The range of products offered

Coffee House Corretora de Mercadorias exports specialty coffees and fine coffees, produced in the region denominated as Serra do Pau D’Alho. We offer the production of our own estates Fazenda Lagoa and Fazenda Santa Helena, and we also ship the coffees produced in the farms of an exclusive group of producers, that work under the supervision of our Quality Control team.

These fine coffees from Sul de Minas are graded according to their quality, to guarantee their consistency, and are selected by process, categorized as Natural or Pulped Natural.

The Specialty coffees carry the Quality Certificate issued by the Brazil Specialty Coffee Association, and receive multiple descriptions:

• Classic Arabica

• Vanilla flavor

• Caramel flavor

• Chocolate flavor

• Cinnamone flavor

Indigenous market’s constraints

The main reasons for engaging in international trade are:

• High home-market competition. Back in 1887 our company had conducted a research on the demand at the domestic and European markets. The results had shown that there are a lot of possibilities in Europe while the domestic market wasn’t perspective even in those times. Thanks to the climate in Brazil, there are a lot of coffee companies who produce and sell coffee not only in the country but also abroad. So, historically there were a lot of businessmen who caused strong competition both in growing and selling of coffee.

• Low-income consumers in the domestic market. From the beginning the owners of the company decided to orient on premium segment and produce only high-quality coffee. Though the population of Brazil is mostly low-income consumers with low consuming ability.

• High coffee-market potential in Europe. After entering the market of Europe it is evident that the company will be able to acquire a lot of new consumers who are ready to pay more for the quality and original brand.

• Geographical concentration of potential outlets. As our main customers are located very close to each other in central Europe (France, Germany, Switzerland, Italy, Spain, Holland, Great Britain), it will be easier to organize logistics in more cost-effective way.

Target country

Russian coffee market became very attractive to our company at the beginning of the 2004, when European consumers became very anxious about their health and therefore a healthy way of life. The consumption of coffee had decreased greatly and coffee stock exchange price decreased and reached its 10-year period minimum. So, we decided to enter Russian market. Despite the fact that Russia was at the last place concerning the consumption of coffee, the Russian market was considered to become one of the most perspective coffee markets in Europe. According to experts estimations, it’s annual growth was 12-15%¹. Our predictions proved to be correct: According to Discovery Research group coffee market in Russia exceeded $1,8 billlion. In 2007 market size reached $2,1- 2,3 billion². One of the main attractions of the Russian market was the growth of chains of coffee-houses and retailers. We decided to enter the regions with the highest consuming ability: Saint-Petersburg and Moscow. So, we decided to work with such well-developed coffee-houses as:

• Saint-Petersburg: “Coffee House”, “Idealnaya Chashka” (“Ideal Cup”), “Republic of Coffee”, “Shokoladnica”;

• Mosow: “Coffee House”, “Shokoladnica”, “Moka Loka”, “Cafemax”, “Coffe Bean”.

And also we decided to sell our coffee through well-developed chains of superstores in both cities:

• Saint-Petersburg: “OK”, “Lenta”, “Karusel”

• Mosow: “Ramstor”, “Auchan”, “Carrefour”.

Another positive argument for entering European part of Russia is possibility of shipment directly to the port of Saint-Petersburg and then transport part of the stock to Moscow by train or tracks.