Research on Single Serve Coffee Essay Sample

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* Coffee market is currently divided into multiple segments:
* Regular Coffee
* Single serve k-cups
* Single serve machines

* Keurig currently dominates the market by owning the most universal system that other brands have bought into, including Dunkin Donuts, Starbucks, Tully’s, Newman’s Own Organics, Dierich, Coffee People, Tazo teas, Coffee People, Brista Prima Coffeehouse, Timothy’s Coffees of the World, Luigi Lavazza, Van Houtte


* 2011, 84% of sales are attributed to K-Cup portion packs and Keurig single-cup brewers and related accessories

* Company split into 3 divisions:
* Specialty Coffee biz unit
* Tully’s
* Diedrich
* Coffee People
* The Keurig biz unit
* CMCR Canada
Italy’s #1 Stovetop Coffee Maker Launches Mini Express & I Caffè d’Italia True Italian Espresso Capsules

The system features the Mini Express maker and Bialetti’s exclusive espresso blends called I Caffè d’Italia packed in individual aluminum capsules. Designed in Italy, the Mini Express machine features a 20 bar (290 psi), high-pressure system that makes the perfect cup of Italian espresso in seconds.

Traditional one-cups vs. pod coffee makers 75 percent of adults in the U.S. drink coffee, with 58 percent saying they drink coffee daily. ound 1: Ease of Use
Winner: Pod coffee makers
Pod coffee makers are simple to use: insert a pod, select a cup size and brew. Round 2: Flavor Variety
Winner: Traditional one-cup coffee makers
While some pod coffee makers have hundreds of flavor options, most are limited in pod selection. Round 3: Cost of Ownership

Winner: Traditional one-cup coffee makers
The proprietary pods needed for pod coffee makers vary pretty drastically in price but almost always result in a higher per-cup cost than using ground coffee for traditional one-cup coffee makers. Our one-cup coffee makers report reveals that pod coffee makers are also a costlier initial investment than standard models ($50 to more than $200). Traditional mug-to-go brewers typically cost between $20 and $50. Round 4: Brewing Performance

Winner: Pod coffee makers
In professional tests, automatic-drip single-serve models get lower scores for brewing performance. The optimal brewing temperature for achieving the best flavor is between 195 and 205 degrees Fahrenheit. Pod coffee makers get better scores, on average, for falling in this temperature range. Round 6: Maintenance

Winner: Pod coffee makers
Many users find it a drag that before each brew cycle water must be added to traditional single-serve models. Traditional coffee: Cuisinart Crystal SCC-1000 Limited Edition Perfec Temp

Starbucks Verisimo:
As for the Starbucks Verismo machine, you can make Starbucks’ espresso, café latte, and brewed coffee, but it’s pricey. It starts at $200, and it’s pretty basic. For example, you can’t adjust brew strength, and the manual says you should flush the machine with water after each brew.

$150 DeLonghi Nescafé Dolce Gusto Circolo. It brews a cup in a minute and makes cappuccinos, espressos, and other drinks as well. If you want a smaller pod coffeemaker that takes up less counter space, Consumer Reports recommends the Piccolo in the DeLonghi Nescafé Dolce Gusto line that goes for $100.


Analyst lifts Green Mountain Coffee price target
The Associated Press
NEW YORK — An analyst boosted Green Mountain Coffee’s price target on Friday, saying the company does not have to worry too much yet about new competition for its K-Cups. THE SPARK: William Chappell Jr. of SunTrust Robinson Humphrey increased his price target on Green Mountain Coffee Roasters Inc. to $50 from $45. THE BIG PICTURE: A pioneer of single-serve coffee in the U.S. with its Keurig machines, Green Mountain Coffee grew quickly on their popularity. But the company is now facing tougher competition as patents on technology for its K-Cups expired. Rivals such as Starbucks Corp. have released their own single-serve coffee makers and others are coming out with their own single-serve coffee packets. THE ANALYSIS: Chappell said in a client note that there are new private label K-Cups from companies like TreeHouse Foods, Maxwell House and Gevalia options from Kraft and new partner brands from Eight O’ Clock Coffee.

The analyst said that Kraft looks to be the toughest rival, due to its well-known Maxwell House brand and strong retail relationships. While investors worried that Kraft might substantially discount its products, Chappell said that so far the price per K-Cup from Kraft _ which currently has 12-count boxes _ is the same as Green Mountain and Folgers Select brands. The analyst noted that private label K-Cups are being sold at a cheaper price than their branded counterparts, but that the price difference between the two is actually much smaller than what is normally seen when comparing private label and branded products.

“While we continue to believe there is a good long-term opportunity for private label K-Cups, we expect a slow build in 2013,” Chappell wrote. The analyst also feels that the core Keurig consumer is not that sensitive to price and would likely trade down to a cheaper branded K-Cup before buying a private-label version. SHARE ACTION: Shares of Green Mountain Coffee climbed $1.83, or 4.6 percent, to $41.46 in afternoon trading.

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