Serge Bollag
Aug 31, 2018 · 1 min read

#CoffeeWars Ahead☕️:

After today’s takeover of #CostaCoffee 🇬🇧 by The #CocaCola Co🇺🇸, and recent takeover of #BlueBottleCoffee Co.🇺🇸 and the retail business of Starbucks Co.🇺🇸 by #Nestle🇨🇭(#Nespresso …what else, #Nescafé etc.), #Nestle CEO Schneider is interested to takeover illy🇮🇹. Rumours say the #ReimannFamily 🇩🇪 (#JABHolding Co.) is also interested in #Illy 🇮🇹.

Let’s see how this #IndustryConsolidation game will play out !

One thing is certain:

#Coffee ☕️ consumption in #China 🇨🇳 has nearly tripled in the past 4 years, with #CoffeeImports growing 16 percent a year compared to about 2 percent in the U.S.🇺🇸.

The #ProCapitaConsumption of Coffee☕️ in China🇨🇳 VS U.S.🇺🇸 is ~ 1% (average person in #MainlandChina 🇨🇳 consumes just 3 cups of coffee per year, compared to 250 cups in the U.K.🇬🇧 and 363 cups in the U.S.🇺🇸).

What will happen to #CoffeePrices ☕️💴💹, and Coffee Farmland prices🌿🍈💴💹 if the avarage person in mainland China (1.4Bn population) #Consumption only increases to 10% of U.S. consumption ?

Time to buy a “ #RanchoCafetalero ”🇲🇽🌿🍈☕️ in #Veracruz or #Chiapas (Both have “ #DenominaciónDeOrigen ”)?

Or even better, invest in a #Downstream #ProcessingBusiness 🏭 and capture the #HigherMargins / “ #ValueAdd ”💰 ?

Extremely similar 🇨🇳 VS 🇺🇸 Pro Capita Consumption #Patterns exist in

#Cocoa 🌿/ #Chocolate 🍫,

#Avocado 🥑/ #AvocadoOil 🥑💦,

#AnimalProteins 🥓🥚🍗🥩🦐 etc.

The Entire #AgricultureIndustry

🌽🌾🍎🍋🥥🥜🥑🥚🐂🐖🦐 continues to be a Long Term Macro “Play” on the #EconomicGrowthOfChina 🇨🇳 in every sense.

Opinions…?

#Farmland #AgriBusiness #PrivateEquity #AgTech #VentureCapital #Coffee #Cocoa #Chocolate #AvocadoOil #CoconutWater #AnimalProtein #AnimalFeed #ProteinPlay #Aquaculture #FruitBars #Nuts #AlternativeMilks

Serge Bollag

Written by

🇨🇭in 🇲🇽working on💼Farmland🌽/AgTech VC🤖🌾/Agribusiness PE🥑🍗🥝🍫🍪Interested in Agriculture,Food Systems,Tech,Finance,Geopolitics, Art, Watches & more...