The Jam Box

The FINANCIAL — TORONTO. According to Coffee Pods: A Consumer Perspective, a recent study by one of the leading market research companies The NPD Group, single-serve coffee makers have increased in popularity with sales showing a 103-per-cent jump in 2009. Further to this, more than one-third of Canadians are buying less coffee or specialty beverages away from home.

“In a recessionary year, Canadians were still unwilling to give up quality coffee,” said Pam Wood, senior manager, The NPD Group. “This marks the beginning of a new attitude towards 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, single-serve coffee makers have shown that consumers are willing to pay extra now in order to save money in the long run. Pricing for such units is on average 271 per cent more than a generic coffee maker, the cost jumping from an average of $35 for an automatic drip to $130 for a single-serve. In addition, contentment was highest among those who paid more than $150 for their single-serve coffee makers, with 89 per cent of those surveyed stating that they are very impressed by the machine’s capabilities.

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

Arriving into the Canadian market a few years ago, single-serve coffee machines are now meeting 42 per cent of consumer hot-beverage requirements. Almost all owners (96 per cent) would recommend that their family and friends invest in a personal coffee maker.

Almost one third (31 per cent) of consumers indicated that they drink more coffee or specialty beverages since acquiring their single serve coffee machine.

The average weekly consumption of hot beverages (regular coffee, decaffeinated coffee, hot chocolate, tea and espresso) for a single-serve owner is 12 cups per week.

Tassimo and Keurig, each accounting for 31 per cent of purchases, are the unit brands of choice for consumers.

The top three brands of coffee Canadians are using in their single-serve coffee makers are Van Houtte (32 per cent), Maxwell House (29 per cent) and Nabob (25 per cent).

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NPD: Canadians bring the coffee house home