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Canadians buying machines that mimic coffee house at home

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Apr 07, 2010


It might not put a dent in the fortunes of specialty coffee houses, but there is a trend of patrons buying coffee machines for home use from those very establishments, a new survey reveals.

Led by market research company The NPD Group, the survey showed that single-serve coffee makers for home consumption have increased in popularity with sales jumping by 103 per cent in 2009 both from the coffee houses and the retail market.

"In a recessionary year, Canadians were still unwilling to give up quality coffee," says Pam Wood, senior manager of the market research company. "This marks the beginning of a new attitude toward how and where Canadians consume the popular beverage as personal brewers are increasingly recognized as a good alternative to frequenting coffee houses."

Despite difficult economic conditions in 2009, however, sales of single-serve coffee makers have shown that consumers are willing to pay more in the expectation of saving money in the long run.

Pricing for such units is on average 271 per cent more than a generic coffee maker.

The cost jumps from an average of $35 for an automatic drip to $130 for a single-serve machine.

And some consumers surveyed say they paid more than $150 for their single-serve appliance.

"Coffee is a daily staple for many Canadians, so it's interesting to see the shift in this important ritual," says Wood. "Although most people are using the units for their morning cup, they are also capable of making specialty drinks, which is ideal for entertaining."

Garth Whyte, president and CEO of the Canadian Restaurant and Foodservices Association, says that statistics the organization has on the most popular beverages show coffee in first place.

The survey indicated that consumers like specialty coffees such as mocha and caramel "but they will buy it at the coffee house first before branching out and making them at home."

And Whyte says that they will also buy tins of special coffee mixes for home consumption.

"Putting it into perspective, there is room for both coffee houses and home," he says. "I think this is being driven by people looking at a broader food experience, so if they are having guests for dinner, they want to finish it off with a nice special coffee."

Wood says that there is a lot of speculation on what might be driving the trend, "but this just confirmed a lot of people's beliefs that even despite hard economic times, if they can move some of their dollars towards in-home consumption of products, to them it is still saving money so it's actually a good deal."

The online survey of pre-identified single-serve coffee maker owners consisted of 600 participants. It was conducted from Feb. 9 to 16.

From:WinnipegFreePress


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