Brazil to Establish Coffee Chain Stores in China

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Last updated at: (Beijing Time) Thursday, July 04, 2002

Brazil to Establish Coffee Chain Stores in China

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Brazil is the coffee producing and exporting country, the biggest of its kind in the world. It has been a long dream for Brazilian coffee producers and exporters to seize the Chinese coffee market and expand its coffee export to China.

However, the Chinese people have been used to drinking tea and the tradition has landed the Brazilian coffee merchants in a difficult plight as to whether they are going to open up the Chinese coffee market or not. Recently, some Brazilian coffee exporters have got an idea that to set up "Brazilian coffee chain shops" in China is the best way for the Brazilian coffee to penetrate into the Chinese market.

As learned, the Brazilian Ministry of Agriculture is working out a plan in which it is to set up in China the Brazilian coffee chains by following the American pattern of Starbucks. So far the name for the chain is "Brazilian Coffee" but not finalized. Brazilian coffee producers and exporters will join hands with Chinese entrepreneurs to set up joint ventures in China. The Brazilian side will make its investment with coffee while Chinese partners are in charge of the daily business operation.

For trial, the Brazilian side will use the 6 million packs of coffee in stock as its initial investment. And soon afterwards, a technical official will be sent to China to make a further investigation of the market and work out the early budget for investment.

Setting up coffee shops in line with Chinese culture

To date, the annual consumption of coffee in China comes only to 300,000 packs, an equivalent for one-week coffee consumption in Brazil. The Brazilians think that coffee, as a drink, hasn't entered the Chinese families yet. The Chinese regard coffee-drink as a high-grade, fashionable and modern enjoyment in their lives. So the place for coffee-drink is usually in hotels, bars or song and dance halls instead of the households.

President of Brazilian Green Coffee Exporters Association holds that the US has established 130 Starbucks Chains in Beijing and Shanghai. "If Brazil wants to carve a share out of the Chinese market it has to make a good use of the coffee sales in China". Therefore, to put up "Brazilian Coffee Shops" is the best choice.

The Brazilian side wishes to sell more of their coffee in the Chinese market for this can not only expand their export in foreign trade but also help them solve the confronted difficulties in coffee production and exportation. To help promote the coffee exportation Brazil is also thinking of some other ways to help with the sales.

By People's Daily Online

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