fdre ministry of agriculture agp-amde international consumer market trends daniel humphries, agp /...

FDREMinistry of Agriculture

AGP-AMDe

INTERNATIONAL CONSUMER

MARKET TRENDS

Daniel Humphries, AGP / CQIFebruary 21, 2013


Coffee Export Performance:Volume versus Specialty Buyers


Largest Volume Buyers (2011/12)

RANK BUYER VOLUME (TONS) AV. PRICE ($ / LBS)1 VOLCAFE LTD. 22,163.3 2.212 TALOCA AG 14,572.8 2.043 AL KHAIR TRADING OFFICE CO LTD 6,138.0 2.704 BERNAHARD ROTHFOS GMBH 6,242.4 2.185 ALMUSTANEER TADING EST 5,508.0 2.366 SUCAFINA SA PLACE 5,716.8 1.967 COFEY HANDELS 4,608.0 1.898 GEBR WESTHOFF GEBR 4,227.0 2.039 SCHLUTER SA 2,669.8 2.85

10 TABOCCA B.V.PRINS 2,271.6 3.1611 MAISON P.JOBIN 3,380.3 2.0912 CONSTANTIA TRADING 2,935.2 2.4113 MARUBENI EUROPE 3,600.0 1.8914 ILLY CAFFE SPA 2,317.2 2.8815 LUCK HOME HOUSE HOLD AT LLC 4,379.8 1.5216 TOUTON S.A. 3,370.8 1.9617 LOUIS DERYFUSS COMM. 3,804.0 1.7018 ECOM AGROINDUSTIRAL CORP. 2,793.0 2.1319 SALEM BIN MAHFOOZ EST.FOR 2,430.0 2.3820 SALEM ABAULKADER BAJUBATER SONS CO 2,610.0 2.1421 HAMBURG COFFEE COMPANY 2,634.6 1.9522 ROYAL COFFEE INC 1,612.2 3.1023 INTERAMERICAN GMBH 1,531.9 3.0424 KEIF AL WATAN COMPANY 1,998.0 2.2625 PRINCE MS FOOD EUROPE BOOMPJES 1,744.8 2.57


RANK BUYER VOLUME (TONS) AV. PRICE ($ / LBS)204 HAKSAN CO.LTD 973-1 U-DAN RI, 15.0 4.31203 NINETY PLUS COFFEE,LLC 15.4 4.23124 GREEN BEAN KOREA INC MAPO-GU 54.0 4.04188 HA BENNETT & SONS PTY LTD 2/2 19.2 4.0193 WATARU AND CO., 111.1 4.01

192 TRIBECA COFFEE CINMARK ONE (PTY) 19.2 3.9174 COOPERATIVE COFFEE INC 180.0 3.8484 CAFE IMPORTS 147.2 3.83112 R G C COFFEE .INC 1330GREENE AVENUE 72.0 3.78145 EL PUENTE GMBH 36.0 3.78127 OXFAM FAIRTRADE 54.0 3.77153 HAKSAN CO.LTD 33.0 3.75101 GEPA GESELLSCHAFT 96.0 3.75201 YOUR DEKALB FARMERS MARKET 18.0 3.73206 DWP EG HINZISTOBLER STR. 10 88212 17.0 3.71125 FRANCE ALTER 57.6 3.71150 EQUAL EXCHANGE 36.0 3.61198 MECCA ESPRESSO 19.2 3.61103 CONSORZIO CTM 96.0 3.61199 ZEPHYR GREEN COFFEE 19.2 3.61116 A.POORTMAN(LONDON) LTD 72.0 3.6069 A.VAN WEELY B.V 230.4 3.5955 TRADE AID IMPORTER 378.0 3.55

128 SUSTAINABLE HARVEST INC. 56.4 3.54

Highest Average Prices Paid (2011/12)


RANK BUYER VOLUME (TONS) AV. PRICE ($ / LBS)200 PERSNAM CORPORATION 36.0 1.8828 AL NAMLAH AND CO. LTD 1,953.4 1.88114 GEBREMESKEL T/MARIAM 139.5 1.8865 WEBCOR SA 485.3 1.8768 HUSSIN ATAH HUSSIN 453.5 1.86

144 SHAREKAT AZHAR ALAQSA 76.8 1.8670 RAJAB HANIEH & SON'S CO. 441.6 1.84

107 PIASSA GENERAL TRADING L.L.C 169.9 1.84208 OMER SALEM BAOBED AND CO 33.0 1.84202 CINSTANTIA TRADING SA RUE AUGUSTE 36.0 1.83196 SUCAFINE SA 38.4 1.82193 OMER MOHAMMED TAIFUR SUDAN 40.0 1.82104 THE NATIONAL COMMERCIAL BANK A/C OF 180.0 1.8054 OLAM INTERNATINAL LIMITED 753.0 1.79111 EAST AFRICA STAR GENERAL 164.5 1.7967 AL HUSSIEN TRADING 497.3 1.7317 LOUIS DERYFUSS COMM. 3,804.0 1.70117 CENTERSNAB LTD. 153.6 1.6656 COED COFFEE INTERATIONAL 780.0 1.6648 ALTAWAFUQ ALSAMEL EST 937.8 1.6587 ALHUSSEIN TRADING EAST 305.7 1.62

148 NAJIMAT AL SELAM 82.7 1.62100 MERCON COFFEE CORPORATION 230.4 1.5815 LUCK HOME HOUSE HOLD AT LLC 4,379.8 1.5273 BRIGHT WORLD PETROLEUM 491.0 1.47

135 MAGZOOP ABDALLA 119.9 1.44

Lowest Average Prices Paid (2011/12)


Coffee Consumption in the USA

Past day penetration of total coffee was reported at 58% in 2011 and 64% in 2012.

Gourmet coffee past day penetration has shifted from 25% in 2011 to 32% in 2012.

Both shifts are driven by:· Including a representative sample of Hispanic Americans in the 2012 research.· Adding café con leche as an additional coffee type. A significant portion ofcafé con leche was classified by respondents as gourmet.)


Total

Coffee

Traditional

Coffee - T

otal

Traditional

Coffee - N

ot Gourm

et

Instant

Decaf

Gourmet

Coffee Bev

erages

(Net)

Espres

so-B

ased

Bevera

ges

Traditional

Coffee - G

ourmet

5651

35

6 8

24

7

18

5854

38

7 8

25

9

17

64

56

39

811

32

14

22

201020112012

PERCENT DRINKING

Daily Penetration of Coffee by Type

Combined to Create Gourmet Coffee

Beverages

Base: Total sample aged 18+ (n=2,740, 2010, n=2,663, 2011, n=2,955, 2012)What did you drink yesterday during each of the following times? This may include any beverage that you drank at home or outside your home and may have come in a cup, can or bottle.

NOTE: NCDT 2012 includes a representative sample of Hispanic Americans and African Americans. Comparisons to previous years are directional only.


Coffee Consumption in the USA: Gourmet vs. Non-Gourmet

Gourmet coffee includes all espresso-based coffee and any traditional coffee the consumer considers to be gourmet coffee, which is defined as “brewed from premium whole bean or ground varieties”.

As such, there is a strong element of consumer perception in this measure. Gourmet coffee accounted for nearly half (46%) of all cups of coffee consumed in 2012.


Share of Cups – Gourmet vs. Non-Gourmet

2010

2011

2012

40

37

46

60

63

54

GourmetNot Gourmet

Base: Past-Day Coffee Drinkers Age 18+ (n=1523, 2010, n=1,555, 2011, n=1,814, 2012)Was the [COFFEE/COFFEE BEVERAGE] gourmet coffee - that is, brewed from premium whole bean or ground varieties?

SHARE OF COFFEE CONSUMED YESTERDAY



Coffee Consumption in the USA: Gourmet Consumption

Penetration of traditional coffee – gourmet and espresso-based coffeeare both strong in 2012.

What did you drink yesterday during each of the following times? This may include any beverage that you drank at home or outside your home and may have come in a cup, can or bottle. Now we’d like to ask you about some specific types of coffee beverages you may have consumed in the PAST WEEK. Please keep in mind that these may be coffee beverages that you drank at home or bought outside your home and may have come in a cup, can or bottle. In the past week, have you, yourself, drunk...


Base: Total sample aged 18+ (n=2740, 2010, n=2,663, 2011, n=2,955, 2012)What did you drink yesterday during each of the following times? This may include any beverage that you drank at home or outside your home and may have come in a cup, can or bottle. Now we’d like to ask you about some specific types of coffee beverages you may have consumed in the PAST WEEK. Please keep in mind that these may be coffee beverages that you drank at home or bought outside your home and may have come in a cup, can or bottle. In the past week, have you, yourself, drunk...

Gourmet

Coffee Bev

erage

s (Net)

Espres

so-Base

d

Cappucci

noLatt

e

Cafe M

ocha

Espres

so

Macchiat

o

Traditional

Coffee - G

ourmet

Frozen

Blended

Coffee

39

25

13 11 10 83

22

9

36

22

11 9 9 74

21

9

44

31

1812 13 13

4

26

13201020112012

PERCENT DRINKING

Weekly Penetration of Coffee by Gourmet Sub-types

Significantly higher / lower vs. previous year



Consumer Perception

Less than 25% of the respondents recognize Ethiopia as a coffee producing country. This is significantly lower than Colombia (85%), Brazil (70%), Costa Rica (59%), Kenya (30%).

PERCENT WHO STRONGLY OR SOMEWHAT ASSOCIATE THE COUNTRY WITH PRODUCING COFFEE


Countries Associated with Producing Coffee

Vietnam

Ethiopia

Indonesia Sumatra

Kenya

Nicaragua

Mexico

Guatemala

Hawaiian Kona

Costa Rica

Brazil

Colombia

14

26

34

36

41

47

50

63

66

79

90

11

24

30

32

37

45

45

58

62

77

91

12

23

30

30

34

44

41

51

59

70

85

26

33

37

40

44

48

62

64

80

91

2012201020092008

PERCENT WHO STRONGLY OR SOMEWHAT ASSOCIATE THE COUNTRY WITH PRODUCING COFFEE


N/A


Consumer Perception: Quality

PERCENT WHO STRONGLY OR SOMEWHAT ASSOCIATE THE COUNTRY WITH

PRODUCING QUALITY COFFEE

Ethiopia trails behind coffee producing origins like Colombia, Hawaii, Brazil, Costa Rica, Indonesia Sumatra and Kenya.


Quality Associations with Coffee Producing Countries

Vietnam

Mexico

Nicaragua

Guatemala

Ethiopia

Kenya

Indonesia Sumatra

Costa Rica

Brazil

Hawaiian Kona

Colombia

74

78

80

83

84

89

90

90

95

97

98

78

77

82

85

84

86

89

91

95

95

97

79

83

85

85

87

89

90

96

96

98

201220102008

n=355

n=1335

n=977

N=1188

n=665

n=825

n=824

n=1679

n=2010

n=1406

n=2416


N/A


Exports Markets: Europe


EU green coffee imports from top-10 African origins 2011 (bags and %)

UGANDA; 1839303.33333333; 27%

ETHIOPIA; 1746985;

26%

TOGO; 529823.3333

33334; 8%

TANZANIA; 486368.3333

33334; 7%

CAMEROON; 477836.6666

66667; 7%

KENYA; 461338.3333

33334; 7%

COTE D'IVOIRE;

343611.666666667; 5%

BURUNDI; 185766.6666

66667; 3%

RWANDA; 162780; 2%

GUINEA; 145243.3333

33333; 2% OTHERS; 375970; 6%

Source:EU statistical office Eurostat


Exports Markets: Japan


Source: FEBRUARY 2013 CAFÉ BACH ＆ WATARU


Among consumers, the awareness of Ethiopian coffees is very low. Mainstream media generally ignore the existence of Ethiopian coffee. During the past four years, business media (Bloomberg, WSJ etc.) have mostly focused on the perils of the ECX and channeled the complaints of specialty buyers.We rarely read anything positive about Ethiopian coffee. The image of Ethiopia as a supplier of “Fine Coffee” starts with the consumer. The successes of Colombian coffee and Napa Valley wine have proven that a Public Relations (PR) campaign, pointed at the consumer, can have a tremendous positive impact on export revenues. A PR campaign must establish Ethiopian Coffee as one of the finest in the world. The campaign needs to continue telling the story about Ethiopian coffee in new and different ways that appeal to the media. Newsworthy events must be planned with industry channel partners, supporting Ethiopia’s image as birthplace of coffee and as THE most diverse coffee producing country on this planet.

(Think of the diversity of the ‘terroir’ that creates the distinct characteristics of Yirgacheffe, Sidama and Harar coffee, think of the unique cultures in and around these regions, think of the abundance of flavors….)

Closing Remarks – Strengthening The Legacy of Ethiopian Coffee


AGP-AMDe

INTERNATIONAL CONSUMER

MARKET TRENDS

Daniel Humphries, AGP / CQIFebruary 21, 2013

fdre ministry of agriculture agp-amde international consumer market trends daniel humphries, agp /...

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