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Processed & Packaged Goods

Starbucks Green Mountain JM Smucker Mondelez. Processed & Packaged Goods. Connor Myers. Packaged Coffee. All 4 companies have an interest in selling coffees to consumers

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Processed & Packaged Goods

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  1. Starbucks Green Mountain JM Smucker Mondelez Processed & Packaged Goods Connor Myers

  2. Packaged Coffee • All 4 companies have an interest in selling coffees to consumers • Some are players in the distribution of coffee, while others also have an interest in controlling the whole distribution channel.

  3. Major Players in the Industry

  4. The Supply Chain

  5. Similar Industries •Tea Production •Baking Mix & Prepared Food Production •Soda Production •Bottled Water Production •Juice Production •Grocery Wholesaling •Supermarkets & Grocery Stores •Convenience Stores

  6. Industry Definition •This industry produces coffee, typically by purchasing coffee beans and processing them into roasted or ground coffee products. The industry excludes tea production and revenue from coffee made on premises, such as in a coffeehouse or cafe. Coffee creamer production is also excluded from the industry.

  7. Primary Industry Activities Major Products and Services in Industry •Traditional ground roasted coffee •Specialized ground roasted coffee •Whole bean roasted coffee •Roasting coffee •Manufacturing coffee concentrates, including instant and freeze-dried varieties •Manufacturing coffee extracts, flavorings and syrups

  8. What really is coffee? •ARABICA The premium variety of coffee bean native to Africa, and the bean that the majority of premium coffee products are made with. •GREEN COFFEE Natural coffee beans extracted from the fruits after harvesting. •GROUND COFFEE Roasted coffee reduced to small or very small particles, depending on the end product it is being used for. •ON-PREMISE Consumption at the point-of-sale. •ORGANIC A product made from mineral and plant ingredients rather than derived chemical compounds. •PREMIUMIZATION An increasing preference toward high-end products, such as beverages.

  9. Industry Demand/Price

  10. Industry Revenue Growth Year Revenue $ million Growth % 2002 5,997.1 0.0 2003 6,126.5 2.2 2004 5,885.7 -3.9 2005 6,096.8 3.6 2006 6,601.6 8.3 2007 7,161.8 8.5 2008 7,840.5 9.5 2009 7,571.9 -3.4 2010 9,162.2 21.0 2011 10,529.8 14.9 2012 11,136.5 5.8 2013 10,962.4 -1.6

  11. JM Smucker “With a name like smuckers, it had better be good”

  12. Background and History Founded in 1897 Headquartered in Orrville, Ohio Various Product lines including Jams, Peanut Butter, Crisco and Coffee

  13. Smucker’s Coffee Folgers Millstone Dunkin’ Donuts (retail) Kava Café Bustelo

  14. Financial Performance

  15. Life Cycle Analysis Smucker’s as a whole is in the Mature Stage of its life But they are in more of a growth stage in the coffee industry.

  16. 5 Forces Competition: High. Consolidated Industry so competition is intense. Small number of larger firms compete for customers. Buyer Bargaining Power: Low. Most products Smucker’s produces are necessities and food so customers mostly likely have to buy their products. Supplier Bargaining Power: High. Smucker’s does not produce any of the raw materials they use, so they are reliant on their suppliers. Threat of Substitution: Relatively High. Food industry is super competitive and many substitutes by off brands get produced. Threat of Entry: Relatively Low. Market is very saturated and highly competitive.

  17. SWOT Analysis Weaknesses: • Low International Presence • New to Coffee Industry Strengths: Industry leader in fruit spreads Good Reputation and developed Brand Name Opportunities: • Expanding further in Coffee Industry • Sugar free lines Threats: • More Healthy Eating • Off-brand competition

  18. Overall Performance

  19. Questions?

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