Who's Winning the War for Your Morning Coffee?

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Sept. 27 (Bloomberg) -- Julie Hyman breaks down the numbers for coffee sales on Bloomberg Television's "In The Loop." (Source: Bloomberg)

The k-cup, even though we have seen huge growth in this market.

If you are talking about what kind of coffee people drink at home, it is still the good old- fashioned maxwell house and folgers.

If you look at market share and what we saw last month, or come i should say, this month, folgers is capturing 15% of the market, followed by maxwell house.

Green mountain is issuing a respectable seven percent, followed by private label brands, your store generic branscum, and finally, starbucks with 4% of the market.

Starbucks wants to build up that number.

If you bring it to single cup coffee's, the k-cups you are talking about, the pods, green mountain controls that market.

The concern among some investors is that growth may slow.

Even in the third quarter, the company said that sales growth slowed to 18% from 21%. there has been rapid adoption here, but even though the market has opened up to some agreed -- to some degree, green mountain has that first entrance.

Coffee prices have been slumping.

How is that affecting the market?

We have seen almost a collapse in coffee prices because of oversupply.

Coffee is down 26% year to date.

The coffee makers have approached that in different ways.

You have seen starbucks cut the prices.

This is for at-home coffee.

You have seen other mainstream copies of players -- maxwell house, folgers -- also slashing the price is quite a bit.

I talked to announce to said that green mountain has some degree of pricing power -- i talked to an analyst to said that green mountain still has some degree of pricing power because people want it right now.

They really do want their coffee.

They also like these premium copies.

I like the hazelnut-flavored coffees.

What are you finding about consumers tastes?

Again, talking about the maxwell houses and folgers of the world, there is a baseline for prices.

Premium coffee, stuff like starbucks, the flavored coffee you are talking about, is priced 92% higher, and yet, guess what sales are growing the most?

There is the noonish -- newness issue, and the fact that they're coming from a lower base.

More and more of them are being introduced.

It is interesting that investors -- investors -- customers are willing to pay up for newnewss and convenience as well, that perceived convenience of just popping the k-cup and the machine and getting your single cup of coffee.

It is ha -- i'm just getting your single cup of coffee.

It is hard not to see the staunch loyalists.

I like mcdonald's. would you drink?

I'm not a coffee drinker.

I drink tea.

Not part of the coffee trend.

Given your early morning hours.

Thank you, julie hyman.

What goes good with coffee is warm, tempting, and the lauric -- caloric.

We are talking about cinnabon.

This text has been automatically generated. It may not be 100% accurate.


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