No 30

An increasingly global brand

December, 2016

TRENDS

An increasingly global brand

Thanks to the FNC’s commercial work, Café de Colombia is present in the mind and taste of more and more consumers in different corners of the globe.

Café de Colombia’s unique attributes and values, including its quality, diversity, and freshness throughout the year, are its best letter of introduction, but it is important to make them known, and there the Colombian coffee Growers Federation (FNC) plays a key role.

Through representation offices abroad in strategic points (New York, for North America; Amsterdam, the Netherlands, for Europe; and Tokyo, Japan, for Asia), the FNC is present in the most important markets to promote consumption and position the renown of Colombian coffee, which includes participation in expos and events.

These offices seek to bring the product closer to customers, beyond the geographical dimension, by strengthening relations and businesses with the main players of the industry. To do so, Café de Colombia focuses its trading, marketing and sustainability strategies in the development of products tailored to tastes and needs of customers and consumers.

Deserving special mention, ExpoEspeciales, the largest specialty coffee expo in Latin America and the Caribbean, is also the main showcase for Colombian specialty coffees.

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North America, the largest coffee consumer

Over 50% of the population drinks coffee in the United States, i.e., over 150 million people, with an average consumption of 3.1 cups a day. This accounts for a consumption of 25 million bags, of which Colombia provides 21%, only surpassed by Brazil, with 30%.

With 612,596 70-kg bags shipped, the share of the New York office in total FNC exports increased from 22% in 2015 to 25% in 2016. And for freeze-dried coffee, Colombia accounts for 20% and 30% in the markets of Mexico and the United States, respectively.

As to representation and promotion events in 2016, Café de Colombia took part in the Annual Convention of the National Coffee Association (NCA), the Annual Expo of the Specialty Coffee Association of America (SCAA), the UN Bazaar for Women Refugees and the Conference of the Association of International Educators (NAFSA).

 

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Europe, a sound market

The European market, which encompasses the European Union and the European Free Trade Association, accounts for 56.6 million 60-kg bags. The main importers are Germany (18.3 million bags), Italy (8.5 million), and Belgium (4.1 million).

In volume, Europe’s top four coffee suppliers are Brazil (32%), Vietnam (24%), Colombia (7%), and Honduras (6%). Of all Colombian green coffee, the FNC provides 38.2% (1.3 million bags), with a 72% increase in 2016.

In the Scandinavian market, sales grew 42% between 2015 and 2016 (mostly standard coffee) to reach 117,664 bags of 60 kg.

The increase in sales to the European market was favored by Product of Colombia (PDC), which was recorded for the first time on books with 391,000 bags of 60 kg (30% of sales in volume).

In 2016, Colombian coffee growers took part in the Specialty Coffee Association of Europe (SCAE) Expo, in Nespresso’s ad campaign in Holland on Café de Colombia, and in the forum and gala dinner of the Swiss Coffee Trade Association.

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Asia, a market becoming sophisticated

Asia-Pacific consumes about 15 million bags of 60 kg, being Japan, South Korea, China, Taiwan, Australia, and Malaysia the main markets in total consumption and growth prospects.

In 2016, Japan imported 5.1 million 60-kg bags and Colombia continues to be the third supplier, with a 15% share (718,000 bags, of which 263,000 bags were exported by the FNC).

Colombia is also Japan’s third instant coffee supplier (4% of total volume), after Brazil (49%) and Vietnam (19%). Due to the El Niño event, the volume of coffee exported to Asia fell 9% in 2016, mainly because of lower supply of green coffee in the first half.

As to strategic partnerships, new products with 100% Colombian coffee were launched by such companies as Art Coffee, Mikado Coffee, Suntory, and Moncafe, and alliances were established with WBC Chinese and Sinoexpo.

In 2016, Café de Colombia participated in the Specialty Coffee Association of Japan (SCAJ) Expo as Gold Sponsor, in Korea’s Café Show, and in the Melbourne International Coffee Expo (MICE). The FNC office was moved from Beijing to Shanghai.

And as every year, with the support of Almacafé, the international course for specialists in mild coffee quality control was held in Bogotá, with the participation of representatives of Ogawa & Co. Ltd., Kanematsu Corporation, Ishimitsu & Co., Marubeni, and Art Coffee.

 

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FNC exports 24.3% of Colombian coffee

On behalf of the National Coffee Fund (FoNC), the FNC share in Colombian coffee exports rose to 24.3%, 2.4% up from the 21.5% in 2015 thanks to renewed strategic customers in Europe that had stop buying the Colombian origin and good sales of coffee by-products.

The United States remains the main destination of the FNC exports, with 366,000 bags of 60 kg until October (17% of total FNC exports), followed by Japan, where sales decreased 12% due to coffee quality problems caused by El Niño in the first half of the year.

The region that showed greatest dynamism was Europe, where the FNC share increased significantly to 50% from the 36% of last year.

Opening new markets

The FNC has followed a strategy to open new markets for positioning the Colombian origin in non-traditional markets, managing to strengthen commercial relations with customers of Switzerland, Ireland, Iceland, Ukraine, and Malaysia, where over 5,500 coffee bags have been exported as a whole to October.

 


You are invited to learn more about our coffee family and our products, visiting the BEAN & BEYOND sections on the top of this page.