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UPDATE 1-Brazil July coffee exports fall 8 pct to 1.51 mln bags - Cecafé - Reuters News
09-Aug-2017 09:49:24 AM
Adds data on exports, comments from Cecafé
By Marcelo Teixeira
SAO PAULO, Aug 9 (Reuters) - Brazil exported 1.51 million 60-kg bags of green coffee in July, 8 percent less than the 1.64 million bags shipped a year earlier, as slow arrivals of lots from this year's crop cut volumes, exporters association Cecafé said on Wednesday.
Exports of arabica beans fell 7 percent to 1.49 million bags, while shipments of robusta beans, largely used for instant coffee production, were at only 16,000 bags, 57 percent below last year despite a rise of local robusta production.
Cecafé's president Nelson Carvalhaes said July exports were below expectations. Among factors impacting volumes were low carry-over stocks from the prior season.
"Besides that, the new crop is arriving at a slow pace, weakening the offer in the market," he said.
The association said it expects volumes to return "to normal levels" around September, when it believes local producers will increase the available supply.
Brazilian trade ministry had already signaled reduced shipments of Brazilian coffee on Aug. 1, when it said July exports of green coffee reached 1.6 million bags, the smallest monthly volume in more than 10 years.
Numbers from the government and from Cecafé differ slightly, due to different methodologies to measure coffee shipments to foreign markets.
Exporters and traders have reported smaller arrivals of export-quality coffee from the current crop, which has been hit by drier-than-normal weather and a borer infestation. (Full Story) (Full Story)
JDE brings premium coffee brand to Brazil as luxury segment soars - Reuters News
08-Aug-2017 03:39:11 PM
SAO PAULO, Aug 8 (Reuters) - Jacobs Douwe Egberts (JDE), the world's second-largest coffee retailer, said on Tuesday it will launch its super premium brand L'OR in Brazil, to take advantage of a luxury goods segment that has grown rapidly despite an economic downturn.
JDE, which is second only to Nestlé in global coffee retail with 9.5 percent share of revenue, according to Euromonitor, is aiming to distribute a full portfolio of beans, ground roast, instant and capsules for L'OR coffee in up to 2,000 locations in Brazil.
"Coffee sales were not impacted by the recession and the luxury segment continues to grow sharply," said JDE Brazil head Lara Brans during a press conference in Sao Paulo. Brazil's gross domestic product grew in the first quarter after eight consecutive quarters of contraction.
JDE expects the market for super premium coffee in Brazil to double in size in three years. The firm sees the segment having growth similar to that of premium beers and chocolates, whose sales increased close to 20 percent last year, despite Brazil's deepest recession on record, Brans said.
The company invested in new equipment at its plant in Jundiaí, Sao Paulo state, to produce most of the L'OR items to be sold in Brazil. Coffee capsules compatible with Nespresso machines will be imported from France.
Brans said JDE will be the first company to sell the Nespresso-compatible aluminum capsules in supermarkets in Brazil. Nestlé sells its capsules directly to consumers, online or at its own stores.
The market for capsule coffee grew 50 percent in Brazil in 2016, according to JDE.
(Reporting by Marcelo Teixeira; Editing by Steve Orlofsky)
Italian coffee roaster Massimo Zanetti reports higher H1 core profit - Reuters News
08-Aug-2017 06:29:55 AM
MILAN, Aug 8 (Reuters) - Italian coffee maker Massimo Zanetti MZB.MI reported a 9 percent rise in first-half core profits as it presses on with its strategy to focus on higher-margin businesses such as the supply of restaurants, bars and coffee chains.
The group, which owns the Segafredo, Chock full o'Nuts and Puccino's coffee brands, said earnings before interest, taxes, depreciation and amortisation (EBITDA) came in at 29 million euros in the first half.
Net profit, however, fell 14.6 percent year-on-year to 4.4 million euros, hit by higher financial charges and amortisation linked to the acquisition of Portugal's coffee company Nutricafes.
Between January and June revenue at the Veneto-based group was up 7.4 percent year-on-year at 475.6 million euros, while volumes of coffee sold were broadly stable.
(Reporting by Francesca Landini)