The study shows that “Two thirds of Americans have a cup of coffee every day.  However, only 27 percent of the coveted 18-24-year-old demographic drink coffee on a regular basis.”

Attracting younger adults into coffeehouses and cafes is very important to successful long term growth.  Discussions about what could attract more of this target market could start with a coffeehouse’s employees, which in many instances are part of that demographic.

Creating a casual atmosphere with music, available wi-fi, offering Fair Trade Organic coffees as well as a food menu of items that would appeal to this group is a great starting point.  Becoming a destination for social get-togethers -  live music, open mic nights, poetry readings and movie nights could prove to be fun as well as profitable.

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The increase to 63 percent of consumers purchasing specialty food in 2010 – up from 46 percent in 2009 — means 51 million consumers have come back to specialty food after cutting their spending during 2008 and 2009, said Ron Tanner, VP, communications and education at the New York-based NASFT. That’s a return to 2006’s specialty food consumption numbers, he noted.

What are they buying?

Among specialty food consumers, natural or organic products were the most purchased in the past 12 months. The top five specialty food purchases reported were coffee, chocolate, olive oil/other specialty oils, cheese and cold beverages.

Who is buying?

Consumers age 18 to 34, especially those in the 25-to-34 age bracket with $100,000-plus household incomes, are 35 percent more likely to buy specialty food. These consumers tend to be in the Northeast or the Western United States, college educated and Hispanic.

The research was conducted in July 2010 by Mintel International and Toluna USA.

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On average, price tags on the affected products will see a 9% increase, the company said.

The Orrville, Ohio, food marketer pointed to higher long-term costs related to green, or unroasted, coffee beans.  Since June 1, coffee futures have surged nearly 25% as harsh weather led to two seasons of disappointing harvests in key production areas such as Central American and Colombia.

In May, the company had announced a 4% increase across the same selection of products.

To read further about the J.M. Smucker price increase at Market Watch Click Here

What’s this Fair-Trade stuff all about?

Talking about Fair-Trade Certified coffees can become very confusing, very quickly. What exactly is Fair-Trade Certified? What about Free Trade or Fairly Traded or even Direct Trade? What’s the difference, if they’re not all the same thing?

• Free Trade is an entirely different animal that you’d be hard-pressed to find any non-politically biased information on. In its most basic form, Free Trade is a trade policy that allows traders to act and trade without interference from the government. This means there are no certifying agencies and middleman regulated tariffs or taxes. There are no checks and balances, no one to watch where monies are going or how it is spent. There’s no standard on who decides or defines what “free trade” is.
• Direct Trade & Fairly Traded are very similar. The principles of Fair-Trade Certified are somewhat represented. Coffee roasters purchase direct from farmers without utilizing middlemen or any outside certification. The roasters create the standards and determine what is fair. However, most of the standards are not across the board and can differ from coffee region to coffee region. There is an overall, albeit flexible, approach to labor and environmental issues. The main concern tends to be for the economic sustainability of all parties involved. The biggest difference is the lack of a 3rd party organization, like TransFair USA. This means that the only people making sure the practices are Direct or Fair are the roasters themselves. The question that remains is whether or not consumers feel able to trust an individual business’ judgment, over an independent 3rd party organization, dedicated to assure criterias are met with an unbiased agenda.
• Fair-Trade Certified coffee is an organized social movement and economic-based approach that aspires to help producers in developing countries promote sustainability by paying close attention to the details in trade and cutting out the middle man.

  This means that:

  • The farmers are being paid fairly for their work
  • The living and working conditions are safer
  • The producers have direct access to international markets, thereby cutting out the middle man and extra costs
  • And there is an independent organization that is making sure these guidelines are met.

Fair-Trade Certified also has a very specific vision for the health and well-being of the farmers. Certification, which is received from independent 3rd party organizations, makes sure that working conditions are safe, that child labor is not happening and that money is being put back into these impoverished coffee producing communities to stimulate growth out of poverty.

Coffee Farmers Picking Cherries from Trees

In addition to the social responsibility, there’s also the health aspect. With the world searching for ways to lead a healthy and long life, the organic market keeps growing and growing. Currently, according to TransFair USA, 60% of Fair-Trade Certified certified coffees in the U.S. are also certified organic.

100% of Kaffe Magnum Opus’s Fair-Trade Certified coffees are certified Organic.

Stay tuned for Vol. II — Am I made for Fair-Trade Certified?

Conducted by Knowledgenetworks,  the study showed the following:

• In-store sampling drives additional repeat purchase
• In-store sampling drives sales for existing products and line extensions
• In-store sampling delivers new buyers – to the sampled items and to the brand franchise
• In –store sampling impacts sales long after the day of the event, making it incredibly cost effective

To read the complete study: Groundbreaking Study Redefines In-Store Sampling Impact and Usage

Ideas that can be used specifically for specialty coffee retailers:

• Focus on creating a coffee of the week, month holiday or season.  An example would be celebrating the upcoming autumn season by featuring Pumpkin Spice for September, Cranberry Nut Cream in October and Vermont Maple Nut Crunch in November.
• Make sure to have related products at or near your sampling area.  If you are featuring Pumpkin Spice flavored coffee, promote a pumpkin spice flavored latte, pumpkin infused cheesecake, pumpkin cream cheese rolls, pumpkin nut muffins… you get the idea!
• Make the effort to use a slower time of the day or week to invite customers in to a seasonal or holiday sampling.  This is a great time to show off any new and exciting gift items you will be carrying for the upcoming time period.  Make sure to display at least three different size gift baskets that customers can order from you as well as any cookies or dessert trays that will be available.
• Get your whole staff involved with creating the buzz and helping out during the sampling.  Big smiles, pleasant greetings and lots of product knowledge will go a long way to stimulating sales now and in the future.
• Set up a designated area for different products and make sure you are ready to take early holiday orders.  Customers are thrilled to begin crossing people of their shopping lists.  Offer a generous discount for orders placed the day of the sampling event.
• Remember there is always a National Fun Food Holiday, changing of the season, Hallmark special occasion or nationally observed holiday to celebrate so you will never run out of ideas.