Coffee wars

Most coffee wars for consumer market share involve the largest coffeehouse, Starbucks, pictured here reflecting a sign for Tim Hortons in New Westminster, Canada.

Coffee wars, sometimes referred to as caffeine wars, involve a variety of sales and marketing tactics by coffeehouse chains and espresso machine manufacturers to increase brand and consumer market share.[1][2] In North America belligerents in these wars typically include large coffeehouses, such as Starbucks,[3] Dunkin',[3] McDonald's,[4] and Tim Hortons.[5] According to The Economist, the largest coffee war of the late 2000s was between Starbucks and McDonalds in the United States. The U.S. market has, since the early 2010s, been primarily contested by its two largest players, Starbucks and Dunkin'. Since 2020, competition over the Chinese coffee market has intensified between Starbucks and Luckin Coffee.

Periods of low economic activity and business recessions––which contribute to diminished consumer demand––have been linked to an increase in coffee wars. Major innovations in the coffee industry, particularly the advent of single-serve espresso pods, have lowered the market's barrier to entry. Although store count has been traditionally seen as gauging market share, both firms and analysts have incorporated revenue, balance sheets, organic growth, operating margin, and stock market performance as comparable indicators.[6][7]

  1. ^ Sylvers, Eric (October 13, 2019). "Lavazza and Illy Say 'Basta' as Global Coffee Wars Come to Italy". Wall Street Journal. ISSN 0099-9660. Retrieved April 20, 2020.
  2. ^ "Coffee wars". The Economist. January 10, 2008. ISSN 0013-0613. Retrieved April 14, 2020.
  3. ^ a b Hughes, Jennifer (20 November 2012). "The Coffee Wars Continue". National Real Estate Investor. Retrieved 12 April 2013.
  4. ^ Hill, Chris (13 February 2013). "1 New Player In The Coffee Wars". Motley Fools. Retrieved 12 April 2013.
  5. ^ Hiscock, Michael (December 19, 2020). "McDonald's just turned up the heat in the coffee wars". The Loop. Retrieved April 10, 2020.
  6. ^ Hall, Jason (April 20, 2020). "Forget Coronavirus: These 3 Starbucks Metrics Matter More". The Motley Fool. Retrieved April 20, 2020.
  7. ^ Perez, Marvin (March 23, 2019). "Starbucks Closures Can't Stop Coffee's Massive Rally, Here's Why". www.bloomberg.com. Retrieved April 20, 2020.