A CBI - UCF Coffee Breakfast Meeting Presentation on Speciality Coffees

Coffee Breakfast Meeting

Sector Export Marketing Plan

20 May 2015

Jim TersteegRafael ValcarcePatrick Gouka

Why (Specialty) Coffee?

Specialty coffee is an important quality attribute sought in the international market

Growth in the EU into demand for speciality coffees

Need for differentiation due to the individualization of consumers

Lot of donor intervention on conventional coffees (productivity, quality improvements), but not on speciality

Specialty is a value addition with a premium

18-04-2318-04-2318-04-2318-04-23 CBI - Ministry of Foreign AffairsCBI - Ministry of Foreign AffairsCBI - Ministry of Foreign AffairsCBI - Ministry of Foreign Affairs2222

Specialty Coffee Uganda ProjectProgramme consists of three main elements:

Export Coaching Programme

Business Support Organisation development programme

Local Consultant training

18-04-2318-04-23 CBI - Ministry of Foreign CBI - Ministry of Foreign AffairsAffairs

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15 selected SMEs are in the market entry phase

AFCA and SCAE trade fairs

Incoming trade mission & B2B meetings




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Development of business enabling environment

Service portfolio of ACA, UCF, Nucafe and UCFA together with UCDA

Sector Export Marketing Plan development



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10 local consultants trained to provide export development support


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Specialty Coffee Uganda Pavilion - AFCA 2015


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10 local consultants trained to provide export development support


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Goal of session

• Inform you on the main content of the Export Marketing Plan for Specialty Coffee;

• To discuss and contribute from your knowledge and experience to the draft plan.

9 Centre for the Promotion of Imports from developing countries | May 19th, 2014

Goal of session

• Inform you on the main content of the Export Marketing Plan for Specialty Coffee;

• To discuss and contribute from your knowledge and experience to the draft plan.

Next steps:• Complete SEMP with your input;• Make final draft SEMP with working group

(BSO’s)• Present SEMP to UCDA (October 2015)

10 Centre for the Promotion of Imports from developing countries | May 19th, 2014

Content of draft SEMP

Centre for the Promotion of Imports from developing countries | May 19th, 2014

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Introduction

Vision/MissionCurrent Market PositionMarket and Industry TrendsExport Audit - Sector Audit - Market Audit - SWOT Conclusions - Competitor Analysis

Market Assumptions

Export ObjectivesMarket Entry Strategy - Markets & Segments - Positioning Strategy - Branding Strategy - Product Strategy - Pricing Strategy - Distribution Strategy - Promotional StrategyManagement responsibilitiesActivity Planning

Vision and Mission


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VisionThe Ugandan Specialty Coffee Sector is a distinct source of specialty and fine coffees for the global market. MissionTo create a sustainable and global market oriented specialty coffee value chain that meets consumer satisfaction.

Export Audit


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Analysis Export Audit


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Develop emerging markets by:•Branding Ugandan single origin coffee (small volumes);•Marketing the unique attributes of Ugandan Specialty Coffee;•Promoting, increase volumes of fine robustas by coffee producers (connecting to center of excellence);•Identification of niche markets for specialty coffees;•Producing business case for specialty coffee in Uganda cost benefit analysis;•Develop a marketing strategy that targets regional and international branding (specific characteristics of regions in Uganda exmp: Gorilla).•Design a coffee sub sector research agenda for climate change adaptability and soil replenishment;•Promotion & support sustainable coffee certification and verification programme;•Promote & support of high yielding coffee varieties;•Promote & support formation of farmer organization. Increase the competiveness of our Specialty Coffee Sector compared to other countries exporting to the identified EU countries by:•Increase the knowledge on market information at the actors of the value chain;•Improve the branding of Specialty Coffee of Uganda;•Increase the volumes of Specialty Coffee available for export.

Export Objectives


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Short Term [<3 years]1.Increased production of sustainable or certified coffees from Uganda for the European / Global market:

a. Develop and pursue marketing strategies in markets where we already have some market entry activity with regard to Specialty Coffee and increase exports by 10%;

b. Maintain our growth in markets where we are performing by at least 5%;

2.Improve quality at all stages of the coffee value chain of specialty coffees in Uganda, meeting (European) specialty market requirements and specifications for market entry;3.Establishing a market intelligence network for specialty coffee exports (Specialty Coffee Club initiative).

Export Objectives


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Medium Term [3-5 years]1.Establish a Uganda Specialty Coffee brand and leverage its full potential to help ensure targeted growth rates: 10-15% increase exports;2.Intensify trade fair participation with business matching and country image-building activities. Long Term [>5 years]Become a sustainable top-10 supplier globally of Specialty Coffees.

Markets EU and other


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Based on the analysis conducted we assume that the 4 major EU-countries will remain the top 4 EU importing countries for Specialty Coffee: •Switzerland•Germany•Italy•Spain

Branding Strategy


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Possible branding strategy components are:

•National Specialty Coffee Branding

•Geographical Indication

•Individual product branding

Branding Strategy


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Best practice is Colombia:

•National Specialty Coffee Branding

Branding Strategy


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•Geographical Indication: Nariño Coffee

Branding Strategy


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•Individual product branding

Promotional Strategy


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Uganda is aiming to participate in the following Coffee Trade Fairs:AFCA, SCAA, SCAE, … Apart from participation to the significant trade fairs for Specialty Coffee, direct marketing, and personal visits to prospective customers, the industry will be encouraged to adopt a mixture of other promotional tools as follows: •Create Specialty Coffee promotional material to send out to key accounts/embassies/missions abroad •Organise incoming trade missions to Uganda in combination with Coffee Safaris •…

Discussion areas


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Discussion on the following topics:

•Most interesting Export Markets

•Branding Strategy

•Promotional Strategy

END

Documents

A CBI - UCF Coffee Breakfast Meeting Presentation on Speciality Coffees