A look at the coffee industry in Russia

Coffee Industry in Russia

According to the UN COMTRADE database on international trade, exports of coffee, tea, mate and spices reached $231.75 million in 2021. Russia Exports of Coffee, Tea, Mate and Spices – Data, Historical Charts and Statistics – Last updated in January 2023.

In 2022, the country’s coffee industry faced difficulties: transport companies refused to transport goods to Russia, logistics were delayed, and a number of producers left the market. All this is against the background of declining crops in Brazil and Colombia, a general shortage of sea containers and rising costs for farmers due to inflation. Anton Makarov, managing partner of the Like coffee chain, told in a column for the corporate magazine how this will affect the prices of Russian coffee houses and whether we should expect a decrease in the number of people carrying paper cups on the streets of cities.

Over the past year, a more than twofold increase in the price of green (unroasted) coffee has been recorded in the world. According to the supplier of coffee beans Tasty, the cost of Arabica has increased by 130% since the spring of 2021. For example, the Brazilian varieties Sul De Minas and Serrado have risen in price from $ 5 to $ 8 per kilogram (when buying a direct container). At the same time, buying the same grains from the importer’s warehouse costs $ 9.

The price increase was influenced by the decrease in temperature in Brazil and political instability in Colombia. According to the Wall Street Journal, Brazilian coffee plantations last year suffered first from drought, and then from frost. In this regard, producers expect only half of the usual harvest of Arabica beans this year.

In Colombia last year, against the background of tax reforms, popular unrest broke out. Coffee exports here fell by 50% at the end of spring 2021, and in the fall of the same year, the country was hit by heavy rains. Meanwhile, in early August, Roberto Velez, director of the National Federation of Coffee Producers (FNC), predicted that in 2022, coffee production in Colombia would reach 12 million bags weighing 60 kilograms.

“When we see 12 million bags and rejoice, we remember that not so long ago we had 14 and 14.5 million bags of annual production,” Velez was quoted as saying by MercoPress. Nevertheless, he called the 12 million figure “great news for producers” against the backdrop of everything that happened.

Among the factors affecting pricing in 2022 is the shortage of sea containers for transporting goods. And the problem is both Russian and global. During the coronavirus pandemic, the issue of container shortages became a global issue, and since March of this year, a number of container carriers have stopped cooperating with Russia. At the same time, as Dmitry Arzhanikh, one of the founders of the SLK Group of Companies, notes, only 29% of the container fleet in Russia belongs to domestic owners. He explained that almost a third, or 31%, of containers belong to Chinese companies, and 40% of shipping containers.

Coffee consumption in Russia is still lower than in some European countries: 0.4 kg per person, compared to Finland: 10.2 kg per person in 2020, according to Euromonitor.

Some numbers behind the Russian coffee market

77% of people drink coffee daily

82% of people drink tea daily

90% of people say they drink coffee

Instant coffee is still the most common way to consume coffee, but “regular” coffee consumption is steadily increasing.

More than 90% of people drink hot tea daily or weekly, compared to coffee – 85%.

Dark roast or espresso is the most common type of coffee

The Russian coffee-focused cafe market grew by 12.2% last year! (2500 stores in 2018 vs. 2800 in 2019)

Specialty coffee method in Russia

A strong coffee professional community, excellent roasters and economic growth have made specialty coffee popular and affordable among the younger generation. Coffee is no longer just an energy drink, it is a new religion, a beautiful ritual that brings flavor to life.

During the PIR Coffee Expo (an annual coffee event in Moscow) in 2019, I attended a very interesting cupping session, which was initiated by one of the most famous Russian specialty coffee roasters Dmitry Borodai. He raised the question of anaerobic fermentation with cinnamon flavor, which was popular in previous years. For this experiment, he fermented green coffee beans by soaking them in a cinnamon solution, after fermentation. During the cupping, we had to guess which coffee tasted “fake” and which had a natural cinnamon flavor. It was a difficult task, especially when it came to the low percentage of cinnamon solution.

I also bought a pack of Ethiopian Guji Uraga, which was fermented in oak barrels after beer and bourbon. It sounds crazy, but it tastes good.

In addition to fermentation methods, Russian coffee scene experts are also experimenting with brewing methods. Sergey Stepanchuk, winner of the 2018 Russian Beer Cup, designed and 3D printed his Octo Storm coffee dripper for the competition. It’s made of heat-resistant, carbon-filled food-grade plastic and will soon be available in ceramic. “The unique shape makes the brewing process easier and the extraction speed faster,” the manufacturer says.

Russians have performed well in the world coffee competitions in recent years:

2019 World Coffee Roasting Championships – Winner – Arseny Kuznetsov

2018 World Coffee Roasting Championships – Winner – Vladimir Nenashev

2019 Cezve/Ibrik Championships – Winner – Sergey Blennikov

2018 Cezve/Ibrik Championships – Second Place – Marina Khyuppenen

Russian Coffee Industry Faces New Reality

Although the Russian coffee scene shows great potential for growth, it is difficult to predict how the situation will develop in the new reality after COVID-19. Many coffee shops were either closed or had to work for months to go, and it will definitely affect the entire industry.

Coffee shops went online, baristas became couriers, delivering freshly roasted beans directly to our kitchens. Instagram was full of guides, recipes and live videos. Coffee experts engaged consumers in online cuppings, home brewing competitions, inventing new types of connections between roasters and coffee lovers, perhaps more intimate. Specialty coffee is now closer to the consumer than ever before. Who knows what this global challenge will bring to the coffee industry, we’ll see!

Top Coffee Producers in Russia
https://ko.ru/articles/bodrost-pod-ugrozoy-chto-zhdet-rynok-kofe-v-2023-godu
https://alto-group.ru/otchot/rossija/388-rynok-kofe-v-rossii-tekuschaja-situacija-i-prognoz-2020-2024-gg.html
https://tradingeconomics.com/russia/exports/coffee-tea-mate-spices
https://tebiz.ru/mi/rynok-kofe-v-rossii
https://vc.ru/s/1189766-kofeynya-winners/426156-kofeynaya-kultura-v-rossii
https://www.baristainstitute.com/blog/oksana-shaposhnikova/september-2020/what-russian-coffee-culture
Jardin

Instead of coffee, Orami Trading, the company that produces Jardin, initially launched a tea brand in 1994, before entering the coffee market in 1999 with the Jockey brand.

The Jardin brand itself was launched almost 10 years later in 2007, after signing a deal with the Swiss company Jardin Coffee Solution.

Jardin offers both ground and instant coffee with a variety of coffee blends, varying in taste, strength and aroma. You can find not only the usual blend like Amarino and Espresso, but also delicate flavors such as a combination of apple, jasmine and hazelnut in its Café Eclair or a combination of delicate flavors such as pear, chocolate and vanilla in its dessert cup.

Jockey

This brand is the predecessor of the Jardin brand, both of which are managed by the same company. In terms of price, while Jardin is in the premium category, Jockey is in the economy category of the Russian coffee market. It has only the basic blends in its product range. To differentiate the taste, changes were made by adjusting the basic blend formula and roasting degrees. Along with ground and whole bean coffee, the Jockey brand also has instant coffee in its product line, which includes freeze-dried, agglomerated, powdered and 3-in-1 blended coffee. An interesting fact about this brand is that since 2008, it has won the Best Product of the Year award several times in the ground coffee category.

3. Live Coffee

For people who know a lot about coffee and appreciate its taste and quality, Live Coffee is definitely a brand that can satisfy their taste buds. It is well made from high-quality Arabica coffee, which makes it have a pleasant taste and aroma. The company that produced this brand actually has a patented technology used in coffee roasting, so that they can preserve all the natural beneficial properties of coffee and confidently claim that the coffee itself is healthy, making it one of the best coffee brands. Original Russian Coffee. The brand not only offers ground coffee and instant coffee, but also has whole coffee beans and coffee capsules in its product line.

4. Moscow Coffee House

Moscow Coffee House offers a wide range of products, including coffee beans, ground coffee, instant coffee, as well as coffee capsules.

The winning point of this brand is that it has uniquely successfully incorporated Russian taste preferences into its product line, making it one of the major players in Russian coffee brands and standing out among its competitors.

In December 2018, following the buzz of emerging coffee shops in Russia, the brand’s first coffee shop was launched in the village of Tuchkovo, Moscow Region. Along with coffee, it also serves pastries, soups and salads, and even alcoholic beverages and ice cream. The coffee shop is notable for its moderate prices.

5. Indian Gold

Started in 1995 as a supplier of coffee brands from India, Unizel, the company that produces Indian Gold, only began to build its brand in 2002. Indian Gold is made from Indian coffee, which is known for its very rich aroma and flavor. . It offers a wide range of varieties in its product line, such as whole grain coffee under the Indian Gold Royal brand, and freeze-dried coffee under the Indian Gold Exclusive and Indian Gold Deluxe brands.

6. Chernaya Karta

Chernaya Karta, which roughly translates into English as “Black Card”, is produced by an international food and beverage giant, the Strauss Group. While it initially appeared in the form of ground coffee and whole beans, its instant coffee line has become the leading brand in Strauss Russia. Compared to other Russian brands, it has a relatively higher share of the instant coffee market. It has a wide variety of products, from a basic espresso in the form of coffee beans, to the popular Chernaya Karta gold, which is heated by the golden rays of the sun during the brewing process, as well as a decaf version for those who love coffee. They enjoy the taste of coffee but want to limit their caffeine intake.

So, these are the 6 best reputable coffee brands in Russia. Interestingly, despite being known as one of the tea-loving countries in the world, statistics show that imports of coffee beans in Russia increased in 2017 compared to the previous year. However, during the same period, tea imports decreased by eight percent. The growing numbers may indicate the increasing popularity of coffee consumption. The question is, will it one day beat the number of tea consumers? Let’s wait and see.

• Key and important factors for the presence of Iranian producers in the Russian market

  According to the initial research conducted on the coffee industry in the large Russian market and considering the key factors:

  High and continuous quality of manufactured products

  Preferential tariffs on import duties of Iranian goods to Russia

  Low export costs of Iranian products to Russia compared to Western and Chinese goods

  The proximity and proximity of Iran and Russia as a logistical advantage and the possibility of exporting Iranian goods to Russia by various methods such as land, rail and sea transportation in the shortest time and low shipping prices

  The absence of a large part of the market from famous Western brands

  The possibility of rapid expansion of market share and access to the competitive and trade space in Russia

  It can be said that there is a high economic justification for the entry of the esteemed company “Rai No” into the large Russian-Eurasian market, and the “Fardad” Group of Companies is proud to establish effective and successful joint cooperation in this direction.