Wednesday, October 31, 2012

If you care interested in The Commercial Coffee market


The US coffee and tea manufacturing industry includes about 300 companies with combined annual revenue of about $9 billion. Major companies include Green Mountain Coffee Roasters (the inventor of the K-cup,  which Nestle copied to make the pods) and Farmer Bros, as well as divisions of the JM Smucker Company (Folgers), and Kraft Foods (Maxwell House). The industry is highly concentrated: the top 50 companies generate more than 90 percent of revenue.  

Globally, coffee and tea manufacturers generate about $70 billion in annual sales. The top green coffee producing countries (if you bulk together Robusta and Arabica Coffees) are Brazil,Indonesia, and Vietnam. Leading tea producing countries include China, Kenya, India, and Sri Lanka. Major companies based outside the US include Nestlé (Switzerland), Tata Global Beverages (India), and Unilever (UK).
  
Competitive Landscape

Consumer taste and population growth drive demand in the consumer sector, while economic growth of businesses, like restaurants and hotels, drives demand in the commercial sector. The profitability of individual companies depends on effectively managing raw ingredient costs, efficient operations, and effective marketing. Large companies have scale advantages in purchasing, distribution, manufacturing, and marketing. Small companies can compete effectively by offering specialized products or serving a local market The industry is capital-intensive: average annual revenue per worker is about $600,000.

Imports of roasted coffee and tea are 20 percent of the US market; exports are about 10 percent of US production. Part of the international export market is instant coffee.  

For more information please click on:
http://www.researchandmarkets.com/publication/k5c45l/coffee_tea_manufacturing

Relevance to Micro roasters?

If you are micro coffee roaster that concentrates on quality high grade coffee not sure this report has any significance. The largest exported of high grade or speciality grade pure Arabica coffee is Columbia, and they are hardly mentioned.

Saturday, October 27, 2012

Coffee Roasting in Cape town - About Coffee?

Coffee Roasting - is about roasting not brewing

The first so called Artisan, but what I would call micro roaster I ever met in South Africa, was Abul Bunna in 2003. They sold coffee beans at a market. Roasted coffee in a garage and spoke with passion about the bean.

Since then anyone running a coffee shop that wants to make an extra buck buys a roaster off the back of truck or that latest liquidity auction. I think the real roasters need to stand up and be counted. A coffee roaster sells coffee. A coffee roaster that is a coffee shop with an in store roaster, to make more money.

Brewing and Roasting are not related

The trend in cape town coffee world to use a roaster as a wow factor in a coffee shop should be an obvious red herring to anyone that can add 2 and 2.

Roasting of coffee should be brew independent. Yes there are some roast styles that suit particular brewing, but a roaster should roast a coffee and then see which brew style it suits. If you roast to sell coffee then how can your roast be independent of the way you brew coffee to sell it.

Coffee roasters should only roast

If you visit a coffee roaster, ask your self are they a roaster of a coffee shop? If they are a shop, then what is their product the coffee brew or the coffee roasted.