What have been the most interesting developments of the last 2 years at ANACAFE?
ANACAFE is basically a Coffee growers organisation. Every coffee grower in Guatemala is represented by ANACAFE. The organisation exists by a levy that is imposed on every bag of Coffee that leaves the country, this is how the organisation creates it's income. We represent the entire sector. ANACAFE was founded in 1960, mainly out of the I.C.O; the International Coffee Organisation, as a commitment to centralise the statistics of the Coffee being produced in each individual coffee producing country. This was due to low prices in the 1960's. The different countries united together and consequently ANACAFE developed. As time went on, we have dealt with the growing side of the business such as extension of the various different cultural practices to help our Coffee growers to be more efficient, more varieties, planting distances, types of fertiliser. We have leaf analysis which we can conduct here in the building. We also work on the promotion of Guatemalan Coffees: Generic coffee, we do not sell Coffee as such, we only sell Coffee for promotional purposes. There are 7 regions that we promote in the country.
You are very much an institution in Guatemala. As the country's economy has developed, you have always been at the forefront and been visible. Coffee has changed internationally. What does the future look like for Guatemala with the industry's changes worldwide?
We are at a point where we have to do something different. We have to be innovative; we have to be able to reach the consumer. We have to get as close to the consumer as possible. We see ourselves as being competitive in today's world market. Working visibly and competitively in this environment is essential. We also focus heavily on the quality side of the business. For example, the Coffee that we export, we promote it as one of the best Coffees in the world. We are working towards keeping that quality alive.
From the perspective of the areas where you export to, where are you main areas and where are your target areas that you would like to grow into?
We have exported the majority of our Coffee to the US. The US is the world's largest consumer. We are targeting, particularly in the US, the gourmet sector. This is a highly specialised part of the Coffee industry. We also export to Europe, especially Germany, France, which has become interested in Guatemalan Coffees. We are not a main player yet but would like to target the French consumer. We want to target the Scandinavian countries and the Japanese market, which has a lot of potential.
Whom are you competing with in order to get to those niche markets?
We are competing with Colombia that is our main competitor. They also export a large volume of coffee, which is similar to that of Guatemala. We would like to stand out from Colombian Coffee as being more of a regional style, similar to that of Wines, each region has its flavour and taste. The rest of Central America also produces coffees that our similar to ours. Mexico is similar also.
Colombia has done a superb campaign in marketing its Coffee. "Café de Colombia" Why has it done such a great job. Kenya has also become very reputable internationally. How do you conduct your research to know what the consumer will choose? How do you analyse the wants and needs of the consumer?
In Part by price, in part by image. Colombia has done a terrific job in selling its coffee. "Café de Colombia," can be seen in sporting events, you see it in magazines. They have a huge budget for promotion. We do not have such a big budget but still we have to be more aggressive. We need to focus on specific sectors of the market such as the gourmet market.
Do you work with Starbucks?
We do not work directly with Starbucks from ANACAFE but many of the growers do.
We have a good relationship with them. They are a big company with a high profile. Now that Forbes has approached us it is a good opportunity to become better known.
The Canadian market is also a big potential....
The Canadian market is a big market with potential. Most of the Guatemalan Coffee that Canadians drink is exported to the US and then Re-exported to Canada.
There has been a revival of the coffee culture, "Café society", especially in Europe. In the US though, with the fitness boom, Coffee has been stated as being bad for your health. However, The Americans continue to drink large amounts of Coffee. Are there other areas apart from Starbucks that provide a market for you?
Starbucks represents the biggest seller of Coffee in the US for the gourmet sector. There are other companies that are not as well known but play an important role. We are also targeting the younger generation. It is important to target the university and college students with flavoured Coffees. There is a stigma that young people should not drink Coffee, as it is harmful. Studies that we are conducting with Vanderbuilt University, called "Viva Café Forever." This is a joint-venture between different Coffee producing countries. The results have been interesting to say the least. | Coffee is so diverse and just like anything we consume too much can be harmful. Taken in good measure, Coffee should be enjoyed. We are working on a national Guatemalan consumption campaign. We feel that in Guatemala, we do not consume enough Coffee. The market is there. We feel that the businessmen and tourist visiting the country should be able to drink the highest quality coffee that we can offer.
What is you marketing strategy? How do you plan to reach a consumer in London, for example, with the same impact that we have seen from Colombian Coffee?
Drinking Coffee is more than just drinking Coffee itself. It has to do with people. It has to do with communication. It has to do with the perception of coffee right from the grass roots level. Coffee is culture. This is what we want the consumer to feel. The gourmet sector has done a good job in promoting where coffee is from and transmitting the history of its origin.
The idea of the coffee culture lead to a huge market potential?
We believe so, especially the younger generation. They do not have a palette for the taste of Coffee. They are used to other soft drinks and need to participate in the coffee culture. By producing products fro the younger generation, they will grow up with the culture in mind.
Is Guatemala a country open to alliances and open to joint ventures?
In the global economy, it is necessary to do alliances. We have been trying to do this. We have started an association called The Fine Coffee Producers Association. This is the Central American regional players with Peru and Ecuador is showing interest in working together. Alliances also need to be established with the consumers. Other Companies are strategic in their alliances in the US and Europe. The aim is to get as close to the consumer as possible.
How difficult is the market right now?
It is very competitive. It is a buyers market so the producer is not peaking as well as it could be.
Do you have a lot of governmental pressure as the economy has traditionally relied on Coffee as its main industry?
Coffee plays an essential role in the economy; about 37% of the foreign exchange earners come from coffee; sometimes up to 40%. Unfortunately, when the price of Coffee drops, then the hard currency entering the country also drops. Coffee has the trickle effect on the economy. It is not a force of income in just one sector. It effects transportation, the sellers of plastics and petroleum derivatives, agricultural products and of course, the rural economy.
What is the future holding of for the coffee sector in Guatemala?
A big challenge! We have to look towards being more than just a producer of Coffee. We have to look more into the manufacturing process, giving coffee added value: To reach and get close to the consumer.
We need to find our niches, its very competitive. We have to find alliances with foreign companies. I feel that this is what coffee is all about- COFFEE IS GLOBAL! COFFEE IS CULTURE! Part of our challenge is to promote this culture.
The position of President of ANACAFE has a duration period of 1 year. What do you hope to achieve?
Hopefully all kinds of good things: Internal consumption. We have a good potential locally to sell better quality coffee. We are also working on an auction project: A local competition for the best coffees in Guatemala that we hope to sell electronically through the Internet. Brazil has done this and we are trying to improve on what they have done. We are trying to sell quality more importantly than quantity alone. We have stated working on this project and it will be happening in June 2001.
What is the image of this country as an investment destination?
I feel there is a lot of potential. Geographically, we are in a good position, close to the US market and The European Union.
NOTE: Forbes Global/ World Investment News Ltd.com will not be held responsible for un-edited manuscripts at the time of publication. |
ANACAFE