Issue link: http://read.dmtmag.com/i/581281
STiR tea & coffee industry international 53 Restaurant manager Leandro Mereguito Whirlpool/AmBev Brestemp B-Blend introduced in May 2015 makes 24 different beverages, sells for $1,500. of action to revert the scenario: consumers and institutional," according to a report di- rected by Carlos Henrique Jorge Brando, P&A's c.e.o. Domestic consumption was 4.89 kilos per person last year, exceeding the same measure in Italy and France. Coffee drink- ers in Brazil still trail the US, Finland, Den- mark, and Norway where consumption can reach 13 kilos per capita, but the pace has accelerated and Brazil will soon be the larg- est coffee market by volume in world. The whole program was orchestrated by the ABIC with positive results inspir- ing other coffee growing countries, such as Colombia. The Toma Café Program, for example, led by Federation National de Caf- eteros (FNC) shows how Brazilian strategies 0 5 10 15 20 25 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 8.2 8.5 8.9 9.1 9.3 10.1 11.0 11.5 12.2 12.7 13.2 13.6 14.0 13.7 14.9 15.5 16.3 17.1 17.7 18.4 19.1 19.7 20.3 20.1 20.3 Domestic Consumption's Steady Rise Source: ABIC helped increase consumption in the Colombian domestic market in the last five years. Brando was personally involved coordinating studies and helping devise strategies for Toma Café," he said. Brado is credited with coming up with Brazil's new slogan reflecting the country's status as a coffee drinking land: "Brazil. Coffee Nation." Created in 1973, ABIC continues to administer action plans that integrate the pro- duction sector, retail outlets and consumers. The association supervises six different proj- ects: Purity Seal, Coffee Quality Program, Sustainable Coffees of Brazil, Quality Coffee Circuit, and Coffee in Schools. "With better products it has become easier to promote coffee in the domestic market," explains ABIC executive director Nathan Herszkowicz. Consumer profile Single-serve, specialty coffee, pour-over, and unconventional brewing methods are new developments in Brazil that appeal to fashionable youth. The consumer profile in urban areas has changed in the last few years. Elements of exclusivity and quality are mandatory for young consumers between 15 and 35 years of age. All this modernism and new gadgets, however, didn't substitute for classic roasted and ground coffee. According to a Scantrak retail market report conducted by Nielsen and ordered by ABIC, sales of instant coffee and roasted and ground coffee still account for more than 90% of the domestic market. Traditional methods of consumption remain strongly rooted in the local habits in most states of Brazil, except the south and southeast regions. A preference for roasted and ground coffee keeps the market stable in these areas with no appreciable growth or decline. Brewed coffee was the norm in Guilherme Cury's São Paulo home where it was common for even children to enjoy a cup or two daily though childhood. "My early memories of drinking coffee date to when I was 10 years old," says Cury. Restaurant manager Leandro Mereguito started even earlier. "I remember having coffee with milk when I was five years old," he says. Children continue to drink cof- fee with no ill effects. Their health is great and studies show that drinking coffee can improve their concentration and success at school. Instant coffee, cappuccinos, latte, and specialty capsules leads ascending markets, with 50% growth expectation in the next few years. This information explains why Dolce Gusto (a Nestlé brand) and TRES (from the Brazilian enterprise Três Corações Group) together invested more than $12 million in multi beverage single-serve tech- nology in Brazil. This is reflected in the coffee routine of young consumers like Mereguito. His taste for coffee changed over time and he became a little more demanding. "In the morn- ing, I prepare my coffee with my Italian coffee machine because I like its intensity to wake me up. After lunch, however, I drink Nespresso. It is almost a dessert for me," he explains. Cury also likes capsules. "I changed my habits and now I can tell that I am a little picky. I chose carefully the beans that I will consume and I do not add sugar or milk," he says.