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Raw coffee beans: Mexico’s exports rise 79%

Mexico

‘s exports of raw coffee beans totaled US$627 million in 2022, an increase of 78.9% compared to 2021, according to data from the Bank of Mexico.

More than 50% of Mexican exports of all types of coffee go to the United States, while other outstanding markets include Belgium, Italy, Canada, Germany, France and Japan.

In general, according to Farmer Bros., the coffee sector is highly competitive, including in terms of price, product quality, service, convenience, technology and innovation, and competition could intensify due to relatively low barriers to entry and consolidation in the sector.

Headquartered in Northlake, Texas, Farmer Bros is a leading coffee roaster, wholesaler, equipment maintainer and distributor of coffee, tea and related products manufactured under its own brands, as well as under private labels on behalf of certain customers.

After reaching US$342 million in 2017, Mexican raw coffee exports had the following trend: 2018 (US$317 million), 2019 (US$251 million), 2020 (US$335 million) and 2021 (US$350 million).

Raw coffee

Farmer Bros faces competition from many sources, including the institutional foodservice divisions of multinational retail manufacturers, such as The J.M. Smucker Company (Folgers Coffee) and The Kraft Heinz Company (Maxwell House Coffee).

This company also competes with wholesale foodservice distributors such as Sysco Corporation and US Foods Holding Corp, regional and national coffee roasters such as Riverview Acquisition Corp (S&D Coffee & Tea), Massimo Zanetti Beverage USA, Trilliant Food and Nutrition LLC, Gaviña & Sons, Royal Cup, Ronnoco Coffee, and Community Coffee Company.

Other competitors include specialty coffee suppliers such as Rogers Family Company (San Francisco Bay Coffee), Distant Lands Coffee Company, Mother Parkers Tea & Coffee Inc, Starbucks Corporation and JAB Holding Company (Peet’s Coffee & Tea), and retail brand beverage manufacturers such as Keurig Dr. Pepper Inc.

Because many of Farmer Bros. customers are small foodservice operators, it also competes with cash and carry and club stores (physical and online) such as Costco, Sam’s Club and Restaurant Depot and online retailers such as Amazon.

In addition, the company faces competition from growth in the ready-to-drink single-serve coffee beverage and cold brewed coffee channels, as well as competition from other beverages, such as soft drinks (including high-caffeine energy drinks), juices, bottled water, teas and other beverages.

 

Redacción Opportimes