INDUSTRY PROFILE: FOOD & BEVERAGE
Statista reported that revenue in the U.S. ”Food & Beverages” segment amounts to $16.246 billion USD in 2018. Revenue is expected to show an annual growth rate (CAGR 2018-2022) of 12.5 percent. The largest beverage companies are Anheuser-Busch, Coca-Cola, and Pepsico, while the largest coffee companies are Caribou, Starbucks, Dunkin’ Donuts, and Gloria Jeans. Specialty coffee sales are increasing by 20% per year and account for nearly 8 percent of U.S. coffee market. The average consumption in the U.S. is 3.1 cups of coffee per day. According to the Tea Association of the USA, tea can be found in almost 80 percent of all American households.
CUSTOMERS AND SEGMENTS
On any given day, over 159 million Americans are drinking tea. It is the most widely consumed beverage, next to water. The CDC found that 63 percent of youth and 49 percent of adults drank a sugar-sweetened beverage (SSB) on a given day. Among youth, SSB intake is higher among boys, adolescents, non-Hispanic blacks, or youth living in a low-income family. Coffee drinkers tend to be older, with 74 percent of adults aged 55 and older consuming it daily, compared to 50 percent of those aged 18 to 34. 65 percent prefer to add sugar and/or cream while 35 percent of coffee drinkers prefer black coffee. Women drink coffee to relax; men feel it gives them energy to work.
PROMISES AND CUSTOMER EXPERIENCE
Yerba mate provides an energy boost similar to coffee, but with less caffeine and more nutrients. The leaves contain theobromine and theophylline to provide mild stimulant effects. It also contains other beneficial phytonutrients such as tannins, trace minerals, chlorophyll, flavonoids, amino acids, and vitamins A, B1-3, B5, C, and E. Positive health effects don’t always stimulate demand among customers, but companies can listen to customers to understand what they want. Openness to feedback and ideas enhances loyalty. Businesses that grow their customer retention rates by as little as five percent typically see profit increases ranging from 25 to 95 percent.
Brand Promises get people in the door. Advertising, impactful design, arresting messaging, celebrity endorsements, as well as accessible websites and mobile apps make it easy to learn about a brand. The best Brand Promises appeal to each customer’s emotional core. Starting with Why often unleashes energy that turns prospects into customers, and customers into passionate advocates. Yet, it is easier to attract prospects than it is to convert and retain them. LEARN ABOUT BRAND PROMISES >
A great Customer Experience keeps them coming back and encourages loyalty and brand equity. Frustrating Experiences are the source of bad memories, anxiety and negative word of mouth. Many companies don’t realize that they may only have one or two chances to capture the imagination of customers or lose them to competitors. Enterprise Value Integration (EVI) focuses on closing the gap between Promises and actual Experiences. It is worth the investment in Brand Architecture because EVI generates significant value along the way, resulting in more sustainable profit margins. MORE ON CUSTOMER EXPERIENCE >
CONTACT ENTERPRISE VALUE INTEGRATION TO LEARN WHAT WE CAN DO FOR YOUR BRAND:
INDUSTRY EXPERIENCE
Enterprise Value Integration (EVI) has extensive experience with beverage brands. These include water, coffee, and wine, and spirits. The industry places a great emphasis on building brand equity and EVI drives Brand Promises forward with cloud computing. Our company has several partnerships with leading cloud vendors.
INDUSTRY WATCH: COFFEE
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