Coffee Industry Analysis Paper

According to statistics, Finland is the country with the highest per capita consumption of coffee, and China is the lowest one, but in Finland there are nearly five million residents only, which means Finland will consume a million bags of coffee every year, but the 1.3 billion residents of China will provide approximately 200 million potential coffee consumers, and this will make China becomes a major coffee market. On the other hand, under the same culture background, compare to Japan and Korea, Chinese average annual per capita consumption is only around 20 Cups, but this also means Chinese consumer coffee market has a big room for future growth.

The popularity of coffee began with its introduction to Europe in the 17th century, a time when colonialism had brought many resources to countries like France and Britain. In Europe, coffee was a delicious beverage, and was very inexpensive due to the monopoly of coffee imports from colonized to colonizer. But while tea was still the preferred choice in North America, an increasingly higher tax on America’s favorite beverage led to the Boston Tea Party. Tea forever came to be known for the British oppressor, and coffee became as popular in the U.S. as it was in Europe. The popularity of coffee remained because the colonies in Africa were required to export all precious resources to Europe. Despite the history of exploitation of resources in many African countries, the coffee industry in Ethiopia has thrived, taking a product that is in high demand and creating a stable economy, leading to the improvement of its citizen’s economic prosperity. This is because Ethiopia was one of the few areas not colonized by European powers, letting it avoid the consequences of colonialism and focus on the development of a country.

The coffee served in Second Cup is also high quality and the drinks available strongly rival those in Starbucks. In the past decade there has been an explosive growth of 157% in the area of coffee shop market. Canadian coffee market share, new companies have limited to no space for growth in North America. Second Cup’s market share at the Canadian market is about 8%.Upon these facts and analysis there is an unlimited growth possibilities in the coffee market in Canada. There are different factors that do influence in the purchase of coffee from these outlets and the the way these coffees are priced. Customers are reluctant to get coffee from these outlets as the prices are too high than the coffees that could be made at home. There is a huge conflict between the pricing of coffees at these places and homemade ones. Coffee shops are determined to serve the best quality coffees which are been imported from South America and Africa, due to the rise in oil prices transportation charges have also been increased. And also due to different global climatic conditions the prices of these gourmet coffee beans have been increased.

The 21st century has seen several companies cross international borders to look for new markets to conduct their business and increase shareholders’ return. The process was fuelled by opening of borders and advancement in transport mode and technology in the 21st century. The situation has complicated the attempts to fully understand the process of global production. However, the research and different literatures in the recent past have given customers and scholar a good read on forms of labour which go into producing the product or service, and how this work is globally distributed (Coe, Dicken and Hess 2008, p.274). The development has made customers to strongly know what they want and what they consume. Therefore, this essay will analyze the Global Production Network (GPN) of coffee and discuss who benefits most from the structure of this GPN. In the analysis, the essay will focus on three different aspects. First, the paper will analyze various forms of labour that go into creating the product and how is this work globally distributed. The essay will also analyze how the value is captured at each stage of production distributed along the network. Lastly, the essay will focus on the institutional arrangements that explain the structure of this GPN.

The caffeine in coffee become an ethical increase over alcohol and have become a fashionable social beverage. It was interesting to see how it started off as this very exotic drink only for the upper class and then turned into what it is now. Coffee is a very fashionable drink that does not cost much that many have led their days with in today’s society.

Many people continue to drink coffee on a daily basis. Per capita coffee consumption is expected to increase at an annual rate of 0.9% in the next five years to 2020. The industry revenue is anticipated to grow at an annual rate of 2.3% to $40.1 billion within the same period. The total revenue

A commodity is a raw material or primary agricultural product that can be bought and sold. The market treats it as equipment or nearly so with no regard to who produced it. The original producer does not make the “big” money from the good that has become a commodity demanded by consumers. A commodity’s supply and demand is part of one universal market like corn, or wheat. A stereo is something that would not be considered a commodity. Other things are important about a stereo not that it is just a stereo but what brand and quality is in consideration when purchasing a stereo. Demand for one type might be much larger than the demand for another. This is not the case with commodities; they lose differentiation across their supply base. An

The hot drinks market consists of the retail sales of coffee, tea and other hot drinks (including chocolate-based hot drinks, malt-based hot drinks, etc.). Growth within the Canadian hot drinks market has broadly decelerated in recent years, experiencing moderate growth overall. This trend is set to continue over the forecast period with further deceleration in growth to 2018. The global coffee growing region sits within a 'bean belt' between the Tropics of Cancer and Capricorn. The two main commercial types of coffee bean, Arabica and Robusta, account for approximately 70% and 30% of harvests, respectively (Marketline - Canada, 2014, p1). The Canadian hot drinks market had total revenues of $1,120.0m in 2013, representing a compound annual

The website, Coffee Meets Bagel (CMB), launches in New York City, on April 17, 2012. The free downloadable application is available for iPhone and Android devices. To sign-up, one must use the downloadable mobile application, and must have an active Facebook account. Furthermore, the bagel derives from your friend list on Facebook, so allowing the company access to your Facebook account is absolutely mandatory. “These Bagels are friends of friends who also meet the member’s basic match preference criteria – gender, age, race, religion – which the members tell us when they first register with CMB. A mutual LIKE leads to a direct connection via a private phone line that the couple can use to communicate (Sweetser, 2015).” Moreover, members will receive a fresh bagel at noon each day, then decide to either keep or pass that particular bagel. Thus, select to keep a bagel and that bagel has 24 hours to keep or toss you. If the consent is mutual, a private chat becomes active for 7 days. After all, if the bagel decides to pass you, you may use coffee beans to give them another opportunity to check out your profile. In case one bagel is not enough, there are extra bagels to pick through, either to give away or keep. “With bonus bagels, these members will receive a few extra bagels a day. While members can still only LIKE

Seeing someone holding a cup of coffee on the street is not seen as unusual at all nowadays. In fact, they are starting to get more common. There are now different varieties to choose from. Shops or cafes also provide a lot of different choices or products to consumers. Prices could be ranged from low to high, depending on what type of coffee beans you have chosen to make the coffee.

Coffee has become an international popular drink with a record of 2.25 billion cups of coffee consumed daily (Climate Institute, 2016). People simply love, enjoy and need coffee. In fact, some people have considered coffee as a critical part of their day. Keeping that in mind, the demand of coffee will increase because people will be driven to buy coffee and drink based on the scientific data of advantages it provides.

Coffee was not widely consumed until the 15th century; and did not start making money until the 17th century. Now, everybody drinks coffee, and there are coffee shops all over the place: in every state, country, and largely populated environment. Ninety percent of Americans drink coffee, and all it took was one country -- Ethiopia -- to start making.

Imaging if there was no more coffee in this world, how would you feel? Nowadays, coffee becomes an important part of people’s life. People who often work overtime, they drink coffee because caffeine can make you awake; people who have to wake up early in the morning, they drink coffee because instead of making breakfast, coffee is more convenient; people drink coffee during the free time, because it also tastes good.

Genuine Thermos Brand has been satisfying their customers for more than 110 years across America with their vacuum insulating products. The company stood the test of time in their brand because the quality of their products paled in comparison with their competitors. Their double sealed, no-air coffee tumbler sets them apart from other companies in a product that sold itself. As American’s love for coffee grew, so did the demand for hot coffee for the busy, on-the-go drinkers. Despite their well-known brand name, competitors were quickly gaining traction. Their plan was simple: to reinforce their timeless brand name with their unbeatable products that out-shined the competitors. Enlisting in the aid of Spong PR, they launched the Overnight Coffee Challenge campaign.

The second major flaw in the coffee taste studies is the existence of external variables. It is evident that the first and third studies had underlying variables that may have significantly affected their outcomes. The first study notes that “the author of this study personally purchased coffee to go at four places, took them to his office, tasted them, made notes and drew conclusions” (pg. 63). This indicates a major flaw of this particular study because the time frames for which each cup of coffee was obtained and then consumed are inconsistent.