Friday 27 January 2023

Coffee consumption outside the home grows more and more in Costa Rica

The post-pandemic reactivation attracts new investments in the sector in the country.

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27 January 2023 - At The Banks - BCCR

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QCOSTARICA – Coffee consumption outside the home is a growing trend in Costa Rica, according to a study on Coffee, Machines, Uses and Habits in Central America, revealing that 73% of Costa Ricans prefer to drink coffee from a machine when consuming this beverage outside the home.

The four aspects highlight why the Tico prefers to consume machine coffee, the reason is because of its flavor (78%), the speed in obtaining it (41%), and its practicality, and variety (22% and 24% respectively).

In most Central American countries, consumers drink one to two cups of coffee a day and, if they are away from home, they consume coffee from a machine first.

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In Costa Rica, 25% drink one cup a day, while 23% drink two cups.

The study by Zenith Global also showed the times of the day that Costa Ricans prefer to consume this drink: 71% drink it in the afternoon, 67% at night, and 55% in the morning.

A special occasion is not necessary for the consumption of coffee. The survey reveals that 63% of Ticos (Costa Ricans) consume coffe at work, 47% at any time, and, finally, 45% out with friends.

Advances in coffee consumption outside the home

The arrival of the pandemic in 2020 also brought changes and opportunities for the consumption segment outside the home, including coffee consumption. One of these was the leap made by electronic commerce, the transaction of goods and services through computerized means -mainly that which is carried out on the Internet-.

Globally, e-commerce sales from Nestlé’s out-of-home businesses grew by almost 50% in the second quarter of 2020, according to the World Coffee Portal. The reality in Costa Rica is not very different. According to Digital Market Outlook 2020, Costa Rica achieved a growth of 48% in its digital sales.

“From our business as providers of culinary and beverage solutions for the restaurant, hotel and bakery segment, the challenges also brought us opportunities. On the one hand, to reinforce the acceleration of technologies and services for electronic commerce, enabling agile access, with a single click, for our clients; who in turn had to lighten their digital platforms to bring the final products to consumers,” explained Andrés Calatroni, regional director of Nestlé Professional.

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A second opportunity was the increase in local purchases of raw materials. In January 2021, Nestlé Professional launched 100% national bean coffee in Costa Rica under the iconic Nescafé brand.

This launch is associated with the support for the reactivation of the local economy, by supporting more than 1,000 producer families throughout the national territory. Small and medium-sized businesses such as bakeries, cafeterias and convenience stores benefit from the latest technology Nescafé coffee machines: they grind the beans instantly and provide end consumers with a high-quality consumption experience.

For illustrative purposes

Nescafé uses 100% grain from Costa Rica, distributing the resources to 15 Costa Rican micro-benefits. Nestlé’s coffee comes from four coffee-growing regions of Costa Rica, mainly: Brunca, Guanacaste, Tarrazú and Occidente. The grain is assembled in Coopeldos, a 100% national cooperative in the Guanacaste region, which causes a very positive local chain for all those involved and has an impact on even more families.

Recently, to further consolidate its presence in the country, Nestlé opened the first point of sale for its iconic Nescafé brand at the Juan Santamaría (San Jose) International Airport, thanks to the alliance with Newrest – the commercial partner – the Malinche TO GO coffee shop.

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“We officially inaugurated the Nescafé co-branded cafeteria at the Juan Santamaría Airport, offering the thousands of passengers who annually pass through this point the unique opportunity to enjoy the precious and exquisite 100% Costa Rican coffee bean. At the same time, we support local coffee farmers. We are grateful to Newrest for their support since this is possible thanks to the creation of alliances with strategic partners like them,’ concluded Calatroni.

In line with what Calatroni mentions, there is the hotel sector, which is recovering little by little after the pandemic. The Costa Rican Chamber of Hotels (CCH) carried out a survey prior to Semana Santa in which it projected an average figure of 77% occupancy in rooms; however, 83% of those surveyed indicated that they expect an improvement in the overall occupancy rate for the second quarter of the year.

“The hotel recovery has been increasing little by little. With the perception obtained for Easter, we hope that this will improve during 2022 and, as a consequence, more employment will be generated in hotels, more tourism and the economy will be reactivated,” said Flora Ayub, CCH Executive Director.

In Costa Rica, Nescafé is the leading brand of coffee consumed outside the home. With more than 1,500 vending machines placed in stores such as bakeries, cafeterias, gas stations, office centers and convenience stores.

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