Brazil (Population: 193.7 million)
is the world’s largest coffee producer and also
the world’s second-largest consumer. In the 12 months November 2009 to October 2010 consumption increased to
19.13 million bags GBE, which represents growth of 4.03 % over the 18.39 mln bags consumed in the previous 12 months.*
The structure of Brazil’s
domestic industry is relatively diverse, characterized by a large number of
small to medium-sized roasters, possibly as many as 1,400. Nevertheless,
concentration is a continuing process. The top five roasters are, in order of
importance: SaraLee, Tres Curaçoes,
Santa Clara, Melitta , Marata and Cacique whereas
the top ten roasters account for just over 75% of the market.
Roast and ground coffee dominates
the market with over 90% of all sales and although the country is a large
exporter of soluble coffee, instant coffee accounts for only approximately 5.5%
of the overall domestic market in Brazil.
ABIC puts domestic consumption in
Brazil at approximately 6.02 kg GBE per person in 2010.
This is now considerably higher than that of the United States and
getting close to treble the low that Brazilian per capita
consumption fell to in 1985 (2.3 kg). Consumption stagnated around this
level until steps were taken in 1989 to improve the quality of coffee available
on the domestic market. In particular the industry introduced what became known
as the Purity Seal (Selo de Pureza). This, together with an active marketing
policy aimed at encouraging consumption by providing more information on the
product, formed the basis of a successful push to increase consumption. Coffee
products are only eligible for the Purity Seal if they comply with certain
basic conditions. In addition ABIC continues its Coffee Quality Program, aimed
at educating consumers about aroma, body, flavour, degree of roasting and
grinding. Participating roasters display the Quality Seal on their retail
packaging. ABIC also runs an internal accreditation program for coffee shops,
hotels and restaurants that use quality beans and in so doing help promote the coffee
culture in Brazil. Finally, the promotion of sustainability in the coffee chain
is also actively pursued.
Brazil’s success in raising
domestic consumption is of interest to many other coffee producing nations
hoping to raise their own domestic use. In response the ICO commissioned “A
Step-by-step Guide to Promote Coffee Consumption in Producing Countries” which
uses the Brazilian experience and that of a few other countries to create a
methodology to promote consumption **. In this context is also interesting to
note that the volume of Brazil’s exports of roasted coffee rose from
38,000 bags in 2004 to 108,000 bags in 2008 only to fall back slightly in 2009
to 92,000 bags. Main markets were the USA, Italy, Argentina, Uruguay
Exports of soluble coffee in 2009 totalled 2.88 million bags
- for more on Brazilian soluble coffee go to www.cecafe.com.br
* Statistics covering the
Brazilian market (in Portuguese) are available at http://www.abic.com.br/estatisticas.html.
** The Brazilian experience can be downloaded from www.ico.org.