From Brandweek magazine:
Are consumers giving up on coffee? The evidence is all around us: Procter & Gamble last month announced it was spinning off its Folgers brand because the brand's sluggish sales were depressing (rather than stimulating) growth.
Super-investor Nelson Peltz has been pressuring Kraft to do the same with its Maxwell House brand for the same reason. Meanwhile, the coffee industry's big dog, Starbucks, has been doing what many once thought impossible—closing stores.
Just about the only brand that seems to be benefitting from the shakeout is McDonald's, whose success with its coffee (and its heralded better-than-Starbucks ranking in Consumer Reports) seems overstated. After all, McD's franchisees aren't required to install coffee bars, so it seems unlikely that the Golden Arches will set off a caffeine junkie's radar the way that mermaid does.
So, are people abandoning coffee? Maybe. ...
... There's not all that much mystery as to why growth at Maxwell House and Folgers has slowed: Its user base is either dying off or, on doctor's orders, is cutting back.
(Get the whole story here.)
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