http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.19Change: 0.18
R/$ = 11.55Change: 0.10
Au 1200.27 $/ozChange: 5.81
Pt 1203.50 $/ozChange: 6.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Feb 27, 2009

Local speciality coffee sales may experience some decline

Back
Lionel de Roland-Philips discusses the coffee industry in South Africa.
Africa|Education|Starbucks|Africa|Brazil|Iceland|South Africa|United States|Coffee Shop Giant|Products|Lionel De Roland-Philips
Africa|Education||Africa||Products|
africa-company|education-company|starbucks|africa|brazil|iceland|south-africa|united-states|coffee-shop-giant|products|lionel-de-roland-philips
© Reuse this



Given the current economic climate and the resultant curbed consumer spending, coffee shops and speciality coffees could experience a downturn in South Africa, as has been the case in the US with international coffee shop giant Starbucks.

Starbucks has announced the intended closure of 600 franchise outlets in 2009, 200 of which are in the US, resulting in the retrenchment of over 6 700 employees. Although Starbucks’s problems stem from a variety of internal strategic issues, a large part of the problem can be attributed to the international economic crisis, which is affecting businesses across the board.

Speciality Coffee Association of Southern Africa (Scasa) member and previous vice-chairperson Lionel de Roland-Philips, says that speciality coffee sales in South Africa could face similar hard times, as people are likely to buy cheaper blends in an effort to save money where they can. Likewise, they will cut back on the luxury of eating and drinking out and will tend to consume more at home and at their place of work, which will favour the supermarkets over the traditional coffee shop retailers.

He explains that South Africa already has a preference for the cheaper coffee/chicory soluble blend, which is a blend that gives the coffee a malty taste profile. While many coffee/chicory blends exist internationally, in South Africa this particular blend dominates the coffee market and is unique to the country.

This is a preference that followed the economically inspired coffee/chicory mixtures of the early 1900s, and was followed in the late 1900s by the development of a similar price competitive soluble coffee equivalent.

Since South Africa became a member of the Southern African Development Community and the World Trade Organisation, and since being allowed to participate freely in imports and exports, local raw coffee production has dropped to about 1% of local consumption, with the rest being imported.

This is because it is simply more economical for coffee to be imported than for it to be locally farmed. “It is like trying to grow cucumbers in greenhouses in Iceland. “It can be done, but it is not economically viable,” he comments, adding that the rich history and more economically viable conditions for coffee production in traditional coffee producing countries within the tropics, such as Brazil, make it very difficult for South Africa to compete.

However, despite the access to the wide variety of international coffees that are used in a wide variety of well-made local coffee blends, De Roland-Philips says that many, if not the majority of, South Africans still prefer the chicory/coffee/dextrose soluble coffee blends, which is a taste profile they are well used to. It is often not even a matter of its being a cheaper product.

“Many South Africans simply do not know what a high-quality coffee should taste like,” he says. He explains that Europeans may be brought up in homes where pure filter coffee blends are the norm, allowing people to learn to differentiate authoritatively in those terms, whereas many South Africans’ taste profiles are different, owing to the historical market dominance of the coffee/chicory blends.

He adds that many local restaurants and coffee shops often do not know how to make a cup of coffee properly, using esspresso machine blends to make filter coffee or filter coffee blends in esspresso machines, resulting in bitter or bland tasting espresso or filter coffees. This misapplication of coffee blends serves to further confuse many South Africans about what is good, fair or bad coffee.

However, De Roland-Philips says that efforts are being made by Scasa to educate local coffee makers and consumers as to the different options when it comes to coffee blends.

Much headway has been made in this sense over the past 40 years, with many inter- national-quality speciality coffee shops and retail market blends coming to the market, many of them locally manufactured by experienced coffee roasters and blenders. However, South Africans still seem to display a preference for internationally branded blends, such as Italian coffees, and display a relatively unsure and untrusting attitude toward local products.

De Roland-Philips says that South Africans are not fully aware of the fact that the quality of South African coffee blends easily rivals the quality of such international blends, if not bettering them altogether. This too, is part of the education Scasa wishes to develop in the South African public, so as to further stimulate the market for coffees that are roasted, blended and packaged in South Africa.

Edited by: Laura Tyrer
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Agriculture News
SARUSHEN PILLAY Sasol has proven the viability of composting to remediate its industrial sludges over the course of two years of testing
Petrochemicals giant Sasol’s industrial sludge bioremediation project aims to move into full commercial scale over the next two years to treat 200 000 t/y of industrial sludge. The project uses aerobic composting to convert the sludge from its Bioworks water...
Eastern Cape Rural Development Agency CEO Thozamile Gwanya
Rural development financier the Eastern Cape Rural Development Agency (ECRDA) CEO Thozamile Gwanya on Tuesday launched a three-year R100-million agroprocessing programme aimed at benefiting 996 landowners in the rural towns of Bizana and Lady Frere, in the Eastern Cape.
Announcing the Eastern Cape Rural Development Agency (ECRDA’S) 2013/14 financial year performance results, ECRDA CEO Thozamile Gwanya said on Monday that a second consecutive unqualified audit opinion was the result of ECRDA’s “determined resolve” to practice...
More
 
 
Latest News
Lumwana, Zambia
Canada’s Barrick Gold Corp will suspend operations at its Lumwana copper mine, in Zambia’s Northwestern province, after the country enacted legislation that raised the royalty rate on openpit mining operations from 6% to 20%. TSX- and NYSE-listed Barrick, the world’s...
South African cement firm PPC on Wednesday named a mining industry veteran as chief executive, ending a three-month leadership vacuum that has hit its shares. PPC's former CE Ketso Gordhan abruptly resigned in September after clashing with the board. He then...
anzania's attorney general resigned late on Tuesday, becoming the first political casualty in an energy corruption scandal in the east African country that has led Western donors to delay aid and weakened the currency. The resignation followed a vote in parliament...
More
 
 
Recent Research Reports
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
 
 
 
 
 
This Week's Magazine
South Africa remains an important manufacturing and export platform for Ford Motor Company, says executive chairperson Bill Ford. However, he adds that other countries on the continent are “becoming interesting”, and that the US carmaker is casting its net wider for...
TO BE PHASED INTO SERVICE The first MeerKAT dish, with another 63 to come
Germany’s Max-Planck-Society (MPG) and the Max-Planck-Institute for Radio Astronomy (MPlfR) are investing €11-million (about R150-million) into South Africa’s MeerKAT radio telescope array programme. The money will be used to design, build and install S-band radio...
Infrastructure spend in sub-Saharan Africa will grow from $70-billion in 2013 to $180-billion by 2025, says PwC capital projects and infrastructure Africa leader Jonathan Cawood. This is one of the findings of PwC’s Capital Projects & Infrastructure report on East...
Private-owned defence and aerospace manufacturer Paramount Group and the Ichikowitz Family Foundation unveiled its Anti-Poaching Skills and K9 Training Academy in Magaliesburg last month.
MATT BARKER Wireless networks should enable users to engage and must provide relevant information to them based on their activity and location
The inclusion of Bluetooth to provide sub-three meter accuracy and heightened functionality for users is one of the ways to change existing wireless networks into engagement networks. An engagement network differs from common wireless networks in that it enables the...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks