Colombian coffee growers transform to expand into markets in the US and China

The National Federation of Coffee Growers of Colombia (FNC) began a transformation of its operating and business model that includes greater penetration in the United States and China markets through its different brands, including Juan Valdéz, the manager announced this Tuesday. company general, Germán Bahamón.

“The Federation has once again played a more predominant role (…) we want to work hand in hand with private companies to make Colombian coffee reach more destinations”said Bahamón when taking stock of his first year in office.

According to the leader, the FNC, created in 1927 and which brings together 552,000 grain-producing families, looks “with special attention to China” and want “have the possibility to surf the wave of growth of the Chinese market”.

“We have increased revenue thanks to green coffee sales in the Chinese market, which grew by 224% in 2023 compared to the previous year”he added.

The Asian giant is also in the sights of the Federation of Coffee Growers to expand the freeze-dried coffee market sold under the Buencafé brand, a producer and exporter of value-added products.

“With this we also want to enter China, in Indonesia, we want to develop the Middle East”Bahamón said of Buencafé, which last year gave a net profit of US$41.2 million and has a 5% share of the global freeze-dried coffee market.

Juan Valdéz expansion in North America

Another spearhead in the international market is the Juan Valdéz coffee shop network, which last year opened 10 new stores in Colombia and 51 abroad and had a 24% growth in sales, which allowed it to contribute 10 million dollars to the National Coffee Fund, which invests its resources in the development of the sector.

Juan Valdéz currently has 553 stores, of which 358 are in Colombia and 195 abroad and “The goal is to reach 1,200 stores in 2027″, when the National Federation of Coffee Growers will celebrate its centenary.

In that sense, Bahamón anticipated that the emblematic brand of Colombian Coffee is preparing to make a major expansion in North America.

“We have been in an important negotiation for 10 months regarding making a change in the commercial history of Juan Valdez in the United States (…) to have a partner that will allow us to enter strongly into the US large-store market. US and Canada and go from US$ 13 million in the retail market to US$ 100 million in 2030“, advertisement.

Specialty and decaffeinated coffees

The market for specialty coffees, produced in microlots from which high quality and priced beans are produced, is another segment on which the FNC has set its sights.

The goal for this year is to produce 29,206 bags of specialty coffees and in the first quarter alone the figure was 13,995 bags, which represents a growth of 36% compared to the same period in 2023.

The FNC is also making a strategic commitment to a decaffeinated coffee production plant, which the leader defined as “a dream of opportunities.”

“We have seen that, in the world market, the consumption of decaffeinated coffee has had many followers”said Bahamón, who pointed out that in Spain 19% of consumers drink decaffeinated coffee; in the United Kingdom it is 20%, in Germany it is 8% and in the United States it is 11%.

According to Bahamón, “There are some markets that are asking for decaffeinated coffee” and Colombia has “the industrial and operating capacities to grow in that sense and meet a demand that is growing in the world.”

Bahamón also highlighted the good results of the sector, since in the last 12 months (from May 2023 to April 2024) coffee production reversed the downward trend and was 11.6 million bags, 2.6% higher than the previous year. .