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Coffee market keeps growing

08 Jul 2004

According to a new report, consumers have ranked Caffe Nero the number one coffee bar operator for the fifth year in a row.

The study, by independent market research company, Allegra Strategies, interviewed 5,200 consumers and 154 industry professionals and Caffe Nero came top in the survey of major brands on all five key defining factors – coffee quality, atmosphere, service quality, food quality and price/value.

Chair and chief executive of Caffe Nero, Gerry Ford, said: “This is an excellent result and I am delighted to report that Caffe Nero has once again been voted number one brand by consumers.

“This year’s report is testament to the fact that as we continue to grow our business, the focus we place on quality and service is consistently recognised by our customers. Branded coffee culture is forecast to expand in the UK to over £1bn by December 2004 and Caffe Nero continues to successfully build market share both in London and the regions.”

The Allegra report said the branded coffee sector increased at an annual rate of 15.7 per cent between December 2000 and June 2004 and is predicted to grow by 10.7 per cent annually between June 2004 and December 2006. The number of outlets is expected to grow from 2,229 in June to 2,965 by December 2006.

The report also said that Starbucks remains the largest branded operator, with 400 outlets, followed by Costa, with 330 and Caffe Nero with 173. The fastest growing are Starbucks and Caffe Nero, increasing their market share by 4.8 per cent and 4.3 per cent respectively.

Allegra also said that there is an increasing trend towards partnerships between coffee chains and other retail operators – such as Caffe Nero with House of Fraser and Selfridges and Starbucks with Borders Bookshops.

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