STiR coffee and tea magazine

STiR coffee and tea 53 SALIM ARIA NOUSH (Ltd) Expertly Brings You The Best Of Iranian Teas and Herbals. ISO 9001:2008 Certificate. I ISO 10002:2004 Certificate. I HACCP Certificate. I HALAL Certificate. I info@ salimaria.com Tel : +98 21 5589 4000 I Fax : +98 21 555 900 15 visit salimaria.com A striking trajectory is evident. In urban areas coffee sales have skyrock- eted, increasing by 10% to 15% per year for the past two decades. Shanghai- based China Market Research Group predicts coffee consumption there will grow about 20% annually as the relatively well-off shift their spending from material goods to experiences such as coffee drinking. Coffee may be king in the Americas where it generated an estimated $74 billion in 2015, but the Chinese market is enormous ― potentially worth more than a hundred billion. Analysts predict China could consume 300,000 metric tons annually by 2020 making it the largest coffee market in the world. Starbucks certainly sees an opportunity. In July, the company acquired the remaining 50% of its East China joint venture in a transaction valued at $1.3 billion. It is the largest single acquisition in the company's history. It brings Starbucks control to 1,300 stores in 25 cities in affluent Shanghai and Jiangsu and Zhejiang provinces. Starbucks, with 25,734 stores globally, operates 3,000 stores in 130 Chinese cities and employs 40,000 workers. The company an- nounced it will open 500 new shops a year with a goal of 5,000 stores by 2021. Not a sure bet Dave Seminsky has been working in coffee in China for 10 years. His Shang- hai coffee shop, which sources coffee locally and offers top quality beans from around the world, is a haven for enthusiasts. The Sumerian brand he launched in 2011 is doing just fine. China's coffee sector has attracted a lot of attention world wide, he explains. "In tier 1 cities, specialty coffee has flourished but even the best Starbucks locations make only $15,000 per week (compared to an average $31,000 per store in the US)," according to Seminsky. "Disposable income is climbing... but the average consumer is broke, they make $3,365 per year. That doesn't equate to a $4-$6 daily Unicorn Frappuccino," he said. By his count "there are 261 million people in China with annual income of $6,220 who could oc- A survey of cafe owners by the Sustainable Coffee Institute found 44% reported an increase in cafe performance, 37% reported a decrease and business was about the same at 19% casionally or routinely afford premium coffee," he said. There is a clear trend toward quality: "Last year South America accounted for 10% of coffee imports; Africa 6%, and Central America 3%. Comparing 2016 to the proceeding five years from 2011, those three origins picked up a com- bined market share of 12% illustrating a sizable shift towards more premium quality coffee," he said. "In 2011, prior to opening my coffee business I looked to Japan to see if I could find guidance to- wards potential in China. I was overwhelmed with what I found," he said.

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