Starbucks vs Valdez

In: Business and Management

Submitted By gisagrec
Words 320
Pages 2
An unusual market
Now, the two companies will be competing over a coffee frontier whose peculiarities might seem unusual to outsiders, if potentially lucrative. Colombia, with a population of about 46 million, is far bigger than some of the other countries where Starbucks operates. And it’s an increasingly influential country, where a rising middle class can afford a $3 specialty cappuccino.
But chains continue to face an uphill battle. Colombians have only recently begun to enjoy the high-end, high-quality coffee brewed by baristas in New York or Rome. Colombians consume far less coffee than other top coffee-growing nations, such as Brazil. And the coffee they drink is often weak and blended with low-grade beans from Peru and Ecuador.
Méndez said one of Procafecol’s biggest problems was getting Colombians interested in, and willing to pay for, Juan Valdez’s high-end brew.
Starbucks — long one of the biggest buyers of Colombian coffee — has promised that all of the drip, espresso and packaged Colombian coffee it sells will be locally roasted and sourced. The company also says it will invest $1.5 million to help teach coffee farmers more sustainable farming practices
A point of national pride

Juan Valdez knows its biggest selling point over Starbucks is its direct connection to coffee growers, who have ownership stakes in Juan Valdez Café and receive royalties and other benefits from each cup of coffee sold.

Still, the company says it needs to make sure consumers know that connection. ¨We have to learn to better communicate what we are all about and differentiate ourselves,” Samper said.

At Juan Valdez cafes across Bogota, several drinkers said Colombians view coffee as a tasty source of national pride.

“If I want Colombian coffee, I’m going to go to Juan Valdez, for sure,” said university student Steffany Serebrenik as she sipped coffee with friends.…...

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