 22 15 14 24AB 33

Significantly higher than all comparison groups

Significantly lower than all comparison groups

Number of Cups Per Day – Past-Day

The number of cups drank past-day among the total sampleand past-day coffee drinkers isslightly down in 2016 versus2015. This measure had beenstable between 2012 and 2015.Looking at NCA data from prioryears, cups per day haveremained largely consistent.Tracking data back to 2001, withdue caution dictated by themethodology enhancements in2008 and 2012, average cups perday among past-day coffeedrinkers was 3.27 and, on a per-capita basis, 1.8.

We will need to see additionalyears of tracking to understand if cup-volume declines are a oneyear blip or the start of a shift in behavior.


Base: Total sample aged 18+ (2008 n=3,042, 2009 n=3,118, 2010 n=2,740, 2011 n=2,663, 2012 n=2,955, 2013 n=2,840, 2014 n=2,741, 2015 n=2,771), 2016 n=2,782).

Base: Past-Day Coffee Drinkers Age 18+ (2010 n=1,523, 2011 n=1,571, 2012 n=1,933,2013 n=1,789, 2014 n=1,671, 2015 n=1,644, 2016 n=1,571).

How many cups or glasses of [COFFEE/COFFEE BEVERAGE] did you drink [TIME OF DAY]?




Cups per Day of Coffee – by Age – Past-Day

In the recent past, older coffeedrinkers drank, on average, morecups per day than younger coffeedrinkers. In 2016, we see stablecups per drinkers amongconsumers aged 18-39 anddeclines among those aged 40+.It is these declines among coffeedrinkers aged 40+ that are drivingdeclines seen within the totalpopulation. It is worthremembering that the percentageof consumers aged 40-59 whodrank coffee yesterday is alsodown — so we see fewer past-day coffee drinkers in this agecohort and those who aredrinking are drinking slightlyfewer cups of coffee. As wasnoted with the total-sampleanalysis, it is too early to tell ifthese declines are a one-year blip or part of a larger behavioralchange.


Base: Past-day coffee drinkers aged 18+ - 2016 (n=1,571); 18-24 (n=203), 25-39 (n=476), 40-59(n=514), 60+ (n=378).

How many cups or glasses of [COFFEE/COFFEE BEVERAGE] did you drink [TIME OF DAY]?


Share of Cups – Gourmet versus Non-Gourmet

Share of cups of GCB has notchanged significantly in 2016(51%) compared to 2015 (48%)and 2014 (51%).

While pre-2012 must beviewed with caution, there wasat that time a more prominentskew toward non-gourmet. Thisprovides perspective on the morerecent results. The spread in favorof non-gourmet has clearlydeclined between 2010 and2016, from 20 and 26 points in2010 and 2011 to an equaldivision in 2016. Note thattracking data back beyond 2010would be unreliable because ofthe definitional changes in"gourmet" and "non-gourmet"coffees adopted by the study in2010 to reflect changingconsumer perceptions.

* The NCDT, beginning in 2012, includes arepresentative sample of Hispanic-Americansand African-Americans. Comparisons to yearsprior to 2012 must be made with caution,since the panel enhancement may impairdirect tracking.

Base: Past-Day Coffee Drinkers Age 18+ 2010 (n=1,523), 2011 (n=1,571), 2012 (n=1,933), 2013 (n=1,789), 2014 (n=1,671), 2015 (n=1,644), 2016 (n=1,571).

Was the [COFFEE/COFFEE BEVERAGE]gourmet coffee — that is, brewed frompremium whole bean or ground varieties?



48


Cup Size

The medium-sized cup remainsmost prominent, with 50% ofpast-day coffee drinkers claimingto have used this size, up threepoints from 2015 and on par withresults from 2014. The next mostprevalent is the small cup, usedby 43% of past-day drinkers.Meanwhile, 16% of past-daycoffee consumers claim to havedrunk a large coffee yesterday,and 9% claim to have drunk anespresso-sized cup of coffee.These numbers are essentiallyunchanged over the past threeyears.

Please note that an espressosize cup was added as an optionin the 2013 NCDT study. Becauseof this additional response option,direct comparisons to 2012 resultsshould be made with caution.

A question on cup size wasintroduced in 2010. Data for 2010and 2011 were presented on aper-capita basis rather thanamong past-day coffee drinkers.While that makes comparisonsuntenable, cup size for both yearswas flat, coming in at about 20%using a small cup, one-thirdchoosing a medium-sized cupand 10% opting for a large cup.


NOTE: Espresso size cup added in 2013.

Base: Past-Day Coffee Drinkers Age 18+ - 2012 (n=1,933), 2013 (n=1,789), 2014 (n=1,671), 2015 (n=1,644), 2016 (n=1,571).

To the best of your knowledge, what size was the cup that you drank this beverage in? A small sizecup or mug (approx. 8 ounces or less - the size of a traditional coffee cup or smaller), a medium sizecup or mug (approx. 12 ounces - the size of a regular sized can of soda), a large size cup or mug(approx. 16 ounces or more - the size of a commuter mug).

Past-Day Consumption – by Time of Day

Breakfast was and remains thedominant daypart. We see thatconsumption during breakfast isflat to slightly softening. Withcaution for comparisons to dataprior to 2012, 91% of past-daycoffee drinkers claim to havedrunk coffee at breakfast in 2010.This sits at 82% in 2016. At thesame time, some post-breakfastdayparts appear to havestrengthened. A total of 18% ofpast-day coffee drinkers claim tohave drunk coffee at lunch in2016 versus 15% in 2012. A totalof 24% of past-day coffeedrinkers claim to have drunkcoffee between lunch and dinnerin 2016 versus 19% in 2012.

Afternoon consumption for2016, at 24%, is the highestthroughout 1999-2016, followedby 20% in 2011 and 19% in 2008,2009, 2012 and 2013, with abouthalf the level between 1999 and2007, with an average just under12%. Evening consumptionremains at an all-time high at15%, tied with 2008, with levelshovering in the 13-14% rangebetween 2008 and 2013;however, pre-2008 levels, whichneed to be viewed with cautiondue to the 2008 MethodologyEnhancement, were runningsignificantly lower, averaging 11%between 1999 and 2007.


Base: Total past-day coffee drinkers aged 18+: 2010 (n=1,523), 2011 (n=1,571), 2012 (n=1,933), 2013 (n=1,789), 2014 (n=1,671), 2015 (n=1,644), 2016 (n=1,571).

** Defined to respondents as “the first meal after rising, even if you only had fruit juice or coffee.”




50


WHERE AND WHEN COFFEE IS CONSUMED 51

Past-Day Consumption – by Time of Day – by Age

There are differences in terms ofwhen coffee drinkers in differentage groups drink coffee. AtBreakfast, those 60+ are mostlikely to drink coffee, while the 18 to 39 age group is least likelyto consume during this daypart.

Comparing pre-2012 NCAdata with due caution, age-specific past-day consumptionpatterns align with those of thetotal population. That is, there are marked increases in lesstraditional dayparts with anaccompanying decrease inBreakfast consumption.

In post-breakfast dayparts, the age profile shifts. Consumersaged 25-39 are strongestbetween breakfast and lunch and again at dinner and afterdinner, consumers 18-39 arestrongest at lunch and afternoon.

Looking back to previousyears, 18-24 year old Breakfastconsumption has declined slightlyfrom 2012 to 2016, from 77% to74%. Other age groups exhibiteda similar pattern, including a 2006to 2011 average of 84% amongthose 25-39 versus 2016's 77%and of 89% for the 40-59 groupcompared with 83% in 2016. Onlyfor the 60+ cohort has breakfastremained stable, remaining at92% versus a 2006-2011 averageof 92%.

For the remaining dayparts,conversely, Morning and Lunchincreases for all ages becamemost evident in 2009, Evening in2010, Afternoon in 2011 andDinner not until 2013 to 2014. Base: Past-day coffee drinkers aged 18+ - 2016; 18-24 (n=203), 25-39 (n=476), 40-59 (n=514),

60+ (n=378).

** Defined to respondents as “the first meal after rising, even if you only had fruit juice or coffee.”




Past-Day Coffee Place of Preparation – Total Coffee

Home is a consistently importantpreparation venue. In total, 81%of past-day coffee drinkersprepared at least one cup ofcoffee at home yesterday. Thestrength of home as a venue forpreparation is consistent with thestrong breakfast and morningcoffee consumption revealed inthis study. While home remainsdominant, there are signs of slowdecline. While 81% of past-daycoffee consumers prepared atleast one cup of coffee at homeyesterday in 2016, the equivalentmeasure was 84% in 2012 and,with caution regarding directcomparisons because of panelenhancements in 2012 andsubsequent years, 86% in 2010.

Out-of-home preparation for2016 is at 34%, which issignificantly up from the 30% in2015. The question about placeof preparation versus place ofconsumption was added to theNCDT survey in 2011, and theapparent jump into 2012 is likelydue to the effect of the PanelEnhancement; it would be toospeculative to read anything intothe increase, such as differenthome preparation habits amongthe enhanced Hispanic- andAfrican-American cohorts.

Regarding the out-of-homevenues, the majority of venuesremained flat from 2014 to 2015.The exception was cafés/coffeeshops/donut shops, which hasfluctuated from 12% in 2014 to9% in 2015 to 13% in 2016.


Note: Significant changes were made to some of the response options to this question between2010 and 2011, which is why data is only shown for 2011-2015 for some preparation locations.

Base: Total past-day coffee drinkers 2010 (n=1,523), 2011 (n=1,571), 2012 (n=1,933), 2013 (n=1,789),2014 (n=1,671), 2015 (n=1,644), 2016 (n=1,571).

Where was the [COFFEE/COFFEE BEVERAGE] prepared you had yesterday [TIME OF DAY]?



Source of Coffee for Coffee Prepared At-Home

Grocery Stores remain the mostpopular outlet for purchasingcoffee prepared at home, at 46%in 2016. This is flat versus 47% in2015. The second most popularvenue is Mass Merchandiser,which is slightly down at 23% in2016 versus 26% in 2015 and27% in 2014.

2016 sees growth in sourcingcoffee to make at home fromcoffee shops. This is happeningas we also see growth in drinkingcoffee out of home in coffeeshops. In 2016, 6% of those whodrank coffee at home yesterdaysaid that the coffee was bought ina coffee shop. This is up from 4%in 2013-2015. All other venuesare stable in 2016.

Base: Total sample past-day at-home coffee drinkers 18+ - 2012 (n=1,561), 2013 (n=1,455), 2014 (n=1,370), 2015 (n=1,329), 2016 (n=1,246).

In what type of store did you buy the coffeethat you used to make the [COFFEE/COFFEEBEVERAGE] that you prepared at home?



Package Format – Brewed Coffee Prepared At-Home

There are no significant shifts inpackage format across 2015 to2016. Can had declined between2012 and 2014, but sinceregained footing and stabilized.Can and pre-package bag areroughly equal now, with 37% and36% of past-day at-home brewedcoffee drinkers claiming to havedrunk coffee from these packageformats respectively yesterday.

Single-cup pods trail can andbag; 21% of past-day at-homebrewed coffee drinkers claim tohave drunk coffee from a single-cup pod yesterday. This number isup from 2012-2013 (when it was15%), but is flat versus 2015(when it was 20%).

Jar saw growth from 2012-2014, but has since returned to2012 levels.


Base: Past-day at-home brewed coffee drinkers 18+ 2011 (n=1,148), 2012 (n=1,338), 2013 (n=1,287),2014 (n=1,194), 2015 (n=1,132), 2016 (n=1,082).

And what type of package did the [COFFEE/COFFEE BEVERAGE] come in when you bought it?

54



Coffee Grinding – Brewed Coffee Prepared At-Home

In 2015, this question wasmodified and ground coffee wasseparated into Pre-ground —ready for brewing from thepackage and ground in-store —the beans were ground in thestore where I bought it.Comparisons to previous yearswould be unwise.

The strong majority, 83%, ofconsumers who prepared brewedcoffee at-home purchased coffeethat was already ground whenthey bought it.

Of those who bought wholebean coffee that was not pre-ground, 12% had to grind thecoffee at home, while 7% groundthe coffee in the store in whichthey bought it.

Base: Past-day at-home brewed coffee drinkers 18+: 2014 (n=1,194), 2015 (n=1,132), 2016 (n=1,082).

And when you brought the coffee home, was it…

Note: In 2015, Ground coffee was split into Pre-ground — ready for brewing from the package andGround in-store — the beans were ground in the store where I bought it.



Past-Day Place of Consumption – TotalCoffee (see chart next page): Homeremains the dominant venue for coffeeconsumption, with 79% of past-day coffeedrinkers having consumed coffee at homeyesterday. This figure is consistent since2012 and, with due caution related to the2012 Panel Enhancement, relatively stablestretching back to 2008 and beyond.

Looking at NCA data tracked inprevious years and published in earlierNCDT reports, the figure for at-homeconsumption has averaged 78% from2000 to 2007 and 83% from 2007 to2011. Another note of caution should be considered for data tracked prior to2009 due to the 2008 MethodologyEnhancement.

Regarding out-of home consumption,past-day coffee drinkers who claim tohave drunk coffee out-of-home yesterdayincreased markedly in 2014, to 35%versus 31% in 2013 and 33% in 2012. This number has increased again in 2016, moving to 40%. Prior to 2012, out-of-home consumption appeared tobe on a steady decline since 2008, from36% to 27% in 2011, although it bumpedup to a higher, steady level following the2012 Panel Enhancement. Looking backto NCDT data prior to 2008, out-of-home

consumption hit a peak of 40% in 2004and 2006 after a period of volatilityaveraging 33% from 2000 to 2007 thatappeared to show a dip averaging 31%between 2001 and 2003.

Regarding out-of-home venues in2016, there was an increase in EatingPlace in 2016 versus 2015, returning to2014 levels. Consumption at an EatingPlace is significantly up versus 2012-2013.Workplace consumption has slowlytrended up from a low of 16% in 2013 to 21% in 2016. Note that some of thecoffee consumed at work would havebeen prepared at home or in other out-of-home venues.



Past-Day Place of Consumption – Total Coffee


NOTE: The way in which this studyasked about consumption at-workchanged in 2011, which is why datafor previous years is not shown.

Base: Total daily coffee drinkers2008 (n=1,829), 2009 (n=1,839),2010 (n=1,523), 2011 (n=1,571),2012 (n=1,933), 2013 (n=1,789),2014 (n=1,671), 2015 (n=1,644),2016 (n=1,571).

Where did you drink the[COFFEE/COFFEE BEVERAGE]?

Past-Day Place of Consumption – Total Coffee – by Age

Consistent with the results seenfor place of preparation, place ofconsumption shows differencesby age. Consumers aged 60+ are most likely to consume coffeeat-home past-day (94% versus70%-76% among those aged 18-59). Younger consumers aremore likely to consume coffeeout-of-home than olderconsumers (50-51% among thoseaged 18-39 versus 16% of thoseaged 60+). Consumers aged 60+ are significantly less likely to have drunk coffee at work, at an eating place or whiletraveling/commuting than thosein younger age cohorts.

Base: Past-day coffee drinkers aged 18+ 2016; 18-24 (n=209), 25-39 (n=470), 40-59 (n=509), 60+ (n=381).

Where did you drink the [COFFEE/COFFEE BEVERAGE]?



58



59

Share of Coffee – by Location Consumed

In 2016, 70% of all coffee cups werereported as consumed at home.Work is the next most importantvenue, with 13% of reported shareof cups. Of the cups consumed atwork, 70% are sourced from aworkplace coffee area.

Looking back at prior NCA data, the share of cups consumedat home has fluctuated over the last decade, hitting a low of 66% in 2004 and a high of 82% in 2011.With due caution related to thestudy's methodologyenhancements, some interestingdata shifts may neverthelesssuggest broad-brush patterns. The period from 2001 to 2007, prior to the shift from telephone to online polling, saw at-homeconsumption soften, from 75% in2001 to 67% in 2007. Between2008 and 2011, before the 2012Panel Enhancement, there was asignificant increase in at-homeconsumption — moving from 65% in 2008 to 82% in 2011. Thereafter,a drop to 77% in 2012 may relate to the panel shift, but there wasfurther softening to 72% in 2014.The 70% seen in 2016 marks a low-point for at-home consumptionversus recent years.

At-work share of cups has shown more stability throughout,fluctuating by only four percentagepoints between 2001 and 2007, andsettling at the same level — 16% in2007 versus 15% in 2001 — with aone-year peak at 19% in 2004.From 2008 to 2011, however, therewas a notable decline, with at-workshare moving from 17% in 2008 tojust 8% in 2011. The increase thatfollowed into 2012 could beexplained by the panel shift,although the share has remainedessentially flat at 12% in 2015 and2014 versus 11% in 2013 and 2012.

Base: Total coffee consumed (2015 n=4,153).


Where was the [COFFEE/COFFEE BEVERAGE] prepared you had yesterday [TIME OF DAY]prepared?

Share of Coffee Drinkers – by Past-Day Consumption Location

Another way to gauge wherecoffee is consumed is to examinethe share of consumers ratherthan share of cups. In 2016, 60% of past-day coffee drinkerssaid they consumed their coffeeat-home only. This figure is downversus 64% in 2015 and 68% in 2013.

The remaining past-day coffeeconsumers equally fall into one of two categories — out-of-homeonly or both at-home and out-of-home. Since NCA beganasking the question in 2012, out-of-home only consumptionhas been stable at 18% in 2015,17% in 2014, 18% in 2013 and17% in 2012. The number of past-day consumers who dranktheir coffee both at-home andout-of-home has shown somevolatility; in 2016 it sits at 20%, up versus 17% in 2015 andconsistent with the 19% seen in 2014.

There are some differences inthese behaviors based on agecohorts. Out-of-home onlydrinkers appear to skew younger.Those aged 40+ are more likelyto drink at-home only and thoseaged 60+ are less likely to drinkout-of-home only or to drink bothat-home and out-of-home.

Base: Total daily coffee drinkers 2012 (n=1,933), 2013 (n=1,789), 2014 (n=1,671), 2015 (n=1,644),2016 (n=1,571).




60


SINGLE-CUP AWARENESS AND ACQUISITION 61

Single-Cup Brewing Systems – Awareness

Awareness of single-cup brewingsystems remained constant in2016 at 75%. The level ofawareness in 2016 is higher thanwhat was seen in years prior to2013 and stable over the pastthree years.

Consumers in younger agegroups (18-39) are significantlyless likely than older consumersto be aware of the systems. Infact, roughly one-third ofconsumers aged 18-39 are notaware of single-cup brewingsystems (compared with 23% forthose 40-59 and 18% for the 60+cohort). This finding is consistentwith stronger overall involvementin the coffee category amongolder consumers. There may bean opportunity for the industry to reach out to youngerconsumers, who will be movinginto the life-stages where they arebuying their first coffee brewers.


Base: Total Sample Age 18+ (2005 n=2,950, 2006 n=2,954, 2007 n=2,951, 2011 n=2,663, 2012 n=2,955, 2013 n=2,840, 2014 n=2,741, 2015 n=2,77), 2016 n=2,782).

NOTE: Age group sample sizes are based on 2015 data. Sample sizes in previous years are similar.

Several companies have introduced a new way of brewing coffee. With this brewer, you insert asingle, pre-measured, sealed disk or capsule of coffee into a specially designed machine. Themachine brews a single cup of coffee directly into your coffee cup.

Single-Cup Brewing Systems – Ownership

In 2016, more than one quarter ofU.S. households own a single-cupbrewer (29%). This is up 2% from27% in 2015. In 2015, the way theownership question was posed torespondents changed, so we can'tdirectly compare the 2016 and2015 results to results in previous years.

Growth in ownership over time shows that single-cupbrewing systems are continuingto demonstrate potential tofundamentally alter coffeepreparation habits.

Single-cup ownership is mostprevalent among higher incomehouseholds.

The NCA began trackingconsumer acceptance of single-cup systems virtually since theywere introduced. However, thenew format, which representedthe most disruptive new brewingtechnology since the automateddrip coffee maker was introducedin the 1970s, disappointedindustry expectations with slowinitial growth. As a result, theNCA discontinued tracking ofsingle-cup data from 2008 to2010, but resumed questioningin 2011. During the hiatus, thesegment grew by about onepercentage point per year.Clearly, the format gainedsignificant momentum in 2011,which has continued unabatedthrough 2016.


Base: Total sample aged 18+ (2005 n=2,950, 2006 n=2,954, 2007 n=2,951, 2011 n=2,663, 2012 n=2,955, 2013 n=2,840, 2014 n=2,741, 2015 n=2,771, 2016 n=2,782).

Do you currently have a single-cup brewer in your home?



62

63SINGLE-CUP AWARENESS AND ACQUISITION

Single-Cup Brewing Systems – Purchase Intent

In 2016, 10% of those who areaware of single-cup brewers anddon't already own one indicatethat they will definitely orprobably buy one in the next sixmonths. This compares to 12% in2015. Even If we accept that notall of those people will in factpurchase a single-cup brewer, weshould still see continued growthof the systems in 2016.

The purchase intent questionchanged in 2015 versus previousyears. As such, direct comparisonsof 2016 and 2015 results toresults from previous years cannotbe made.


Base: Those aware of single-cup brewers and do not already own a single-cup brewer; 2007 (n=1,630), 2011 (n=1,951), 2012 (n=1,967), 2013 (n=1,970), 2014 (n=1,674), 2015 (n=1,363),2016 (n=1,279).

In the next six months, how likely are you to buy a single-cup brewer for use in your home?


Single-Cup Brewing Systems – Gifting Intent

Those who indicated that they"definitely" or "probably" will buya single-cup brewer as a gift inthe next six months declined to12% in 2015 from 16% in 2014.It remains at 12% in 2016. At thesame time, the percentage whoclaimed that they “definitelywould not buy” a single-cupbrewer as a gift increased from29% in 2014 to 35% in 2015. Thismeasure remains high in 2016 at38%. As single-cup brewersbecome more mainstream, theirgifting value may be decreasing.


% Based on those aware of single-cup brewers; 2007 (n=1,630), 2011 (n=1,951), 2012 (n=1,967),2013 (n=2,320), 2014 (n=2,088), 2015 (n=2,110), 2016 (n=2,101).

In the next six months, how likely are you to buy a single-cup brewer as a gift for someone outsideof your home?



64

65WORKPLACE COFFEE

Presence of Workplace Coffee Area

In 2016, 71% of consumers whowork have a workplace coffeearea, while 29% do not. This ratiohas been stable since thequestion was first posed in 2012.

In prior years, data wascollected on where coffeedrinkers consumed their coffee.Those data captured workplaceconsumption as one or more sub-sets of the "out-of-home"category. Survey descriptorsevolved with the times andincluded simply "work" (through2008), "workplace cafeteria" (2009 & 2010), "workplace coffeepot" (2009), "workplace coffeearea/spot" (2010), and"workplace coffee area" (2011).However, a dedicated sectiondetailing attitudes and behaviorsconnected with the "workplacecoffee area" was first introducedin 2012.

NOTE: Questions specifically pertaining to workplace coffee consumption were new in the 2012study and therefore there cannot be any comparisons made to previous years.

Base: Ever drank coffee and currently working outside home (2012 n=1,523, 2013 n=1,426, 2014 n=1,323, 2015 n=1,330), 2016 n=1,334).

Does your workplace have a coffee area?


Satisfaction with Workplace Coffee

Consistent with recent years,there are opportunities toimprove the workplace coffeeexperience. Fifty-four percent areless than “very satisfied” withtheir workplace coffee area.

It is likely that the 14% whoare “not very satisfied" or "not atall satisfied” with their currentcoffee preparation options will bethe most receptive audience forthe new coffee preparationoptions. Those who are “not verysatisfied” declined by three pointsfrom 11% in 2014 to 8% in 2015and remained stable at 8% in2016. This indicates thatdissatisfaction may have declinedslightly in recent years.

Base: Those who said “yes” to having aworkplace coffee area; 2012 (n=1,048), 2013 (n=1,245), 2014 (n=1,100), 2015 (n=1,165), 2016 (n=1,184).

How satisfied are you with your currentworkplace coffee preparation option(s)?

WORKPLACE COFFEE


66

67WORKPLACE COFFEE

Satisfaction with Workplace Preparation Options

The type of coffee preparationoptions offered affects satisfaction.Similar to 2014 and 2015,consumers who are most satisfiedwith their workplace coffeepreparation options are those who have an espresso machine.Satisfaction with espressomachines at work is significantlyhigher in 2016 versus 2015, with70% being very satisfied and 94%being “very” or “somewhat”satisfied. These results areconsistent with 75% being verysatisfied with espresso machinesin 2012 and 98% being very orsomewhat satisfied.

In previous years, the single-cup brewer came insecond, followed by instantcoffee. Instant coffee has seenconsistently stronger performanceand now ranks on-par with single-cup in terms of satisfaction.In 2016, 55% of those who haveinstant coffee at work and 51% ofthose who have single-cupmachines at work say that they arevery satisfied with their workplacecoffee. It's worth noting that thethree most popular options are allon-demand.

Base: Those who said “yes” to having aworkplace coffee area.

What type of coffee preparation options areavailable in your workplace coffee area?Please select all that apply.

How satisfied are you with your currentworkplace coffee preparation option(s)?


Paying for Coffee in the Workplace – Affecting Satisfaction

Interestingly, having to pay forcoffee does not meaningfullyaffect satisfaction with theworkplace coffee area. Thisfinding is consistent with whatwas seen from 2012 through2015.

Employers who offer a lesssatisfactory brewing system mightbenefit from upgrading to a morepreferred brewing system andasking employees to cover atleast part of the cost.

Base: Those who pay for coffee in the workplace; 2014 (n=258), 2015 (n=281), 2016 (n=301); Those that do not pay for coffee in the workplace; 2014 (n=842), 2015 (n=884), 2016 (n=883).

Do you have to pay for coffee in your workplace?

How satisfied are you with your current workplace coffee preparation option(s)?

WORKPLACE COFFEE 68


WORKPLACE COFFEE 69

Coffee Preparation Options – Available/Desired

When comparing those who haveeach brewing system versus thosewho would like to have eachsystem in the workplace, we seethat single-cup brewers andespresso machines are moredesired than currently availablepreparation options. This findingis consistent with what was seenin previous years.

Instant coffee is desired bysignificantly fewer consumers in2016 and 2015 versus in 2014.Desire for a coffee vendingmachine at work increased in2015 versus 2014 and remainedat those higher levels in 2016.

Base: Those that have a workplace coffee area; 2012 (n=1,048), 2013 (n=1,245), 2014 (n=1,100),2015 (n=1,165); Those who are currently employed; 2012 (n=1,523), 2013 (n=1,693), 2014 (n=1,590),2015 (n=1,685), 2016 (n=1,731).

If you could pick the coffee preparation option for your workplace, which of these would youchoose? Single response.

What type of coffee preparation options are available in your workplace coffee area? Please select all that apply.


Personal Financial Situation – versus Six Months Ago

Overall, roughly one-third ofconsumers (32%) are feeling much or somewhat better abouttheir personal financial situation in2016, which is consistent withwhat was observed in 2014 and2015.

By contrast, only 16% arefeeling much or somewhat worseabout their financial situation. Thisis slightly down versus 2015 (18%)and 2014 (19%).

Base: Past-year coffee drinkers aged 18+; 2014 (n=2,172), 2015 (n=2,161), 2016 (n=2,101).

Compared to six months ago, is your personal financial situation...



70

71HOW THE ECONOMY IS AFFECTING COFFEE CONSUMPTION

Personal Financial Situation – versus Six Months Ago – by Age

There are clear differences whenwe look at consumers' personalfinancial situations among thedifferent age cohorts. In total,45% of consumers aged 18-39feel much or somewhat betterabout their personal financialsituation compared to 21% ofconsumers 40 and up. This isconsistent with the results in 2015and 2014. Consequently, olderconsumers (aged 40+) aresignificantly more likely versustheir younger counterparts to feelthat their financial situation hasdeteriorated — 29% versus 14%,respectively.

Base: Consumed coffee in the past-year 2016; 18-24 (n=331), 25-39 (n=637), 40-59 (n=674),60+ (n=459).

Compared to six months ago, is your personal financial situation...


Out-of-Home Coffee Consumption

There is a relationship betweenperceptions of personal financialsituation and out-of-homeconsumption. Consumers whofeel that they are in a betterpersonal financial situation versussix months ago are more likely tobe drinking more coffee awayfrom home (20%). Conversely,consumers who feel that they arein a worse financial situationversus six months ago are morelikely to report drinking lesscoffee away from home (30%) ornot drinking coffee away fromhome at all (13%). Those whoreported being in the samefinancial situation versus sixmonths ago are most likely not tohave changed the amount ofcoffee they drink away from home(76%). These relationships are inline with the 2015 and 2014 data.

Base: Past-year coffee drinkers aged 18+ 2015; Those in a better financial situation (n=661), Those ina worse financial situation (n=349) and Those whose financial situation is the same (n=1,091).

Because of your personal financial situation, are you…



72


At-Home Coffee Consumption

We see that perceptions that your personal financial situation is better is also associated withdrinking more coffee at home. In total, 26% of those who claimthat their personal financialsituation is better claim to bedrinking more coffee at home.This compares to 9% of thosewho claim that their personalfinancial situation is worse whoalso say that they are drinkingmore coffee at home. Those whofeel that their personal financialsituation is better and those whofeel that their personal financialsituation is worse are equallylikely to claim that they aredrinking less coffee at home ornot drinking coffee at home at all.

Base: Past-year coffee drinkers aged 18+ 2015; Those in a better financial situation (n=661), Those ina worse financial situation (n=349) and Those whose financial situation is the same (n=1,091).

Because of your personal financial situation, are you…


Out-of-Home Coffee Drinking

If we look at why consumers drink coffee away from home, a treat, wanting a coffee whilecommuting and a chance to relaxdominate. Comparing those whofeel that their financial situation isbetter to those who feel that theirfinancial situation is worse, we seethat those who feel their situationis worse are more likely to mentiontreat and that they want a drink that they can't make at home.

Base: Those who drink coffee fromcafé/restaurant past-day OR past-week 2016;those in a better financial situation (n=295),those in a worse financial situation (n=74).

For what reasons do you drink coffeeprepared in restaurants or cafés? Please select all that apply.



74


At-Home Coffee Drinking

Looking at why consumers claimto drink coffee at home,convenience, ritual and chance torelax are most commonlymentioned. Interestingly, theseare more commonly mentionedthan value versus out-of-home.Comparing those who feel thattheir financial situation is better tothose who feel that their financialsituation is worse, we see thatthose who feel their situation isworse are more likely to mentionritual and value. Those who feelthat their financial situation isbetter are more likely to mentionwanting a coffee they can takewith them while commuting.

Base: Those who drink coffee prepared athome past-day OR past-week 2016; those in abetter financial situation (n=502), those in aworse financial situation (n=255).

For what reasons do you drink coffeeprepared at home? Please select all thatapply.


Countries Associated with Producing Coffee

Colombia continues to be mostassociated with producing coffee.However, associations ofColombia, Brazil, Costa Rica andMexico as coffee producingorigins are lower in 2016 than in2015. Colombia and Brazil haveseen several years of declines.

Tracking earlier NCDT data,moreover, we see minor shifts inrankings throughout these years:in 2013, Hawaii took the thirdspot from Costa Rica, andEthiopia jumped over IndonesianSumatra and Kenya for theeighth position; in 2012, Mexicoovertook Guatemala at numberfive; and in 2008, 2009 and 2010,Kenya landed ahead ofIndonesian Sumatra. Interestingly,the 2012 Panel Enhancementseemed to shift the scope of theassociations although not therankings. In general terms,associations with coffee droppedby a factor of about ten points forBrazil, and about five points forColombia and Costa Rica, whilethere was no jump in scale eitherway for the remaining countries.This shift in perceptions may belinked to the panel's largerrepresentation of Hispanic-Americans and African-Americansin proportion to the compositionof the U.S. population.

Base: Total sample 18+; 2009 (n=3,118), 2010 (n=2,740), 2012 (n=2,955), 2013 (n=2,840), 2014 (n=2,741), 2015 (n=2,771), 2016 (n=2,782).

Thinking of what you, personally, know about each of the following regions or countries, to whatextent do you associate each of them with producing coffee?

COUNTRY OF ORIGIN ASSOCIATIONS


76

77COUNTRY OF ORIGIN ASSOCIATIONS

Quality of Coffee Produced – by Countries

When we look at perceptions ofwhether the coffee produced bydifferent origins “tastes verygood,” we see some differencesbetween countries. Colombiaranks first, with 67% of consumersassociating it with very goodcoffee. Colombia's “very good”score was 70% in 2015, so the2016 number represents only asmall shift. In fact, perceptionsthat each country produces verygood coffee are generally slightlysoft in 2016 versus 2015 – downan average of 2%. OnlyGuatemala (+2%) and Mexico(+1%) have avoided declines inperceptions that they produce“very good” coffee.

Base: Those who strongly or somewhat associate with coffee from certain regions/countries - 2016;base sizes vary.

And do you think that each of these countries produces coffee that…?


79

Experience with Coffee Certification Programs

Overall, the majority of consumersare not very familiar with most ofthe coffee certification programs.With each of the certificationprograms, between 68% and 94%of consumers claim to have eithernot heard of them, heard of thename but not know anythingabout them, or know a little aboutthem but have never boughtcoffee with the certification. Thesefigures have not moved over thepast two years.

The most broadly purchasedcertifications (exclusive purchase,regular or occasional purchase)continue to be:

• Organic (26% in 2016 versus 25% in 2015)

• Fair Trade (23% in 2016 versus 18% in 2015)

• Rainforest Alliance (17% in 2016 versus 16% in 2015)

Single-origin coffee was nottracked prior to 2016. It performsrelatively well, with 32% claimingto buy this type of coffee(exclusive purchase, regular oroccasional purchase).

Base: Those who have drank coffee in the past-year (n=2,233).

Here are some different coffee certification programs. Please indicate your experience with each.

COFFEE CERTIFICATION PROGRAM EXPERIENCE


COFFEE CERTIFICATION PROGRAM EXPERIENCE 80


Effect of Communication on PurchaseInterest (see chart next page): 2016 seesthe introduction of a new question askingpeople what effect a number of claimshave on their purchase interest in a brandof coffee. Focusing on those claims thatmotivate consumers to be “much morelikely to buy,” first ranked is knowing theroast level. This is followed by single-origin and grown on farms that treat

workers well. Information about the typeof beans is relatively unimportant:knowing that the coffee is made with100% Arabica beans makes 15% ofconsumers much more likely to buy thecoffee, while knowing that the coffee ismade with 100% Robusta beans makes asimilar number (12%) much more likely tobuy the coffee.

Base: For non-certifications, those who have drankcoffee in the past-year (n=2,233). For certifications,base is those who have heard of the certification, basesizes vary.

Here are some things that a coffee company could sayabout their coffee. What effect do each of these have onyour interest in buying their coffee?

COFFEE CERTIFICATION PROGRAM EXPERIENCE 81


Effect of Communication on Purchase Interest

Coffee Equities

Approximately two-thirds ofconsumers agree (completely orsomewhat) that coffee wakesthem up and gets them going(64%), but that it is important tolimit caffeine intake (63%). Morethan half of consumers agreethat coffee helps improve theirmental focus (56%) and getthings done (54%), and haveheard information about coffee'shealth benefits (55%). Roughlyone-in-five respondents (20%)say their doctors advised themto limit their coffee intake. Wecan't compare these results toprevious years because in 2016we added a “don't know”response option. It's interestingto see that roughly one-third(28%) of respondents don'tknow if coffee is grown in asustainable way. This may be acommunication opportunity forthe industry.

Past-day drinkers and non-drinkers are equally likely toagree that they should limit theircaffeine intake, that they haveheard information about thehealth risks of drinking coffeeand to agree they have heardbad things about coffee in thenews. Given that both past-daydrinkers and non-drinkers agreeon these points, caffeine andhealth concerns are not, on theirown, the factors that determineif someone drank coffeeyesterday. What distinguishespast-day drinkers from non-past-day drinkers is that past-daydrinkers are more likely to agreewith positive coffee messages.They likely use this positivemessaging to balance anynegative messaging.

Base: Total sample 2016 (n=2,782).

Here is a list of statements about coffee andother beverages. For each one, pleaseindicate if you agree completely, agreesomewhat, disagree somewhat or disagreecompletely with the statement.

COFFEE EQUITIES


82



83

Coffee Equities – Drinkers versus Non-Drinkers

COFFEE EQUITIES

Base: Total sample 2015.

Here is a list of statements aboutcoffee and other beverages. Foreach one, please indicate if youagree completely, agree somewhat,disagree somewhat or disagreecompletely with the statement.


PERCENT AGREE COMPLETELY OR AGREE SOMEWHAT Non-

Past-Day Past-Day Non-Coffee Coffee Coffee

Total Drinkers Drinkers Drinkers(A) (B) (C)

(n=2782) (n=1571) (n=560) (n=651)

Coffee wakes me up and gets me going 64 84 63 15

It is important to limit my caffeine intake 63 65 67 56

Coffee improves my mental focus 56 75 53 12

In the past year, I have heard information about the health benefits of drinking coffee 55 67 50 29

Coffee helps me get things done 54 72 55 10

Coffee is good for my health 47 64 42 12

Coffee improves my physical endurance 38 52 37 7

Most coffee is grown in an environmentally sustainable way 36 43 36 19

I pay a lot of attention to news and medical reports about coffee and caffeine 35 44 36 15

In the past year, I have heard information about the health risks of drinking coffee 35 38 39 25

I've heard bad things about coffee in the news 28 30 32 21

My doctor has advised me to limit the amount of coffee I drink 20 24 22 9

Reasons for Drinking Coffee

The top reasons consumers reportdrinking coffee are:

• When I need to wake up (77%)• When I need to warm up (74%)• When I need an energy

boost (66%)

Few coffee drinkers mentionedthey drink coffee:

• When I'm thirsty (29%)• When I want an antioxidant

boost (27%)• When I need to cool down

(27%) — note that this might be influenced by the timing of the research, which was conducted in the winter.

• When I want a healthy drink (22%)

Compared to 2014, when thisquestion was first asked toconsumers, there have not beenany major shifts in the number ofrespondents who drink coffee forthese reasons.

Base: Coffee drinkers 2016 (n=2,233).

Different people drink coffee for differentreasons. How often do you, personally, drinkcoffee for each of the following reasons?



84



85BARRIERS AND DRIVERS OF COFFEE CONSUMPTION

Reasons for Drinking Coffee – by Subgroup

When looking at reasons thatconsumers drink coffee by age,we see that consumers aged 25-39 are significantly more likelythan all other age cohorts to drinkcoffee when they want anantioxidant boost.

Conversely, those aged 60+ are significantly less likely thanyounger consumers to drinkcoffee:

• When they need to wake up.• When they need an

energy boost.• Whey they want a treat.• When they need energy that

lasts for some time.• When they need to focus.• When they want something to

pass the time.• When they need to cool down.

Males are more likely thanfemales to drink coffee when theywant something to pass the time,when they are thirsty, when theywant an antioxidant boost, whenthey need to cool down andwhen they want a healthy drink.Females are more likely thanmales to drink coffee when theywant a treat or a moment tothemselves.

Base: Coffee drinkers 2016 (n=2,233).

Different people drink coffee for different reasons. Howoften do you, personally, drink coffee for each of thefollowing reasons?


PERCENT REASONS FOR DRINKING COFFEE (VERY OFTEN/SOMETIMES)

Age Gender18-24 25-39 40-59 60+ Male Female

(A) (B) (C) (D) (E) (F)(n=354) (n=671) (n=719) (n=489) (n=1,093) (n=1,140)

When I need to wake up 79 82 78 71 79 77

When I need to warm up 73 77D 75 71 73 75

When I need an energy boost 75C 74C 65 49 65 67

When I want a treat 68C 64C 58 51 56 64E

When I need energy that lasts for some time 72C 71C 56 42 59 61

When I need a relaxing moment 56 62 57 60 59 59

When I need to focus 67C 67C 57 40 58 58

When I need a break during the day 50 62 56 51 57 55

When I need a moment to myself 53 58D 53 51 52 57E

When I want something to help pass the time 47 51C 41 33 47F 39

When I need something refreshing 47C 48CD 38 41 45 41

When I'm thirsty 37CD 35CD 24 23 32F 26

When I want an antioxidant boost 30C 40 22 15 31F 23

When I need to cool down 33C 39C 21 15 29F 24

When I want a healthy drink 26CD 34 20 17 30F 19

Situations for Drinking Coffee

Approximately seven-in-ten (72%) of coffee drinkers veryoften/sometimes drink coffee“while getting ready for my day.”Approximately 60% of coffeedrinkers very often/sometimesdrink coffee in situations wherethey are socializing with friends or family inside or outside theirhomes and when they areworking or studying on acomputer.

Roughly one-half of consumersdrink coffee:

• While commuting or going from place to place (52%)

• When watching TV or reading or listening to music (51%)

• With dessert (50%)• While using technology but not

for work (50%)• When working or studying but

not on a computer (50%)• When working or studying at a

coffee shop (47%)• As an accompaniment to a

snack (47%) • As an accompaniment to a

meal (47%)

Base: Those who currently drink coffee or have drunk coffee in the past, 2016 (n=2,233).

There are also different situations in whichpeople drink coffee. How often do you drinkcoffee in these situations?



86


Situations for Drinking Coffee – by Subgroup

Consumers 60+ are least likely to drink coffee when working orstudying on a computer/not on a computer, while commuting,when using technology not forwork, and when working orstudying at a coffee shop.Conversely, this age cohort ismost likely to drink coffee as an accompaniment to ameal/dessert. Those aged 18-24are least likely to drink coffeewhile getting ready for their day.

By gender, males are morelikely than females to drink coffeewhen working or studying in acoffee shop or as anaccompaniment to a meal.

Base: Those who currently drink coffee orhave drunk coffee in the past, 2016 (n=2,233).

There are also different situations in whichpeople drink coffee. How often do you drinkcoffee in these situations?




PERCENT SITUATIONS FOR DRINKING COFFEE (VERY OFTEN/SOMETIMES)


(A) (B) (C) (D) (E) (F)(n=354) (n=671) (n=719) (n=489) (n=1,093) (n=1,140)

While getting ready for my day 66 73 74 73 73 71

When socializing with friends or family outside of my home 65CD 66CD 57 57 59 62

When socializing with friends or family inside my home 57 68 55 58 60 60

When working or studying on a computer 63C 63C 55 46 59 55

While commuting or going from place to place 57 62C 53 31 52 51

When watching TV or reading or listening to music 52D 60 47 44 52 49

Something to drink with dessert 44 53A 50 52A 51 50

When working or studying but not on a computer 61C 61C 47 29 51 48

When using technology but not for work (e.g., surfing the Internet or playing games) 48 58 50 39 51 48

When working or studying at a coffee shop 62C 62C 44 22 50F 45

As an accompaniment to a snack 49 54CD 43 43 48 46

As an accompaniment to a meal 40 49AC 43 54AC 51F 42

Reasons to Limit Coffee Consumption

When looking at reasons thatconsumers limit coffeeconsumption, almost half ofcoffee drinkers claim they do sobecause they want to limit howmuch caffeine they drink (45%).

The two other most citedreasons are that it's expensive toprepare coffee outside-of-home(40%), and that they areconcerned that it might not behealthy for them (29%).

Only 14% of coffee drinkerslimit their coffee consumptionbecause they are concernedabout waste or because it's tooexpensive/too much work toprepare at home.

Base: Those who currently drink coffee or have drunk coffee in the past, 2016 (n=2,233).

Some people try to limit how much coffee they drink. For you personally, which if any of thefollowing limit how much coffee you drink?



88


Reasons to Limit Coffee Consumption – by Subgroup

When looking at the reasons why consumers limit coffeeconsumption, younger consumersin general cite many moreconcerns than consumers aged40+. The youngest cohortreported in this study (aged 18-24) are most likely to citecaffeine concerns, healthconcerns, fear that they willdevelop a coffee habit, value, not liking the taste and being toomuch work to prepare at home.

By gender, females are morelikely to limit their coffee intakebecause they want to limit howmuch caffeine they drink and it'sexpensive to buy coffee preparedoutside of home. Males are morelikely to limit their coffee intakebecause it's too much work/tooexpensive to prepare at home.

Base: Those who currently drink coffee orhave drunk coffee in the past, 2016 (n=2,233).

Some people try to limit how much coffeethey drink. For you personally, which if any ofthe following limit how much coffee youdrink?


PERCENT REASONS TO LIMIT COFFEE CONSUMPTION


(A) (B) (C) (D) (E) (F)(n=354) (n=671) (n=719) (n=489) (n=1,093) (n=1,140)

I want to limit how muchcaffeine I drink 52 45 42 43 41 48E

It’s expensive to buycoffee prepared outside of my home 45D 41 39 36 35 44E

I’m concerned that it might not be healthyfor me 41 34CD 23 22 28 30

I'm concerned aboutdeveloping a coffee habit 39 31CD 13 13 23 22

I’m concerned aboutchemicals that might bein the coffee (from growing or processing) 29CD 30CD 15 17 22 22

I’m concerned about genetically modified organisms in myfood and drink 30CD 28CD 15 17 22 22

It’s not good valueversus other beveragesI can choose 31 24CD 14 12 18 21

I don’t really enjoythe taste 28 22CD 14 14 20 18

I’m concerned about economic inequality for those who grow coffee 26CD 23CD 10 9 18 15

I’m concerned about thecarbon footprint of the coffee I drink 24CD 22CD 11 10 16 16

It’s too much work to prepare at home 26 20CD 8 6 16F 13

It’s expensive to prepare at home 22CD 20CD 9 8 16F 12

I’m concerned aboutthe waste that it creates 21CD 19CD 10 7 14 13



Source: National Coffee Association1. Decaffeinated is not separate from regular and soluble coffee, but is included in both the latter types.6. Includes all persons 60 years of age and older.

ANNEX TABLES 91

TABLE 1: Cups Per Person Per Day 1950 – 1959Review of Consumption of Coffee and Gourmet Coffee Beverages in The United States of America

‘50 ‘51 ‘52 ‘53 ‘54 ‘55 ‘56 ‘57 ‘58 ‘59

Total Coffee 2.38 2.44 NA 2.57 2.60 2.67 2.68 2.82 2.87 2.94

Types:Regular NA NA NA 2.31 2.30 2.30 2.22 2.32 2.32 2.34 Soluble NA NA NA 0.26 0.30 0.37 0.46 0.50 0.55 0.60 Decaffeinated1 NA NA NA NA NA NA NA NA 0.04 0.05 Gourmet Coffee

Beverages NA NA NA NA NA NA NA NA NA NA

Region:Northeast 2.27 2.40 NA 2.34 2.40 2.56 2.52 2.72 2.62 2.76 Midwest 2.72 2.64 NA 2.86 2.92 2.94 2.88 2.99 3.13 3.22 South 1.91 2.14 NA 2.26 2.35 2.57 2.37 2.48 2.56 2.54 West 2.79 2.56 NA 3.01 2.86 3.16 3.11 3.25 3.41 3.31

Age Groups:10-14 0.21 NA NA 0.20 0.21 0.22 0.18 0.19 0.20 0.16 15-19 1.13 NA NA 1.07 1.12 1.01 1.11 1.11 1.09 1.14 20-24 2.34 2.35 NA 2.47 2.52 2.62 2.70 2.60 2.98 2.80 25-29 2.78 2.96 NA 3.05 3.02 3.38 3.12 3.65 3.50 3.67 30-39 3.02 3.22 NA 3.23 3.40 3.47 3.52 3.67 4.08 4.12 40-49 2.98 3.08 NA 3.33 3.29 3.39 3.50 3.74 3.83 3.99 50-59 2.85 2.75 NA 2.99 2.95 3.02 3.04 3.16 3.33 3.53 60-69 2.226 2.336 NA 2.386 2.466 2.65 2.69 2.75 2.78 2.78 70 and over NA NA NA NA NA 2.21 2.06 2.29 2.28 2.28

Sex:Male 2.49 2.51 NA 2.67 2.69 2.75 2.73 2.91 2.97 3.08 Female 2.28 2.35 NA 2.48 2.54 2.60 2.63 2.73 2.71 2.81

LocationConsumed:Home 1.98 2.00 NA 2.11 2.10 2.23 2.20 2.35 2.40 2.45 Work 0.09 0.14 NA 0.18 0.18 0.19 0.20 0.21 0.19 0.22 Eating Places 0.31 0.30 NA 0.28 0.32 0.25 0.28 0.26 0.28 0.27

Time of Day:Breakfast 1.03 1.04 NA 1.06 1.07 1.09 1.07 1.14 1.14 1.15 Other Meals 0.91 0.92 NA 0.94 0.94 0.96 0.96 0.96 0.98 0.96 Between Meals 0.44 0.48 NA 0.57 0.59 0.62 0.65 0.72 0.75 0.83


TABLE 1: Cups Per Person Per Day 1960 – 1969

Source: National Coffee Association1. Decaffeinated is not separate from regular and soluble coffee, but is included in both the latter types.

ANNEX TABLES 92

‘60 ‘61 ‘62 ‘63 ‘64 ‘65 ‘66 ‘67 ‘68 ‘69

Total Coffee 2.77 2.97 3.12 3.01 2.90 2.79 2.86 2.84 2.72 2.68

Types: Regular 2.21 2.33 2.45 2.36 2.29 2.21 2.23 2.19 2.08 1.99 Soluble 0.56 0.64 0.67 0.65 0.61 0.58 0.63 0.65 0.64 0.69 Decaffeinated1 0.08 0.08 0.10 0.09 0.12 0.10 0.13 0.16 0.14 0.17 Gourmet Coffee


Region:Northeast 2.54 2.64 2.91 2.76 2.54 2.50 2.66 2.63 2.49 2.43 Midwest 3.15 3.37 3.34 3.30 3.20 3.14 3.23 3.18 3.03 2.92 South 2.27 2.56 2.78 2.54 2.61 2.48 2.53 2.39 2.40 2.42 West 3.23 3.51 3.52 3.56 3.38 3.09 3.00 3.19 3.02 3.03

Age Groups:10-14 0.21 0.15 0.18 0.18 0.18 0.12 0.13 0.19 0.15 0.09 15-19 1.01 0.96 1.09 0.89 0.71 0.77 0.97 0.82 0.67 0.81 20-24 2.71 2.93 2.99 2.70 2.30 2.42 2.25 2.22 2.24 2.04 25-29 3.65 3.46 3.88 3.76 3.64 3.35 3.45 3.21 3.06 3.03 30-39 3.76 4.21 4.50 4.38 4.14 4.01 4.21 3.99 4.06 3.89 40-49 3.74 4.13 4.44 4.27 4.33 4.16 4.05 4.48 3.99 4.10 50-59 3.30 3.64 3.83 3.75 3.68 3.54 3.81 3.70 3.69 3.73 60-69 2.84 3.03 3.01 3.17 3.06 2.96 3.09 3.16 3.07 2.92 70 and over 2.32 2.41 2.39 2.40 2.47 2.47 2.66 2.50 2.39 2.36

Sex:Male 2.88 3.00 3.28 3.02 2.99 2.91 2.98 2.93 2.83 2.92 Female 2.66 2.96 2.98 3.00 2.83 2.68 2.76 2.77 2.64 2.47

LocationConsumed:Home 2.30 2.49 2.57 2.53 2.42 2.29 2.31 2.29 2.20 2.14 Work 0.22 0.21 0.26 0.26 0.24 0.25 0.29 0.30 0.29 0.31 Eating Places 0.25 0.27 0.29 0.22 0.24 0.25 0.26 0.25 0.23 0.23

Time of Day:Breakfast 1.11 1.18 1.17 1.18 1.14 1.12 1.13 1.13 1.10 1.06 Other Meals 0.89 0.92 0.98 0.90 0.85 0.79 0.82 0.77 0.75 0.71 Between Meals 0.77 0.87 0.97 0.93 0.91 0.88 0.91 0.94 0.87 0.91

Review of Consumption of Coffee and Gourmet Coffee Beverages in The United States of America


93

Source: National Coffee Association1. Decaffeinated is not separate from regular and soluble coffee, but is included in both the latter types.3. Adjusted to take account of the change from personal to telephone interviews in 1979. 4. Includes 0.02 cups of unknown form.

ANNEX TABLES


‘70 ‘71 ‘72 ‘73 ‘74 ‘75 ‘76 ‘773 ‘783 ‘79

Total Coffee 2.57 2.50 2.25 2.30 2.35 2.20 2.11 1.94 1.97 2.06

Types:Regular 1.91 1.83 1.67 1.61 1.50 1.52 1.48 1.30 1.30 1.444

Soluble 0.66 0.67 0.68 0.69 0.75 0.68 0.63 0.64 0.67 0.62 Decaffeinated1 0.15 0.16 0.17 0.23 0.27 0.31 0.30 0.27 0.26 0.33 Gourmet Coffee




Sex:Male 2.69 2.59 2.48 2.35 2.25 2.29 2.19 2.12 2.09 2.16 Female 2.47 2.43 2.23 2.25 2.24 2.12 2.05 1.95 2.03 1.96





Source: National Coffee Association1. Decaffeinated is not separate from regular and soluble coffee, but is included in both the latter types.

ANNEX TABLES 94

‘80 ‘81 ‘82 ‘83 ‘84 ‘85 ‘86 ‘87 ‘88 ‘89

Total Coffee 2.02 1.92 1.90 1.85 1.99 1.83 1.74 1.76 1.67 1.75

Types:Regular 1.40 1.38 1.33 1.31 1.44 1.39 1.37 1.37 1.31 1.43 Soluble 0.62 0.54 0.56 0.53 0.54 0.42 0.36 0.37 0.34 0.32 Decaffeinated1 0.34 0.33 0.38 0.39 0.44 0.42 0.41 0.43 0.38 0.40 Gourmet Coffee




Sex:Male 2.14 2.03 2.06 1.90 2.10 1.91 1.80 1.89 1.86 1.85 Female 1.90 1.81 1.75 1.81 1.89 1.76 1.68 1.64 1.50 1.66





95

Source: National Coffee Association1. Decaffeinated is not separate from regular and soluble coffee, but is included in both the latter types.2. Winter Coffee Drinking Study was not conducted in 1992 and 1994. 7. Starting in 1997, data reported are for respondents 18 years of age or older. Prior to 1997, data are reported for respondents 10 years of age and older.8. Data for 1999 – 2008 reflect consumption of regular, soluble and decaffeinated coffee as well as gourmet coffee beverages. Data before 1999 reflect

consumption of regular, soluble and decaffeinated coffee only.

ANNEX TABLES


‘90 ‘91 ‘922 ‘93 ‘942 ‘95 ‘96 ‘977 ‘987 ‘997,8

Total Coffee 1.73 1.75 — 1.87 — 1.67 1.69 1.84 1.63 1.89

Types:Regular 1.42 1.46 — 1.61 — 1.38 1.52 1.62 1.44 1.48 Soluble 0.29 0.27 — 0.25 — 0.27 0.17 0.21 0.18 0.17 Decaffeinated1 0.36 0.32 — 0.28 — 0.23 0.25 0.23 0.24 0.20 Gourmet Coffee

Beverages NA NA — NA — NA NA NA NA 0.22

Region:Northeast 1.76 1.75 — 1.68 — 1.79 1.69 1.56 1.73 1.89 Midwest 2.02 1.98 — 2.29 — 1.94 1.92 2.02 1.87 2.20 South 1.47 1.58 — 1.76 — 1.56 1.56 1.76 1.42 1.72 West 1.73 1.73 — 1.71 — 1.43 1.66 2.03 1.64 1.84

Age Groups:10-14 0.02 0.06 — 0.02 — 0.04 0.05 0.04 0.02 0.15 15-19 0.30 0.19 — 0.30 — 0.30 0.18 0.28 0.16 0.59 20-24 0.66 0.52 — 0.62 — 0.47 0.56 0.66 0.40 1.00 25-29 1.24 1.12 — 1.15 — 0.90 1.10 1.04 1.13 1.63 30-39 1.91 1.94 — 1.98 — 1.92 1.91 1.77 1.53 1.79 40-49 2.64 2.44 — 3.05 — 2.41 2.59 2.29 1.95 2.40 50-59 2.72 3.20 — 3.11 — 3.08 2.82 2.40 2.23 2.25 60-69 2.67 2.88 — 2.74 — 2.40 2.48 2.29 2.40 2.32 70 and over 1.97 2.02 — 2.04 — 1.87 1.80 2.13 1.64 1.79

Sex:Male 1.86 1.92 — 2.11 — 1.81 1.85 1.97 1.85 2.10 Female 1.60 1.59 — 1.64 — 1.54 1.55 1.73 1.43 1.70

LocationConsumed:Home 1.22 1.26 — 1.35 — 1.24 1.26 1.39 1.21 1.18 Work 0.33 0.30 — 0.35 — 0.27 0.29 0.26 0.27 0.24 Eating Places 0.17 0.19 — 0.19 — 0.17 0.16 0.10 0.08 0.09

Time of Day:Breakfast 0.90 0.93 — 0.96 — 0.88 0.92 1.04 1.07 1.10 Other Meals 0.24 0.25 — 0.25 — 0.21 0.21 0.23 0.15 0.17 Between Meals 0.60 0.57 — 0.66 — 0.58 0.56 0.58 0.41 0.63



Source: National Coffee Association1. Decaffeinated is not separate from regular and soluble coffee, but is

included in both the latter types.7. Starting in 1997, data reported are for respondents 18 years of age or

older. Prior to 1997, data are reported for respondents 10 years of age and older.

8. Data for 1999 – 2008 reflect consumption of regular, soluble and decaffeinated coffee as well as gourmet coffee beverages. Data before 1999 reflect consumption of regular, soluble and decaffeinated coffee only.

* Prior to 2010, regular, soluble, and decaf coffee were defined as a subset of traditional coffee. Starting in 2010, brewed coffee, instant coffee and decaffeinated coffee are a subset of all coffee. For example, the NCDT now asks if a cappuccino is instant or brewed. Previously this was asked only for traditional coffee.

ANNEX TABLES 96

‘007,8 ‘017,8 ‘027,8 ‘037,8 ‘047,8 ‘057,8 ‘067,8 ‘077,8 ‘087,8 ‘097,8

Total Coffee 1.66 1.72 1.64 1.50 1.64 1.75 1.89 1.90 1.75 1.76

Types:Regular* 1.31 1.26 1.21 1.13 1.12 1.26 1.44 1.50 1.39 1.23 Soluble* 0.14 0.12 0.11 0.11 0.11 0.13 0.13 0.14 0.18 0.20 Decaffeinated1* 0.20 0.15 0.19 0.15 0.29 0.31 0.31 0.28 0.23 0.28 Gourmet Coffee

Beverages 0.20 0.33 0.33 0.26 0.41 0.36 0.33 0.26 0.36 0.32

Region:Northeast 1.60 1.79 1.72 1.55 1.88 1.82 1.91 1.87 1.81 1.81Midwest 1.76 1.82 1.63 1.42 1.55 1.78 1.91 2.10 1.77 1.75 South 1.49 1.53 1.52 1.58 1.44 1.76 1.84 1.87 1.71 1.52 West 1.87 1.83 1.77 1.40 1.84 1.63 1.95 1.70 1.75 1.78

Age Groups:18-19 0.51 0.46 0.40 0.38 0.63 0.68 0.59 1.18 0.47 0.7320-24 0.75 1.43 0.84 0.35 0.63 0.66 1.06 1.11 0.88 0.92 25-29 1.05 1.21 1.10 1.05 0.80 0.94 1.47 1.13 1.12 0.95 30-39 1.33 1.51 1.34 1.17 1.50 1.53 1.67 1.80 1.65 1.46 40-49 2.11 1.89 1.82 1.80 2.01 2.21 2.01 1.97 2.19 2.03 50-59 2.32 2.19 2.57 2.09 1.98 2.20 2.28 2.31 2.12 2.25 60-69 2.21 2.45 2.07 2.27 2.16 2.47 2.61 2.31 2.22 2.1470 and over 1.80 1.61 1.91 1.76 2.07 1.67 2.13 2.19 1.78 2.08

Sex:Male 1.89 1.69 1.80 1.57 1.76 1.88 2.02 2.16 1.75 1.78 Female 1.44 1.74 1.49 1.43 1.53 1.62 1.77 1.70 1.75 1.73

LocationConsumed:Home 1.03 1.13 1.04 1.22 1.16 1.28 1.35 1.37 1.30 1.45 Work 0.33 0.22 0.22 0.20 0.33 0.27 0.34 0.11 0.39 0.18Eating Places 0.07 0.06 0.07 0.05 0.10 0.10 0.07 0.13 0.15 0.15

Time of Day:Breakfast 1.01 1.09 1.05 1.07 1.04 1.13 1.18 1.13 1.13 1.12Other Meals 0.15 0.14 0.13 0.12 0.14 0.15 0.18 0.18 0.14 0.17Between Meals 0.48 0.46 0.43 0.33 0.45 0.46 0.54 0.22 0.21 0.19



97

Source: National Coffee Association7. Starting in 1997, data reported are for respondents 18 years of age or older. Prior to 1997, data are reported for respondents 10 years of age and older.8. Data for 1999 – 2008 reflect consumption of regular, soluble and decaffeinated coffee as well as gourmet coffee beverages. Data before 1999 reflect


ANNEX TABLES


‘107,8* ‘11 ‘12* ‘13* ‘14* ‘15* ‘16*

Total Coffee 1.79 1.95 1.98 1.97 2.01 1.85 1.64

Types:Brewed 1.52 1.73 1.72 1.74 1.76 1.63 1.37Instant 0.21 0.15 0.17 0.14 0.17 0.16 0.13Decaffeinated1* 0.24 0.24 0.27 0.22 0.29 0.25 0.19Gourmet Coffee

Beverages 0.71 0.70 0.91 0.85 1.02 0.89 0.79

Region:Northeast 1.87 1.99 2.21 2.14 2.06 1.78 1.64Midwest 1.94 2.14 2.03 2.11 2.04 2.01 1.52South 1.60 1.94 1.82 1.78 1.85 1.86 1.64West 1.88 1.74 2.02 2.02 2.20 1.75 1.73

Age Groups:18-19 0.749 0.68 0.90 0.72 1.11 0.77 0.9720-24 0.90 1.05 1.38 1.06 1.79 1.40 1.3525-29 0.96 1.47 1.36 1.49 1.98 1.44 1.6630-39 1.45 1.72 2.12 1.84 1.94 1.86 1.8540-49 1.97 2.08 2.02 2.13 2.13 1.95 1.5450-59 2.37 2.55 2.33 2.62 2.19 2.26 1.6060-69 2.41 2.23 2.32 2.46 2.32 1.99 1.7970 and over 2.22 2.34 2.10 2.63 1.92 2.42 1.95

Sex:Male 1.88 1.98 2.11 2.10 2.23 2.04 1.78Female 1.70 1.91 1.85 1.84 1.79 1.66 1.50

LocationConsumed:Home 1.46 1.59 1.52 1.48 1.41 1.33 1.05Work 0.20 0.16 0.22 0.21 0.24 0.22 0.20Eating Places 0.05 0.08 0.12 0.12 0.18 0.15 0.15

Time of Day:Breakfast 1.04 1.08 1.09 1.09 0.98 0.90 0.81Other Meals 0.15 0.19 0.22 0.23 0.29 0.24 0.22Between Meals 0.60 0.67 0.66 0.70 0.74 0.33 0.28


* The NCDT, beginning in 2012, includes arepresentative sample of Hispanic-Americansand African-Americans. Comparisons to yearsprior to 2012 must be made with caution,since the panel enhancement dictatestechnically that tracking be viewed asdirectional only.

NOTE: Starting in 2010, data collection was completed online instead of bytelephone. In 2008 and 2009, data wascollected separately by telephone andonline; the numbers on the chart are fromthe online survey in order to promote directforward tracking from 2010 on.

TABLE 2: Yesterday (Daily) Consumption 2000 – 2009



ANNEX TABLES 98

‘007,8 ‘017,8 ‘027,8 ‘037,8 ‘047,8 ‘057,8‘ 067,8 ‘077,8 ‘087,8 ‘097,8

Total Coffee 54 52 52 51 49 53 56 57 55 54

Region:Northeast 62 55 54 55 56 58 61 63 60 61Midwest 51 56 49 48 48 50 51 54 53 50South 52 50 53 52 47 52 55 55 55 56West 54 51 53 49 49 51 56 56 52 50

Age Groups:18-19 25 19 18 12 22 25 27 32 24 2320-24 24 28 26 17 22 27 33 40 27 3325-29 35 40 40 37 30 33 40 35 41 3430-39 45 48 42 43 43 45 50 49 49 4740-49 61 56 58 56 52 57 55 57 57 5850-59 68 65 65 66 60 62 65 65 65 6160-69 71 65 70 68 65 70 73 69 71 6770 and over 75 67 74 73 69 69 72 78 71 70

Sex:Male 55 53 51 51 48 52 55 57 54 52Female 54 52 53 52 50 53 56 56 56 55





ANNEX TABLES 99

TABLE 2: Yesterday (Daily) Consumption 2010 – 2016Review of Consumption of Coffee and Gourmet Coffee Beverages in The United States of America

‘107,8 ‘11 ‘12* ‘13* ‘14* ‘15* ‘16*

Total Coffee 56 58 64 63 61 59 57

Region:Northeast 63 61 68 69 62 60 57Midwest 53 57 58 61 56 55 52South 52 59 62 59 61 58 57West 59 57 68 67 66 64 60

Age Groups:18-19 30 34 47 37 37 39 4520-24 32 43 53 44 58 50 4925-29 36 50 52 51 59 53 5730-39 48 50 68 63 64 59 6140-49 57 59 62 66 61 60 5350-59 68 64 67 73 64 64 5360-69 74 65 69 72 66 62 6270 and over 76 78 75 81 62 73 70

Sex:Male 55 57 64 62 62 59 57Female 56 60 64 64 60 58 56


* The NCDT, beginning in 2012, includes arepresentative sample of Hispanic-Americansand African-Americans. Comparisons to yearsprior to 2012 must be made with caution,since the panel enhancement dictatestechnically that tracking be viewed asdirectional only.

NOTE: Starting in 2010, data collection was completed online instead of bytelephone. In 2008 and 2009, data wascollected separately by telephone andonline; the numbers on the chart are fromthe online survey in order to promote directforward tracking from 2010 on.

TABLE 3: Winter 1950 to 1985

Source: National Coffee Association3. Adjusted to take account of the change from personal to telephone interviews in 1979.

ANNEX TABLES 100

1950 2.38 — — — 77.4 — — —1951 2.44 +0.06 NA — 77.2 -0.2 NA —1952 NA NA NA NA NA NA NA NA 1953 2.57 NA NA NA 77.3 NA NA NA 1954 2.60 +0.03 2.61 NA 77.8 +0.5 77.6 NA 1955 2.67 +0.07 2.65 +0.04 77.6 -0.2 77.2 -0.4 1956 2.68 +0.01 2.72 +0.07 76.1 -1.5 77.0 -0.2 1957 2.82 +0.14 2.79 +0.07 77.3 +1.2 76.4 -0.6 1958 2.87 +0.05 2.88 +0.09 75.7 -1.6 76.0 -0.4 1959 2.94 +0.07 2.86 -0.02 75.1 -0.6 74.8 -1.2 1960 2.77 -0.17 2.89 +0.03 73.6 -1.5 74.4 -0.4 1961 2.97 +0.20 2.95 +0.06 74.4 +0.8 74.2 -0.2 1962 3.12 +0.15 3.03 +0.08 74.7 +0.3 74.1 -0.1 1963 3.01 -0.11 3.01 -0.02 73.2 -1.5 73.3 -0.8 1964 2.90 -0.11 2.90 -0.11 72.0 -1.2 72.2 -1.1 1965 2.79 -0.11 2.85 -0.05 71.4 -0.6 71.4 -0.8 1966 2.86 +0.07 2.83 -0.02 70.9 -0.5 71.2 -0.2 1967 2.84 -0.02 2.81 -0.02 71.4 +0.5 70.6 -0.6 1968 2.72 -0.12 2.75 -0.06 69.6 -1.8 69.7 -0.9 1969 2.68 -0.04 2.66 -0.09 68.2 -1.4 68.5 -1.2 1970 2.57 -0.11 2.58 -0.08 67.6 -0.6 67.7 -0.8 1971 2.50 -0.07 2.47 -0.11 67.2 -0.4 66.6 -1.1 1972 2.35 -0.15 2.38 -0.09 65.0 -2.2 65.4 -1.2 1973 2.30 -0.05 2.30 -0.08 63.9 -1.1 63.5 -1.9 1974 2.25 -0.05 2.25 -0.05 61.6 -2.3 62.4 -1.1 1975 2.20 -0.05 2.19 -0.06 61.6 0.0 60.8 -1.6 1976 2.11 -0.09 2.08 -0.11 59.1 -2.5 59.5 -1.3 19773 1.94 -0.17 2.01 -0.07 57.9 -1.2 58.3 -1.2 19783 1.97 +0.03 1.99 -0.02 57.8 -0.1 57.6 -0.7 1979 2.06 +0.09 2.02 -0.03 57.2 -0.6 57.2 -0.4 1980 2.02 -0.04 2.00 -0.02 56.6 -0.6 56.7 -0.51981 1.92 -0.10 — — 56.4 -0.2 — —1982 1.90 -0.02 1.95 -0.05 56.3 -0.1 56.4 -0.3 1983 1.85 -0.05 1.89 -0.06 55.2 -1.1 56.0 -0.4 1984 1.99 +0.14 1.91 +0.02 57.3 +2.1 56.3 +0.3 1985 1.83 -0.16 1.89 -0.02 54.9 -2.4 55.8 -0.5

Information Concerning the Consumption of Coffee and Gourmet Beverages in The United States of America


CUPS PER PERSON PER DAY COFFEE ON PREVIOUS DAY

PERCENTAGE OF PERSONS DRINKING

YearAnnualaverage

Changefrom

previousyear

Threeyear

movingaverage

Changein 3-yearmovingaverage

Annualpercent

Changefrom

previousyear

Threeyear

movingaverage


Source: National Coffee Association2. Winter Coffee Drinking Study was not conducted in 1992 and 1994.10. Changes vs. previous years may not be available due to change in data to

reflect respondents age 18 and over and/or change to include gourmet coffee beverages.


NOTE: Starting in 2010, data collection was completed online instead of bytelephone. In 2008 and 2009, data was collected separately by telephone andonline; the numbers on the chart are from the online survey in order to promotedirect forward tracking from 2010 on.

ANNEX TABLES 101


TABLE 3: Winter 1986 to 2016

1986 1.74 -0.09 1.85 -0.04 52.4 -2.5 54.9 -0.9 1987 1.76 +0.02 1.78 -0.07 52.0 -0.4 53.1 -1.8 1988 1.67 -0.09 1.72 -0.06 50.0 -2.0 51.5 -1.6 1989 1.75 +0.08 1.73 +0.01 52.5 +2.5 51.5 — 1990 1.73 -0.02 1.72 -0.01 52.4 -0.1 51.6 +0.1 1991 1.75 +0.02 1.74 +0.02 51.4 -1.0 52.1 +0.5 19922 — — — — — — — —1993 1.87 +0.12 1.78 +0.04 52.1 +0.7 52.0 -0.1 19942 — — — — — — — —1995 1.67 -0.20 1.76 -0.02 47.4 -4.7 50.3 -1.7 1996 1.69 +0.02 1.74 -0.02 49.3 +1.9 49.6 -0.7 199710 1.84 — — — 55.5 — — — 199810 1.63 -0.21 — — 54.1 -1.4 — —199910 1.89 — — — 54.3 — — — 200010 1.66 -0.23 — — 54.1 -0.2 — — 200110 1.72 +0.06 1.76 — 52.4 -1.7 53.6 — 200210 1.64 -0.08 1.67 -0.09 52.2 -0.2 52.9 -0.7 200310 1.50 -0.14 1.62 -0.05 51.1 -1.1 51.9 -1.0 200410 1.64 +0.14 1.59 -0.03 49.0 -2.1 50.8 -1.1 200510 1.75 +0.11 1.63 +0.04 52.5 +3.5 50.9 +0.1 200610 1.89 +0.14 1.76 +0.13 55.5 +3.0 52.3 +1.4200710 1.90 -0.01 1.85 +0.09 56.7 +1.2 54.9 +2.6200810 1.75 -0.15 1.85 0.00 54.9 -1.8 55.7 +0.8200910 1.76 +0.01 1.80 -0.05 53.6 -1.3 55.1 -0.6201010 1.79 +0.03 1.77 -0.03 55.7 +2.1 54.7 -0.42011 1.95 +0.16 1.83 +0.06 58.4 +2.7 55.9 +1.22012* 1.98 +0.03 1.91 +0.08 63.8 +5.4 59.3 +3.42013* 1.97 -0.01 1.97 +0.06 62.9 -0.9 61.7 +2.42014* 2.01 +0.04 1.99 +0.02 61.1 -1.8 62.6 +0.92015* 1.85 -0.16 1.94 -0.05 58.9 -2.2 61.0 -1.62016* 1.64 -0.21 1.83 -0.11 56.5 -2.4 58.8 -2.1

Information Concerning the Consumption of Coffee and Gourmet Beverages in The United States of America

CUPS PER PERSON PER DAY COFFEE ON PREVIOUS DAY

PERCENTAGE OF PERSONS DRINKING

YearAnnualaverage

Changefrom

previousyear

Threeyear

movingaverage


Annualpercent

Changefrom

previousyear

Threeyear

movingaverage


Source: National Coffee Association2. Winter Coffee Drinking Study was not conducted in 1992 and 1994.3. Adjusted to take account of the change from personal to telephone interviews in 1979.

ANNEX TABLES 102


Table 4: Cups Per Person Per Day 1962 to 1995

1962 3.12 — 2.45 — 0.67 — NA NA 1963 3.01 -0.11 2.36 -0.09 0.65 -0.02 NA NA 1964 2.90 -0.11 2.29 -0.07 0.61 -0.04 NA NA 1965 2.79 -0.11 2.21 -0.08 0.58 -0.03 NA NA 1966 2.86 +0.07 2.23 +0.02 0.63 +0.05 NA NA 1967 2.84 -0.02 2.19 -0.04 0.65 +0.02 NA NA 1968 2.72 -0.12 2.08 -0.11 0.64 -0.01 NA NA 1969 2.68 -0.04 1.99 -0.09 0.69 +0.05 NA NA 1970 2.57 -0.11 1.91 -0.08 0.66 -0.03 NA NA 1971 2.50 -0.07 1.83 -0.08 0.67 +0.01 NA NA 1972 2.35 -0.15 1.67 -0.16 0.68 +0.01 NA NA 1973 2.30 -0.05 1.61 -0.06 0.69 +0.01 NA NA 1974 2.25 -0.05 1.50 -0.11 0.75 +0.06 NA NA 1975 2.20 -0.05 1.52 +0.02 0.68 -0.07 NA NA 1976 2.11 -0.09 1.48 -0.04 0.63 -0.05 NA NA 19773 1.94 -0.17 1.30 -0.18 0.64 +0.01 NA NA 19783 1.97 +0.03 1.30 — 0.67 +0.03 NA NA 1979 2.06 +0.09 1.42 +0.12 0.62 -0.05 NA NA 1980 2.02 -0.04 1.39 -0.03 0.62 — NA NA 1981 1.92 -0.10 1.38 -0.01 0.54 -0.08 NA NA 1982 1.90 -0.02 1.33 -0.05 0.56 +0.02 NA NA 1983 1.85 -0.05 1.31 -0.02 0.53 -0.03 NA NA 1984 1.99 +0.14 1.44 +0.13 0.54 +0.01 NA NA 1985 1.83 -0.16 1.39 -0.05 0.42 -0.12 NA NA 1986 1.74 -0.09 1.37 -0.02 0.36 -0.06 NA NA 1987 1.76 +0.02 1.37 — 0.37 +0.01 NA NA 1988 1.67 -0.09 1.31 -0.06 0.34 -0.03 NA NA 1989 1.75 +0.08 1.43 +0.12 0.32 -0.02 NA NA 1990 1.73 -0.02 1.42 -0.01 0.29 -0.03 NA NA1991 1.75 +0.02 1.46 +0.04 0.27 -0.02 NA NA 19922 — — — — — — — — 1993 1.87 +0.12 1.61 +0.15 0.25 -0.02 NA NA 19942 — — — — — — — — 1995 1.67 -0.20 1.38 -0.23 0.27 +0.02 NA NA

United States of America Trends in Consumption

Year

Cups perpersonper day

% Changefrom

previousyear


% Changefrom

previousyear


% Changefrom

previousyear


% Changefrom

previousyear

TOTALCOFFEE

REGULARCOFFEE

SOLUBLECOFFEE

GOURMET COFFEEBEVERAGES

Source: National Coffee Association10. Changes vs. previous years may not be available due to change in data to


+ Prior to 2010, regular, soluble, and decaffeinated coffee were defined as a subset of traditional coffee. Starting in 2010, brewed coffee, instant coffee and decaffeinated coffee are a subset of all coffee. For example, the NCDT now asks if a cappuccino is instant or brewed. Previously this was asked only for traditional coffee.

* The NCDT, beginning in 2012, includes a representative sample of Hispanic-Americans and African-Americans. Comparisons to years prior to 2012 must be made with caution, since the panel enhancement dictates technically that tracking be viewed as directional only.


ANNEX TABLES


103

Table 4: Cups Per Person Per Day 1996 to 2016

1996 1.69 — 1.52 +0.14 0.17 -0.10 NA NA 199710 1.84 +0.17 1.62 +0.10 0.21 +0.04 NA NA 1998 1.63 -0.21 1.44 -0.18 0.18 -0.03 NA NA 199910 1.89 +0.26 1.48 +0.04 0.17 -0.01 0.22 — 2000 1.66 -0.23 1.31 -0.17 0.14 -0.03 0.20 -0.02 2001 1.72 +0.06 1.26 -0.05 0.12 -0.02 0.33 +0.13 2002 1.64 -0.08 1.21 -0.05 0.11 -0.01 0.33 — 2003 1.50 -0.14 1.13 -0.08 0.11 — 0.26 -0.07 2004 1.64 +0.14 1.12 -0.01 0.11 — 0.41 +0.15 2005 1.75 +0.11 1.26 +0.14 0.13 +0.02 0.36 -0.05 2006 1.89 +0.14 1.44 +0.18 0.13 — 0.33 -0.032007 1.90 +0.01 1.50 +0.06 0.14 +0.01 0.26 -0.072008 1.75 -0.15 1.39 -0.11 0.18 +0.04 0.36 +0.102009 1.76 +0.01 1.23 -0.16 0.20 +0.02 0.32 -0.04


Year


% Changefrom

previousyear


% Changefrom

previousyear


% Changefrom

previousyear


% Changefrom

previousyear

TOTALCOFFEE

REGULARCOFFEE

SOLUBLECOFFEE


2010+ 1.79 +0.03 1.52 NA 0.21 NA 0.71 +0.392011 1.95 +0.16 1.73 +0.21 0.15 -0.06 0.71 —2012* 1.98 +0.03 1.72 -0.01 0.17 +0.02 0.91 +0.202013* 1.97 -0.01 1.74 -0.02 0.14 -0.03 0.85 -0.06 2014* 2.01 +0.04 1.76 +0.02 0.16 +0.02 1.02 +0.17 2015* 1.85 -0.16 1.63 -0.13 0.16 - 0.89 -0.132016* 1.64 -0.21 1.37 -0.26 0.13 -0.03 0.79 -0.10

Year


% Changefrom

previousyear


% Changefrom

previousyear


% Changefrom

previousyear


% Changefrom

previousyear

TOTALCOFFEE

BREWEDCOFFEE

INSTANTCOFFEE


Table 5: Percentage Drinking Coffee 1962 to 1995


ANNEX TABLES 104



1962 74.7 NA 59.5 NA 23.5 NA NA NA 1963 NA NA NA NA NA NA NA NA 1964 NA NA NA NA NA NA NA NA1965 NA NA NA NA NA NA NA NA 1966 NA NA NA NA NA NA NA NA1967 NA NA NA NA NA NA NA NA1968 NA NA NA NA NA NA NA NA1969 NA NA NA NA NA NA NA NA 1970 NA NA NA NA NA NA NA NA 1971 NA NA NA NA NA NA NA NA 1972 NA NA NA NA NA NA NA NA1973 NA NA NA NA NA NA NA NA1974 61.6 NA 40.4 NA 27.7 NA NA NA 1975 61.6 — 42.0 +1.6 26.2 -1.5 NA NA 1976 59.1 -2.5 39.9 -2.1 24.5 -1.7 NA NA 19773 57.9 -1.2 38.2 -1.7 24.8 +0.3 NA NA 19783 56.7 -1.2 34.1 -4.1 27.8 +3.0 NA NA 1979 57.2 +0.5 37.0 +2.9 25.6 -2.2 NA NA 1980 56.6 -0.6 37.3 +0.3 24.5 -1.1 NA NA 1981 56.4 -0.2 38.4 +1.1 23.2 -1.3 NA NA 1982 56.3 -0.1 37.3 -1.1 23.6 +0.4 NA NA 1983 55.2 -1.1 37.1 -0.2 21.7 -1.9 NA NA 1984 57.3 +2.1 39.4 +2.3 22.5 +0.8 NA NA 1985 54.9 -2.4 39.1 -0.3 19.4 -3.1 NA NA 1986 52.4 -2.5 39.0 -0.1 16.4 -3.0 NA NA 1987 52.0 -0.4 38.7 -0.3 16.8 +0.4 NA NA 1988 50.0 -2.0 37.2 -1.5 15.2 -1.6 NA NA 1989 52.5 +2.5 40.2 +3.0 15.0 -0.2 NA NA 1990 52.4 -0.1 40.9 +0.7 14.0 -1.0 NA NA1991 51.4 -1.0 40.7 -0.2 12.8 -1.2 NA NA 19922 — — — — — — — — 1993 52.1 +0.7 42.2 +1.5 11.8 -1.0 NA NA 19942 — — — — — — — —1995 47.4 -4.7 38.6 -3.6 10.4 -1.4 NA NA

Year

% ofPersonsdrinkingcoffee onprevious

day

%Change

fromprevious

year


day

%Change

fromprevious

year


day

%Change

fromprevious

year


day

%Change

fromprevious

year

TOTALCOFFEE

REGULARCOFFEE

SOLUBLECOFFEE


ANNEX TABLES 105

Table 5: Percentage Drinking Coffee 1996 to 2016United States of America Trends in Consumption


1996 49.3 +1.9 41.2 +2.6 9.4 -1.0 NA NA 199710 55.5 +6.2 46.5 +5.3 10.3 +0.9 NA NA 1998 54.1 -1.4 45.6 -0.9 10.2 -0.1 NA NA 199910 54.3 +0.2 43.3 -2.3 8.6 -1.6 9.0 — 2000 54.1 -0.2 44.1 +0.8 8.2 -0.4 8.6 -0.4 2001 52.4 -1.7 42.2 -1.9 7.0 -1.2 13.5 +4.9 2002 52.2 -0.2 41.6 -0.6 6.7 -0.3 13.1 -0.4 2003 51.1 -1.1 40.8 -0.8 6.5 -0.2 12.1 -1.0 2004 49.0 -2.1 40.0 -0.8 5.6 -0.9 15.6 +3.5 2005 52.5 +3.5 44.3 +4.3 6.4 +0.8 15.2 -0.4 2006 55.5 +3.0 46.9 +2.6 7.1 +0.7 15.6 +0.42007 56.7 +1.2 48.2 +1.3 6.9 -0.2 14.0 -1.62008 54.9 -1.8 43.1 -5.1 7.1 +0.2 16.9 +2.92009 53.6 -1.3 40.4 -2.7 8.4 +1.3 13.9 -3.0

Year


day

%Change

fromprevious

year


day

%Change

fromprevious

year


day

%Change

fromprevious

year


day

%Change

fromprevious

year

TOTALCOFFEE

REGULARCOFFEE

SOLUBLECOFFEE


2010+ 55.7 +2.1 49.1 NA 5.9 NA 23.8 +9.92011 58.4 +2.7 50.5 +1.4 6.5 +0.6 25.2 +1.42012* 63.8 +5.4 54.9 +4.4 7.9 +1.4 31.4 +6.72013* 62.9 -0.9 54.2 -0.7 6.4 -1.5 31.2 -0.72014* 61.1 -1.8 52.6 -1.6 7.2 +0.8 34.1 +2.9 2015* 58.9 -2.2 50.4 -2.2 7.6 +0.4 31.0 -3.12016* 56.5 -2.4 48.0 -2.4 6.3 -1.3 30.8 -0.2

Year


day

%Change

fromprevious

year


day

%Change

fromprevious

year


day

%Change

fromprevious

year


day

%Change

fromprevious

year

TOTALCOFFEE

BREWEDCOFFEE

INSTANTCOFFEE







Table 6: Cups Per Drinker Per Day 1962 to 1995

ANNEX TABLES 106




1962 4.17 NA 4.36 NA 3.11 NA NA NA 1963 NA NA NA NA NA NA NA NA 1964 NA NA NA NA NA NA NA NA1965 NA NA NA NA NA NA NA NA 1966 NA NA NA NA NA NA NA NA 1967 NA NA NA NA NA NA NA NA 1968 NA NA NA NA NA NA NA NA 1969 NA NA NA NA NA NA NA NA 1970 NA NA NA NA NA NA NA NA 1971 NA NA NA NA NA NA NA NA 1972 NA NA NA NA NA NA NA NA 1973 NA NA NA NA NA NA NA NA 1974 3.65 NA 3.71 NA 2.72 NA NA NA 1975 3.57 -0.08 3.61 -0.10 2.61 -0.11 NA NA 1976 3.58 +0.01 3.71 +0.10 2.58 -0.03 NA NA 19773 3.51 -0.07 3.69 -0.02 2.59 +0.01 NA NA 19783 3.46 -0.05 3.70 +0.01 2.52 -0.07 NA NA 1979 3.60 +0.14 3.84 +0.14 2.41 -0.11 NA NA 1980 3.57 -0.03 3.73 -0.11 2.53 +0.12 NA NA 1981 3.41 -0.16 3.60 -0.13 2.31 -0.22 NA NA 1982 3.38 -0.03 3.55 -0.05 2.37 +0.06 NA NA 1983 3.36 -0.02 3.54 -0.01 2.44 +0.07 NA NA 1984 3.48 +0.12 3.67 +0.13 2.40 -0.04 NA NA 1985 3.33 -0.15 3.56 -0.11 2.14 -0.26 NA NA 1986 3.32 -0.01 3.35 -0.21 2.17 +0.03 NA NA 1987 3.38 +0.06 3.54 +0.19 2.21 +0.04 NA NA 1988 3.34 -0.04 3.52 -0.02 2.27 +0.06 NA NA 1989 3.34 — 3.54 +0.02 2.11 -0.16 NA NA 1990 3.29 -0.05 3.48 -0.06 2.08 -0.03 NA NA1991 3.41 +0.12 3.59 +0.11 2.09 +0.01 NA NA 19922 — — — — — — — — 1993 3.58 +0.17 3.81 +0.22 2.14 +0.05 NA NA 19942 — — — — — — — — 1995 3.52 -0.06 3.58 -0.23 2.61 +0.47 NA NA

Year

Cups perdrinkerper day

% Changefrom

previousyear


% Changefrom

previousyear


% Changefrom

previousyear


% Changefrom

previousyear

TOTALCOFFEE

REGULARCOFFEE

SOLUBLECOFFEE


ANNEX TABLES 107

Table 6: Cups Per Drinker Per Day 1996 to 2016United States of America Trends in Consumption







1996 3.43 -0.09 3.69 +0.11 1.84 -0.77 NA NA 199710 3.32 -0.11 3.48 -0.21 2.00 +0.16 NA NA 1998 3.02 -0.30 3.16 -0.32 1.77 -0.23 NA NA 199910 3.49 +0.47 3.42 +0.26 1.98 +0.21 2.24 NA 2000 3.06 -0.43 2.98 -0.44 1.77 -0.21 2.33 +0.09 2001 3.27 +0.21 2.99 +0.01 1.73 -0.04 2.45 +0.12 2002 3.15 -0.12 2.90 -0.09 1.60 -0.13 2.49 +0.04 2003 2.97 -0.18 2.78 -0.12 1.68 +0.08 2.29 -0.20 2004 3.35 +0.38 2.80 +0.02 2.02 +0.34 2.27 -0.02 2005 3.33 -0.02 2.85 +0.05 2.01 -0.01 2.55 +0.28 2006 3.41 +0.08 3.06 +0.21 1.78 -0.23 2.34 -0.212007 3.25 -0.16 3.36 +0.30 2.42 +0.64 2.49 +0.152008 3.31 +0.06 2.82 -0.54 2.28 -0.14 2.63 +0.142009 3.25 -0.06 3.04 +0.22 2.36 +0.08 2.28 -0.35

Year


% Changefrom

previousyear


% Changefrom

previousyear


% Changefrom

previousyear


% Changefrom

previousyear

TOTALCOFFEE

REGULARCOFFEE

SOLUBLECOFFEE


2010+ 3.22 -0.03 3.29 NA 2.00 NA 2.98 +0.702011 3.38 +0.16 3.42 +0.13 2.34 +0.34 2.94 -0.042012* 3.16 -0.22 3.13 -0.29 2.16 -0.18 3.00 +0.062013* 3.20 +0.04 3.22 +0.09 2.14 -0.02 2.88 -0.022014* 3.35 +0.15 3.35 +0.13 2.31 +0.17 3.13 +0.252015* 3.21 -0.14 3.23 -0.12 2.13 -0.18 3.05 -0.082016* 2.96 -0.25 2.86 -0.37 1.99 -0.14 2.76 -0.29

Year


% Changefrom

previousyear


% Changefrom

previousyear


% Changefrom

previousyear


% Changefrom

previousyear

TOTALCOFFEE

BREWEDCOFFEE

INSTANTCOFFEE


ANNEX TABLES 108

Table 7: Profile of Drinkers by Type of Coffee Consumed Yesterday

Daily Coffee Traditional Coffee Gourmet Coffee Total Drinkers (Not Gourmet) Beverages

% of population 100% 57% 30% 30%

Base 2782 1571 846 844

GenderMale 50 50 47 53Female 50 50 53 47

Age18-24 16 13 8 1825-39 28 30 24 3740-59 35 32 37 2760+ 21 24 31 17Mean 44 45 49 41

RegionNortheast 18 18 20 17Midwest 22 20 22 18South 37 37 38 37West 23 25 20 28

With kids in HouseholdYes 42 44 40 49No 58 56 60 51

Household IncomeMean ($000) 63.0 66.6 63.5 71.3

EthnicityCaucasian 69 70 71 68African-American/Black 13 9 11 7Hispanic-American 16 20 18 24Mexican 7 9 7 10Asian-American 5 4 4 5

Drink in Past DayBottled Water (unflavored) 48 51 43 53Soda 38 33 35 32Juice 27 26 25 28Milk/milk products 28 26 24 28Tea 44 48 41 55Alcoholic Beverages 28 36 30 43Tap water 46 46 52 40


4C AssociationACS ValvesAhlstrom Windsor LocksAlly Brazilian Coffee MerchantsAmerica's Food Technologies, Inc.ANNEX WarehousingAramarkArthur J. Gallagher Risk Management Services Inc.Arylessence, Inc.Baronet Coffee, Inc.Barrie House Coffee & TeaBD ImportsBeck FlavorsBemis Company, Inc.Bonavita, IncBrooklyn Roasting CompanyBrown Brothers Harriman & Co.Cablevey ConveyorsCafiver, S.A. De C.V.CC's Coffee HouseCoex Coffee International Inc.Coffee BlendersCoffee Board of IndiaCoffein Compagnie Dr. Erich Scheele GmbH & Co. KGCommunity Coffee CompanyContinental Terminals, Inc.DeCoty Coffee Company, Inc.Demus S.P.ADescafeinadores Mexicanos S.A. de C.V.Dutch Bros. CoffeeEight O'Clock Coffee CompanyEllis Coffee CompanyETC Export Trading Company SAFair Trade USAFairtrade AmericaFairway Group Holding Corp.FAL Coffee Inc.Farmer Bros. Co.Fidalgo Coffee RoastersFine Foods International (New York), LPFinlay Extracts & Ingredients USA, Inc.Flavor & Fragrance SpecialtiesFres-co System USA, Inc.Generation 10 LimitedHood Packaging CorporationICA SpAilly caffè North America, Inc.

Innovia Films IncIntelligent Blends, LPInternational Coffee & Tea, LLCINTL FCStone Inc.Jarden Consumer SolutionsKaffe Magnum OpusLacas Coffee Co.Lavazza Premium Coffees Corp.LBP Manufacturing, Inc.Lewis M. Carter Mfg. Co., Inc.LMI Packaging SolutionsLMZ Soluble Coffee IncorporatedLorenz Conveying ProductsMassimo Zanetti Beverage, USAMayorga Organics, LLCMelitta USA, Inc.Mother Parkers Tea & Coffee Inc.Mountanos Family Coffee & TeaNapa Valley Coffee Roasting Co.National Federation of Coffee Growers of ColombiaNestlé USAOHL InternationalOld City CoffeeParis Brothers, Inc.Peet's Coffee & TeaPrintpack, Inc.ProAmpacPurico USA Ltd.Rabobank GroupRacafé & Cia. S.C.A.Red Diamond, Inc.Reily Foods CompanyRGC Coffee, Inc.Royal Cup CoffeeS&D Coffee & TeaStarbucks Coffee CompanySturm Foods, Inc.Swiss Water Decaffeinated Coffee Co., Inc.T.M.E. s.r.lThe Coca-Cola CompanyThe J.M. Smucker CompanyThe Kroger Co.dba Pontiac FoodsVittoria Coffee Pty Ltd.Wallingford Coffee Co.Westrock Coffee InternationalWhite Coffee CorporationWilbur Curtis Company, Inc.

Thank you to our Market Research Contributors

National Coffee Association of U.S.A. 45 Broadway, Suite 1140

New York, NY 10006

212-766-4007212-766-5815 fax

[email protected]

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