Coffee Creamer Case Study
• Dry, condensed and evaporated milk products – This part of the industry includes dry, whole, nonfat, skim, buttermilk, infant formulas, and the dairy product substitutes which includes but not only includes the soy milk, almond milk. This part product takes over 17.6% of whole industry sales.
• Butter – It takes the smallest shares of the whole industry, which is only 4.7%.
For the Coffee Creamer Production industry, it is divided …show more content…
• Supermarkets & Grocery Stores (44511): These customers because of their large size and huge demand request, they directly order the product from the manufacturers. In addition without middle transaction, the price they have is lower than others.
• Convenience Stores (44512): They are like the supermarkets & grocery stores, but with smaller size and lower demand request.
• Food Services Contractors (72231): This type of customer typically means the restaurants.
• Coffee & Snack Shops (72221b): This type of the customers which points to the local coffee store and dessert store.
• Consumers (99): This type of the customer is the individuals, which means they are not doing any sales for the product. It turns to be the final goods.
According to IBISWorld (McCormack, 2016), it points out the following industries as the decisive suppliers for the Coffee Creamer Production industry:
• Dairy Farms (11212): They provide milk for further refinement into coffee creamers.
• Margarine & Cooking Oil Processing (31122): The common ingredient of non-dairy creamers are: palm oil, coconut oil, soybean oil and other …show more content…
However, considering New York as one of the top five milk producers and one of the country’s largest population centers, coffee creamer producers takes more advantages for located in there. Figure 7 Business Location in Domestic
Coffee creamer producers tend to be located close to dairy and cattle farms, given the products' perishable nature and high transportation costs. Traditionally, creamer products were difficult to transport because they was very perishable. However, changes in ingredients and types of creamer products are increasingly allowing for greater geographic reach and longer shelf life. The Great Lakes, Mid-Atlantic and West regions are expected to account for the largest concentrations of industry locations.
The Great Lakes region is estimated to account for the majority of industry establishments. Wisconsin, the country's second-largest milk-producing state, leads the region. Further, the state is home to the largest share of all US dairy farms, making it ideal for creamer producers to base themselves in this region. Illinois and Ohio each have much smaller but stable shares of establishments in the region, given their large