The Starbucks chain opened to the public a store located in Multiplaza Escazú, the new establishment has the capacity to receive 99 customers and required an investment of approximately $750 thousand.
Company executives informed that this new location is inspired by Hacienda Alsacia, the only Starbucks farm in the world, located in the Costa Rican province of Alajuela.
Caribbean Coffee Traders Limited will operate from August 1st the 11 coffee shops that in the country operate under the Starbucks brand.
Starbucks executives for Latin America and the Caribbean informed that Caribbean Coffee Traders Limited (CCTL) is managed by businessmen Adam Stewart and Ian Dear, who have a license that leads Starbucks operations in three Caribbean markets, Jamaica, the Cayman Islands and the Turks and Caicos Islands.
The launch in the local market of 10 different products of roasted and ground coffee and in capsules of the Starbucks brand, reflects the increase of competition in the segment of premium coffees, which already represents about 4% of total consumption in the country.
The products that will be marketed initially in the chains of Walmart and Másxmenos supermarkets, are distributed by Nestlé, which bought the retail distribution of these Starbucks products globally.
Although consumption has remained stable in recent years, the Costa Rican market now demands greater quality and variety in preparation methods.
According to figures from the Chamber of Coffee Roasters, per capita demand in the country is around four kilograms of coffee beans per year, which is equivalent to two cups of coffee per person per day.
José Manuel Hernando, president of the roasters guild, explained to Nacion.com that "...
Local and foreign companies share a growing market, driven by greater consumer sophistication, where quality coffee is demanded, and by the trends imposed by international brands.
The presence of coffee shops has been growing in the country, especially in the capital and in urban areas.International brands such as Starbucks and Juan Valdez compete with Salvadoran brands such as Coffee Cup.
The coffee trader Ecom will be managing the funds provided by Starbucks, IFC and the IDB for long-term financing to help Nicaraguan coffee growers fight against rust.
From a statement issued by the International Finance Corporation (IFC):
The Inter-American Development Bank (IDB) will provide long-term loans to help Nicaraguan coffee farmers combat the devastating effects of the coffee rust fungus, which has swept through Central America, crippling production and threatening the livelihoods of millions who depend on the coffee industry.
Starbucks and Juan Valdez in Colombia are two of the companies interested in participating in tenders for commercial spaces at Tocumen Airport.
The specifications for the procurement of 15 of the 40 premises available at Tocumen Airport will be announced in the coming weeks and the term for which the concessions will be granted is estimated to be between 5 and 10 years.
Local businesses and international franchises are looking to differentiate themselves focusing on service and the quality of coffee in a market which, in the opinion of competitors, is not yet saturated.
There are now several local and international brands entering the coffee market in Costa Rica, including Britt Group, Starbucks, Café Art & Spoon, who in 2014 opened new outlets and projects that in 2015 there will be continued expansion offering consumers different concepts.
The Colombian coffee shop chain announced stores in Guatemala, El Salvador and Costa Rica.
Elfinancierocr.com reports: "In Costa Rica, Juan Valdez will find a competitive market full of national and international brands such as Starbucks, Illy Gourmet, Saboreatéycafé and KafeHaus, among others."
"Juan Valdez is the only coffee chain in the world whose shareholders are the producers."
To enhance market access domestic coffee making machine manufacturers are associating themselves with single-dose infusions.
From an article by the Costa Rican Trade Promotion Office (PROCOMER):
The business of coffee capsules has shown continuous growth and leading brands have closed partnerships deals with manufacturers of coffee making machines in order to push for a larger share of the market.
Consumers in China are choosing international brands, in 2012 the consumption of coffee surpassed 70 thousand tons and in 2013 it is expected to reach more than 95 thousand tons.
From an article by the Costa Rican Trade Promotion Office (PROCOMER):
The growing demand for coffee in the Chinese market, which traditionally used to be focused on tea consumption, presents a great opportunity for exporters of this product.
A working alliance with the company Cisa-Exportadora has provided funding and technical assistance which enabled them to successfully combat the fungus in their coffee trees.
About 20% of producers which make up the partnership have certification from Starbucks, AAA Nespresso and UTZ, which besides providing the best prices also avoid damaging the environment.
"For every cup of coffee sold at $3 in U.S. stores, just $0.03 goes to producers in Latin America" (Cuentos Chinos, Andres Oppenheimer).
An article by Daniel Calvo in Elfinancierocr.com reports on how the opening of the first Starbucks in Costa Rica has restated an old theme: "Should we be satisfied with being only grain suppliers?"
Calvo says "In the era of a knowledge economy, value-added products are worth much more than raw materials, so we must shape our exports according to this method."
A drop in productivity from 30 to 23 quintals per hectare in coffee plantations in Costa Rica has made it difficult to fulfil the total current demand from buyers like Starbucks.
As well as affecting the supply to Starbucks, the decline in production of quality coffee will also affect supply to other large buyers such as Nespresso, Green Mountain and Royal Coffee admitted Ronald Peters, president of the Coffee Institute of Costa Rica (Icafe).
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