East African Starbucks Java House coffee chain enters China, from selling coffee beans and tea
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Java House, the largest coffee restaurant chain in East Africa, is preparing to enter the Chinese market.
It is reported that Java House recently reached a distribution agreement with Shanghai Green Chain. Through Green Chain,Java, about 10-15 tons of goods will be exported to China every month, including 375g packaged Kenyan AA Arabica coffee and Gold Label brand tea.
For Java, the partnership is part of its strategic expansion of the brand. Previously, the company was already exporting Hawaiian fruits to China, and now it is focusing on exporting high-quality coffee to China and more Asian countries.
"the Chinese are already the main consumers of bagged coffee in many Kenyan local restaurants and cafes. Why don't we just sell our products to China?" Paul Smith (Paul Smith), CEO of Java House, told Reuters.
The Kenyan government attaches great importance to the coffee industry and is also working hard to solve the problems in coffee cultivation, including abolishing relevant taxes, introducing new varieties to reduce production consumption, reducing the debt of growers, and so on. Local governments are also speeding up the delivery process so that farmers can get payment as soon as they deliver the coffee beans.
Besides coffee, Kenya is also the fourth largest tea producer in the world. The black tea produced here is of high quality, so tea has become one of the main products exported to China by Java House this time. Although China is also a big country of tea culture, coffee is the most concerned foreign drink in this market compared to tea. According to Statista, a German statistics company, the Chinese coffee market will grow at a compound annual rate of 14.3 per cent from 2018 to 2021.
In Kenya, agriculture has made a significant contribution to GDP and local employment, and coffee is Kenya's second largest export after tea.
There are two types of coffee marketization mechanisms in Kenya, namely the Central auction Mechanism (Central Auction) and the Direct Marketing system (Direct Sales System).
The central auction mechanism is conducted under the auspices of a specific organization, the Nairobi Coffee Exchange (Nairobi Coffee Exchange). At auctions, most marketing agents sell unroasted coffee beans to exporters after cataloging, classifying and setting reserve prices.
Most of Kenya's coffee beans are sold to Europe, while Germany is its largest importer.
This time Kenya is full of confidence and is ready to enter the Chinese coffee market.
Kenya has a limited share of the local coffee market, because there are fewer local coffee drinkers in Kenya, so most of the coffee beans are sold abroad.
There are also many local bakeries in Kenya's coffee industry, including Stevkham Enterprise,KPCU Coffee Exporters,Raki Investment,Malaiki Coffee and Tea,C Dorman,Kenya Nut Company,Mwangi Coffee,MA Pandit&Co,Bico,Cejo Investment,Cnetral Impex Enterprise and Nairobi Java House, Tomoca (TO.MO.CA) Coffee.
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