Starbucks Plans To Stir Up Coffee Market

About Coffee[s] Staff

Here’s a statistic that may surprise you. Despite the long-term success that Starbucks has enjoyed, they have less than 10 percent share of coffee consumption in North America, and less than 1 percent share internationally. At least that’s the case according to Starbucks Chairman, President and CEO Howard Schultz. And recently, it has been pointed out that despite Starbucks being the world’s largest coffeehouse chain with more than 13,000 locations in more than 50 countries, even its most devout customers purchase only three of every 10 cups of coffee they drink from Starbucks.

According to CNN Money, Folgers – a division of J.M. Smucker Co., is still the largest producer of retail packaged coffee in the United States. Its coffee brands include Folgers and Millstone, and it also manufactures and distributes Dunkin’ Donuts coffee to sell in grocery stores, and there is the other American coffee titan, Maxwell House, which is a Kraft Foods brand. An AC Nielsen panel recently found that more than 11 percent of American households purchase flavored coffee for home use, making it a $265 million business in the United States.

[ad#google_a]It appears as though the home brew coffee market is still by far the largest market share. This realization has coffee giant Starbucks stepping up its home brew strategy, partially by adding some flavor. This month Starbucks Corp. introduces Starbucks Natural Fusions brand. Flavored coffees in vanilla, caramel and cinnamon, soon to be seen on grocery store shelves.

Additionally, Starbucks wants to capture a larger share of the U.S. brewed coffee market by leaning on its VIA Ready Brew line and Seattle’s Best coffee brand to increase the number of distribution points. Starbucks acquired its former competitor, Seattle’s Best Coffee, seven years ago.

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