El latte grande - Trade Talk - Colombian coffee growers plan international coffee shop chain - Brief Article

Latin Trade, Dec, 2002 by James Wilson

Look out Starbucks, here comes Juan Valdez. Colombia's federation of coffee growers, which uses the well-known advertising character and his mule Conchita to extol the virtues of Colombian coffee, plans to launch an international chain of 'Juan Valdez' coffee shops to fight for the lucrative high-end retail market.

The federation's long-standing marketing campaign featuring Juan has boosted prices for Colombian coffee, but most of the benefit has gone to retailers while many growers face ruin amid a worldwide coffee glut. The federation estimates that of the average price of an upscale cappuccino or latte, less than one U.S. cent finds its way back to the farmers.

With backing from Colombian President Alvaro Uribe, a native of a big coffee-growing area, the government now is putting US$2.2 million into four pilot stores--three in Colombia and one in Florida--that will sell only 100% Colombian coffee varieties, alongside Juan Valdez merchandise. If all goes well, growers will next year get the chance to buy stock in a company formed to opens cafes overseas.

"We have been crossing our fingers hoping luck or the weather would bring a bonanza," says Gabriel Silva, the federation's recently appointed general manager." Now we have to build a true bonanza on hard work and innovation."