Maureen Gahan, Food and Beverage Division, Bord Bia – Irish Food Board

Starbuck shares that were trading at $8.27 in 2009 are now trading in the low $80s, a tenfold increase in just six years. The company is the giant in the Coffee House market, now running 20,000 coffee outlets around the world, with 1,600 new stores due to open in 2015.

And they are leading the way in innovation – I referenced their Duracell PowerMat initiative in a previous Food Alert article. More recently they have announced plans to launch a new express store format to cater for on-the-go coffee drinkers, with the ability for time pressed customers to pre-order their drink in advance. The company is also looking to boost revenue through alternative food offerings, announcing back in September a trial partnership in London with POD, the healthy convenient food brand.

In Ireland, the Coffee Shop channel is valued at €345 million at consumer prices in 2014, and is forecast to grow at a compound rate of 2.5% over the next three years (against an overall foodservice market CAGR of 1.9%). Further information on the consumer and operator trends driving growth in this channel is outlined in Bord Bia’s recently published 2014 Irish Foodservice Channel Insights report.

To order a hard copy of this report, contact Maureen Gahan by email at maureen.gahan@bordbia.ie.