Brazilian coffee gains space in the Chinese market

In September, customers of the Mellower Coffee chain, with 80 stores spread across Shanghai and Beijing, China, will be able to try coffee from three coffee-producing regions in the south of Minas Gerais and one in the west of Bahia. When they click on the digital menu to choose the drink, consumers will also be able to learn the story about the grain producer while enjoying a cup.

The testimonials of Brazilian suppliers appear in videos of about one and a half minutes each. The pieces were produced throughout the month of June by the organizers of the campaign – CECAFÉ (the council of coffee exporters), which works in partnership with the Brazilian Embassy to coordinate the coffee tastings. With the initiative, the idea is to create interest in the product and allow the Chinese to get closer to the coffee producers.

“Each producer describes what he would like the consumer on the other side of the world to know about his coffee”, says Marcos Matos, general director of CECAFÉ. “The purpose of the campaign is to present the product’s characteristics. This is a work of taste and culture, with opportunities to increase exports of green coffee”.

With the initiative, exporters intend to expand shipments of green beans and also create opportunities in other business fronts, such as industrialized coffee.

The competition to win Chinese consumers has intensified because the consumption of coffee in the country is on the rise. Today, 330 million people already consume coffee in China, more than all of the inhabitants of Brazil. In volume, Chinese consumption is still lower than that of Brazilians, but the pace of expansion – there are 70% more Chinese coffee drinkers than just eight years ago –  attests to the favorable scenario. Giants like Starbucks, which has adopted a more aggressive strategy in recent years, and Louis Dreyfus (LDC), which just over a year ago announced a joint venture with local Luckin Coffee chain to invest in a roaster, are just a few names who have already detected this potential.

The following DataLiner graph shows a comparison of Brazilian coffee exports to China in the first five months of the year since 2018:

Brazilian Coffee Export (HS 0901 and 2101) to China | Jan to May 2018-2021 | TEU

Graph source: DataLiner  (To request a DataLiner demo click here)

In the last five years, Brazilian coffee exports to China increased 140%, to 202,200 bags, and revenue doubled, reaching US$ 30 million in 2020. In the first five months of 2021 alone, exports reached 155,000 bags and yielded US$ 24 million, almost as much as the whole last year.

Source: Valor Econômico

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https://valor.globo.com/agronegocios/noticia/2021/07/05/cafe-do-brasil-ganha-espaco-no-mercado-da-china.ghtml

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