Issue link: http://read.dmtmag.com/i/556538
38 STiR tea & coffee industry international / Issue 4, 2015 (August/September) Cold room workers wear protective suits while handling the frozen coffee. Photo by Patricia Rincon "This theory is very broad and of- tentimes inaccurate; the basic question we have to address is: Who is your con- sumer? Fortunately, there are consumers for different kinds of products, and the consumption preferences are very differ- ent from one country to another; further- more, within a specific country, you can find very different cultures and therefore different consumption patterns and pref- erences," he said. "Over the years Buencafé has im- proved the process in different stages, bringing new technologies to deliver in- novative products to our customers," ac- cording to Samper. "A perfect example is the micro-grinding process which en- ables us to offer what we call Roasted Instant Coffee," he said. Buencafé has been instrumental for Colombian coffee´s penetration in new markets including Russia, Japan, UK and Mexico that value high quality soluble coffee products, according to Samper. "Across these markets, consumers are looking for high end products, which is one of our biggest strengths and how we differentiate ourselves from the com- petition," he said. UK market The UK is the world's third largest freeze-dried market just behind Japan at 28,936 tons and growing at 8% last year. According to statistics compiled by the International Coffee Organi- zation (ICO) the country consumed an aver- age 873,000 60-kilo bags per year during the 10 years beginning in 1990. UK accounted for 29% of the retail value of all the instant sold in the EU in 2013, ac- cording to Euromonitor. UK consumers are no longer interested in traditional powdered ro- busta. Nestle's Azera and Kenco Milicano are among the more successful "hybrids," a new style of premium arabica that blends instant and roast coffee, according to Euromonitor. Japanese market Japan is the seventh largest importer of instant coffee and the second largest buyer of Colom- bian coffee, importing 1.1 million 60-kilo bags of arabica last year. While there were a lot of green beans in those shipments much of that coffee was freeze-dried, amounting to 29,701 tons in 2014. In addition to freeze-dried sold in sticks, Japan also buys a lot of higher quality coffee extracts used in making canned coffee. Georgia canned coffee is Japan's leading RTD brand. The top selling Emerald Moun- tain blend uses 100% arabica from Colombia. Producing Countries Nestle remains by far the largest manufacturer of instant coffee, dominating every major mar- ket except Korea and buying in every region. The Nescafé brand has a 44% share of sales globally and 40% volume share. Competition is slowly but steadily increasing, notes Euro- monitor, which reported Nestle's coffee market share has declined two points since 2004. Brazil Brazil is a large solubles producer but exports have not grown for 10 years, falling to 9.8% from 14.4% of global totals. A Brazilian Solu- ble Coffee Development Plan aims to increase by 50% domestic consumption which now accounts for approximately 5.5% the market. Brazil produces three times the solubles of any country, exporting on average the equivalent of 3 million 60-kilo bags in the past decade. Solu- bles exports were 3.29 million bags in 2014/15. India Soluble coffee accounts for 57% of Indian domestic consumption, according to Coffee Board of India chair Jawaid Akhtar. He said per-capita consumption is higher outside the traditional coffee growing regions where demand for ground roast and whole beans is dominant. A wide range of soluble coffees are avail- able to meet the demands of distinct Indian consumer segments, he explained. Growth is triggered by the domestic and multinational producers and marketers: "Consider the stage at which India lies on the coffee consumption trajectory, it is expected that, during the next few years, the growth rates for ground roast coffees could exceed that of soluble coffee due to the emergence of discerning consum- ers who are able to appreciate the nuances of freshly ground roast coffee. This trend has already commenced with the growing sales of home coffee brewing equipment includ- ing coffee from capsules and pods," he said. Mexico In Toluca, near Mexico City, Nestle operates the largest soluble coffee factory in the world. Mexico, one of the world's top soluble export- ers, experienced an average growth rate of 11.6% in the production of soluble coffee be- tween 2000 and 2011 – second only to Ecua- dor which has seen a meteoric rise in soluble exports. Annual sales of Ecuadorian solubles totaled $151 million in 2011, up an average 19.4% during the decade, according to ICO. Vietnam Vinacafe Bien Hoa, a partially state-owned enterprise organized in 1975, produces 4,000 tons per year of instant coffee of various kinds, from 3-in-1 packets (for which it owns the pat- ent in 60 countries) to premium arabica/robus- ta blends. Vinacafe owns 41% of the Vietnam- ese market for instant coffee and in 2014 grew 30%, recording sales of $142 million. Barney's Coffee Kitchen liquid instant brew sticks are 100% cold-brewed arabica used to make hot or iced coffee on the go. Japan's top canned coffee