South Korea has the world’s fourth largest number of Starbucks Coffee stores in relation to its population, industry data showed Thursday.
Starbucks Coffee Korea, the local unit of the U.S. coffee giant, said it has 1,008 stores across the country as of the end of February, meaning one outlet for every 50,000 South Koreans. South Korea’s population is 50.5 million as of the end of July last year.
Canada topped the list with 1,035 shops for a population of 36.2 million, translating into one shop for every 35,000 Canadians.
The United States came in second with 7,880 stores or one outlet for every 41,000 Americans, trailed by Singapore with 126 shops which translates into one store for every 45,000 Singaporeans.
Japan has 1,140 shops or one shop for every 110,000 people.
Industry sources attributed the popularity of Starbucks in South Korea to the growing loyalty of women in their 20s and 30s to the U.S. coffee brand.
“Starbucks Coffee Korea has succeeded in promoting its image as a luxury brand in South Korea where the luxury coffee market has yet to mature,” a source said.
Starbucks Coffee Korea’s annual sales topped the 1 trillion won (US$884.17 million) mark for the first time last year since it opened its first branch near Ewha Womans University in Seoul in 1999. Starbucks Coffee Korea is a joint venture between retail conglomerate Shinsegae and the U.S. coffee giant.
Industry data showed annual sales of its local competitors Twosome Place and Angel-in-us Coffee averaged between 100 and 200 billion won last year.
Richard Fahey, Barry Callebaut’s Vice President for Cocoa in Asia says: “Indonesia has been struggling to increase cocoa production because of ageing cocoa trees. Most of them were planted in the 1980s, are vulnerable to diseases and are well past their peak production years. Cocoa trees are strong, and will produce pods for a long time. However, the high-productive years of a cocoa tree are finite, and usually after 25 years, the trees are less productive. Indonesia desperately needs new trees in order to get back to a productivity level of around 1 mt of beans per hectare.”
Indonesia-based Sustainability Manager Ani Setiyoningrum says: “The purpose of cocoa nurseries is to provide a conducive environment in which young cocoa plants can grow a good number of leaves and fully develop its root system to a certain stage that will give cocoa plants a better chance of survival at the cocoa farm. These nurseries will require shade, water and protection from wind, and whenever necessary, protection from stray animals.”
Setiyoningrum says: “These are community-run nurseries that we help to kick-start by providing them with a start-up investment and best-practice models. These nurseries are also a form of income for these nurseries owners, some of whom are cocoa farmers themselves. Our field experts work closely with these nurseries owners to teach them to produce high quality seedlings with a high survival rate. They are given proper planting material, high-quality seeds, and the right potting mix, and are guided to develop good nursery management skills and standard operating procedures. These nursery owners then work as a professional service provider for other farmers which is becoming an avenue for additional income. The project model we are testing with around 50 nurseries across Sulawesi is suitable for nurseries producing at a large scale. Our intention is that the nurseries we start-up will eventually become totally self-sufficient businesses in their own right.”