The Russian Coffee Market

Industry Overview: The Russian coffee market

Domestic market

In recent years, the popularity of coffee in Russia is increasing, as evidenced by the increase in the consumption of this drink. So, if you have 2-3 years ago, the amount of coffee consumption per capita was 200-300 grams. per year, now consumption, according to various estimates, is already 600-1000 c. in year. This is significantly lower than the European countries, particularly Scandinavia, where coffee consumption is highest, ranging from 9 to 11 kg per year, however, experts say the coffee market, coffee consumption in Russia will increase in the next 3-4 years will grow by 2 times. Such estimates are made based on the study of consumer demand and preferences of the population, as well as the efforts to popularize coffee, made by the world's largest producers.

Along with the increase in coffee consumption rises and the culture of consumption. Thus, Russians have become more aware of varieties of coffee brands on the market, and increasingly prefer cereal or coffee grounds before soluble. According to research by Dutch coffee supplier in the Russian company Douwe Egberts, in 2001 the consumption of instant coffee in the country increased by 15% compared to 2000, and its share of total coffee consumption in Russia fell from 85.8 to 85.1 %, while the consumption of beans and ground coffee has increased by 17% and its share in total consumption increased from 9.9 to 10.1%.

In addition, more coffee is drunk not only at home but also in cafes and restaurants. This can be illustrated by the fact that currently in Moscow already has about 100 specialty coffee shops, while 3 years ago such establishments in the capital, there were no more than a dozen. The largest network of stores in Moscow is a "Coffee House" (10 institutions), until the end of 2002 the company plans to expand its network by 2 times, and in the future, "Coffee House" will consist of at least 30 schools. Plans for the opening of the specialized coffee shops have many Russian companies - producers of coffee. Thus, the company "Montana Coffee", which belongs to the coffee roasting factory in Moscow, plans for 2.5 years invest $ 3 million. In the opening of 22 stores in Moscow, St. Petersburg and other Russian cities. Until the end of 2002 concern "Rosinter" plans to open a chain of coffee shops in Moscow "Moka Loka", if their work is successful, in 2003, "Rosinter" plans to enter the draft "Moka Loka" in the regions. Investing in each coffeehouse will make 120-150 thousand. USD. In 2002, the Moscow market expansion plans Petersburg coffee house chain "perfect cup" (it is composed of nine stores in St. Petersburg).

According to experts, "Montana Coffee", the capacity of the coffee market in Moscow is 2,000 institutions in St. Petersburg operates two online stores - "perfect cup" and "Coffee Republic", and this, too, is not enough. Business development inhibit the high rents for premises.

World coffee market

The world's largest coffee producers recently faced with a crisis of overproduction, which led to a collapse in coffee prices, which continued from 1994. In early 2002, the fall in prices has stopped and started weak growth. For example, if in early 2002, the price of futures contracts for robusta coffee in the LCE is 250-300 dollars. / M, then the beginning of September 2002 the price had risen to 562 USD. / T. At about the same price level it was in the middle of 2001 and in early 2000, the prices were twice as high as about $ 1,000. / T.

Dynamics of the prices of futures contracts for robusta coffee on the London Commodities Exchange, $ / t

Schedule: Copyright 2002 CQG, Inc. ALL RIGHTS RESERVED

Meanwhile, the world production of coffee continues to grow. According to the IOC, the annual world coffee production is about 68 million tons, consumption - about 67 million tons. In the 2002/03 season is predicted a record harvest of coffee - 73,3-74,4 million tons. Also increases the volume of world exports. So, in July 2002, the world coffee exports fell by only 0.5% compared to July 2001 despite the fact that part of the stocks of coffee were destroyed. For 12 months. (from July 2001 to July 2002), the volume of coffee exports, excluding re-exports totaled 5.4 million tonnes, which is 4% more than in the previous year.

In an effort to stabilize world prices for coffee six Latin American countries (Honduras, Mexico, Colombia, Costa Rica, Nicaragua and El Salvador) have decided to destroy 1.3 million bags of coffee varieties of low quality (1 bag = 60 kg) from October 1, and thus reduce grain exports by 5%.

The largest producer of coffee in the world is Brazil, according to the Ministry of Agriculture, the harvest of coffee in Brazil, in the 2002/03 season to reach 47 million bags (or 28.2 million tonnes), which is 39% more than in 2001/02 The increase in the collection due to favorable weather conditions and the entry into the new stage of fruiting plants. Exports of coffee from Brazil will increase from 24.88 million bags (14.9 million tonnes) in 2001/02 to 28.6 million bags (17.2 million tonnes) in 2002/03 between the Brazilian organization Cecafe believes Coffee exports from the country remain at the level of 2001/02, due to the low prices of surplus goods will be retained in reserves.

According to experts of the International Coffee Organization (IOC), a partial solution to the problem of overproduction could be the increase in sales volumes. This is possible mainly due to the promotion of coffee in countries where the consumption is relatively small. Promising markets, according to experts, are the markets of Russia and China, which are quite bulky, even at a low per capita consumption. Over the past three years, the IOC has invested in the development of coffee production in Russia and China, $ 2.7 million., Which has already led to positive results - growth in production and consumption of coffee.

The Russian coffee market

Coffee market began to take shape in Russia in the early 90-ies., Until that time, the Russians preferred coffee beans (just because they simply had no choice: it is this type of coffee can be purchased in stores), and the Brazilian soluble , who managed to buy is not for everyone. With the advent of the stores of various products have changed and coffee preferences of Russians who began to give preference to soluble coffees.

Currently,