STiR coffee and tea magazine

Volume 7, Number 1

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STiR coffee and tea 57 STiR Magazine 89 mm (w) x254 mm (h) JOINTLY ORGANIZED BY Ms Lynn How Koelnmesse Pte Ltd. Tel: +65 6500 6712 l.how@koelnmesse.com.sg CONTACT US >2,000 EXHIBITORS >2,000 HOSTED BUYERS >55,000 VISITORS 5 TRADE DAYS ACROSS 11 HALLS 107,000 SQM showed that 91% of consumers in the US and other major mar- kets knew their coffee was Colombian. The idea of selling the brew itself to consumers in branded ca- fés was always seen as a necessary and congenial way to make di- rect contact with consumers and bring some of the margins back to the growers. This sum averages 4% of each cup sold. After an initial foray into Spain and Argentina that ended in 1985, the newly Juan Valdez-branded coffee shop chain re- launched in 2002, with Procafecol behind it. Procafecol is 90% owned by the FNC, with the remainder of its shares owned by growers who choose to buy in. It is funded by growers' contri- butions (the 5% fee on each bag sold to the FNC) and licensing agreements. Its mission is to promote the Juan Valdez brand internationally and stimulate its profitability by participating in more added-value activities including the coffee house chain. In 2002, the plan laid out by Gabriel Silva, FNC's president at that time, was intended only for foreign outlets, to profit from the brand's strength and visibility in supermarkets in the US and Europe. This because, with all previous effort having been di- rected at export, Colombians (much like Brazilians and Guate- malans) were left with, well, the dregs. Out-of-home consump- tion was even further behind the rest of the world, at less than 1 cup per capita per week. After the 2008 global slowdown, which saw several Juan Valdez coffee shops in Spain and elsewhere close, Procafecol turned to providing a much-needed awareness campaign at home, where coffee consumption was still among the lowest in the world 4.6 lbs. (2 kg) per capita per year, compared to 10 lbs. (4.5 kg) in the US and /11.06 lbs. (4.5 kg) in Europe. Rates of out-of-home consumption remained dismal. The strife and vio- lence that had wracked Colombia for decades had taken its toll not only on growers, but on consumers, economically depleted and not inclined to spend a lot of time outside. But though the peace deal still seemed a mirage, the toppling of the drug cartels made life more normal in Colombia. Between 2009 and 2014, internal coffee consumption soared 33% in Colombia, com- pared with 15% globally. In 2013, Procafecol's president Hernan Mendez announced a new expansion of the Juan Valdez chain, concentrating on the internal market. Today, 276 of Juan Valdez 's 400 cafés are in Colombia. The next greatest concentration is in Miami, Florida (nine locations), with cafés in Chile, Bolivia, Peru, Ecuador, Photo courtesy FNC 27 Countries 6.552 Retail points of sale 400 Stores Only Retail (No coffee shops) Only coffee shops, no retail Stores & Retail Companies Bulgaria Germany France UK Spain Taiwan China Japan South Korea Malaysia USA Mexico El Salvador Costarica Ecuador Peru Chile Paraguay Bolivia Colombia Guatemala Honduras Panama Aruba Curazao Tobago Brasil Uruguay Argentina

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