JAB, Tchibo Gulp Down More Brazilian Coffee as Price Sours — Panjiva
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JAB, Tchibo Gulp Down More Brazilian Coffee as Price Sours

Ags - Softs 129 Brazil 379 Consumer Staples 738 European Union 781

Global coffee prices fell 9% sequentially in August as concerns about record harvests – particularly in Brazil – arose, Wall Street Journal reports. The glut has been ongoing for a while already with global exports of coffee having risen by 3.6% year over year in June after rising 7.1% in the prior three months, Panjiva analysis of International Coffee Organization data shows.

That marks the 11th out of the past 12 months when there has been annualized growth, with March having been the outlier. Growth has been led by shipments from Brazil and Colombia which grew by 13.5% and 23.6% respectively, with Brazil being the largest contributor by mass. At the other end of the spectrum there were declines of 10.7% and 13.0% year over year from Vietnam and India.

The industry more broadly faces supply chain complications. The emerging trade confrontation between the EU and the U.S. will likely include tariffs on processed coffee products, as outlined in Panjiva’s research of Jul. 3.

BRAZIL DRIVES COFFEE GROWTH WHILE VIETNAM IS DRAINED

Chart segments global coffee exports by origin. Calculations based on International Coffee Organization data. Source: Panjiva

Europe continues to be the largest market for Brazilian coffee exports, Panjiva data with 50.2% of exports in the 12 months to Jun. 30. The fastest growth among major importers in Europe from Brazil was Maxingvest’s Tchibo with 213.1% year over year growth in June after an expansion of after 151.6% in the prior three months.

Second was followed by Italian processor Luigi Lavazza with growth of 99.4% in June after a 23.4% expansion in the three months to May 31. Third was JAB Holding’s Douwe Egberts with a more modest growth of 17.8% year over year in June from +21.6% in the prior three months. The outlier Neumann Gruppe’s Rothfos which cut its imports from Brazil by-63.5%.

DOUWE EGBERTS REGAINS COFFEE CROWN

Chart segments Brazilian coffee exports to Europe by consignee on a monthly and three-month average basis. Source: Panjiva

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