Chairman of All Japan Coffee Association 11Th April 2018

Home , Canned coffee

Public relations and coffee promotion activities of All Japan Coffee Association and the present situation of Japanese coffee market and the future trend

Keiichi Yokoyama Chairman of All Japan Coffee Association 11th April 2018

2018/03/27 contents

1, AJCA’s public relations and coffee promotion activities

・Activity regarding the 「Oct/1 International Coffee Day」・Enlightenment activity on the 「Coffee and Health」

2, The present situation of Japanese coffee market and the future trend １、AJCA’s public relations and coffee promotion activities Activity regarding「Oct/1 International coffee day」

From 1983「Oct/1 Coffee Day」(in Japan) to 2015「Oct/１ International Coffee Day」 ●Main activities ： ①Increase public recognition of 「Oct/1 International Coffee Day」 ② Increase direct connections with consumers by the participatory promotion ③ Enlightenment activity on the 「Coffee and Health」

The 2nd「Life with Coffee 「Oct/1 International Coffee Day 」 photo-competition 2017」 PR event ●Aim：share different emotional values of coffee ●Aim：Increase recognition of 「Oct/1 International with consumers through the photo competition Coffee Day」 ●Execution date：2017/10/1 ●Application period：2017/6/1～7/31 ●Contents ●Special judge ：Photographer Ms. Mineko Orisaku ＜Tokyo Area＞ ●Prize : 1 Grand-prix : 6 winners from 6 different categories ●Photo Award Ceremony ●Coffee tasting and delivering samples

＜Osaka Area＞

●Samba Dance Show ●Coffee tasting and delivering samples １、AJCA’s public relations and coffee promotion activities Activity regarding「Oct/1 International Coffee Day」） Exposition 3 BS11 National network TV broadcast (Venue in Tokyo) via MEDIA １、AJCA’s public relations and coffee promotion activities Activity regarding「Oct/1 International Coffee Day」

Venue in Osaka ＊「Samba dance show, coffee tasting and delivering samples」

★Samba dance show started after opening declaration of Mr. Hagihara, Vice-chairman of AJCA.

★Dance was livened up as Children joined on the spot ★Coffee tasting ＆Delivering samples ！

★tasting：1000 cups ★samples：3000 packs １、AJCA’s public relations and coffee promotion activities Activity regarding 「Oct/1 International Coffee Day」

1）PR via national newspaper 2）PR via SNS Expose via ●Yomiuri ： 9 million copies ●Asahi ： 6.5 million copies MEDIA （＊Households in Japan：53.72million）・Publication of more than 150 SNS news

・Exposition through Twitter, Line, ｆｂ１、AJCA’s public relations and coffee promotion activities Enlightenment activity on the「Coffee and Health」 ●Ageing society with fewer children is advancing in Japan, it is predicted 35% of nationals in 2020 and 45% of nationals in 2050 will be over 60 years old of the age

Increase concerns of 「Coffee and Health」 National Cancer Center Japan reported (May 2015) （）＜＞ 1000 Demographic change by age group in Japan “Coffee consumers of 3-4 cups a day 140000 ACT LE ＊Over 60 Years old have 24% less riskか of death than 35% non-coffee consumers“ 120000 39% 43% 100000 45% ７６newspapers 47% picked up this news 80000

60000

40000

20000

0 2010 2015 2020 2030 2040 2050 2060 （） 0-14 15-59 60-64 65-69 70-74 75- Cabinet office Years old １、AJCA’s public relations and coffee promotion activities Enlightenment activity on the「Coffee and Health」１）「Interesting stories about coffee and Health ①～④」・Total issues ：4 volumes （230 thousand issues）・Delivered to : consumers, mass media, Library etc. ・Contents ：explain easily about the health related effect of coffee ２）Booklet 「Coffee Break」・Total issues ： 90 volumes(160 thousand issues）・Delivered to ：mass media, Library etc. ・Contents：Topics of the coffee in the world and the Coffee and Health ３）Disseminate information via AJCA Homepage １、AJCA’s public relations and coffee promotion activities Enlightenment activity on the 「Coffee and Health」

4）TV broadcast about 「Coffee and Health」 and make DVD for rent ●Purpose：Deepen the public understanding about 「Coffee and Health」 ●Period：2017/9/26 ～ 9/30（for 5 consecutive days） ●TV ：ＢＳ nationwide network ●Performer ： Dr. Kazuo Kondo（Advisory Doctor of AJCA, Professor of The Toyo University and Medical practitioner） ●Contents ：・No1 topic：「Latest study about coffee drinking habit and mortality 」・No2 : 「Medication of cardiovascular disease and coffee polyphenol」・No3 ：「Risk of Stroke is decreased by Polyphenol」・No4 ：「Possibility of coffee to prevent Parkinson’s decease」・No5 ：「Is coffee carcinogenic?」１、AJCA’s public relations and coffee promotion activities Enlightenment activity on the 「Coffee and Health」

5）Subsidy program for the study of 「Coffee and Health」

●Contents：Invite researchers of universities, hospitals, research centers openly to promote the study of 「Coffee and Health」 ●Results： the studies under our subsidy program amounted to total 217 since 1996

Themes of studies selected for the subsidy program of 2017

1, Lifespan analysis of aged mice that began consuming coffee at 20 months old 2, Metabolomic analysis of coffee- induced anti-glycation effect 3, Synergistic effect of coffee on the Treg-inducing activity of lactic acid bacteria, which inhibits and life-style related disease. 4, Anti-atrophic effects of coffee compounds in skeletal muscle-effects of caffeic and chlorogenic acid on myogenic differentiation. 5, Effects of enteric environmental modification by coffee ingredients on neurodegeneration in the model of Parkinson’s disease. 6, Partial structure analysis of coffee melanoidins using microbiological degradation activity. 7, Anti-Hepatitis C virus effect of coffee extracts and coffee-related compounds. 8, Mechanistic analysis of inhibitory effects of metabolic syndrome and non-alcoholic steatohepatitis by dairy coffee intake: comprehends analysis of intestinal bacterial flora and metabolites in animal model. 9,Chlorogenic acid inhibits the growth of primary effusion lymphoma in vitro and in vivo and induces apoptosis via suppression of the NF-kB and STAT3 pathway. contents

1， AJCA’s public relations and coffee promotion activities

・Activity regarding the「Oct /1 International Coffee Day」

・Enlightenment activity on the 「Coffee and Health」

2, The present situation of Japanese coffee market and the future trend 2, The present Japanese coffee market and the future trend ①Volume of imported Green Coffee Beans ●Import of GCB amount 430-450 thousand tons in the several years (average growth +2.5 % / year) ●’60 Liberalization of GCB import and Westernization of the Japanese diet habits promoted coffee consumption （’000ton) ＜Factors of Increase＞ 500 ●1950 Start of GCB Import ●1960 Liberalization of GCB Import ●1960 Start of Instant coffee domestic production 400 ●1961 Liberalization of Instant coffee Import ●1969 Canned Coffee introduced ●1980s Bottled coffee introduced ●2000s Personal R&G coffee and Stick type coffee 300 started to increase ●2012 Convenience stores’ coffee introduced

200

100

‘50 ‘55 ‘60 ‘65 ‘70 ‘75 ‘80 ‘85 ‘90 ‘95 ‘00 ‘05 ‘10 ‘15 Westernization of the Japanese diet habits 2,The present Japanese coffee market and the future trend ②Positioning of coffee in the Japanese ●Share of beverage category: 30％。 beverage market ●Consumers’ purchase value:26 billion us＄（2016） ●Consumption amount:51.8 billion cups（2016） ●Consumption volume marked record 4 consecutive years (2013-16 ) → Coffee is the most drunk beverage and the growth rate is the highest. Share by the beverage category （2015 shipped value base) Black tea, Coffee, Green tea ＋（’000ton) ( Production Import volume) Coffee Milk base ※CAGR：1965~2015 drink 22% coffee 30% CAGR：6.5％ Water/Soft drink 11%

9% 15% Green tea 13% CAGR:0.0％

Juice Black tea Green Tea CAGR：3.4％

Carbonated drink Coffee；Green bean import volume Black tea；Min Finance「Trade data」 Green Tea ；MOFA「Tea annual data」 Consumption cups：AJCA survey report 2, The present Japanese coffee market and the future trend ③Japanese coffee market and topics

■The latest biggest topic is 「The growth of the Convenience store coffee」 As for instant coffee and regular coffee, personal size is expanding

Shrinking Market Expanding market 51.8billion cups 「convenience store」coffee （million 2012→2016（growth rate） 550 conveni/cafe cups） /restaurant 1230％ Canned coffee 500 2012→2016（growth rate） 450 10.9 83％ 400 Home use liquid coffee ・ 350 (canned 14.8 bottled etc) 300 Home use Personal pack regular coffee 250 regular Home size coffee 2012→2016（growth rate） instant coffee 200 10.3 158％ 2012→2016（growth rate） 150 Home use Stick pack coffee 88％ 100 instant coffee 15.8 2012→2016（growth rate） 50 124％ 0 Data source：Consumer survey on coffee ’16 consumption ( AJCA) 2, The present Japanese coffee market and the future trend The change of coffee consumption rate and number of cups consumed ・Both consumption rate and number④ of cups consumed increased. Cups consumed by group of over 60s increased to 1.5 times from 2002

【coffee consumption rate（drink often+sometimes）】【Number of cups consumed a week】

‘02 ‘16 ‘02 ‘16 （%) （杯) 100 94 96 16 93 92 90 91 89 87 14.2 14 82 13.0 1.5times 79 80 12.0 12 11.1 11.3

10.0 9.9 10 60 8.1 8 6.4 40 5.6 6

4 20

0 0 TOTAL 18-24 25-39 40ｓ Over 60s TOTAL 18-24 25-39 40ｓ Over 60s Years old Years old -50ｓ Years old Years old -50ｓ

Data source：Consumer survey on coffee consumption（AJCA） 2, The present Japanese coffee market and the future trend additive /popular brands/preparation

・Black coffee fans are increasing.⑤ Popular brand names are diversifying. ・Drip methods like the hand paper dripper are most popular.

【 Popular brand names（multiple responses （%) accepted）】【】 additive type 50 100% 40

30 24 With milk and 80% sugar 38 20

22 60% 0 Mocha Blue Kilimanjaro Brazil Colombia Kona coffee Guatemala Mandheling TORAJA With milk Mountain

22 7 （%) 【Preparation 40% 50 method】 With sugar 9 40 51％ 30 44 20% black 37％ 20 28 10 0 0% Pa per Coffee Coffee Coffee I nstant Ca p su le Nel drip Siphon Espresso ’02 ’16 dripper m aker m ill pods coffee m a chin e m a chin e

source：coffee survey report（AJCA） m a chin e 2, The present Japanese coffee market and the future trend Consumption of regular coffee (roasted beans)will increase . ・Aged consumers over 70 years⑥ will consume more coffee reflecting the health concerns in the future .

（cups) 【The change of cups of coffee consumed per week】 16 ‘02 ‘16 ‘30 ＜2030 forecast＞ 14 coffee consumed:12.0 cups

12 ＜2016＞ coffee consumed； 11.1cups Increase 10

＜2002＞ coffee consumed :10.0 cups 8

4 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75-79 80-84 over85 Years old Summary

● Japanese coffee market will continuously expand in the future. The biggest group, senior consumers will consume more coffee. The recognition about「Coffee and Health」 will increase further. The coffee culture will diversify and deepen.

● The consumers are demanding tasty and safe coffee.

All Japan Coffee Association will continuously carry out the promotion to increase the consumption and the health related enlightenment activities including 「Oct/1, International Coffee Day」 in order to expand the coffee market. We would like to ask the producing countries to supply us with tasty and safe coffee continuously. THANK YOU