Economy leads to more home-brewing of coffee

NEW YORK Americans may keep getting their morning Joe at Starbucks and Dunkin’ Donuts, but a difficult economy will cause sales to increase faster at retailers than at coffeehouses and restaurants, according to a new Packaged Foods study.

The study, “Coffee in the U.S.: Retail, Foodservice and Consumer Trends,” found that coffee sales increased by 11 percent last year, to $43.9 billion, compared to a 9.7 percent growth rate between 2003 and 2007.

PF predicts that while sales at coffeehouses and restaurants will increase by 36 percent, sales at retailers will increase by 37 percent, to $52 billion and $7.8 billion, respectively.

PF also found that cross-branding has become a significant trend. For example, Kraft Foods distributes ground and whole-bean Starbucks and Seattle’s Best coffees to retailers, while supermarkets in the eastern United States are selling packaged coffee from Minneapolis-based Caribou Coffee.

Starbucks shares were trading on the NASDAQ at $14.56 around noon Tuesday, up by 0.47 percent.

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