Coffee turns hip, young Americans are hooked

Young adults make up the fastest-growing segment of the daily coffee-drinking population, reports the National Coffee Association NCA in its just published 2000 National Coffee Drinking Trends. One-quarter of all 18- to 24-year-old Americans drink coffee daily, up from 19 percent two years ago.

quot;This summer, I am all for frappuccino,quot; Amirkhanyan, a student at New York University said, referring to the Starbucks8217; latest weapon to woo the crowd this summer. quot;My loyalty is divided between Orange Mocha Chip and Chocolate Brownie.quot;

Since moving to the United States from Russia last year, she has become a convert to cold coffee beverages, which she rarely drank back home. quot;I love the general ambience here, you could read a book or chat with your friends. The music is cool and so is the menu,quot; she said with a nod toward the menu hanging over the counter.

Panama La Florentina, Brazil Ipanema Bourbon, Arabian MochaJava the coffee menu is as exotic as it is exhaustive. For Amirkhanyan and her university friends, it has become a weekly ritual to hang out at a gourmet coffee bar.The successful retailing of coffee by Starbucks is quickly being emulated by others, as is evident by the rapid growth of gourmet coffee houses across the country catering to those looking to be quot;hip and in.quot;

quot;You should be able to appeal to them young adults,quot; NCA spokesman Gary Goldstein said. quot;You should be able to deliver various quality to suit their distinct lifestyle coffee, just for you.8217;quot; Young people drink from the largest cup size, at 9.5ounces, compared to 9 ounces nationally.

David Rheingold, a 23-year-old New York-based writer, said a trip to a place like Dean amp; Deluca8217;s is worth the coffee. quot;I go there just for the coffee. It tastes great with Marble Brownies. I usually make appointments to meet people there, even though they are a bit expensive,quot; he said.

For retailers, this translates into a new marketing mantra to snare this coveted image-conscious group. Before 1991, there were only about 500 coffee houses in the United States. Now, gourmet coffee spots sporting carefully informal decor and a selection of coffee beans to suit every conceivable palate, have mushroomed all over the place.

quot;The college market is of interest for us, our campus coffee bars are designed to suit the individual image of each college community,quot; Starbucks spokesman Alan Gulick said. Starbucks is opening 750 new retail outlets worldwide this year, out of which 550 will be in North America.

Meantime, other retailers are cooking up ways to penetrate this critical market. Nestle SA, the Swiss food speciality company, has plans to introduce 3,000 vending machines in the United States by September. quot;These vending machines will be able to brew at least two types of speciality coffee,quot; said Paul Sivas, an executive with Nestle Food Services.

Coffee retailers might have to rejig their menus in order to keep the young audience hooked, industry analysts said. One such product line is ice-blended and cold coffee, which has already hit the market.