CLUB COFFEE RESEARCH STUDY SWANA 2017

Transcription

1 CLUB COFFEE RESEARCH STUDY SWANA 2017

2 Innovating for consumers Club committed to quality since 1906 Customers across North America Innovative and competitive Canada s largest producer of roast and ground coffee Expanding rapidly into tea and other hot beverages

3 Single Serve is Booming US Retail Coffee Sales $9,000 $8,000 Convenience, Value and Quality USD $ millions $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $ Now in ~1/3 of US homes #1 selling small houseware appliance Single serve coffee sales have grown 319% in sales since 2011 reaching $4.6Bn in 2015 Single serve expanding to soups, oatmeal, cold beverages, etc. Single Serve Coffee Whole Bean Standard Ground Coffee Instant

4 Keurig Effect = On Demand/SS Solutions

5 Not only are we filling our landfills Loss of coffee grounds in the composting process 18Bn K-Cups Sold Between = 35 Story Building on a NYC Block!

6 Consumers want a better solution. We have reached a tipping point.

7 In 2015 ~20Bn Plastic Single Serve cups were sold in North America by 2020 ~100Bn+ in landfill

8 On Demand SS Coffee has up front Environment Benefits reducing food waste, water and energy consumption! A recent PAC/Quantis LCA found that the single-serve best case scenario for traditional plastic pods posts a better environmental performance than the comparable drip-brew scenario across their full life cycles. Why? Waste due to coffee over-preparation and inferior packaging freshness retention The amount of coffee and water required to make up for consumer waste and the electricity consumed for drip brewing Minimal coffee waste by the single-serve system, which provides an exact serving of coffee despite the greater packaging waste 1 mins TIME 10mins No waste, set brew sizes for what you need No up front mess just pour in water, place the WASTE HASSLE Often most of the pot goes down the drain Wash and clean the coffee pot and maker Reduction of food waste The coffee market has lost its best consumer: the kitchen sink Each person has a choice, decaf or flavour? VARIETY You are limited to what is in the pot 8

9 Recycling = the 10% Band-Aid Plastic K Cups are going into Landfill Keurig has plans for Recyclable K Cups by 2020 Too much consumer effort, for a category driven by convenience Most cups not recyclable in practice Contamination of recycle stream with coffee 90% of brewed pod is coffee valuable organics lost to landfill

10 Municipal Headaches Waste stream impacts Coffee grounds diverted to landfill adding to food waste Plastic pods going into recycling that can t be processed Recyclable and biodegradable pods likely to challenge processors AND not deliver what consumers really want

11 100% Compostable is the Solution PῧrPod100 Highlights Ring: blend of coffee chaff & bio resins More than 20% coffee chaff reclaimed from coffee roasting in the resin Bio composite resin blend developed through university research Full & rapid disintegration in lab & municipal tests Lid: compostable combination New compostable ink system compatible with Keurig 2.0 brewer Mesh: compostable bio based plastic New bio polymer formula & molding processes

12 Benefits for the Composting Sector Promotes growth of curbside composting across US Links composting to food waste and household waste narrative Positions composting as right solution before less effective options arrive Puts coffee back into the organic stream

13 100% Compostable is the Solution Will consumers understand the difference?

14 Reason for Study Effects on the value of our finished product

15 Identification of like products

16 Objectives Initial demographics Resources, Costing, Timing Distribution opportunities Brand/Product Availability Develop Scope, Costs & Approach Design Testing Process & Plan Recommendation on Target Areas Audit Planning Residential Scope/Plan Commercial Scope/Plan Residential Commercial Audits/Reports Survey PR Communication Distribution of Product, Audit and Reporting Public Education & Engagement PR Engagement Program Media Strategy Launch Event (if successful) Activation Plan

17 Demographics for High Probability of Single Serve Brewer Ownership: High Income Millennials, Parents High Coffee Shop/Food Service Areas RESIDENTIAL Environmentally conscious Pretty much most of Seattle! COMMERCIAL Multi family units Low rise units Target areas with Premium grocers (i.e. Whole Foods or New Seasons) Superintendents supportive to Sustainable Initiatives Urban Current Coffee in Kcup Compatible Brewers Supports Sustainable Initiatives Urban University of Washington, Fairmont Hotel, Columbia Tower

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20 Contamination Coffee Cups Coffee Related Coffee Pods

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22 Non-Compostable Coffee Cups Total Count Per Audit Non-Compostable Pods Total Count Per Audit Pre-Audit Interim Audit Post Audit Pre-Audit Interim Audit Post Audit All Contamination by Weight Over All Three Audits 7% 7% % Contamination PurPod Related Over All 3 Audits 4% 1.54% 1.71% 0.78% Pre Audit Interim Audit Post Audit Pre-Audit Interim Audit Post Audit

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24 Industry Experts Support PῧrPod100 The Right Solution

25 For each ton of organic waste composted at Cedar Grove Composting

26 C02 vs. CH4 Transport COMPOST Reduce chem use Carbon stored in soil Healthy plants

27 Total GHG emission reduction equivalent- Taking 468,000 cars off the road for an entire year!

28 Providing Consumers The Right Solution PῧrPod100 Delivering an outstanding hot beverage... guilt free that enhances the consumer experience!

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30 Golf course maintenance Mulching Highway Projects (DOT) Roof top garden establishment Soil remediation and reclamation Stream and wetland restoration Stormwater BMPs Bioretention Rain Gardens Erosion Control Green roofs

31 Michele Riggs Project Manager/ Technical Services (206)