General Manager, AHOLD COFFEE COMPANY - EAFCA

bijoufriesΤεχνίτη Νοημοσύνη και Ρομποτική

19 Οκτ 2013 (πριν από 3 χρόνια και 9 μήνες)

119 εμφανίσεις

Evolution

or
revolution



impact of
current


economic

outlook

on coffee



Jan
Kempenaar

Februari

15, 2013


Kampala
-

Uganda

What shocks can we expect?

PRESENTATION: What’s the impact of current economic outlook on the coffee market?

PROSPECT: “Impact of current of the economic shocks on the world coffee market”

PAST

PRESENT

FUTURE

2011: NY > $ 300

Sustainability

Impact on the coffee market

SUPPLY

RETAIL

What’s the role of Ahold in coffee?

SUPPLY

RETAIL

1.
World of
Ahold

2.
ACC Factory

3.
ACC coffee chain

Ahold global retailer

32,8 billion sales

AHOLD GLOBAL

AHOLD STRATEGY

Coffee part of roots
Ahold

since 1895

LINK WITH ALBERT HEIJN

FACTORY ZAANDAM
:

Employees

130 FTE

Sales

v
olume

20.000 MT

Roasters

6 MT/
hr

Packaging

14
lines

Types green

coffee

40

Finished

products

150

Assortment

Roast

and

ground

Whole

beans

Single

portion

p
ads

First shop

1887 in Zaandam

First
factory

1911 in Zaandam

Stores in NL

More
than

850

Stores in Belgium

12 (
expansion
)

Marketshare AH


33,7% in 2011

Private label

coffee

Perla

80
SKU’s

Private label share

50%

Private label sustainable coffee chain

VISION AND MISSION

Sustainability is the way to grow our coffee
business: private label coffee

Africa

9%

Asia

36%

Central America 19%

South America 36%

Relevant trends in supply of coffee

SUPPLY

RETAIL

1.
Supply and demand

2.
Sustainable coffee

3.
Global economics

Increasing global supply and demand

TRENDS IN ORIGINS


Competition other commodities



Lack of sufficient
labor

during vintage



Heritage problems father
-
son



New varietals takes 2
-
3 years before
first vintage



Balancing
act supply


demand



Consequences
climate change



Prosperity
middle class increases



Growing
demand certified coffees



Development
differentials/premiums
certified coffees




Sustainable coffee becomes mainstream


Sustainable coffee 2012
-
2015:


Available under
Utz
, Rainforest, 4C, Fair
-
trade, Organic, Starbucks


Committed to: Nestle, Kraft, DE,
Tchibo
,
Ahold

en
Walmart
, Starbucks, McDonald


Sustainable coffee moves from niche
to mean stream


More sustainable coffee expected
based on commitment large retailers

COFFEE
WORLDWIDE
2011

SUSTAINABLE
COFFEE

Production


8
mln

MT

Consumption

8
mln

MT

Production


1,3
mln

MT
16%

Sold

0,7
mln

MT
9%

MAIN DEVELOPMENTS

Macro economy has huge impact on coffee

GLOBAL TRENDS


Growing world population



Global
effects of climate change



Economic
development BRIC
countries



Increasing global middle
-
class



Impact of hedge funds and other
economic sectors on commodities



What do customers expect about coffee?

SUPPLY

RETAIL: EUROPE

1.
Consumer trends

2.
Relevance sustainability

3.
Respons

Ahold

Coffee is trendy but price is still important

Convenience


Growth of quality portioned solutions: capsules, full automated machines,
espresso machine


Quality


Increasingly focus on the taste and quality of the coffee


Demand
for a wide variety of
coffee



Customer experience, story behind the coffee: beans, the coffee roaster,
plantations.


Indulgence out
-
of
-
home to in
-
home: more quality at home


Price


Due to economic crisis customers are more price consciousness


Source: IGD, Euromonitor,
Foodinspiration


Increasing awareness sustainability


C
onsumers are conscious of
environmental issues but don’t want to
pay for it


Some consumers are sensitive to
sustainability and intend to pay for
health and convenience


Consumers expect that companies and
institutes take their responsibilities


Overwhelming number of certification
programs causes uncertainty

Source: GFK, IGD,
Bord

Bia
,

MARKET SHARE FAIR
-
TRADE 2011

Production


8
mln

MT

Available

0,4
mln

MT

Sales 0,1
mln

MT

The Netherlands

Sales 3700 MT

m
arket share 3%

GLOBAL TRENDS


Albert Heijn responds as retailer

WHAT HAS Albert Heijn DONE IN COFFEE:


Initiates
Utz

Kapeh

coffee resulting in
foundation
Utz

Certified


Mainstream
pricelevel

of
Utz

coffees


All PL coffee is
Utz

Certified, in total 50% of
coffee sales at Albert Heijn is sustainable


WHAT WILL AH DO:


Albert Heijn listen and respond to consumer
requirements


Albert Heijn initiates and increases the
availability of sustainable products


AH sells every day more sustainable products


All Private label in 2015 sustainable


Consumers expect that Albert Heijn takes
responsibility


WHAT
DO RETAILERS/CONSUMERS:


Follow market leader


Consumers not able or willing to pay more for
sustainable products


Will it be evolution or revolution in coffee?

SUPPLY

RETAIL


Ahold

global player
focus on responsibility


Coffee important for
Ahold

and AH


ACC sustainable in
coffee chain


Growing supply and
demand of coffee


Sustainable coffee will
be mainstream


Unpredictable and
fast changes in world


Coffee trendy but
price still important


Sustainable coffee

growing in volume
and awareness


AH has leading role in
sustainability

What’s the impact of current economic outlook on the coffee market?

MESSAGE:

Be flexible to respond to market changes and

continue on the journey towards a sustainable coffee chain

by connecting worldwide and by enjoying coffee everywhere