INFLUENCER GENERATED CONTENT COFFEE BRANDS BENCHMARK REPORT
RTD & Cold Brew Coffee Will Continue To Generate Buzz in 2018 In 2017, 62% of Americans reported drinking coffee on a daily basis, up from 5% from 2016. 1 44% of America s coffee demand comes from Millennials.1 The average U.S. coffee drinker consumes 2.7 cups per day and 31% view it as the most important part of their morning. 2 In 2017, cold brew coffee generated an estimated $38.1 million in sales, up 460% from 2015. 3 Ready-to-Drink (RTD) coffee currently owns 20% market share of U.S. coffee market, and is predicted to grow 67% over the next five years.3 Sources: 1. National Coffee Association, 2017 Coffee Drinking Trends, 2017 2. The Motley Fool, 11 Coffee Stats That Will Blow You Away, 2017 3. Mintel, US Coffee & Tea On Premise Market Report, 2017
With Infinite Coffee Options, Millennials Rely On MicroInfluencers To Guide Decision Making Process 70% of Millennial consumers are influenced by the recommendations of their peers in buying decisions.1 70% of Millennials prefer product endorsements by non-celebrity bloggers.1 50% of Millennial video subscribers drop what they re doing if an influencer posts a new video. 2 40% of Millennial YouTube audiences feel that their favorite YouTubers understand them better than their friends. 1 Non-celebrity bloggers are 10x more likely to influence an in-store purchase than celebrities. 1 41% of Millennials use ad blockers.3 Sources: 1. Shane Barker 75 Influencer Marketing Stats That Will Guide Your 2018 2. Views Reviews 24 Video Marketing Stats to Inform Your Campaigns, 2017 3. emarketer Most Millennials Have Installed Ad Blockers, 2016
IGC: The Key To Shortening Consumers Path-To-Purchase You can thank Millennials for your $6 Starbucks coffee. The demand for coffee in America has reached an all time high. Despite accounting for just one quarter of the country s population, Millennials make up 44% of the country s coffee demand. In the last eight years, daily coffee consumption among 18 to 24 year-olds rose from 34 percent to 48 percent and it grew from 51 percent to 60 percent among 25 to 39 year olds. Simultaneously, the number of adults over age 40 who drink coffee daily decreased. 1 Among the drivers of market growth is ready-to-go (RTD) cold brew coffee. Evolving Millennial behaviors paired with the need for a portable and convenient beverage helped to spark the RTD coffee movement, which is forecasted to grow 67% from 2017 to 2022. Within the RTD segment, cold brew sales have grown 450% between 2015 and 2017, responsible for about $38.1 million in sales. 2 In order to appeal to Millennials, brands need to focus on integrating authentic, trusted influencer-generated content across their customer journey. Partnering with influencers helps brands to to deliver personalized, relevant experiences for consumers at every touchpoint, increasing their brand trust and accelerating their path-to-purchase. Within the coffee industry, niche brands have turned to influencer-generated content (IGC) to highlight specific product attributes, appealing to a Millennial market. On the other hand, global brands (i.e. Starbucks) have utilized IGC to diversify their products and position themselves as a one-stop shop, appealing to a mass audience. Sources: 1. Statista Share of coffee Drinking Consumers in US, 2017 2. Mintel Coffee Shop Sales Show Healthy Growth But With Potential Threat From RTD Coffee, 2017
SHARE OF INFLUENCER VOICE (% IGC) : COFFEE BRANDS Share of Influencer-Generated Content 80% 70% 60% 50% 40% 30% 20% 10% CATEGORY LEADER IN ENGAGMENTS 291 CATEGORY AVG. ENGAGEMENTS / INSTAGRAM POST 835.57 CATEGORY LEADER, AVG. ENGAGEMENTS / INSTAGRAM POST 0% SOURCE: Mavrck, 2017: Analysis based on share of influencer-generated content on Instagram and Twitter, Dec. 2016 Dec. 2017.
IGC CHECK LIST Key takeaways from Coffee Brand Leaders
STARBUCKS Owns 40% market share of the U.S. coffee chain industry. 1 Generates $22.39 billion in worldwide revenue. 1 30% of Starbucks transactions in the U.S. come from mobile pay. Fun fact: Starbucks offers 87,000 drink combinations. On Cold Brew We are relentlessly focused to innovate in all things cold coffee, and that starts with Cold Brew Sharon Rothstein, Starbucks Global Chief Marketing Officer 2 Expects to nearly quadruple it s Cold Brew business by 2021. 2 On Influencer Marketing Starbucks is the brand with the highest influencer rate on Facebook. Sources: 1: Statista Starbucks Statistics & Facts, 2017 2: CNBC - Starbucks sees future sales growth fueled by food, cold coffee beverages, 2016
Starbucks cups are text free - product packaging and an easily recognizable logo makes for automatic and instant brand recognition. IGC highlights product depth and variety, aiming to position Starbucks as a one-stop-shop for consumers on-the-go needs. IGC incorporates mostly fashion macro-influencers (i.e. Instagram celebs ) and images tend to reflect elite lifestyles.
LA COLOMBE Runs 27 cafes in 6 cities. Distributes coffee to 3,500 hotels, cafes, and retailers. Revenue is approaching $100 million. Fun fact: La Colombe CEO worked at one of the first three Starbucks. On Product Became the country s fastest-growing ready-to-drink coffee beverage. Product saturated 37% of grocery store market in 7 months. Product sales are growing by 3,800%. On RTD The RTD thing is a monster. RTD coffee is a $3 billion market and it s growing fast Carmichael, La Colombe CEO Most people waiting in café lines are getting coffee to go, with a majority buying cold coffee drinks Carmichael Sources: Forbes - Backed by Chobani s Founder, A Local Coffee Chain Tries to Revolutionize the Industry, 2017
La Colombe Coffee s branded hashtags (i.e. #DraftLatte,#CafeAnywhere) strategically target cold coffee drinkers. Product packaging highlights the brand s use of clean and real ingredients, aiming to appeal to the health conscious consumer. IGC copy includes personal testimonials in which product portability and convenience is reinforced.
CHAMELEON In 2017, sales topped $16 million, growing at nearly 100%. Nestle bought company in 2017. Fun fact: Chameleon CEO Chris Campbell didn t know what cold brew was when he started the company in 2010. On Product Became the country s fastest-growing ready-to-drink coffee beverage. Product saturated 37% of grocery store market in 7 months. Product sales are growing by 3,800%. On Cold Brew and RTD When done right, cold brew is smooth and delicious, lacks bitterness and packs a big caffeine punch. All of these factors are on-trend right now Chris Campbell, Chameleon CEO I think the way RTD evolves over time is going to be critical and we have a very clear strategy on how we intend to do that - Campbell BevIndustry Chameleon Cold Brew Accelerates Growth In the Coffee Market, 2017
IGC does not depict influencers and instead solely depicts the product, drawing all attention to product attributes. IGC copy pairs tips, recipes, and thoughtful insights with clear product imagery to promote the product s multiple uses. Product packaging capitalizes on two emerging consumer trends: the RTD beverage and cold brew coffee.
ABOUT US Mavrck is the leading all-in-one influencer marketing platform trusted by consumer brands like P&G, Godiva, and Keurig Green Mountain to harness the power of their most valuable asset: consumers with social influence. Our patented influencer activation engine enables brands to discover and activate thousands of their own influencers, advocates, referrers, and loyalists through their existing digital experiences to create, amplify, or submit content and drive conversions at scale. Using our self-service influencer manager, we also enable brands to take a more automated and programmatic approach to influencer marketing. RISE ABOVE THE NOISE Contact us at sales@mavrck.co to learn more.