Coca-Cola moves into Brazil’s high end coffee market

Coca-Cola is planning to sell packaged arabica coffee beans to Brazilian consumers.

The Atlanta-based company will sell packaged beans through a local tea brand it owns called Leao as it seeks further diversification, Coca-Cola’s Brazil unit said.

Coca-Cola has a partnership agreement with coffee exporter Tristao Companhia de Comercio Exterior, which will acquire and roast the beans.

Coca-Cola, which for more than a decade has expanded to other products including juice, tea, and mineral water, is now advancing into coffee and milk as it seeks a broader portfolio of breakfast products, said Sandor Hagen, vice president of new businesses at the company’s Brazilian unit.

The company is concluding the acquisition of dairy products maker Laticinios Verde Campo in Minas Gerais, Brazil.

“Those were the two last frontiers in the beverage sector,” Mr Hagen said.

Coca-Cola will focus on high-end coffee drinkers as it plans to offer blends made exclusively from arabica, the premium beans favoured by coffee-house chain Starbucks.

While Brazil is the world’s top producer of arabica coffee, those beans are primarily exported and rarely accessed by domestic consumers, according to Mr Hagen.

“We realised we had an opportunity in offering export-quality coffee to Brazilians,” he said.


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