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 Brazil is the world's second largest consumer market for coffee. Last year, Brazilians drank the equivalent of 16.3 million bags of coffee. The country was second only to North America, which consumed 21.6 million bags. Brazil also boasts the world's highest consumption growth rate. Whereas the global consumption average increases 2% per year, in Brazil it increases from 4% to 5%.
"Coffee is being rediscovered by Brazilians. There are many reasons for that, but the main ones are the quality of the grains, the larger supply of espresso coffee, and the countless surveys proving that coffee is beneficial to health," says Nathan Herszkowicz, executive director at the Brazilian Coffee Industry Association (ABIC). According to the organization, domestic consumption is forecasted to reach 21 million bags of coffee by 2010. In the assessment of the general director of the Brazilian Coffee Exporter Council (CeCafé), Guilherme Braga Abreu Pires Filho, several factors have contributed to increase consumption. One such factor is coffee price to end consumers, which has remained stable. Another factor, which was already mentioned, is the concern with improving the quality of coffee. "Furthermore, the media depicts coffee in a very positive light. Every movie and soap opera shows someone drinking coffee," he says. Presently, coffee-producing countries are estimated to consume approximately 28 million bags of coffee per year. Since Brazil consumes some 16 million, it accounts for nearly 60% of all coffee consumed in producer countries. "This means consumption in other coffee-producing countries is irrelevant or marginal. And this is due to the fact that these countries are not concerned about widening their markets," he claims. "This is the case with India. A large producer of coffee, the country has an yearly output of four million bags, but consumes very little of it. The ICO (International Coffee Organization) has even conducted market surveys aimed at bringing Brazilian know-how to India," he explains. According to Guilherme Braga, Brazil started paying attention to the domestic market 50 years ago, when a campaign was launched during the administration of former president Juscelino Kubitschek. "At the time, the government had huge stocks of coffee, therefore it would sell the commodity at symbolic prices to the industry, which in turn would sell it to consumers at very low costs. Of course, it did not happen overnight, it built up in a crescendo, and nowadays Brazil boasts extraordinary consumption rates," says Guilherme Braga. But the actual revolution in domestic coffee consumption took place during the last two decades. According to Maurício Miarelli, president of the National Coffee Council (CNC), the approach to coffee planting and processing has changed radically. "With regard to production, there was a revolution in terms of management technology, which doubled productivity, improved quality and consolidated the diversity of 'Brazilian coffees', turning Brazil into the world's most competitive producer," he explains. Within that framework, the cooperatives established themselves as key agents for the organization of producers and of the production chain. To the executive director at ABIC, Nathan Herszkowicz, it was mainly over the last ten years, which he calls the "magic decade," that coffee re-emerged. It was only in that period that Brazilians started drinking national coffee, and against all odds, they did so with pleasure. "Consumers realized that Brazil also produced good coffee. Until then, the widespread opinion was that good grains were exported, and only the remainder stayed in the country," Nathan says. Luxury Market If, on the one hand, Brazilian coffee became tastier, on the other hand, the approach to drinking coffee has already changed. Special coffees and luxury cafés are growing non-stop in large cities - especially in the city of São Paulo, in southeastern Brazil. There are currently 2,500 cafés in Brazil, and the figure tends to increase 10% with each new year. Even in restaurants and bars, the good old espresso has gained status - these establishments usually serve special or gourmet coffees. To many São Paulo residents, coffee is now a branded product. In December 2006, the world-renowned Starbucks Coffee Company established its first two stores at Morumbi Shopping, in the capital of the state of São Paulo. The powerful company caters to no less than 40 million customers worldwide. Distinctive features of Starbucks include their barmen, who prepare the coffee according to the taste of the customer. "The customization of our drinks, following the specifications of our customers, is one of the features that make Starbucks special and fun to our customers," says Flávio Guimarães, one of the first managers of the Starbucks stores in Brazil. Another newly arrived company in Brazil is Nespresso, a Swiss brand that established its Boutique Bar in the Jardins neighborhood, also in São Paulo, presenting an innovative approach to tasting and presentation of coffee, and making blends using "the best grains in the world," as the brand advertises. Established in 1986, Nespresso is already present in 40 different countries. The company's Boutiques are meeting points. Before the establishment of a Boutique franchise in São Paulo, there were only three of them in the world: one in Munich, one in Prague and one in Frankfurt. The Boutique Bar offers a full line of accessories to complement the ritual of coffee drinking, such as porcelain cups, sugar bowls, shakers and other items designed to turn "coffee drinking" into much more than a regular after-lunch habit. "The arrival of these cafés in Brazil and the promotion of the work of barmen is contributing for our consumers to discover the quality of national coffee. It also marks a change in habit. Since going to these cafés is a trend, especially for the young crowd, there is a perspective of increase in consumption, especially of higher quality coffees," says Maurício Miarelli, president of the National Coffee Council (CNC). And the Chinese Drink It Too The land of tea, China is coveted by any industry willing to introduce some product into the global market. There are approximately 1.3 billion Chinese avid to consume novelties, and the country's Gross Domestic Product (GDP) is US$ 1 trillion. Coffee is no exception. And the Guaxupé Regional Cooperative of Coffee Producers (Cooxupé), Brazil's largest, has already taken its first steps towards China. In September 2005, Cooxupé joined forces with a Chinese and a Belgian partner, and established a café named CafeChocolat in the city of Xi'an. The initial investment was approximately US$ 195,000. "Our approach consists of watching the local habits, and then slowly introducing the habit of drinking coffee among the Chinese," says Alexandre Vieira Costa Monteiro, manager of the café in China. After nearly a year-and-a-half, the business ended 2006 making ends meet, cost-wise. Regarding future gains, the café has already scored a few points. "We noticed that the Chinese favor a milder taste, because they always mix water or milk in their coffee," says Monteiro. Another conclusion is that the locals enjoy cappuccino. A new product in a new environment, coffee in China has attracted mostly younger people - from 25 to 35 years of age - who have steady jobs and reasonable wages, according to Monteiro. One of the reasons is the price of espresso coffee, which costs US$ 4 in the land of the Great Wall. "It is still expensive, but our goal is to lower the price as consumption increases, and as new cafés are established in the country," Monteiro claims. For this to happen, one of the strategies being devised is that of promoting Brazilian coffee during the Beijing Olympics, to be held in 2008. Another remark made by Cooxupé regards the time for drinking coffee. Despite the fact that CafeChocolat remains open from 10:00 am to 10:00 pm, pauses for coffee take place in the mid-afternoon. Unlike Brazilians, the Chinese are not used to drinking coffee in the morning. "The bulk of consumption takes place during the afternoon, when people take a break at work," says Monteiro. According to the executive, the Chinese are already thinking of coffee as synonymous with greater disposition. The city of Xi'an was chosen because it is one of China's oldest, has approximately 5 million inhabitants, and an ancient university that specializes in mandarin, which attracts lots of foreigners. "Xi'an poses a challenge to Brazilian coffee. The city brings together people from all over the world who come for tourism and for the university, but it also has a strong, deep-rooted culture," Monteiro claims. According to him, the success of the café in Xi'an is guarantee that the business will thrive in any other Chinese city. Furthermore, the café serves as a showcase for foreign consumers visiting the city. Débora Rubin and Geovana Pagel also contributed to this article. Anba - www.anba.com.br
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US 2,7 trillion...in 2006 !
Sorry !