Café de Colombia: protecting and promoting a well-known origin

1. Café de Colombia: protecting and promoting a well-known origin Luis Fernando Samper National Federation of Coffee Growers of Colombia June 2007-Beijing, China

2. National Federation of Coffee Growers of Colombia (FNC) • Founded in 1927, by the coffee growers of Colombia, the Federation is the non-profit, democratic and active advocate of 560,000 small cafeteros. • With the funds of the National Coffee Fund, the FNC is dedicated to improve the life in the coffee-growing communities and to protect and promote the Colombian Coffee Industry.

3. Some of FNC’s Objectives… • Ensure the well-being of Colombia’s coffee growers by working towards the sustainability of Colombian coffee. • Foster a system in which Colombian Coffee growers receive the best possible price for their coffee. • Protect and Promote Colombian Coffee and guarantee its positioning in the global coffee market.

4. It is part of the FNC’s strategic objective to maintain and strengthen the differentiation of Colombian Coffee • Colombia´s coffee quality is given by its mountains, • varieties used, and • harvesting and post harvesting processes. • Many of these processes are manual, so we can not compete with cost. Only with differentiation.

5. Today Colombia is one of the most well-known origins for coffee. It wasn’t always this way… • During the late 50’s the price of Colombian coffee went from $0.85/lb to $0.45/lb due to an excessive supply of coffee in the world market. • Only 4% of consumers recognized Colombia as a coffee origin. • Roasters dominated the market and they tended to hide origin in order to gain more flexibility in blends.

6. Origin?

7. The Road towards origin differentiation… For the first time a coffee producing country takes an active stance towards marketing its product and gives a “face” to a commodity. With a push-pull strategy the FNC achieved to create a segment for 100% Colombian coffee within the coffee category. Consumers demand it, and roasters offer it within their product portfolio.

8. Colombia as an origin, became well-known among consumers Awareness of Colombia as a coffee-growing country KRC Research 2004/2005

9. Based on our Reputation we developed a trademark-based “Ingredient brand” strategy

10. Those roasters not willing to use the ingredient brand decided to concentrate on the origin “Colombian” instead

11. We then developed Certification Marks. However in some cases the product was not even Colombian

12. We learned that… • Trademarks in an ingredient brand context are meant to be endorsers of someone else´s brand. Most of its users are willing to protect the origin. • Enforcement of certification marks is difficult an expensive. • Both TM’s and CM’s do not protect against the use of “Colombian blend” or “Colombian type” We needed an alternative that would help us defend and protect the Colombian origin

13. G.I. Café de Colombia • In December 2004, the FNC presented the Colombian government with an application for the recognition of “Café de Colombia” as a Geographical Indication. • In February 2005, the Colombian government ratified Café de Colombia as a “D.O.-G.I.” • In June 2005, “Café de Colombia” became the first product from a non-EU nation to apply for the Protected Gegraphical Indication recognition to the EU.

14. Why are geographical indications an interesting alternative to pursue? • Roasters and marketers continue in their efforts to make coffee origin irrelevant to the eyes of the consumer • Origin continues to be an important differentiation tool. • New generations have greater access and interest for more information about the products they consume. • Globalization has generated a niche of more conscious and demanding consumers.

15. Geographical Indications: a step forward • For consumers and regulators of food products, Geographical Indications are a source of information and credibility. Equally, they are becoming a source of growth and development for producers around the world. • Emerging consumer trends have created an ideal environment for GI’s to flourish. Consumers’ demand for more and better information about the products they consume represents an opportunity for systems that guarantee origin and methods of production. • Different from Trademarks and certification Marks, GI’s are intrinsically linked with attributes and quality standards related to origin. • In an industry where marketers prefer downplaying origin in order to gain flexibility, GI’s appear as an interesting alternative to add value to the product’s origin.

16. Thank you. Luis Fernando Samper National Federation of Coffee Growers of Colombia Luisfernando.samper@cafedecolombia.com