Coffee: A Morning Drink to Commercial Market


Morning Coffee 1A sip of coffee in the morning/evening is like a fuel to our body and gives us energy to continue the day with a smile!! One of the most traded agricultural commodities and consumed drinks in the world. There more than 60 types of coffee in the world, the popular ones being Espresso, Cappuccino, Café Latte, Café Mocha and Café Breve to name a few.

Brazil is the world’s largest producer since 150 years, contributing to around 1/3rd to the world production even though it is not dominating in the International Market or even in the domestic market of Brazil. In the Brazilian market, Sara Lee and Kraft Foods of the U.S. dominate the commercial market.

The average global production of coffee was over 6 million tonnes yearly during the 1990’s. Between 2007 and 2011, the average went up to 7.6 million tonnes a year with the highest being in the year 2010 at 8.05 million tonnes.

60% of the world’s coffee is produced in Brazil, Vietnam, Colombia and Indonesia.

In the year 2010, 5.8 million tonnes worth 16.7 billion dollars were exported and rose to 6.2 million tonnes of worth 23.5 billion dollars in 2011. Brazil was the leader with 2 million tonnes followed by Vietnam (1 million), Colombia (464,000) and Indonesia (376,000).

Among the coffee producing countries Brazil is also the largest coffee consumer in the world with 1.1 million tonnes in the year 2010.

During the period of 2006-10, US was the biggest importer with a yearly average of 1.27 million tonnes; followed by Germany (546,000 tonnes) and Japan (431,000 tonnes).

Currently, the big guns in the commercial market are Starbucks, Caribou coffee and Peet’s Coffee & Tea (all three being American Company), Jacobs (German company), and Nescafe (Swiss company). Starbucks is the largest coffeehouse company in the world with Revenue of US$ 13.29 billion in 2012.

As per the Daily Coffee News Dutch coffee industry giant D.E. Master Blenders 1753 is in talks to be acquired by Joh. A. Benckiser Group for $9.7 billion. JAB is the German investment group that acquired a majority of the U.S. companies Peet’s Coffee & Tea in December 2011.

JAB owns a 15 percent stake (approx.) in D.E. Master Blenders, whose name references its largest coffee brand, Douwe Egberts. In its first report to stakeholders in October 2012, D.E. Master Blenders reported slower-than-anticipated sales growth in some key international markets, including Germany. By the close of the Amsterdam Stock Exchange in March 2013, the company’s shares were up by 26%. D.E. Master Blenders says the negotiations are in the early stages and that it is reviewing a preliminary offer from JAB.

 This shows that there is a good competition going on in the commercial market of coffee.