Coffee capsule attracts smaller suppliers

The Brazilian market for coffee capsules awakens the interest of companies of medium and small sizes. Still dominated by large companies, like Nestle, owner of the Nespresso brand, the number of smaller firms which invest in these products grows significantly. The Portuguese Kaffa, which manufactures capsules, already closed contract with 36 coffee makers and is still negotiating with about 14 others.
The ABIC (Brazilian Association of the coffee industry) estimates that about six Brazilian companies are putting their coffee in capsules, as well as larger companies like 3corações, Master Blenders, the Portuguese Delta and Nestlé, which was one of the pioneers of this market, there is little more than a decade. With the great potential of the segment, the multinational Switzerland announced in December last year, the construction of a factory in the country, with investments of about R $ 200 million.
The total volume of capsules sold in the Brazilian market grew 52.4% from 2013 to 2014, according to research done by Nielsen, commissioned by the ABIC. "These are impressive numbers, far above the volume of coffee consumed as a whole," says Nathan Herszkowicz, Executive Director of the entity. The same survey shows that 26% of the class in Brazil (which totals 8.5 million people) has machine for capsules.
The Director of ABIC evaluates the market of capsules will continue expanding. Given the large number of smaller companies that also are launching these products.
The Kaffa, which I was producing capsules for Brazilian coffee Utam, inaugurated in July last year a factory in the country. As demand has been greater than expected, the company will expand its industrial unit. The company also has plans to serve customers of MERCOSUR from the Brazilian factory and to inaugurate a Browning Center to receive green coffee from your customers.
The Kaffa landed in the country with investments of r $ 3 million in factory in Ribeirão Preto (SP), with capacity to produce up to 129 million capsules per year (in three shifts). The unit, the first company outside of Portugal recorded growth in excess of 300% in its production from August to December 2014, according to Alexx Noga, commercial and marketing director of the company in Brazil.
The new brands of coffee capsules should reach the supermarket chains still this month, mainly in the States of São Paulo, Rio de Janeiro and Minas Gerais, estimates Noga.
In a short time in the country, the Kaffa already is preparing to transfer its production to a larger factory. Rented a new building, which must also ensure greater space for storage of raw materials. The change is expected to occur next month. And, by the end of the year, should be installed as a machine for the manufacture of capsules.
Intakes for commercial action and extension of unity add up to $ 1 million this year. The company also wants to outsource the production of capsules for customers of MERCOSUR, with a focus on Argentina, Uruguay, Peru and Chile.
To meet Brazilian and MERCOSUR markets, the expectation is that the Kaffa produce this year to 21 million capsules, said Noga. But the company's strategy is not only a service provider in the country. Therefore, the company plans to establish an online store to sell capsules of various companies, says the Director.
The Kaffa had revenues of € 11 million in 2014 in Portugal. In the European country, the factory of the company has capacity to produce 350 million capsules per year. The Kaffa also holds a unique system with your brand, selling a machine of its own.