VP, Consumer Insights Dig ig In Insights METHODOLOGY SUMMARY - - PowerPoint PPT Presentation

Cheryl Hung VP, Consumer Insights Dig ig In Insights

2,628 respondents Aged 18+ Nationally representative of region, age, gender.

(Ethnicity quota set for East and Southeast Asians, South Asians)

Online data collection Interviewing April 23 to May 7, 2019 Survey offered in both English and French

METHODOLOGY SUMMARY

Past-day Beverage Penetration

5

67 64 63 65 63 65 63 62 65 64 65 65 63 67 67 71 72 72

10 20 30 40 50 60 70 80 90 100

'99 '01 '03 '05 '06 '07 '08 '09 '10 '11 '12 '13 14 '15 '16 '17 '18 '19

PERCENT DRINKING ANY COFFEE BEVERAGES PAST-DAY

Past-day coffee penetration remains strong

Methodology & Season Change (2013)

2019 63%

6

Two competitive beverages see decline in past day

Alcohol Bottled Water

50% in 2019 vs. 53% in 2018 41% in 2019 vs. 45% in 2018

7

63 53 14 67 55 16 67 53 17 7 71 52 23 8 72 53 24 8 72 51 24 9 Total Coffee Traditional Coffee Espresso-based Beverages (EBB)* Non-Espresso-Based Beverages (N-EBB)**

PERCENT DRINKING EACH COFFEE TYPE PAST-DAY

2014 2015 2016 2017 2018 2019

Past-day EBB and N-EBB Consumption Sustainable

NA

8

EBB and N-EBB consumption skews East/Southeast Asians

24 3 6 6 6 2 5 3 9 5 4 2 23 3 6 5 5 2 6 3 8 4 4 1 24 4 8 6 8 3 1 1 12 4 6 3 27 4 8 6 10 4 5 2 14 8 5 2

PERCENT DRINKING GOURMET COFFEE SUB-TYPES PAST-DAY

Total Caucasian (A) South Asian (B) East/Southeast Asian (C)

Espresso- based Beverages (EBB)* Cafe Mocha Cappuccino Espresso Latte Macchiato Caffe Americano Flat White Non-Espresso- Based Beverages (N- EBB)** Frozen Blended Coffee Cold brew coffee Nitro coffee

A A B A

Included in Espresso-based Beverages (EBB) Included in Non- Espresso-based Beverages (N-EBB)

Coffee Cups

10

Canadian coffee drinkers drank fewer cups

2.7 2.6 3.2 3.3 2.8 3.0 3.0 3.2 2.8

2011 2012 2013 2014 2015 2016 2017 2018 2019

PAST-DAY COFFEE DRINKERS 18+ MEAN NUMBER OF CUPS

11

…but more are drinking larger sized cups

8 40 53 17 2 9 39 52 18 3 8 35 56 21 3 An espresso size cup A small size cup or mug A medium size cup or mug A large size cup or mug An extra-large size cup or mug CUP SIZE (AMONG PAST-DAY COFFEE DRINKERS) 2017 2018 2019

12

3.0 2.4 5.3 2.6 2.2 4.4 2.8 2.2 4.4 2.9 2.2 4.6 2.8 2.5 5.5 2.7 2.1 4.5

In-Home ONLY Out-of-Home ONLY Both In-Home and Out-of- Home

PAST-DAY COFFEE DRINKERS 18+ MEAN NUMBER OF CUPS CONSUMED AT EACH LOCATION

2014 2015 2016 2017 2018 2019

Less Cups Consumed Out of Home

13

South Asians and East/Southeast Asians drink fewer cups vs. Caucasians

2.8 3.0 2.2 2.1 PAST-DAY COFFEE DRINKERS 18+ MEAN NUMBER OF CUPS Total Caucasian (A) South Asian (B) East/Southeast Asian (C)

How Coffee Is Prepared and Consumed

15

50 28 49 27 47 29 41 25 41 28 39 27

Drip coffee maker Single-cup brewer

2014 2015 2016 2017 2018 2019

Drip coffee maker and Single-cup brewer remained the two most widely used brewing methods

% Using Among Past-day Coffee Drinkers

2 3 3 3 4 5

RTD in a bottle or can

2014 2015 2016 2017 2018 2019

% Using Among Past-day Coffee Drinkers

RTD Coffee Is Rising

17

RTD Consumption is driven by younger consumers

18-24 (A) 25-34 (B) 35-49 (C) 50-64 (D) 65-79 (E)

% Drinking Among Past-day Coffee Drinkers

16 10 CDE 4 D 2 2

RTD Coffee

18

… and by East/Southeast Asian Canadians

Caucasian (A) South Asian (B) East/Southeast Asian (C)

% Drinking Among Past- day Coffee Drinkers

4 7 13 A

RTD Coffee

Where and When Coffee Is Consumed

20

Out of home preparation is driven by East / Southeast Asian

Total Caucasian (A) South Asian (B) East/South east Asian (C) In Home (Net)

78 82 68 64

Out Of Home (Net)

40 37 41 53 A

PERCENT DRINKING PAST-DAY BY PLACE OF PREPARATION – BY ETHNICITY

Among Past-day Coffee Drinkers

21

Usage of app services for

• rdering coffee is still niche

1% 2% 2018 2019

PERCENT OF PAST-DAY COFFEE DRINKERS WHO ORDERED COFFEE THROUGH AN APP PAST-DAY

7% 7% 2018 2019

PERCENT OF PAST-DAY COFFEE DRINKERS WHO ORDERED COFFEE THROUGH AN APP PAST- WEEK

22

Loyalty card use is trending up

6% 10%

2018 2019

PERCENT OF PAST-DAY LOYALTY CARD USE AMONG PAST-DAY COFFEE DRINKERS

16% 20%

2018 2019

PERCENT OF PAST-WEEK LOYALTY CARD USE AMONG PAST-DAY COFFEE DRINKERS

23

Planned/Impulse Purchase of Coffee to Prepare In-Home

35 19 31 3 12 37 20 28 3 12 2018 2019

I know exactly what brand I will buy before I walk into the store I know exactly what type I will buy I generally know what I am looking for, but also browse the aisle I usually buy on impulse I usually buy what is on sale

2019 Age 2019 Ethnicity 18-24 (A) 25-34 (B) 35-49 (C) 50-64 (D) 65-79 (E) Caucasian (F) South Asian (G) East /SE Asian (H)

29 34 36 41 ABC 47 ABC 40 36 21 24 DE 24 DE 21 DE 16 14 20 16 25 29 28 28 27 25 27 31 31 6 DE 3 4 2 2 3 6 4 12 11 11 13 12 11 12 20 F PERCENT PLANNED/IMPULSE PURCHASE OF COFFEE TO PREPARE IN-HOME

Brewer Types At Home

25

Drip coffee maker, Single-cup brewer and Instant coffee are Top 3 brewing methods owned by Canadian households

59 46 42 24 13 9 5 59 44 41 23 11 9 5

Drip coffee maker Single-cup brewer Instant coffee French press/plunger Espresso machine Bean-to-cup brewer Pour over (e.g. Chemex)

PERCENT WHO HAVE BREWER AT HOME

2018 2019

Single-Cup Ownership

27

The following types of single-cup brewer were asked in 2019 survey (past-day, past-week, and workplace brewing method):

(Only asked for workplace coffee) (Only asked for workplace coffee)

28

62 20 13 5 3 2 4 67 21 14 4 1 2 4

Keurig Tassimo Nespresso Dolce Gusto Verismo Other I don't know

2018 2019

Keurig, Tassimo and Nespresso are the three most widely owned brands by Canadians

Single-cup Brewer Ownership among Total single-cup brewer owners

29

Keurig, Tassimo and Nespresso Owner Profile

• Skews Atlantic (82%),

Least likely to be owned in Quebec (57%),

• No age skews
• Skews Caucasians (70%)
• vs. South Asians (58%)

& East Asians (52%)

• No region, age or ethnic

skews

• Skews Quebec (21%) vs.

Atlantic (5%)

• Skews 18-34 year olds

(19%) vs. Older (9-13%)

• Caucasians least likely

to own (11%) vs. South Asians + East Asians (22-27%)

Overall Opinion of Single- Cup Brewers

Rated Single-cup Brewers As Excellent / Very Good (%)

50% 51% 52% 49%

2016 2017 2018 2019

31

Rated Single-cup Brewers As Excellent / Very Good (%)

Caucasian (A) South Asian (B) East/Southeast Asian (C)

51 C 43 39

Positive perceptions of SC brewers driven by Caucasians

32

9 24 40 26 7 13 16 35 32 10 9 13 27 35 15 9 14 26 34 18 8 13 24 30 25 Less than 6 months 6-12 months 1-2 years 2-4 years More than 4 years

Single-cup brewers in Canadian households continue to age

2019 - 21% owned for less than 1 year

• vs. 22% in 2018

2019 - 55% owned for 2 years or more

• vs. 52% in 2018

33

Nearly half single-cup brewer owners claim to use eco-friendly pods

43 34 21 19 Conventional pods Recyclable pods Compostable pods I don't know PERCENT WHO PURCHASE POD TYPE AMONG SINGLE-CUP BREWER OWNERS

Eco-friendly NET:

47%

34

30 31 28 30 46 44 47 41 18 18 18 22 6 7 7 8

Recyclable pods (2018) Recyclable pods (2019) Compostable pods (2018) Compostable pods (2019) OPENNESS TO SWITCHING BRANDS FOR ECO-FRIENDLY PODS (%) Definitely would switch Probably would switch Probably would not switch Definitely would not switch

Consumers are open to switching brands for eco-friendly pods

Definitely/ Probably would switch

76 75 75 71

Certifications and Premium Coffee Perceptions

36

Demand for BPI Compostable and CBD coffee is niche

BPI Compostable Certification:

33%

(Rank #16 of 24) Includes added CBD (cannabidiol):

16%

(Rank #24 of 24)

% Much / Somewhat more likely to buy

37

72 68 65 64 59 57 56 51

The coffee is roasted from premium beans The coffee is more expensive than other types of coffee The coffee comes from a region that is known for… The coffee has specific quality certifications Gourmet coffee tastes much better When buying gourmet coffee for home-use, it usually… The coffee is a brand name I recognize It is artisanal coffee

Premium coffee is defined by premium beans and price

% Agree Completely / Somewhat on Statements about Gourmet Coffee The coffee comes from a region that is known for producing good coffee When buying gourmet coffee for home-use, it usually comes in attractive packaging

OOH Activation: Loyalty cards over apps

KEY TAKEAWAYS

Coffee consumption remains high among Canadians

In-Home: Single-cup are aging. Opportunity to get excited over eco- friendly innovations?

Thank You!

Cheryl Hung (647) 244-7606 cheryl@diginsights.com 372 Bay Street, 16th Floor Toronto, Ontario M5H 2W9 diginsights.com linkedin.com/company/dig-insights