STiR coffee and tea magazine

Volume 4, Number 5

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52 STiR tea & coffee industry international / Issue 5, 2015 (October/November) T By Kelly R. Stein Brazil's Três Corações group has introduced a single-serve brewing system that uses Caffitaly licensed capsules. Monica Wagner at home wenty-five years ago not many Brazilians brewed coffee at home and what little they did drink was often instant coffee. Per capita consumption in a country that single-handedly supplies a third of the world's coffee was 2.3 kilos—among the lowest in the world. Domestic consumption was 8.2 million 60-kilo bags of coffee in 1990, about one third of the tonnage harvested that year. Quotas and price controls ended in 1989 and during the free market period that followed Bra- zil doubled its production. More amazing is the fact that domestic coffee consumption has tripled during the last six years, according to the Brazilian Coffee Industry Association (ABIC). Brazil harvested an average 22.6 million bags a year under market controls. Since 1990 that average has increased to 35.7 million bags and in recent years production has topped 50 million bags. Last year domestic consumption totaled 20.3 million bags, growing 1.64% compared to the previous year despite a difficult economy. Was it magic? No, experts say, it was teamwork along the entire length of the supply chain. In 1990 the government outlined a strategy to stimulate consumption by targeting consumers who had not developed the daily habit. Market researchers suggested both the home and the insti- tutional market segments were ripe for growth and mobilized the coffee supply chain. Producers, roasters, soluble manufacturers, distributors, retailers, restaurants, coffee shops, offices, industrial kitchens, hotels, and hospitals were encouraged to promote a coffee routine. Media responded favorably to an effective public relations campaign while industry-sponsored events and trade fairs communicated the benefits and tasty aspects of coffee. Growth was slow at the onset, but annual consumption in Brazil grew steadily to 14 million 60-kilo bags by 2002, according to the P&A International Marketing report. Per capita consump- tion rose from 2.3 kilos to almost 5 kilos per person by 2014, as domestic consumption exceeded 20 million bags. "This long lasting initiative began with a group of 28 leading roasters, who financed an in-depth study of coffee consumption habits and a profile of the coffee consumer. This resulted in two lines Coffee consumption has tripled in the past six years and while roast and ground coffee remains the first choice in a majority of Brazilian homes single-serve is leading the way in growth in value. Brazil's Indomitable Domestic Market

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