Britvic plc Business Reports

Consumer taste and population growth drive demand in the consumer sector, while economic growth of businesses, like restaurants and hotels, drives demand in the commercial sector. The profitability of individual companies depends on effectively managing raw ingredient costs, efficient operations, and effective marketing. Large companies have scale advantages in purchasing, distribution, manufacturing, and marketing. Small companies can compete effectively by offering specialized products or serving a local market. The industry is capital-intensive: average annual revenue per worker is about $600,000. Imports of roasted coffee and tea are 20 percent of the US market; exports are about 10 percent of US production. Part of the international export market is instant coffee. The US is the world’s largest importer of green coffee beans because, with the exception of Hawaii and Puerto Rico, the US climate can't support coffee trees and tea plants. Coffee and tea manufacturers face intense competition from other beverage companies, especially soft drink, bottled water, and juice manufacturers. The US is the largest coffee consumer in the world.