Issue link: https://read.dmtmag.com/i/491365
STiR tea & coffee industry international 53 This summer, a new marketing strategy aimed to rein- troduce customers to Nescafé will specifically target young coffee drinkers. A new logo will make its debut (see image at right), as well as an orchestrated social media strategy and new taglines with the hope of making Nescafé a hot product once again. Will it be enough? Imports and exports In the hot drinks category, coffee is unquestionably the retail sales king. It dominates the segment and has introduced an ever evolving collection of options for convenient consump- tion: soluble coffee in various forms, bottled beverages, and coffee pods to name a few. Euromonitor International proj- ects that coffee will continue to dominate and grow at a rapid pace. Many are banking on the fact that soluble coffee can play a critical role in this expansion. Soluble coffee exports have grown at an average of 5.2% over the past two decades according to the International Coffee Organization (ICO). The growth has not been slow and steady, however. There was actually far more moderate growth from 1990 to 1999, only demonstrating growth of 1.9%. Then from 2000 to 2011 there was a dramatic shift; exports were moving quickly with an average annual increase of 7.5%. To put this in perspective, exports equaled 3.6 mil- lion bags of coffee in 1990, 4.7 million bags in 2000, and 10.5 million bags in 2011. Brazil took the top spot, sending out an average of 45.3% of all the soluble coffee exported from 2000 to 2011. India and Colombia held the number two and number three slots with a combined average of 21.8% of sol- uble exports. Indonesia found itself in the sixth slot with an average of 6.7% of exports, but has been coming on strong. In 2011, the Indonesian archipelago, comprised of 13,466 is- lands, exported 2.7 million bags of coffee, moving them into second place. More than 12 million bags of coffee were imported on average between 1990 and 2011. As one would anticipate, the import trajectory mirrors that of exports. Between 1990 and 1999, imports of soluble coffee averaged 7.7 million bags annually and then as the world's thirst for coffee intensified from 2000 to 2011, the average more than doubled to 15.5 million bags. In 2011, the numbers were even higher, at 17.8 million bags. The Russian Federation was the largest im- porter, bringing in more than 1.9 million bags each year. The United States came right behind them with 1.3 million bags. The United Kingdom, Germany, and France rounded out the top five from 1990 to 2011. These countries were active in re-exporting these coffee products as well. Importing coun- tries re-exported an average of 7.7 million bags. In 1990 the number stood at 2.6 million bags, but in 2011 it had exploded to 12.1 million bags of re-exported soluble coffee. Germany was the largest of these re-exporters globally. In assessing the industry, imports and exports only tell part of the story. One-third of the volume in this market is consumed in the country in which it is grown. Since 2008, the 10 largest production countries have increased output by 30% while domestic consumption increased 40%. This import and export growth is significant and signals important trends for the coffee industry as a whole. From 2000 to 2011, however, soluble coffee only comprised 12.9% Nescafe's new look Coffee Creamer RTD Cafe Latte Photos copyright NESTLE S.A./NESTEC S.A Colombian coffee beans used in Nestle's coffee.