Analyze the current situation of coffee in China. What is the sale of cheap coffee beans in the Chinese market?

Fair Trade: Deciphering the Price Problem of Coffee and Coffee Service Industry in China

- Swiss Coffee People's Green Paper for National Consumers

At least 400 billion cups of coffee are consumed worldwide each year, making coffee the world's top two drinks and the world's second-most traded commodity after oil. Coffee development in China is less than 25 years old and is still at a relatively early stage. According to statistics, at present, the annual per capita consumption of coffee in China is only 0.01 kg, but the coffee market is growing at a rate of 30% per year, far higher than the annual growth rate of 1.5% in the world coffee consumption.

The Tokyo Olympic Games and Seoul Olympic Games have become milestones in the history of coffee popularization in Asian countries such as Japan and South Korea. According to the statistics of the International Coffee Organization (ICO), Japan has surpassed Germany to become the second largest coffee consumer in the world, and the growth rate of coffee consumption is related to the country's GDP growth rate.

As an international professional coffee company that has just entered the Chinese market, we take the opportunity of publishing the Green Paper to disclose some abnormal phenomena in the current Chinese coffee industry to consumers, so as to facilitate the healthy development of the Chinese coffee industry, promote the popularization of coffee culture, and enable Chinese consumers to understand the current situation of international coffee and enjoy coffee services equally.

Question 1: Coffee beans:

According to ICO statistics, according to the principle of international fair trade, in order to ensure the reasonable replanting profits of farmers in coffee producing countries, the price of Arabica coffee green beans in the international market should be above US $1.7/kg, while the price of Roberto coffee green beans (adzuki beans) should not be higher than US $0.8/kg.

Roasting green beans to maturity at a cost of at least $10/kg per kilogram of coffee cooked beans;

Take the European coffee market as an example, Switzerland and Italy have the highest coffee bean prices, and Swiss classic coffee prices are around CHF 20 (RMB 130) per kilogram. Coffee beans in France, Austria, Germany and other countries are relatively cheap by 30%-50%. The reasonable price of imported classic coffee beans sold in China should be around 200 yuan per kilogram, and the reasonable price of imported original coffee beans should be at the level of 1000-3000 yuan. For example, Swiss coffee people provide Jamaica Blue Mountain original coffee beans market price of 2700 yuan/kg. However, there are many domestic coffee beans prices as low as 50 yuan per kilogram!

There are several reasons why cheap coffee bean sales exist in the Chinese market:

1. Coffee beans of international futures standard quality are not used, but old green beans, or inferior green beans are mixed; China (including Hong Kong and Taiwan) currently does not have any company participating in trading on the international coffee futures market;

2, all domestic coffee beans packaging use non-international standard packaging materials and non-Swiss patent one-way exhaust valve, because China has not yet issued a national standard for coffee bean packaging materials;

3, expired coffee beans re-packaging or ground into coffee powder packaging, inferior for sale;

4, the use of a large number of relatively cheap Robster beans, thereby reducing costs, while ignoring quality.

There was once a domestic coffee bean manufacturer joked that imported coffee beans roasted into coffee beans can be stored for 18 months; if they can't be sold, they can be ground into powder and stored for another 18 months; if the powder can't be sold again, they can be made into canned coffee drinks and stored for 18 months. Can the above jokes also reflect the embarrassing situation of the Chinese coffee market?

Question 2: Coffee machine:

The world's leading fully automatic coffee machine manufacturers are located in Switzerland and Italy. In the market, the average Italian coffee machine costs 300-700 euros (3000-7000 yuan), while the coffee machine produced in Switzerland costs 600-1100 euros (6000-11000 yuan). In the Chinese market, including tariffs, freight, certification and other costs, the price should be 4500-10000 yuan (Italian machine), 8500-15000 yuan (Swiss machine).

The following questions are no longer a secret in the Chinese coffee industry, but consumers are still unaware of them:

1. Some coffee companies do not set prices according to reasonable profits, increase prices very high, and obtain huge profits under asymmetric market information;

Some coffee companies are small in scale, import products without legal procedures, small quantities smuggled into the domestic market, sold at low prices, unable to provide after-sales service, damage the interests of consumers;

3. Coffee machines are also high-end household appliances for many consumers, and many coffee companies use this psychology to raise prices for huge profits.

4, with coffee machine investment "financial management" to join, deceive eager to get rich small-scale investors.

Question 3: Coffee service industry:

In China, high-end hotels, western restaurants and cafes only serve freshly ground coffee (Espresso), the price is generally from 20-50 yuan/cup, while in Europe, Italian coffee generally costs 0.7-1.5 euros/cup, in Switzerland the price is 3-5 Swiss francs, the overall level is equivalent to RMB 8-30 yuan/cup. At this price level, a cup of coffee for Chinese consumers should cost between 8 and 30 yuan, with an average price of about 18 yuan.

The high price has seriously hindered the popularization of coffee in China, and it will certainly be discarded by history in the process of connecting with the international community. In China, a cup of freshly ground coffee sells for more than 30 yuan, which is suspected of profiteering. A 10-15% service charge is unheard of in Europe. Looking at China's current coffee service industry with reference to the rules of the game in the international market, there are more deep-seated problems: due to the high price, coffee is expensive, and the number of coffee sold in many places is limited, it is natural to pursue high price differences. But coffee quality declines over time, and a freshly opened bag of beans should be consumed within 48 hours.

If the coffee industry is not healthy, it will have a huge impact on the future. Swiss coffee people have the following suggestions for improving coffee service:

1. Freshly ground coffee service should be provided on Chinese flights before 2008. Instant coffee has been phased out of the global coffee service for years, and no airline is still offering instant coffee except for Chinese flights.

2. Freshly ground coffee service was provided in Chinese restaurants before 2008. In Europe and America, all Chinese restaurants will provide post-meal coffee for guests, because post-meal coffee is a sign of the formal end of lunch or dinner;

3. Star-rated hotels should immediately improve coffee service. A cup of pure freshly ground coffee should be the basic standard for star rating;

4. It is suggested that the Ministry of Commerce and other relevant departments attach importance to the healthy development of the coffee industry, promote the quality and price of coffee beans originating in China to be recognized by the International Coffee Organization (ICO) and the World Trade Organization (WTO), and promote China's coffee agriculture to participate in international competition.

The US Food and Drug Administration (FDA) has twice issued a notice calling coffee the healthiest drink for humans. Swiss Coffee aims to inform more consumers about coffee health by publishing a White Paper on Coffee Science and Health on the company's website for online or download reading.

Swiss coffee people appeal here: all Chinese coffee and coffee service industry owners unite, so that the good Chinese people in the development of economic wealth at the same time, calmly and harmoniously enjoy the greatest human, exciting health drinks-coffee.