Value chain analysis was undertaken from the collected data to identify the value chain affecting factors. Coffee value chain in selected importing countries denis seudieu, chief economist international coffee organization. A comparative analysis of the coffee value chain igc. It offers to customers a big variety of beverages, and also pastries and snacks. Hetzel and his team advise governments, exporter groups and private coffee industry stakeholders to sustainably increase the value of coffee production and trade. Pdf the powerful role of intangibles in the coffee value chain. The inbound logistics for starbucks refer to companyappointed coffee buyers selecting the. The birthplace of coffee, ethiopia is home to some of the finest coffees in the world.
The expanding consumer demand for product choice, quality and value has led to an increase in the coffees being made available to a discerning public. In uganda, which is the 2nd largest exporter of coffee in africa, coffee is an important cash crop that supports over 3. Value chain analysis primary activities inbound logistics sourcing coffee from various coffee beans makers with whom they have incredible. Overall it was found that the total carbon footprint across the entire supply chain is 4. Priority was given to nine objectives that are considered strategic leverage points for three different links in. The productive cycle of coffee supply chains in costa. The upstream portion of the value chain shows the product development from adding teas and international influences, to the research that took place to develop the via instant coffee line. An analysis 2818 words 11 pages marketing plan executive summary this marketing plan is an attempt to measure the market that costa coffee is in and determine where growth can occur over the next three years. Value chain bean and ingredient selection product development product distribution storefront takehome products the above is the value chain for starbucks.
Dowding, university of connecticut, stamford ct usa abstract this paper examines starbucks corporate strategy of sustainable efforts in ethiopia, particularly in the sustainable sourcing arabica coffee. In addition to the companys cocacola brands, our portfolio includes some of the worlds most valuable beverage brands, such as ades. Starbucks inbound logistics and supply chain was subjected to a dramatic restructuring in 2010 after howard. It is headquartered in dunstable, england costa coffee was founded in london in 1971 by two brothers bruno and sergio costa as a wholesale operation supplying roasted coffee to caterers and specialist italian coffee shops. Costa coffee case study costa was in the process of looking for a tool to carry out an archiving exercise. The value chain of raw coffee beans has been considered.
For complete information regarding our financials, see our periodic filings. In business, we are paid to take the raw materials, turn them into something of worth to other people with the intention of adding value in it. Costa rica, france and national workshops in delhi and bangalore local events in. The new company, costa express, partners on a revenuesharing basis with retailers that service public places like airports, railway.
Costa rican coffee sold and certified as fairtrade is almost exclusively for export and therefore the comparison of coffee value chains is made in regard to conventional coffee for export. Largest coffee chain in the uk with 1,357 high street stores, 1,032 franchise stores and 7,100 express machines 1 reputation for high quality coffee. Burundi, just as it has for kenya, costa rica, guatemala and, more recently, nicaragua. A value chain and sustainability initiatives analysis melissa murphy, university of connecticut, stamford ct usa timothy j. While others ponder the relative merits of internet of things, smart machines and advanced analytics, costa express has already rolled them out and is reaping financial benefits. High level of international presence the 2 nd largest coffee chain globally with 3,401 stores across 31 countries.
Coffee the supply chain introduction today, a jar of instant coffee can be found in 93 per cent of british homes and increasingly consumers are trying out different types of coffee, such as cappuccino, espresso, mocha and latte. Costa coffee is one of the most popular coffee chain outlets globally. The largest single coffee category imported into to the uk is green coffee. How costa coffee used data to drive loyalty and sales. The study on value chain analysis of coffee was conducted in palpa and kaski districts, nepal during june to august, 2016. Costa part of the larger whitbread group has accrued a number of enviable accolades over the years and can boast equally impressive growth figures to boot. The coffee shop chain recently posted a massive 28. Once a value chain is defined, cost analysis can be performed by assigning costs to the value chain activities. Denis seudieu, chief economist international coffee council london, march 2011 table 1. Sustainability indicators along the coffee value chain. A firm may create a cost advantage either by reducing the cost of individual value chain activities or by recognizing the value chain.
Value chain analysis for coffee in karnataka, india. Coffee is a major agricultural export commodity of vietnam with the. This paper aims to analyze and discuss the evolution towards sustainable coffee supply chain and its management in vietnam. We will illustrate this with a comparative analysis of the coffee value chain in several igc countries, including rwanda, tanzania and uganda and eventually kenya as well as nonigc countries, e. Costa coffee sells coffee as its main product in its marketing mix. I will be responsible for managing an enlarged supply chain for costa enterprises, which comprises more than 7,000 locations worldwide and dispenses more than 100 million cups of coffee a year. The objective of this value chain analysis study is to conduct an indepth analysis in. As coffee beans are the primary input in the value chain of the industry. The report defines the market in terms of traders and roasters, who procure coffee to supply to the retail distribution channel for end consumers. Costa coffee is the fastest growing coffee shop business in the uk and proud to have been voted the uks favourite coffee shop for eight years running members of the costa coffee club are rewarded for their loyalty with points and enjoy benefits such as free treats and exclusive offers. Costa coffee is a british coffeehouse chain which is a subsidiary of the cocacola company. A value chain analysis of fairtrade coffee lund university.
This study determines the carbon footprint of the supply chain of costa rican coffee exported to europe, using best practice methodology to calculate greenhouse gas emissions. Currently, coffee is the most popular drink in the world, consuming more than 400 billion cups of coffee a year, and coffee is the worlds secondlargest trading product after oil in terms of volume. Strategic analysis of starbucks corporation 1 introduction. Market analysis in the marketing strategy of costa coffee coffee consumption in globally is growing at the rate of 2%. Ethiopia coffee industry value chain analysis usaid compete 2010 profiling the actors, their interactions, costs, constraints and opportunities. Coffee strategies is led by andrew hetzel, specialty coffee market, value chain and trade promotion expert. Value chain concept is a useful instrument for exercising how you can create the greatest possible value for your costumers.
Ethiopia coffee industry value chain analysis usaid. Starbucks corporation, an american company founded in 1971 in seattle, wa, is a premier roaster, marketer and retailer of specialty coffee around world. Value chain analysis for the coffee sector in rwanda cbi. Value chain analysis of the coffee sector report undp in. Updating the coffee value chain and a marketing strategy to reposition yemen in the international coffee markets august 20 the views expressed in this report do not necessarily reflect the views of the united states agency for international development or the united states government. Arabica is high quality coffee that demands manual collection. The company offers a lot of variants and flavours in coffee. The value chain starts from the farmer and goes up to the level of the roaster. Updating the coffee value chain and a marketing strategy to reposition yemen in the international coffee markets august 20 the views expressed in this report do not necessarily reflect the views of the united states agency for international development or the. Value chain analysis is a way to visually analyze a companys business activities to see how the company can create a competitive advantage for itself.
The product strategy and mix in costa coffee marketing strategy can be explained as follows. Summary of global market trends, growth in specialty coffee and regional. Developing sustainable food value chains guiding principles. The purpose of this report is to find and diagnose the main problems costa coffee facing currently in the development of chinese market, based on the detailed introduction to the development of company in china, combined with the pestel model, swot analysis for the companys internal and external environments then, this report will put forward possible solutions to the problem, and analyze. The report does not cover the coffee beans processed in any manner, including roasted, ground, instant, or other forms of coffee. Starbucks valuechain analysis research methodology. The costs obtained from the accounting report may need to be modified in order to allocate them. Based on the size of the company and the growth of the business, we needed to archive some of the data we hold in our database. Wolfgang boekalmann thesis submitted in partial fulfilment of the requirementsfor the joint academic degree of international master of science in rural development from ghent university belgium, agrocampus ouest france, humboldt.
In india, the per capita consumption of coffee is around 85 grams while it is six kg in us developing nations are the big potential for the companies in this industry. A case study with coocafe in costa rica, prus working paper no 11. Revenue of costa coffee worldwide from fiscal year 201011 to 201819 in million gbp records. The purposive and random sampling technique were used. Exporters and importers are also considered as stakeholders in the value chain.
Identification of supply chain performance indicators horizon. How costa coffee used data to drive loyalty and sales u. Secondly, in january we launched our new cem200 intelligent coffee station concession, based on advanced technology from intel, microsoft, and bsquare. Starbucks valuechain analysis is an analytical framework that assists in identifying business activities that can create value and competitive advantage to the business. It has a presence in 31 countries and is known for its good taste of coffee. Average consumption in selected importing countries 60kg bags average consumption1975. Costa express supply chain revolution supply chain movement. Second largest coffee chain in the world costa coffee is the second largest coffee chain in the world. Cocacola to tap costas coffee supply chain financial times. Value chain analysis helps a company understands how it adds value to something and subsequently how it can sell its product or service for more than the cost of adding the value, thereby. The sustainable food value chain framework 10 chapter 3 the sustainable food value chain development paradigm 3.
A framework to obtain sustainability indicators along the coffee value chain based on a comparative study between mexican and colombian retailers is described. Yet the supply chain arrangements in place mean that the imports from the eu, primarily roasted coffee and soluble coffee, are of greater value than that from the rest of the world. For example, in rwanda alone, there are approximately 400,000 coffee farmers. Costa coffee marketing mix 4ps costa coffee marketing. Ko is a total beverage company, offering over 500 brands in more than 200 countries and territories. Starbucks is an american global coffee company located in seattle, washington, through years have been categorized between one of the most recognized brand globally. Coffee value chain analysis and consulting from the.
Competitive advantages differences among competitor value chains are a key source of competitive advantage porter, 1985 firm infrastructure used to increase efficiency and to cut costs computerized coffee roasters wifi in stores mobile. Costa coffee rcubed limited smarter datadriven marketing. Figure below illustrates the essence of value chain analysis. Today costa express is disrupting its coffee industry peers with its automated, intelligent supply chain. The table below illustrates costa coffee swot analysis template. As a preliminary summary, it can be stated that there is. Value chain analysis for coffee in karnataka, india ghent. Largest coffee chain in the uk while starbucks is the leader in coffee in the us and several other countries, costa coffee is the clearly the leader in the uk.
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