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Advertising Management Café de Columbia Case 1) Describe the key issues facing the FNC. The key issues facing the FNC are: * Decline in coffee consumption: Per capita coffee consumption (cups per person per day) in the U.S. has declined by about 30% during the period 1950-2000. The decline has been particularly severe among females (37% versus 24% for males) and in the 20-29 year & 30-39 year age groups (68% & 65% respectively). Most of the decline can be attributable to the rising popularity of various types of soft drinks, bottled water, juices and 'new age' drinks that have been particularly targeted at the younger generation. In addition, increasing health awareness (in particular, the risks of high caffeine consumption) has also contributed to the decline in the coffee consumption. * Unfavorable industry structure: While there are more than 400 roasters in North America, four of them - Kraft Foods, Procter & Gamble,...

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