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Coffee: The Generation Gap October 8, 2007

Posted by tkcollier in Business, Economy & Business, Food.
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Coffee: The Generation Gap
It’s a grind these days for the biggest makers of grocery-store coffee. Procter & Gamble (PG) and Kraft Foods (KFT) are facing sluggish sales for their hallmark Folgers and Maxwell House brews—and the demographics are moving against them. Youngsters drink far less coffee than their baby boomer parents, and, when they do, it’s more likely to be on the go. Only 37% of young adults between 18 to 24 drink coffee, compared with 60% for those between 40 and 59 and 74% for Americans over 60, according to National Coffee Assn. data.

Coffee is still a growing market. Overall consumption rose by 9% a year between 2001 and 2006. The problem for P&G and Kraft is that their supermarket brands no longer cut it with consumers who have gotten hooked on the darker, richer brews from Starbucks, Dunkin’ Donuts, and even McDonald’s (MCD). “Retail coffee is unexciting,” says Robert Goldin, executive vice-president of Chicago food consultancy Technomic.

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