A different

trip
INSTANT
COFFEE!
 (This would be the
transport of coffee
from the countries
where the raw
materials are
extracted that finish in
Spain)

VIGGO GUSTAFSON PRODUCT TRIP

 Countries where the raw
materials are extracted:
The countries where coffee is produced
(which is the most common ingredient of
Nescafe) are: Colombia, Brazil, Vietnam,
Indonesia , Ethiopia, India, Honduras,
Peru, Uganda, Mexico and Guatemala. In
Brazil, is where more coffee is harvested,
like about 2, 652, 000 metric tons.

JAVIER FUENTES
 Economic impact for the country:

It is actually a great thing that raw materials, such as coffee is grown in

this countries, because their economy raises a lot: Colombia: 2.6 billion;
brazil 4.6 billion; Vietnam: 2.41 billion; Indonesia: 123.6 million ( only in
USA),Ethiopia: 840 millions in 2010, Honduras:1.5 million jobs were
created, Peru: 855.000 jobs were created, Uganda: 1,7 million,
Mexico:405,882 and Guatemala:353.846

JAVIER FUENTES
 Countries of the manufacturing:
Our chosen product, Nescafé, consists of instant soluble coffee powder
that comes from the ground coffee bean. It was invented at the beginning of
the 1930's when Brazil, a great producer of coffee, found itself with a lot of
this raw material.

In 1929, with the fall in coffee prices, banks had large quantities in their
warehouses in Brazil and asked for help from Nestlé, a company dedicated
to the manufacture of food products, to convert this raw material into
"soluble coffee cubes" that could be easily dissolved in hot water.

LOLA AZNAR
 In 1938, the first soluble coffee was launched in Switzerland, under the brand
name NESCAFÉ. It was quickly exported to the United Kingdom and the
United States. By 1940, NESCAFÉ was being marketed in 30 countries
around the world.

Nescafé is one of the most important products manufactured and marketed

by Nestlé. It is in the category of Liquid Beverages. As can be seen from the
table in the next slide, there are more than 350 Nescafé factories in 69
different countries all around the world.

LOLA AZNAR
LOLA AZNAR
 Where is the product most commercialized:

Currently, this type of coffee is enjoyed in over 180 countries, making it the
world's favorite instant beverage. Nescafé holds the 7th place of the most sold
brands in the whole world.

It is present in Spain and also in the rest of Europe, Latin America, United
States, Canada, Asia, Morocco, South Africa, Australia and New Zealand.

LOLA AZNAR
 Profit obtained of Nescafé & its Distribution Channel

(Because Nescafé belongs to the company of “Nestlé”, this is the basically the profit of Nestlé, not
Nescafé).

The profit of Nestlé as of 2019 is of 92.6 billion CHF, which is 85.3 billion €

But now, we’re going to tell you the profit of coffee in general, and compare it
with the one in Nescafé:

CLAUDIA FERNÁNDEZ
 EXAMPLE: Distribution Channel (Nescafé) In Egypt

CLAUDIA FERNÁNDEZ
 Environmental impacts of coffee production:
Coffee also has some environmental and social issues as most of the things. One
of the main problems in most coffee producing regions is water pollution. To
address this issue they proposed the countries and coffee farmers to use an
environmentally-friendly technologies for the washing process through pilot
projects in Africa and Latin America.

Another environmental issue is deforestation, farmers have been encouraged to

replace their traditional and supposedly inefficient methods with the higher
yielding technique of sun cultivation, and this suppose that 2.5 million acres of
forest in central america in this case where taken away to have more coffee
production.

CLAUDIA FERNÁNDEZ
 The agrochemical usage is also an important environmental issue. So coffee is
often integral to agroforestry systems in which tree species are cultivated
together with coffee and other agricultural commodities. This cultivation of
coffee relies on much lower chemical inputs that industrial plants, but however,
sun cultivated coffee often employs intensive pesticides and chemicals that
present serious health and ecological concerns.

CLAUDIA FERNÁNDEZ
 More Impacts of coffee production:
The coffee industry is not more sustainable, this means that the countries that
produce coffee and the people that produce coffee only receive a little quantity
of the total amount of the money that the wholesale industries such as
starbucks or or Lucking coffee earn.

Over 25 million people are being affected from this issue, a very good example
is Latin America, the percentage of poor people has increased that much that it
has reached the point of promoting migration for those that cannot afford
living by producing coffee beans.

CLAUDIA FERNÁNDEZ
 Economic systems involved:
In the countries where the coffee is grown have different economic systems. For
example: Colombia, Vietnam, India and Mexico have a capitalist economy. And, then
we have Brazil, Indonesia, Ethiopia, Honduras, Perú, Uganda and Guatemala that
have a mixed economy. Having different economic systems can be sometimes an
issue because there aren’t same agreements for trading the materials. We also have
to keep in mind that there are many countries, such as North Korea and New Zealand,
that have completely different economic systems. And when it gets to sell the soluble
coffee, they both have different ways for that. The government in North Korea is very
very strict and they are the head of everything, while in New Zealand, there is a lot of
freedom between individuals, like of about a 8.53 of score.

OLIVIA VENTERO
 Javier’s reflection:

This project has opened my mind because if there is coffee in our house is
because someone had to work hard, he probably started working at 7 am
and finishes at 8 pm because if he doesn’t do that his family doesn’t have to
eat, almost all the coffee is grown in countries that are undeveloped.
 Lola’s reflection:

Looking for information about our product, I’ve discovered that not only
Nesscafé is the seventh best selling brand in the world (a fact that has
surprised me), but also that it carries out an action to support the people who
are dedicated to coffee production, by training the farmers so that they know
how to better organize their work and have a better standard of living.
 Claudia’s reflection:

This project has helped me to realize that in one cup of coffee we’ve got a lot
processes and effort. This project showed me that everything has its own value,
for example coffee for us is something that we can have everyday, but people
that produce this coffee barely have the money to pay for their essentials. This
project has helped me to know a lot more things about coffee that I didn’t know
at all and know I’m much more informed, even though I don’t like coffee at all.
 Viggo’s reflection:

I found this project, sincerely, semi fun because it was interesting to see how
much of an impact can 1 single product affect a whole country (economically),
how many factories does Nescafé have in different countries, etc… And even
see how far away the coffee can travel! But it still wasn’t such a surprising
project personally.
 Olivia’s reflection:
This project has helped me a lot to realise that inside just a small cup of coffee,
there is a great adventure. I mean, first where all the coffee grains are grown,
which are in many, many countries (also all of the other ingredients that create
the Nescafe). Then where it’s manufactured, stored and transported. Also
where this soluble coffee is commercialized. And we all end up swallowing it,
without noticing where has that instant coffee been. This project has also
helped me understand this unit of THE ECONOMIC ORGANIZATION OF
SOCIETIES. At first was a bit difficult to get a good product, but I can say that
I’ve enjoyed it.
 Bibliography (Viggo):
https://prezi.com/mv7viwngatgt/distribution-channel-of-nescafe/

https://www.nestle.com/media/pressreleases/allpressreleases/full-yea
r-results-2019

https://www.bonka.es/amor-por-el-cafe/paises-productores-de-cafe
 Bibliography (Javier):
https://www.manualbrewing.com/indonesian-coffee-between-the-expo
rt-market-and-the-local-market/

http://unohrlls.org/news/ethiopia-getting-a-better-deal-for-coffee-farm
ers/

https://news.trust.org/item/20181104170436-03tcm/

https://apps.fas.usda.gov/newgainapi/api/report/downloadreportbyfile
name?filename=Coffee%20Annual_Lima_Peru_5-9-2018.pdf
 Bibliography ( Javier)

https://apps.fas.usda.gov/newgainapi/api/report/downloadreportbyfilen
ame?filename=Coffee%20Annual_Lima_Peru_5-9-2018.pdf
 Bibliography (Lola):
https://www.foodprocessing-technology.com/projects/nestle-coffee-ma
nufacturing-facility-dong-nai/

https://bartalks.net/es/nescafe-beats-2019-industria-crecimiento/

https://www.nescafe.com/es/

https://www.nestle.com/sites/default/files/2020-03/2019-annual-revie
w-en.pdf
 Bibliography (Claudia):

https://theconversation.com/production-up-profits-down-getting-to-th
e-bottom-of-the-coffee-conundrum-119124

https://www.onegreenplanet.org/animalsandnature/coffee-and-its-imp
act-on-people-animals-and-the-planet/
 Bibliography (Olivia):
https://pestleanalysis.com/coffee-industry-pestel-analysis/

https://www.ncausa.org/Industry-Resources/Economic-Impact

https://www.fairtrade.org.uk/farmers-and-workers/coffee/about-coff
ee/

https://blackgoldmovie.com/economics-of-coffee

https://worldpopulationreview.com/country-rankings/capitalist-coun
tries