S P E C I A L A N N U A L R E P O R T : S T A T E O F T H E C O F F E E S E R V I C E I N D U S T R Y
costs at the same time (chart 3B),
due to competitive pressures from
other operators, paper supply com-
panies and direct competition from
single-cup cartridge manufacturers.
Prices per cup increased from
2013 to 2014, although not by a
signifcant amount. The national
average revenue for fractional pack
coffee was relatively fat at 13 cents
per cup, compared to 12.9 cents the
year before (chart 4B). Single-cup
revenues increased, with prices up
3.4 cents to reach 46.5 cents per cup.
Higher costs of coffee and loca-
tion price point demands are affect-
ing the types of coffee operators are
selling. In the past year, OCS pro-
viders report an increase in private
label coffee, which is generally a
less expensive option than premium
national brands, which slipped in
share of sales for 2013/2014.
Local roasters meet demands
Possibly a more surprising category
change, however, is the emergence
S P E C I A L A N N U A L R E P O R T : S T A T E O F T H E C O F F E E S E R V I C E I N D U S T R Y
24 Automatic Merchandiser VendingMarketWatch.com September 2014
66%
22%
12%
77%
17%
6%
2010/11
2011/12
76.5%
14.5%
9%
2012/13
71.2%
12%
16.8%
2013/14
Source: International Coffee Organization, London, U.K.
C
E
N
T
S
P
E
R
P
O
U
N
D
0
50
100
150
200
250
2011 2012 2013 2014
Dec Nov
Oct
Sep Aug
Jul
Jun
May
Apr
Mar
Feb
Jan
Dec Nov
Oct
Sep Aug
Jul
Jun
May
Apr
Mar
Feb
Jan
Dec Nov
Oct
Sep Aug
Jul
Jul
Jun
May
Apr
Mar
Feb
Jan
Jun
May
Apr
Mar
Feb
Jan
CHART 3: COMPOSITE GREEN COFFEE PRICES, 2010 TO JUNE 2014
CHART 2: OPERATOR SALES CHANGE, 4-YEAR REVIEW
● SALES ROSE ● SALES DECLINED ● NO CHANGE
12.1%
15.2%
38.3%
24.2%
48.5%
48.2%
13.6%
34%
48.9%
17%
30.4%
53%
9.8%
6.5%
2009/2010 2010/2011 2011/2012 2012/2013
23.1%
63.5%
12.2%
1.3%
2013/2014
CHART 3B: HOW RISING COSTS ARE BEING HANDLED, 5-YEAR REVIEW
● RAISING PRICES ● ABSORBING ● COMBINATION ● OTHER
*Other includes changing product mix, divesting business, workforce changes, etc.