According to in-store scanner data from Information Resources Inc., Chicago, the category called "cappuccino/iced coffee" increased slightly more than 55% from 2000 to 2004. Indeed, ready-to-drink packaged, coffee-flavored, milk-based beverages are an exploding business. Sales of other coffee-flavored dairy products such as frozen desserts appear to be steady, suggesting they are still quite popular with consumers.
Editor's Note: To prepare for this article, I conducted some of my own consumer research. I spent numerous afternoons in Chicago area coffee shops-Starbucks, Caribou and some local joints. Among my findings was the observation that seldom is there not a person ordering a beverage in any of these establishments. In fact, during early-morning hours, lines with 10 or more customers are quite common. I also learned that at select Starbucks, chai is ordered 10% of the time. I was very surprised. I felt inclined to learn more about chai sales and asked a few baristas how often soy is requested in chai, and was told, on average, about half the time. And, this final noteworthy observation might come as a shocker to you, as it did me. Kids and teens are buying coffee drinks, too. I saw a seven-year-old down a Caramel Frappuccino® and a group of high school students go through a few rounds. Parents who purchase hot chocolate or chocolate milk from Starbucks likely do not know that these drinks contain a shot or so of mocha syrup. With that said, a lot, and I mean a lot of milk is used to make these drinks. In many drinks, there's more milk than coffee. Add in the whipped cream some of these beverages are topped with, and there's a lot of dairy being moved through coffee and tea houses. Indeed, dairy serves as an ideal base for coffee and tea.
When it comes to working with coffee ingredients, the least expensive coffee flavoring ingredient is freeze-dried or powdered coffee. An advantage is that it can be diluted to whatever strength is required at the time it is being used. It can be stored at ambient temperature and has a lengthy shelflife. The downside is that such products deliver an acidic or bitter aftertaste, and a formulator needs to mask the bitterness, especially in cold beverages, with other flavors, thickeners or sweeteners.