Ethiopian nespresso

IFC announced this month that it’s complementing a us$3.2 million loan transaction to Nespresso in order to raise the yield of Ethiopian coffee farmers.

It’s an Advisory Services initiative to “increase farmer productivity” by integrating a broad range of ecological considerations and wildlife preservation in the region of Oromia (Ethiopia). The initiative is possible due to an alliance with the BioCarbon Fund from the World Bank in which grant funds will be used to train coffee farmers with practices that will meet Nespresso’s AAA Sustainable Quality program. Smallholders participating in the project will be trained with skills to better manage the coffee crop, on benefits in using shade trees, prevention of deforestation and improving the quality of coffee produced. The improved agronomic, environmental and social practices will ultimately improve livelihoods of coffee farmers and their families.

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Starbucks confirms Jamaica 

(May 4, 2017) –  Starbucks Coffee Company today announced it entered a geographic licensing agreement with Caribbean Coffee Traders Limited, a consortium led by Margaritaville Caribbean Group, a leading restaurant management and franchise operator in the Caribbean. The agreement grants Caribbean Coffee Traders the exclusive rights to own and operate Starbucks® stores in the country. Jamaica will be Starbucks 17th market in the Latin America and Caribbean region, with the first store slated to open in Montego Bay.

“Jamaica is a country blessed with a rich culture and heritage, particularly with its locally-grown and world renowned Blue Mountain coffee, which Starbucks has sourced as a specialty offering for over 40 years,” said Ricardo Rico, Starbucks general manager and vice president for Latin America operations. “We are delighted to build on this legacy and continue our expansion into the Caribbean by introducing the Starbucks Experience in Jamaica for the first time. As we position the brand for continued growth, we are proud to add Caribbean Coffee Traders to our strong network of licensing partners and leverage their proven market capabilities to reach new customers.”

Starbucks® stores in Jamaica will be operated by Caribbean Coffee Traders Limited, a joint venture between Ian Dear, Chief Executive Officer of Margaritaville Caribbean Group and Adam Stewart, who is also Deputy Chairman and Chief Executive Officer of Sandals Resorts International. Margaritaville Caribbean Group currently operates restaurant, entertainment and tour concepts throughout the Caribbean, and provides complete, multi-branded food and beverage experiences for major Caribbean tourism hubs. Margaritaville Caribbean Group’s brand portfolio includes a diverse collection of proprietary brands, international franchises, casual dining concepts, themed bars and popular quick service restaurants, including Wendy’s, Dominos, Dairy Queen, Quiznos, Auntie Annie’s, Cinnabon, Moe’s Southwest Grill and Nathan’s. The group employs over 1,000 people throughout the region.

“We are thrilled to welcome Starbucks, a globally recognized brand, to Jamaica. Leveraging our knowledge of the local market, we will deliver upon the Starbucks Experience and create a global platform for Jamaica’s locally-grown and Blue Mountain© coffee.” said Ian Dear, Chief Executive Officer of Margaritaville Caribbean Group. “Our organizations share similar values, including our dedication to the customer experience, commitment to our crew members, and responsible corporate citizenship.”

For more than 45 years, Starbucks has built its brand by delivering a consistent, authentic in-store experience to customers around the globe that is rooted in high-quality arabica coffee and engaged, knowledgeable baristas. Since launching the brand in Latin America, Starbucks has grown to over 1,000 stores across 16 markets, 15 of which are operated by trusted licensing partners. In the Caribbean, Starbucks licensees currently operate 43 stores across Aruba, the Bahamas, Curacao, Puerto Rico, and most recently, Trinidad and Tobago. Jamaica will become the company’s sixth market in the Caribbean region. 


Starbucks in Jamaica will target travelers

jablum peaberry 1 e

 

Starbucks would drop two cafes in Jamaica which will target tourists primarily at least initially, according to Coffee dealers who spoke to Jamaicamocha .

The talk is that the Sangster International Airport in Montego Bay
could see a location followed quickly by another, at a new business
hotel under construction in Kingston. (Let’s avoid names for the moment.)

Of course, last month the Gleaner reported that Starbucks is considering entering the island along with other Caribbean territories in the medium term.

It just so happens that the busy Montego Bay airport which currently
doesn’t have any store slots available will see 25 per cent of the
stores come up for contract renewal this year, according to media reports.

Sources say that’s where the Starbucks franchisee will snatch up a vacancy and outbid an
existing operator. But it might not even have to come to a bidding
war, as the franchisee already supplies the airport with food
and beverage. (I have already said too much.)
Who are the two private sector players seeking to acquire the
Starbucks franchise in Jamaica–They are both in hospitality sector, the
media says.

Will Starbucks increase the coffee culture? Will Starbucks improve a
cup of local coffee? Or would it simply increase the price? Let’s see. Not all cafe players are upbeat about the prospects especially those who earn from the tourist market.

 

 

Buy Jamaica coffee during shortage like salada

A local coffee brand SALADA Foods Jamaica Limited found out the hard way where to buy lots of Jamaica coffee during a nationwide coffee shortage.The problem was that they bought too much coffee at high prices equivalent to half of its annual sales.Prices have now stabilised and some dealers actually think it will dip in a year

The company said on Friday that its huge J$400 millon (us$3m) build up of inventory a year ago still stands at $309 million as at March 2016.The company complained about coffee prices last year but bought lots of it regardless. The company underwent a change of management in recent years.salada made J$15.5 m net proft on $159 m in revenues or 45 per cent lower profit year on year.

The price increases arguably slashed its sales by one-quarter, year on year.Coffee farmers are demanding more per box due to the impact of currency depreciation on farm costs, and also the cost to protect the coffee against disease and theft. Three years ago processors paid roughly $3,000 for a box of coffee cherry to farmers. Now farmers get $11,000 a box.Salada faced with increased local coffee competition in both the instant and brewed markets will launch new instant coffee products this year. 

Jamaica Blue Mountain Coffee Prices to Fall

The price of Jamaica Blue Mountain (JBM) coffee jumped so much in 2015 that it now rivals the price of Kopi coffee and outpriced itself from Hawaiian Kona, but what goes up comes down.

Coffee bars around the world historically offer Kona and JBM at roughly the same prices . The 2015 local coffee shortage and rise in Japanese demand changed that with JBM retailing at about $60 per pound from about US$35 a pound a few years earlier for quality beans.

It resulted in the wealthy huffing and puffing but still buying the luxury super-uber-yummy coffee from Jamaica. The regular rich however choose to drink tea instead ( Starbucks buys Teavanna ).

Jamaicamocha spoke to key dealers who predict the fall in price of JBM by 2017 due to reduced demand in Japan and ramp up in supply. “A large Japanese dealer stopped carrying JBM and other roasters in Japan are bailing and crying about the price,” said dealer A. 

With the rise in prices for JBM every farmer’s son and grandson returned to till the soil. The rise in farmers on resuscitated lands will result in a jump in production and the magic number is 350,000 boxes for the crop year.

Hitting that target would put supply at a decade year high.

Another dealer said that JBM’s market is like a pyramid the higher the price the smaller the market. Simple economics dictates that price remains when demand and supply are in equilibrium: Yet demand is falling and the supply is rising.

Jamaicamocha believes on advise of dealers that the prices will fall back to about $45 a pound by 2017. Until then small poor farmers benefit. Dealers benefit and the discerning consumer gets his uber fix without counterfeits.

Large Mavis Bank Coffee losses US$660,000

Lovers of Jablum will have to wait longer for roasted whole beans based on a coffee shortage which led to losses at the factory (pictured below).
Large Jamaica coffee factory Mavis Bank which makes Jablum Jamaica blue mountain coffee lost  J$41 million (US$356,000) to its 50% stake holder Jamaica Producers Group up to its December 2104 year end. That equates to US$713,000 in total.
The factory continues to struggle from an island wide coffee shortage which resulted in farmers doubling prices to Mavis Bank compared with year earlier levels.

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JP stated in Its just released financials that the group has a 50% holding in a joint venture company, Mavis Bank Coffee Factory
Limited that processes and sells Jamaican Blue Mountain coffee. “Up to December 31, 2014,
the group’s contribution to that joint venture was $136 million (2013: $136 million) used for working capital financing and start-up.”

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