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of local roasters accounting for 12.5 percent share of sales in OCS (chart 5). This is the frst year that the AM 2014 State of the Coffee Ser- vice report has included local coffee brands. The decision to include local roasters was based on early indica- tors of this growing category. Locally roasted coffees are usually less expensive than national, comparable roasts and blends of the same gram per cup. In addition, operators note that local roasters are able to pro- vide a better tasting coffee as there is less time between its roasting and consumption. Part of the popularity of local coffee brands is the 'local' aspect. Several operators stated that customers like to support their com- munity, and locally sourced coffee can be a positive way to do so. Single-cup remains strong contender Single-cup was added as another seg- ment of OCS sales in the AM 2014 State of the Coffee Service Industry report. Operators note that over the past year, single-cup has driven rev- enue increases, but lowers the proft margins in doing so. Single-cup coffee accounts for over 13 percent of OCS sales (chart 5). That is more than the 12.5 percent from local coffee brands and approaching the nearly 20 per- cent share of sales of national and private label coffees. 88.2% 1.8% 10% 2010/2011 51.4% Yes 14.3% 45.7% 40% 2009/2010 74% 1.5% 24.5% 2011/2012 50% 6.7% 43.3% 2012/2013 50% .8% 49.2% 2013/2014 0 3 6 9 12 15 13/14 12/13 11/12 10/11 09/10 08/09 07/08 06/07 05/06 04/05 7.7¢ 10.8¢ 11.7¢ 12.9¢ 13¢ 7.1¢ 7.7¢ 7.8¢ 7.9¢ 8.0¢ ● RAISED PRICES ● LOWERED PRICES ● NO CHANGE CHART 4A: OPERATOR PRICING ACTIVITY, 5-YEAR REVIEW CHART 4B: REVENUE PER CUP IN CENTS PER CUP, FRACTION PACK PLUMBED IN/POUROVER COFFEE, 10-YEAR REVIEW OPERATOR PRICING ACTIVITY 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 26 Automatic Merchandiser VendingMarketWatch.com September 2014 CHART 4C: REVENUE PER CUP, SINGLE-CUP COFFEE, 4-YEAR REVIEW 2010/2011 2011/2012 2012/2013 2013/2014 Revenue 42.5¢ 41.8¢ 43.1¢ 46.5¢ CHART 5: % OCS SALES BY PRODUCT CATEGORY, 5-YEAR REVIEW 09/10 10/11 11/12 12/13 13/14 Private label coffee 39.69% 28.11% 28.23% 18.24% 21.79% Local coffee brands 12.5% National brand coffee 21.4% 26.92% 28.08% 24.37% 21.88% Value frac packs 3.45% Espresso/cappuccino 4.94% 3.6% 3.77% 5.38% 1.85% K-cups 7.94% Other single-cup 6.02% Other coffee* 4.63% 12.07% 9.86% 17.36% 4.75% Total Coffee 70.66% 70.7% 69.94% 65.35% 80.18% Other hot beverages 7% 4.9% 5.54% 6.39% 3.97% Soft drinks/juices 3.5% 5.39% 5.73% 6.57% 1.79% Bottled/fltered water 4% 5.7% 4.75% 7.29% 3.92% Creamers/sweeteners 5% 5.63% 6.62% 6.48% 5.24% Cups/paper products 5.5% 5.41% 6.17% 6.51% 4.48% Other 4% 2.27% 1.25% 1.88% 0.41% *Includes flavored, whole bean and varietal.