Coffee Industry Memo

In: Business and Management

Submitted By caddygirl7
Words 400
Pages 2
This memo provides insight into the gourmet coffee industry and helps to outline a few of the primarily topics our group plans to explore in our final report. “The United States imports in excess of $4 Billion worth of coffee per year” (Coffee Statistics, 2014). This means that there’s a massive amount of individuals drinking this beverage. This is a very broad statement because the coffee industry, if compartmentalized, proves to be an industry with a numerous amount of outlets, as it is sold in many markets; can be prepared in a multitude of forms; and is served up for consumption in many different venues.

According to Karen Fernau, the coffee industry is a $30 billion dollar per year industry that is still growing” (2013). This statement is applicable to the U.S. but, coffee’s appeal is not just limited to Americans. “90% of the world’s coffee production takes place in developing countries; whereas, most of its consumption is in industrialized nations” (Goldschein, 2011).

Distributers are greatly benefiting the most from the explosion of coffee drinkers, with gourmet coffee houses leading the competition. However, this is the only place that consumers can grab a cup of their favorite roast. Retailers stock their shelves with both instant and brewed varieties; many individuals opt for a quick cup on-the-go from McDonalds or Dunkin Donuts; others enjoy gourmet coffee right in the comfort of their homes through use of a single cup Keurig brewing system; and many younger adults select ready to drink coffees for a quick energy boost. Although competition is stiff, “Starbucks is still the leading coffee distributor.” (Goldschein, 2011). An industry this lucrative could bring in big bucks for someone entering the market. Our group project will explore the costs and benefits of either entering this market or investing in an already existing…...

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