With the faltering economy, some fear the $5 white-chocolate
mochaccino purchased at the local coffeehouse may go the way of
the dinosaur. Espresso-based and iced or cold coffee sales have
jumped 10% since 1997, according to the NCA, so the effect on the
coffee industry could be enormous. However, the result may not be
a decline in consumption but an increase in coffee consumption outside
the well-known but often pricey coffeehouses.
As part of an effort to expand beyond the carbonated
beverage category, Coca-Cola is already making moves to hit this
potential market by purchasing P.J. Bean, maker of roasted coffee
and ready-to-drink bottled coffees under the Planet Java brand.
Coke aims to expand Planet Java across the country and will increase
the number of flavors available. Add Pepsi's bottled coffee efforts
with Frappuccino (its joint venture with Starbucks), and the days
of the coffeehouse boom could well be numbered.