European Coffee Industry

Research Paper Europe coffee bean Industry Assignment 5-2 Prepared for Professor Harold Bashor MBA 727-F3FF foreign Business Management October 24th, 2012 Prepared by IRELAND coffee bean is a very important product in Ireland. Specialty coffee shops such as Starbucks and another(prenominal) local companies such as Insomnia have helped create strong growth in the industry. From a contestation standpoint, near continues to dominate the industry in Ireland with a 42% market share in 2011 (www. Euromonitor. om, 2012). Nestle has managed to maintain its leadership due to its exposure within the fast growing coffee pods area and its general offering of price and tawdriness promotions (www. Euromonitor. com, 2012). The two domestic players in the industry are Bewleys and Robert Roberts. twain add-ond sales shares in 2011, 9% and 5% respectively. The primary market for each of these companies is fresh coffee. The economical downturn in 2008 has abide the industry as consumers have cut back spending.A 40% increase in the composite price of coffee from the International Coffee Organization in 2011 also hurt demand. The price increases are similar to those seen in many commodity prices. Coffee in particular is set about an increasing demand while supply in 2011 was slowed by a poor Colombian harvest, backbreaking rains, and issues in Brazil. As you can see from the chart below, the coffee industry in Ireland is very parasitical on imports with nearly 90% of it coming from other European countries.This table illustrates the high percentage ruined coffee imports into Ireland. Expressed in green coffee uniform, 2010 green coffee imports were only 42% of the volume of the finished product imports (roasted + soluble). Total coffee imports of all forms into Ireland increased from 8. 746 tons green coffee equivalent in 2009 to 9. 780 tons in 20109 (+11,8%). The vast majority of Irelands soluble coffee imports (almost 88% in 2010) came from the United Kingdom.The N etherlands (6,7%) and Poland (2,8) supplied most of the remainder. In 2010 the UK represented 68% of Irelands roasted coffee imports. The second largest provider at a considerable distance was Germany (20% in 2010). COFFEE CONSUMPTION Reference List Hill, C. (2011). International Business Competing in the Global Marketplace, pg. 49. World Coffee Trade Chart. Retrieved 10/20/12 from http//www. ico. org/trade_e. asp Coffee in Ireland. Retrieved 10/21/12 from http//www. euromonitor. com/coffee-in-ireland/report