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Coffee

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Coffee : a globalised product

Introduction

What’s the nature of the document?

A TV ad, TV commercial, for Nescafe, an instant coffee

Identify all the references to different nationalities and to the world in:

The images: 3 men drinking coffee : 1 from South America, 1 French, 1 American + the world map-designed cup

In the comment (voiceover): all over the world, the word for great coffee is nescafe,

In the song: if Nescafe can please the whole wideworld we can sure please you

What does it reveal about the product presented in the document?

It’s a drink consumed everywhere in the world, we can speak of a global product.(what’s the link between coffee and G° ?

Second most consumed hot beverage after tea.

Key question : to what extent can we say that coffee is a symbol / an epitome of a globalised product?

Part 1 : Coffee market : global interconnections

1A history of coffee

Questions :

1Identify the origin of coffee.

Coffee appeared in the Horn of Africa, in Ethiopia

2Explain the spread of coffee in the world.

It spread to Yemen, (then to the Middle East), the Dutch brought it back to Europe to export it to

India, Indonesia, then to Surinam, Guyana, Brazil and the rest of Latin America.

(expansion of coffeehouses, along with the consumption of 2 other hot beverages : chocolate and tea)

SKETCH

2Coffee : at the heart of global exchanges

STARBUCKS AND GLOBALISATION

Questions :

1-

What’s the nature of the document ?

A map showing the organization of Starbucks’ production. Produced in 2003, by Princeton university.

It highlights the sources for coffee beans, paper and sugar. We’re going to focus only on coffee beans

2Where does Starbucks purchase coffee ?

Central and southern America, Easter Africa and South East Asia.

3How can you account for it?

Tropical zones, humidity, temperature, 2 varieties of coffee Arabica and robusta (70-30% of the market)

Conditions only provided by countries located between the two tropics, tropic of cancer and tropic of

Capricorn

4Identify the main consumer places.

North America, Europe, Japan, Australia : Northern countries (70% of the total coffee market, 5kg per year per inhab)

Middle East (inheritance from the past)

China, South East Asia : emerging consumer places, illustrates the spread of the consumption of coffee, a booming market

5Have you ever been in a Starbucks café? What kind of coffee is sold? What does it reveal about food habits?

Different blends are offered, wide range of beverages made from coffee : cappuccino, espressos, macchiato, frozen coffees (frappucinos)

There’s a standardization of food habits

6What are the limits of this document?

The line features (arrows) don’t represent flows, they’re not proportioned either.

SKETCH PART 2

3A Coffee market into the hands of powerful actors

Diagram

1Identify the different stages of the coffee market

2What are the main actors of the coffee market?

3Highlight their might on the coffee market.

1Production -Trade –roasting – distribution – consumption

2TNCs

3Concentration of profits

39% of trade market shares for 4 TNCs

45% of the markets shares for 5 roaster TNCs

35% for 30 leading distribution TNCs

Csq : the can impose their conditions, control the production process, impose a competition between the production places in order to get the lowest prices, it puts pressure on the small exploitations…

Market prices are defined in stock exchanges in the North in London an d NY

SYNTHESIS : final sketch

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