With the winter dawning upon London, that hot cuppa coffee tastes and smells heavenly every morning. Last year in Britain, £730 million was spent on coffee. Britain consumes 500gms of coffee per person, per year. While India has long been associated with drinking tea, now apparently coffee manufacturers are aggressively asserting their position in the subcontinent's beverage marketplace.
The FT reported that owner of Indian homegrown chain Cafe Coffee Day has launched an initial public offering that is expected to raise $176mn- the largest in the last three years in India. Founded in 1996 by Bangalore based entrepreneur V G Sidhdhartha, Coffee Day Enterprises operates more than 1500 coffee shops all across India.
On the other hand Africans are enjoying a caffeine kick. Roberio Oliveira Silva, executive director of International Coffee Organisation, which represents countries that consume, distribute and produce coffee said, 'Africa is the next frontier'.
The emergence of an urban middle class in countries like Cameroon, Kenya, Uganda, coffee drinking has increased considerably. However still African consumption of coffee is much lower compared to many countries, such as Brazil.
Some roasters are also turning to Africa for new flavours. Nestle Nespresso, after four years working with farmers in South Sudan, the premium coffee arm of the Swiss food and beverage group this month launched a coffee from the country's first exports. Though Africa's coffee market is growing, the biggest question still remains productivity. Another challenge to African output is the increase in land values. With commodity prices fluctuating, and demand for real estate soaring, some coffee growers have sold up.
But industry officials are optimistic about African coffee production and the continent's new consumer focus are as likely to increase the buzz around farming.
