Where can we go to Sell coffee?
by Chee Leng
Nescafe in China
China. Everyone is going there, at least two of the biggest coffee companies that I know is there and planning to grow their business big.
Starbucks recently started coffee plantation in China, Nestle, the company behind Nescafe has been in China since the 80's and is doing coffee plantation since the 90's.
Of course, it is a no brainer that everyone should go to the biggest market in the world to do business, but aren't Chinese really a group of tea loving folks?
Well, not after 2 decades of coffee education by Nestle.
Most young adults in China, would remember the Nescafe commercials. The current working population grew up knowing and now drinking coffee.
According to International Coffee Organization (ICO), China average annual consumption is about 0.76 kilograms. Which is really low. Countries like Denmark consumed 7.9 kg and the current leader in Consumption Finland consume 11.98 kg.
The potential is there.
The thing is even at a mere 0.76 kilograms, the sales in China is $2.6 billion and it is estimated that this could top $3.6 billion next year.
With a growing market, a generation that grew up knowing and drinking it, don't you agree that this is the ultimate place to be selling coffee?