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Slow drip to China

Updated: 2013-05-03 10:13
By Lv Chang and Li Aoxue ( China Daily)

Slow drip to China

Rwanda's coffee exports to China are growing. Provided to China Daily

Countries such as the US, the UK, Italy and Switzerland have already established a strong brand image with their products and coffee shop chains in the Chinese market, including Starbucks, Costa Coffee, Lavazza and Nestle.

However, coffee direct from Africa, its "birthplace", is rarely seen on the shelves of Chinese supermarkets or in coffee shops.

Andrew Rugasira, a Ugandan entrepreneur and founder of Good African Coffee, says in his book A Good African Story: How A Small Company Built A Global Coffee Brand that access to affordable capital is the main reason many African enterprises fail to take off.

He says African governments need to address this by making long-term capital available and investing in coffee-growing areas.

Rugasira also says "the developed countries that carry out the processing (of Africa's raw produce) keep the lion's share of the added value".

There is a lot more work to be done before African coffee becomes synonymous with premium coffee, but it is hardly mission impossible.

Shen Tao, vice-president of Beijing Coffee Association, says African coffee is more suitable to the Chinese palate and would be more readily accepted if it were properly marketed.

"Chinese coffee lovers prefer to drink light coffee, sometimes mixing it with milk, and African coffee with its sweet and fruity flavor can easily find favor with the market," says Shen, who manages an African-themed coffee shop in Beijing.

"As cafe-goers become more sophisticated with the coffee culture, there will be a huge opportunity for African coffee," he says.

On Taobao.com, one of the largest online shopping sites in China, a search of "African coffee" returns many results showing merchandisers located throughout the country, all with increasing sales.

Though fostering a coffee drinking culture takes time, the landscape has been changing in recent years.

One company that is determined to redress the balance with its own coffee brand is Ture PLC in Ethiopia, which set up an office in China during the 2010 Shanghai Expo. It imports green coffee beans from Ethiopia, and then roasts and packages them in China.

"Chinese people who have drunk Ethiopian coffee love its taste," says Sara Girama, who is in charge of the company's operation in China. "As a latecomer to the market, we need more time to educate them and more patience to stay in the market."

Just because you have a product in a supermarket, it does not bring you buyers, she says. People buy products they know through usage or marketing and advertising.

On this understanding, Ture plans to put more effort into product promotion and marketing activities by participating more in exhibitions and coffee contests in China.

The Ethiopian coffee brand Qahwa, which means coffee in Arabic, can also be found on Taobao.com.

Experts suggest African coffee growers also establish a coffee classification system as in the wine industry, by which coffee growers can position themselves as strong plantation names.

"In this way, when people think of premium coffee, they will be the ones to be associated with, as Bordeaux is for wine," says Shen, vice-president of Beijing Coffee Association.

"Through this identification, not only the name will become big, high-added value and growing profit will come with it."

Kebede Beyene, the ministerial counselor of the Ethiopian embassy in Beijing, says that Ethiopia, the original home of arabica coffee, has favorable conditions to grow top-quality beans.

"It is only a matter of time before African coffee growers open the door into the Chinese coffee market and into the hearts of coffee drinkers," he says.

Contact the writers at lvchang@chinadaily.com.cn and liaoxue@chinadaily.com.cn

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