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Coffee Consumption and Industry Strategies in Brazil

Book · September 2019

DOI: 10.1016/C2017-0-02125-0

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2 authors:

Luciana Florêncio de Almeida Eduardo Eugênio Spers

Escola Superior de Propaganda e Marketing University of São Paulo
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1
Description

Coffee Consumption and Industry Strategies in Brazil, the

latest release in the Consumer Science and Strategic
Marketing series, provides an overview of the coffee
sector, focusing on marketing strategies, consumer
behavior, and strategies for transforming coffee
consumption, production and retailing. The book presents
the importance of an academician-practitioner
perspective to bridge the gap between scholars and
managers, and between business schools and the
entrepreneurial world.

Appropriate for researchers in the fields of food retail and

producing, food marketing, consumer behavior,
consumer science, agribusiness marketing and strategy,
food industry strategy, undergraduate and post-graduate
students studying marketing, consumer behavior,
strategy, agribusiness marketing and strategy,
practitioners in the food industry, marketing managers,
and marketing and strategy consultants, this book is a
must-read for those contributing to the coffee industry.

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List of Contributors

Ana Elisa Bressan Smith Lourenzani

Sao Paulo State University (UNESP), Brazil
Bruna de Ribeiro Costa
Kamba Coffee, London, UK
Camila Régia Arcanjo Teles
São Paulo State Coffee Industry Union, Sao Paulo, Brazil
Caroline Gonçalves
Universidade Federal de Mato Grosso do Sul, Brazil
Celso Luis Rodrigues Vegro
Sao Paulo State Agricultural Secretary, Sao Paulo, Brazil
Christiane Leles Rezende De Vita
PENSA and Università del Caffé
Decio Zylbersztajn
School of Economics and Business, University of São Paulo, Brazil
Éder de Carvalho Januário
Department of Business, University of São Paulo, Brazil
Geraldo Magela Jardim
Federal University of Juiz de Fora, Brazil
Giuliana Aparecida Santini Pigatto
Sao Paulo State University (UNESP), Brazil
Guilherme Nunes Torga,
Economist from USP/ESALQ (Brazil) and Master in Agribusiness from Audencia Business School (France)
Jorge Herman Behrens
School of Food Engineering, University of Campinas, Campinas, Brazil
Jose Paulo Souza
State University of Maringá (UEM), Brazil
Joao Otavio Meirelles Ratton
Nielsen and Coffee producer in Brazil
Juliano Tarabal
Cerrado Mineiro Coffee Growers Federation, Patrocinio, Brazil
Kassia Watanabe
Federal University of Reconcavo da Bahia, Brazil
Lilian Maluf Lima
Departament of Economics, Management and Sociology, ESALQ, University of São Paulo, Brazil
Lucas de Vasconcelos Teixeira
ESPM, São Paulo, Brazil
Lyon Saluchi da Fonseca
Department of Production Engineering, University of São Paulo, Brazil
Mara Elena de Godoi Pereira
Sao Paulo State University (UNESP), Brazil
Samuel Giordano
PENSA (Agribusiness Knowledge Center) and Università del Caffé.
Sandra Mara Schiavi
State University of Maringá (UEM), Brazil
Maria Sylvia Macchione Saes
Department of Business, University of São Paulo, Brazil
Renata Pozelli Sabio
Public Health School of Université de Montréal (UdeM), Canada
Roberta Souza Pião
Department of Production Engineering, University of São Paulo, Brazil

3
About the Editors

Luciana Florêncio de Almeida holds a PhD in Business Economics from

FEA- USP with Post Doctorate at Technische Universität München, in
Germany at the Department of International Agribusiness. She holds a
master degree in business administration from UFLA, Minas Gerais, Brazil.
She attended as a visiting researcher in the Department of Agricultural
Economics at the University of Missouri, USA and in the Chair of Food and
Agribusiness at the University of Macerata, Italy. Additionally, she was the
former Executive Director of the Brazilian Coffee Exporters Council
(CECAFE). Her consulting career includes Strategic Management and
Marketing projects through Stracta Consulting. She is currently full
professor at Doctoral Program in Business Administration and at Consumer
Behavior Master Program at ESPM-SP. She is also member of PENSA
(Agribusiness Knowledge Center at FEA/USP) and Agrifood & Franchising
Research Center (ESPM/SP).

e-mail: lflorencio@espm.br

Eduardo Eugenio Spers hold a doctorate degree in business administration

at the University of São Paulo (FEA/USP) and a post-doctorate in
Wageningen University (WUR), Netherlands. He is currently Full professor
of the Doctoral Program in Business Administration and of the Professional
Master in Consumer Behavior at ESPM/SP. Associate Professor at
University of São Paulo, campus Esalq. Coordinator of the MarkEsalq
(Esalq/USP) and member of PENSA (Agribusiness Knowledge Center at
FEA/USP) and Agrifood & Franchising Research Center (ESPM/SP).

e-mail: edespers@usp.br

4
Table of Content

Section 1: Market outlook, factors and trends

1. Global coffee market: Socio-economic and cultural dynamics – Celso Vegro e Luciana
Florêncio de Almeida
2. Perspectives of global coffee demand – Guilherme Nunes Torga e Eduardo Eugênio Spers
3. Brazilian specialty coffee scenario – Bruna Costa
4. The Coffee Quality Program in Brazil – Geraldo Magela

Section 2: Coffee farmers perception and contribution: Certification and strategies

5. Certifications for coffee cultivation: Characterizing personal values of producers and

consumers – Eduardo Eugênio Spers e João Raton
6. Certification: Facts, challenges, and the future – Roberta Souza Pião, Lyon Saluchi da
Fonseca, Éder de Carvalho Januário, Maria Sylvia Saes
7. Farm innovation: Nine cases of Brazilian coffee growers – Decio Zylbersztajn, Samuel
Giordano e Christiane Leles Rezende
8. What fills your cup of coffee? The potential of geographical indication for family farmers’
market access – Ana Bressan Lourezani, Kassia Watanabe, Giuliana Aparecida Santini Pigatto,
Mara Elena de Godoi Pereira

Section 3: Coffee industry strategies: Case studies

9. Procurement strategies in the coffee industry: Cases of local coffee roasters in Paraná state
– José Paulo Souza e Sandra Bánkuti
10. Cerrado Mineiro Region designation of origin: Internationalization strategy – Luciana
Florêncio de Almeida e Juliano Tarabal
11. Business history and challenges for coffee cooperatives in Brazil: The case of Cooxupé
Cooperative – Caroline Gonçalves e Decio Zylbersztajn
12. Illycaffè and flexible strategies: A case of a resilient company – Luciana Florêncio de
Almeida e Decio Zylbersztajn

Section 4: Retail and consumer

13. The waves of coffee and the emergence of the new Brazilian consumer – Jorge Herman
Behrens e Camila Régia Arcanjo Teles
14. The consumption of experiences in specialty coffee shops – Lucas Teixeira
15. Does coffee origin matter? An analysis of consumer behavior based on regional and
national origin – Renata Pozzelli
16. Behavioral aspects of the coffee consumer in different countries: The case of Brazil – Lilian
Maluf, Lilian de Pellegrini Elias, Mario Malta Campos Dotta e Silva, Karin Vieira da Silva and
Anderson Sasaki Vasques Pacheco
17. Coffee and health in the perspective of young consumers – Roberta Prado Rodrigues,
Luciana Florêncio de Almeida e Eduardo Eugênio Spers

5
Preface

A cup of illy espresso is the final act of a long and varied journey, involving the
thousands of families who work with us, day after day, to produce this elixir. It is the
end-product of a veritable obsession with quality, which began all the way back in
1933 - the year when Francesco Illy chose Trieste to start up a business based on a
dream: offering the best coffee to the world. Brazil has always played a big role in this
dream. My father, guided by the idea of an enterprise centered on quality, ethics and
sustainability, used to visit Brazil in search of the perfect beans. When the ICO
agreement collapsed in 1989, generating a heavy crisis with a sharp drop of the
growers incomes, hitting the entire coffee market, he decided to look beyond the
trading business model, to embrace a new one - based on direct relations with the
coffee producers. In the early 1990s, Brazil was the world’s larger producer of coffee,
but suffered a reputation for low quality product and poorly paid producers. Ernesto
Illy pioneered the direct purchase model, developing a close relationship with the
coffee growers, based on knowledge sharing and aimed to obtain the best possible
quality by sustainable practices. Knowing that there were consumers ready not only to
buy, but also to pay a premium price for this quality, he started to build illy’s
relationship with the Brazilian growers on four pillars: selecting and working directly
with meticulous coffee producers; transferring knowledge to produce high-quality
beans while respecting people and environment; compensating them for the quality
they achieve by paying a premium price, in order to foster ongoing improvement and
ensure sustainable production; creating a strong illy coffee producers community,
sharing values & best practices to strive for excellence. This process, initiated by my
father almost 30 years ago, considerably improved quality and sustainability of
Brazilian coffee (today universally recognized and appreciated) helping the entire
coffee community to grow and develop: and I am proud to say that part of the merit
for this improvement and consequent development has been attributed to illy by the
Brazilian Parliament. It soon became – and still is today - the illy business model in all
the countries and regions we buy from.
In 1991, we launched the first Prêmio Ernesto Illy de Qualidade Sustentável do Café
para Espresso, to award the best Brazilian producers and incentivize them to continue
striving for the best sustainable quality. In 2016, on the 25th anniversary of the
Prêmio, we extended this recognition to all the countries we buy from, creating the
Ernesto Illy International Coffee Award, held every year at the United Nations in New
York. This Award – now at its third edition – has already been named ‘the Oscar of
Coffee’ and it stemmed from the original Brazil Award. In the same way, the Clube illy
do café, founded in 1999 and including today over 600 Brazilian growers, will continue
to exist but will be part of a new international illy community, starting its activity in
2019: Casa illy.
Brazil is where all proudly started and where it will continue to develop. Brazil is still
leading the way.

Andrea Illy
Chairman of illycaffè S.p.A.
Trieste, Italy

6
Introduction

The “Coffee Consumption and Coffee Industry Strategies in Brazil” book was
elaborated aiming to close an editorial gap refereeing to the Brazilian coffee industry.
In this sense, the main objective was to provide an overview of the coffee sector,
placing special emphasis on marketing strategies and consumer behavior in Brazil.

The 4 sections take the reader into a journey in the Brazilian coffee sector exploring
the main chain blocks: production, industry, retailing and consumption.
The section 1 (Market outlook, factors and trends) contemplates 4 chapters that
explores facts and trends related to the coffee industry inside and outside Brazil,
positioning the country in the international scenario for coffee production,
exportation, retailing and consumption (Chapters 1 and 2); the diversity and
complexity of the specialty coffee production and commercialization inside the
Brazilian territory, and also, the institutional environmental and the industry quality
program (Chapter 4).
The section 2 (Coffee farmers Perception and Contribution: certification and strategies)
evidences the role played by certifications in the farmer´s perspective as well in the
consumer evaluation (Chapter 5). The major Voluntary sustainability standards (VSS)
adopted by the Brazilian coffee farmers are presented along with a discussion
concerning their main challenges for the coffee sector sustainability goals (Chapter 6).
Nine cases are presented highlighting how innovation approach and adoption might
increase competitiveness and shift positively farm management and coffee production
(Chapter 7). Geographic indication for food origin is increasing in emergent countries
and developed markets acting as an attribute for differentiation. Brazilian coffee sector
is exploring this trend as well as a competitive tool for coffee family farmers (Chapter
8).
The section 3 (Coffee Industry Strategies: case studies) is dedicated to discuss relevant
issues for the industry competitiveness as coffee procurement, internationalization
and cooperation. Important production regions as Parana State (Chapter 9) and
Cerrado Mineiro (Chapter 10) are the protagonists of two case studies that explores

7
quality coffee differentiation through denomination of origin. The major global coffee
cooperative is in the central analysis of the business strategies of this type of
organization considering the new challenges in recent years (Chapter 11). Dr. Ernesto
Illy´s saga to match the company demand into the high quality coffee market and his
innovative strategy to create value for coffee farmers and establish a successful
procurement are described. Some questions raises in the chapter in the face of new
challenges for illycafé embedded in a high-level competition market (Chapter 12).
Finally, the section 4 (Retail and Consumer) focus on coffee consumer´s trends in
retailing, origin and health attributes. Responsible for the second place in global coffee
consumption, Brazilian consumers are entering in the fourth coffee wave
demonstrating rapid growth in specialty coffee experience in and out of home
(Chapter 13). Specialty coffee shops also plays relevant role instigating the coffee
lovers to have a unique experience at this social spaces (Chapter 14). Behavioral
aspects are presented and discusses concerning coffee origin and consumption
patterns among countries (Chapter 15 and 16). As consumers are increasily focusing
food health aspects, the functional and social coffee attributes are explored in the
perspective of young consumers (Chapter 17).
This book is appropriate for researchers in the fields of food retail and producing, food
marketing, consumer behavior, consumer and food science, agribusiness marketing
and strategy, food industry and other related topics. For undergraduate and post-
graduate students studying marketing, consumer behavior, strategy and agribusiness.
For professional and practitioners acting in the food industry, marketing managers,
and marketing and strategy consultants. Finally, this book is a must-read for those
contributing and lovers of the coffee industry.

Enjoy your journey through the Brazilian Coffee World!

Luciana Florêncio de Almeida & Eduardo Eugenio Spers

8
 Compre Aqui seu exemplar!

Loja Elsevier:
https://www.elsevier.com/books/coffee-consumption-and-coffee-industry-strategies-in-
brazil/de-almeida/978-0-12-814721-4
Loja Google:
https://books.google.fr/books?id=7XSvDwAAQBAJ&printsec=frontcover&hl=pt-
BR#v=onepage&q&f=false

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