N ATIONAL C OFFEE D RINKING T RENDS © 2012 National Coffee Association of U.S.A., Inc.

2 Agenda  Background  What are people drinking?  How is coffee being prepared  Country of origin associations

3 Background and Methodology  NCA founded in 1911  National Coffee Drinking Trends conducted annually since  Respondent profile:  Aged 18 +  Drank a beverage other than tap water past-day.  Age, gender and region quotas to reflect the population distribution.

4 What are People Drinking?

5 Past-Day Penetration – Trending Base: Total sample aged 18+ (n=3042, 2008, n=3118, 2009, n=2740, 2010, n=2,663, 2011, n=2,955, 2012) What did you drink yesterday during each of the following times? This may include any beverage that you drank at home or outside your home and may have come in a cup, can or bottle. NOTE: NCDT 2012 includes a representative sample of Hispanic Americans and African Americans. Comparisons to previous years are directional only.

6 Past-Day Beverage Penetration – Long Term Trending 6 Base: Total sample aged 18+ (n=2,955, 2012) What did you drink yesterday during each of the following times? This may include any beverage that you drank at home or outside your home and may have come in a cup, can or bottle. Transition from in-person interviews to telephone Transition from telephone interviews to online NOTE: NCDT 2012 includes a representative sample of Hispanic Americans and African Americans. Comparisons to previous years are directional only. Inclusion of an ethnically representative sample

7 Penetration of Coffee – Past Day/Week/Year Base: Total sample aged 18+ (n=3042, 2008, n=3118, 2009, n=2740, 2010, n=2,663, 2011, n=2,955, 2012) What did you drink yesterday during each of the following times? This may include any beverage that you drank at home or outside your home and may have come in a cup, can or bottle. Significantly higher / lower vs. previous year NOTE: NCDT 2012 includes a representative sample of Hispanic Americans and African Americans. Comparisons to previous years are directional only.

8 Daily Penetration of Coffee By Age Base: Total sample aged – n=451 (18-24), n=816 (25-39), n=1050 (40-59), n=638 (60+) What did you drink yesterday during each of the following times? This may include any beverage that you drank at home or outside your home and may have come in a cup, can or bottle. Significantly higher / lower vs. previous year NOTE: NCDT 2012 includes a representative sample of Hispanic Americans and African Americans. Comparisons to previous years are directional only.

9 Daily Penetration of Coffee by Type Combined to Create Gourmet Coffee Beverages Base: Total sample aged 18+ (n=2,740, 2010, n=2,663, 2011, n=2,955, 2012) What did you drink yesterday during each of the following times? This may include any beverage that you drank at home or outside your home and may have come in a cup, can or bottle. NOTE: NCDT 2012 includes a representative sample of Hispanic Americans and African Americans. Comparisons to previous years are directional only.

10 Daily Penetration of Coffee Types by Age Combined to Create Gourmet Coffee Beverages Base: Total sample aged 18+ (n=2,955, 2012, (n=451), (n=816), (n=1050), 60+ (n=638)) What did you drink yesterday during each of the following times? This may include any beverage that you drank at home or outside your home and may have come in a cup, can or bottle. NOTE: NCDT 2012 includes a representative sample of Hispanic Americans and African Americans. Comparisons to previous years are directional only. Significantly higher / lower than all other age groups.

11 Base: Total sample aged 18+ (n=2740, 2010, n=2,663, 2011, n=2,955, 2012) What did you drink yesterday during each of the following times? This may include any beverage that you drank at home or outside your home and may have come in a cup, can or bottle. Now we’d like to ask you about some specific types of coffee beverages you may have consumed in the PAST WEEK. Please keep in mind that these may be coffee beverages that you drank at home or bought outside your home and may have come in a cup, can or bottle. In the past week, have you, yourself, drunk... Weekly Penetration of Coffee by Gourmet Sub-types Significantly higher / lower vs. previous year NOTE: NCDT 2012 includes a representative sample of Hispanic Americans and African Americans. Comparisons to previous years are directional only.

12 Share of Cups – Gourmet vs. Non-Gourmet Base: Past-Day Coffee Drinkers Age 18+ (n=1523, 2010, n=1,555, 2011, n=1,814, 2012) Was the [COFFEE/COFFEE BEVERAGE] gourmet coffee - that is, brewed from premium whole bean or ground varieties? SHARE OF COFFEE CONSUMED YESTERDAY NOTE: NCDT 2012 includes a representative sample of Hispanic Americans and African Americans. Comparisons to previous years are directional only.

13 Share of Coffee By Location Consumed Where coffee consumed at work is prepared Share of Past Day Coffee Cups Base: Total coffee consumed (n=5147, 2012) Where did you drink the [COFFEE/COFFEE BEVERAGE]? Where was the [COFFEE/COFFEE BEVERAGE] prepared you had yesterday [TIME OF DAY]?

14 How is coffee being prepared?

15 Brewing Systems – Past-Day Penetration Base: Total sample (n=2,740,2010, n=2,663, 2011, n=2,955, 2012) Thinking of the [COFFEE/COFFEE BEVERAGE] you had yesterday [TIME OF DAY], how was the [COFFEE/COFFEE BEVERAGE] prepared? Age – 2012 Data n=451n=816n=1050n= NA PERCENT USING BREWING SYSTEM PAST DAY NA Significantly higher / lower vs. previous year NOTE: NCDT 2012 includes a representative sample of Hispanic Americans and African Americans. Comparisons to previous years are directional only.

16 Single-Cup Brewing Systems – Ownership Base: Total sample aged 18+ (n=2,950, 2005, n=2,954, 2006, n=2,951, 2007, n=2,663, 2011, n=2,955, 2012) In the next six months, how likely are you to buy this type of single-cup brewer for use in your home? NA PERCENT OWN A SINGLE-CUP SYSTEM

17 Single Cup Brewing Systems – Time Owned Base: Those who have a single cup brewing system at home (n= , n= , n= ) Note: More than 4 years was added as an option in 2012 How long have you owned this single-cup brewer? PERCENT OF TIME OWNED N/A Significantly higher / lower vs. previous year NOTE: NCDT 2012 includes a representative sample of Hispanic Americans and African Americans. Comparisons to previous years are directional only.

18 Country of Origin Associations

19 Countries Associated with Producing Coffee  Awareness numbers for several key coffee producing countries was lower in 2012 vs. numbers reported previously.  This may reflect declines in awareness or differing levels of awareness among the ethnic groups that are now better represented in the 2012 NCDT.

20 Countries Associated with Producing Coffee % Based on total sample (n=3042), 2009 (n=3118), 2010 (n=2740), 2012 (n=2955) Thinking of what you, personally, know about each of the following regions or countries, to what extent do you associate each of them with producing coffee? NOTE: NCDT 2012 includes a representative sample of Hispanic Americans and African Americans. Comparisons to previous years are directional only. N/A

21 Quality Associations with Coffee Producing Countries  Awareness and quality associations are connected, with origins that perform well on awareness also having an advantage in terms of perceived quality.  This indicates that the primary opportunity for coffee producing countries is to boost awareness of their countries association with coffee production.

22 Quality Associations with Coffee Producing Countries % Based on total sample 18+ aware of each country 2008 (n=3042), 2010 (n~2740) And do you think that each of these countries produces coffee that is… n=355 n=1335 n=977 N=1188 n=665 n=825 n=824 n=1679 n=2010 n=1406 n=2416 NOTE: NCDT 2012 includes a representative sample of Hispanic Americans and African Americans. Comparisons to previous years are directional only. N/A

Graham R. Hill Director of Knowledge Management National Coffee Association 45 Broadway Suite 1140 New York, NY