The demand for coffee continues to be unsatisfied since domestic crops maintain a downward trend and import figures showed a large volume contraction for a second year in a row in 2017. During the review period, over 95% of green coffee imports were brought by government-owned companies.
A strong inflationary process is forcing consumers to find new ways to satisfy their demand for coffee given their limited resources. Smaller presentations make it possible for impoverished consumers to have access to products that otherwise would be unaffordable, as was the case with ground coffee during 2017.
In January 2017, the Venezuelan Coffee Corporation (CVC) issued a public call to roasting coffee companies to file for an “Excelso” or “Gourmet” certification. These are the two highest coffee classifications established in a piece of legislation issued by the government in December 2016.
In retail volume terms, coffee is led by state-owned companies Café Fama de América (has the leading brand, Fama de América) and Empresa Nacional del Café (owner of Café Madrid, which ranks second), which together generated over half of total retail volume sales in 2017. Before being seized and purchased by the government, these companies enjoyed a well-established reputation by offering products of a high quality.
The share of other players rose steadily over the review period, thanks to small producers being able to avoid price restrictions by offering craft gourmet versions directly to retailers at higher unit prices. Many brands of artisanal gourmet coffee are available at the local and regional levels.
Transnational corporations have seen their profits slashed – when measured in foreign currency – due to the continuing loss of value of the domestic currency. Companies have therefore started rationalising their portfolios and have focused on product lines that use a lower proportion of imported components.
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Understand the latest market trends and future growth opportunities for the Coffee industry in Venezuela with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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This report originates from Passport, our Coffee research and analysis database.
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