Cappuccino Price Index™ covers more of Australia
Gilkatho’s December Quarter Cappuccino Price Index™ has been expanded to cover more of Australia with the latest report showing Sydney having the lowest price takeaway coffee, with Melbourne offering the best price for dine-in coffee drinkers. [See Table 1 – 2010 Q4]
Takeaway
|
City |
Adelaide |
Brisbane |
Canberra |
Melbourne |
Perth |
Sydney |
|
|
$3.30 |
$3.33 |
$3.37 |
$3.15 |
$3.70 |
$3.11 |
Dine-in
|
City |
Adelaide |
Brisbane |
Canberra |
Melbourne |
Perth |
Sydney |
|
|
$3.31 |
$3.34 |
$.3.39 |
$3.19 |
$3.69 |
$3.41 |
Table
1
Gilkatho managing director Wayne Fowler said the December quarter results largely reflected the maturity of the ‘coffee culture’ existing in these capital cities.
“Right now Sydney and Melbourne have a more sophisticated and larger consumer market. That being said, the other capital cities are catching up and it will be interesting to monitor pricing trends as the year progresses.”
“But, in order to provide a more meaningful picture of what is happening in the Australian consumer coffee market, we have expanded our analysis to capture pricing data from more than 1,000 takeaway and dine-in outlets across the country to now cover Adelaide, Canberra and Perth, as well as Brisbane, Sydney and Melbourne.”[1]
Mr Fowler said the decision to expand the Gilkatho Cappuccino Price Index™ to include Adelaide, Canberra and Perth, was as a direct result of consumers demanding better information about how much they should be paying for their coffee.
“The Gilkatho Cappuccino Price Index™ has been expanded not just in terms of now covering Adelaide, Canberra and Perth, but to also provide quarter upon quarter results analysis and comparison of coffee prices in each city.
“There are a number of interesting and varying dynamics at play across the Australian consumer coffee market throughout the year. These range from being city specific to global market factors all impacting on the Gilkatho Cappuccino Price Index™ in Australia,” he said.
Mr Fowler highlighted that the December quarter results for 2010 were in line with Gilkatho’s prediction in January this year that Australians would be paying more for their coffee in 2011.
“Back in January we predicted that the 77% rise in coffee futures in 2010 (their highest level since 1997[2]) would outstrip any gains made by the Aussie dollar. As such, we expected that many café operators would be forced to pass these higher wholesale prices on to their retail customers. The national Cappuccino Price Index™ for all takeaway and dine-in venues bears this prediction out.” [See Table 2]
“Right now Sydney and Melbourne have a more sophisticated and larger consumer market. That being said, the other capital cities are catching up and it will be interesting to monitor pricing trends as the year progresses.”
“But, in order to provide a more meaningful picture of what is happening in the Australian consumer coffee market, we have expanded our analysis to capture pricing data from more than 1,000 takeaway and dine-in outlets across the country to now cover Adelaide, Canberra and Perth, as well as Brisbane, Sydney and Melbourne.”[1]
Mr Fowler said the decision to expand the Gilkatho Cappuccino Price Index™ to include Adelaide, Canberra and Perth, was as a direct result of consumers demanding better information about how much they should be paying for their coffee.
“The Gilkatho Cappuccino Price Index™ has been expanded not just in terms of now covering Adelaide, Canberra and Perth, but to also provide quarter upon quarter results analysis and comparison of coffee prices in each city.
“There are a number of interesting and varying dynamics at play across the Australian consumer coffee market throughout the year. These range from being city specific to global market factors all impacting on the Gilkatho Cappuccino Price Index™ in Australia,” he said.
Mr Fowler highlighted that the December quarter results for 2010 were in line with Gilkatho’s prediction in January this year that Australians would be paying more for their coffee in 2011.
“Back in January we predicted that the 77% rise in coffee futures in 2010 (their highest level since 1997[2]) would outstrip any gains made by the Aussie dollar. As such, we expected that many café operators would be forced to pass these higher wholesale prices on to their retail customers. The national Cappuccino Price Index™ for all takeaway and dine-in venues bears this prediction out.” [See Table 2]
Take-away
|
Year |
|
2010 Q4 |
2010 Q3 |
2009 |
2008 |
2007 |
2006 |
2005 |
2004 |
2003 |
2002 |
|
|
|
$3.30 |
$3.20 |
$3.10 |
$2.97 |
$2.85 |
$2.80 |
$2.67 |
$2.54 |
$2.37 |
$2.58 |
Dine-in
|
Year |
|
2010 Q4 |
2010 Q3 |
2009 |
2008 |
2007 |
2006 |
2005 |
2004 |
2003 |
2002 |
|
|
|
$3.37 |
$3.25 |
$3.17 |
$3.14 |
$3.24 |
$3.12 |
$2.86 |
$2.86 |
$2.57 |
$2.67 |
Table
2
Mr Fowler also predicted that continuing rising prices in a competitive employment market would lead to more workplaces acquiring their own in-house coffee machines to attract employees and reduce costs.
“We know from our own research that 65% of workplaces claim to have a 'coffee culture'. [1] Not surprisingly, this leads people to taking more notice of not just the quality of the coffee they are drinking, but also how much they are paying for it.
“In searching for that competitive edge, employers are more likely to provide cost effective incentives for employees in the workplace. An employee may pay $3.50 for a takeaway coffee, but many employers are moving to provide a workplace coffee machine in the office at a cost of about 35 cents per cup.”
Mr Fowler said it the Gilkatho Cappuccino Price Index™ would look to track the impacts of this new dynamic on Australian coffee prices in the March quarterly report for 2011.
ENDS
Further information: Mobile - 0421 333 031
[1] Gilkatho Customer Service Satisfaction Survey 2010.
“We know from our own research that 65% of workplaces claim to have a 'coffee culture'. [1] Not surprisingly, this leads people to taking more notice of not just the quality of the coffee they are drinking, but also how much they are paying for it.
“In searching for that competitive edge, employers are more likely to provide cost effective incentives for employees in the workplace. An employee may pay $3.50 for a takeaway coffee, but many employers are moving to provide a workplace coffee machine in the office at a cost of about 35 cents per cup.”
Mr Fowler said it the Gilkatho Cappuccino Price Index™ would look to track the impacts of this new dynamic on Australian coffee prices in the March quarterly report for 2011.
ENDS
Further information: Mobile - 0421 333 031
[1] Gilkatho Customer Service Satisfaction Survey 2010.
