Wholesale coffee distributors now are everywhere in the world. They contribute a lot to the wholesale coffee beans market by boosting, optimizing, and connecting producers and wholesale buyers.
- 1 The brief introduction to wholesale coffee distributors
- 2 Popular types of coffee that wholesale coffee distributors often supply
- 3 Location of wholesale coffee distributors
- 4 Factors that affect the supply chain of wholesale coffee distributors
- 5 Ways to approach wholesale coffee distributors
- 6 Ways to work with wholesale coffee distributors
- 7 Recommendation: Top famous wholesale coffee distributors
The brief introduction to wholesale coffee distributors
Wholesale coffee distributors are popular and diverse in the world coffee trading market.
Definition of wholesale coffee distributors
Wholesale coffee distributors are considered intermediary companies that distribute coffee from producers to individuals or enterprises who want to buy coffee in bulk in their distribution channels.
Roles of wholesale coffee distributors
Wholesale coffee distributors perform some of the same functions as coffee wholesalers, but in fact, their work is much more complex and dynamic.
- Distribution: The main task of wholesale coffee distributors is to distribute coffee to people who need them at the right time, right place, with the right products that they require. The distribution of products at the right time, place, and product requirements requires the wholesale coffee distributors to understand the market, even catch up with the changing trends in the future.
- Providing market information: Because wholesale coffee distributors have a large supply and demand network, they are often able to quickly grasp supply and demand information and are especially knowledgeable about the domestic and foreign coffee markets. From there, wholesale coffee distributors can provide you with the most realistic information about the coffee market, especially useful for new buyers, something that wholesalers may not be able to provide.
Popular types of coffee that wholesale coffee distributors often supply
Coffee distributors supply a variety of products from green coffee beans, roasted coffee, instant coffee, etc. But most wholesale coffee distributors will often focus on providing two main types of coffee: green coffee and roasted coffee.
95% of green coffee beans are supplied in major coffee growing regions such as Brazil, Vietnam, Colombia, Indonesia, or Ethiopia. The remaining 5% comes from other trading countries, typically Singapore.
The green coffee beans wholesale price is standardized on the world market with two main types: Arabica and Robusta. The wholesale prices of both types of coffee have increased continuously in the past three market years. In particular, the price of Arabica green coffee is usually twice the price of Robusta coffee.
|MY 2018/19||MY 2019/20||MY 2020/21|
Wholesale roasted coffee beans are usually supplied by wholesale coffee distributors in Europe such as Switzerland and Germany. Each country in the world has different coffee drinking needs, in which many countries have formed a long-standing coffee culture. Along with that, the trend change from tea to coffee has significantly increased the demand for roasted coffee every day. The wholesale roasted coffee price also increases for that reason, depending on the type of coffee and roasting technique.
Reasons for the popularity of these two types of coffee.
Looking from the position of a wholesale coffee distributor, the supply and demand for the two types of coffee is very large.
- Massive green coffee beans output
The total coffee output in MY 2020/21 is 10.18 million tons, up 0.4% from MY 2019/20. In comparison to MY 2019/20, Arabica output in MY 2020/21 increased 2.3% while Robusta output declined 2.1%.
Due to climate-related shocks in Brazil and the lockdown of the Covid-19 pandemic in Asia, the coffee output is expected to decline dramatically in MY 2021/22, while coffee prices are predicted to continuously rise.
- Increasing roasted coffee beans demand
Coffee consumption in Europe has steadily increased to around 3.5 million tons, whereas it is stable in North America with 1.9 million tons in MY 2020/21. The coffee consumption index in Asia and Oceania climbed slightly, but not significantly, at 8% per year.
Location of wholesale coffee distributors
Wholesale coffee distributors are available in many parts of the world, but each wholesale coffee distributor in each region has its own strengths.
Wholesale green coffee distributors
Most green coffee distributors are located on the world coffee belt, including Southeast Asia, South America and Africa.
- Each year, Brazil exports 2.5 million tons of coffee. Brazil has produced the most coffee of any coffee exporting country in the world over the last 150 years, accounting for one-third of global production.
- With an annual coffee export of 0.9 million tons per year, Vietnam became the 2nd among coffee exporting countries.
- Colombia has been a commercial coffee producer since 1830, exporting to Japan, the United States, Italy, Germany, and France, and now is ranked 3rd in the world in terms of coffee export volume among coffee export countries.
Reasons for the large distribution of coffee in these countries:
- These three countries are the countries with annual coffee production ranked in the top 5 in the world because they can ensure a stable and abundant supply for wholesale coffee distributors. Favorable natural conditions, long-time experience and skillful labor force are the main reasons for these countries to produce coffee in massive quantities.
- Another reason is the reasonable shipping price. Located on the same continent, Brazil and Colombia are both aiming for the “big consumer” in coffee consumption, the US while other countries in Europe like Germany and in Asia like Japan and Thailand are interested in Vietnam which has a stable supply of coffee and about 5% cheaper price than the market.
Wholesale roasted coffee distributors
In contrast, the wholesale roasted coffee distributors are concentrated in Europe. Although Switzerland and Germany have no growing areas, the export value of coffee is ranked 2nd and 3rd respectively in the world. Switzerland’s coffee export value reached $2.9 billion, accounting for 9.1% of world exports, while Germany’s coffee export value reached $2.6 billion, accounting for 8.2% of world exports.
The distribution of roasted coffee brings very high value to wholesale coffee distributors around the world. Because they have applied their greatest advantage of the most advanced technologies to create high-quality coffee that is suitable for market demand, as well as capable of consuming large amounts of electricity and water. Therefore, the price of roasted coffee is much higher than that of green coffee. And there is absolutely no specific comparison for these two types of coffee because different coffee roasting methods produce different characteristics.
Factors that affect the supply chain of wholesale coffee distributors
Wholesale coffee beans are a price-sensitive commodity because coffee trading will have a huge change when there is only a small change in factors such as supply, demand, shipping prices, government policies or any other external factors.
Due to the impact of frost in Brazil and drought in Vietnam, the coffee output in MY 2020/21 decreased significantly and is predicted to continue to decrease in the next MY. This is also the main reason for the increasing price of coffee. Wholesale coffee distributors have to work hard to find long-term sources for pre-orders for the future.
In contrast, the demand for coffee is increasing due to the reopening after the Covid-19 epidemic and the vaccination campaign in Europe and the US. This is a good opportunity for wholesale coffee distributors after 2 years of struggling with the Covid-19 epidemic.
Due to the Covid-19 epidemic, the operation of ports was limited or frozen, and logistics prices also increased dramatically. Shipping costs now have risen 3-7 times as much as usual, making it difficult for many wholesale coffee distributors to decide whether to increase product pricing or cancel orders or suffer losses in order to keep business relationships.
Ways to approach wholesale coffee distributors
To effectively work with the thousands of wholesale coffee distributors around the world, you need to know how to find them.
Finding reputable wholesale coffee distributors
- Internet support: Today, with the help of the Internet, finding information is easier than ever. You can find reputable wholesale coffee distributors by searching Google or searching for their names on multinational e-commerce platforms like Alibaba or widely used social networking platforms like Facebook and LinkedIn.
- Intermediaries companies: For new wholesale buyers, you can hire an intermediary service. These are intermediaries that are knowledgeable about the market and also have a reputable and stable supply. However, the price will be a bit higher because you have to pay the intermediary company.
- International trade fairs: For long-time buyers, international trade fairs are also an interesting choice to experience and exchange directly with wholesale coffee distributors. However, due to the impact of the Covid-19 epidemic, the organization of the international agricultural fair could not take place.
Signs to assess trustworthy wholesale coffee distributors
A reputable wholesale coffee distributor will have the following characteristics:
- Profile transparency: Trustworthy wholesale coffee distributors will be very concerned about their image with customers. Therefore, they always invest in a transparent image from the company’s address, phone number, email name with the company’s own domain, business registration to the company’s images on digital platforms such as social networks Facebook, Youtube, etc. or their website.
- Necessary certificates: Coffee is a popular agricultural export commodity of many countries. However, to prove the quality of products, the company needs to have certificates of origin, phytosanitary certificates, or an export license for this product.
- Business activities: Reputable wholesale coffee distributors will cooperate with many partners and customers. Wholesale buyers can see their testimonials as an indication of the products quality and services of wholesale coffee distributors.
Signs to avoid scam wholesale coffee distributors
In today’s complex business market, untrustworthy wholesale coffee distributors act very delicately. Here are some typical signs of a wholesale coffee distributor:
- Too low price: World coffee prices change hourly on US and European exchanges. Wholesale coffee distributors can offer competitive discounts, but if the wholesale coffee distributor’s price is too low compared to the market, the supplier may just be trying to trick you for money or provide low quantity products.
- Unclear profile: Unreputable wholesale coffee distributors often try to hide their true identity by not paying attention or not disclosing the company’s information on the website. One trick of the unreliable wholesale coffee distributors is to create a company name and website that closely resembles a reputable company, or get pictures from the Internet – which you can easily verify.
- Refusal to meet: Unreliable wholesale coffee distributors often refuse to do face-to-face negotiations. During the Covid-19 epidemic, we cannot meet directly, but with the development of electronic devices, face-to-face meetings via Zoom or Google Meet are completely possible.
Ways to work with wholesale coffee distributors
To work effectively with wholesale coffee distributors, you need to understand the 5 main steps in the process of importing agricultural products.
- Step 1: The seller sends a Letter of Intent (LOI) to wholesale coffee distributors to describe their needs from quantity requirements, quality to the desired price.
A standard LOI will include general company information such as website, address, phone number, email, business certificate, signature, and order requirements such as product types, its specification, destination port, packing requirements, and other special notes.
- Step 2: The wholesale coffee distributors will reply with FCO based on the buyer’s LOI. After that, the two parties will negotiate to come up with the final FCO.
- Step 3: After agreeing on some basic terms, wholesale coffee distributors will send samples to buyers so that buyers can experience the quality of their products.
- Step 4: From the negotiated terms, the two parties will come to sign and execute the contract. In most cases, the buyer will have to pay the seller a deposit after signing the contract.
- Step 5: Wholesale coffee distributors will follow the Incoterm terms of the contract and have 2-4 weeks to make the goods. After the goods are on board, the seller is obliged to send the Bill of Lading to the buyer. Delivery time can vary from 7 to 40 days depending on the means of transport.
- Step 6: After receiving the goods, the buyer must carefully check both the quality and quantity and give feedback to the wholesale coffee distributors as soon as possible.
Recommendation: Top famous wholesale coffee distributors
Here are Top 3 reputable wholesale coffee distributors who are strongly recommended by many coffee traders.
Kaldi Gourmet Coffee Roasters
Kaldi Gourmet Coffee Roasters is one of the most famous leading wholesale coffee distributors in the world. Established in 1995, Kaldi offers customers the finest Arabica coffee beans at competitive prices. Today, Kaldi is not only a member of the specialty coffee association (SCA) but also cultivates more than 40 varieties with over 60 different flavors.
Besides the strength in roasted coffee, Kaldi also expands and offers a wider range of products such as green coffee, coffee syrup, instant coffee, or coffee machines to the international market.
Whatsapp: +84 855 555 837
K-Agriculture Factory is one of the wholesale coffee distributors empowered by the Vietnamese government. Therefore, from 1996 until now, K-Agriculture has always held a pioneering position in bringing high-quality Vietnamese agricultural products to the international market. With 25 years of experience in coffee exports, K-Agriculture has received many certificates like Vietpresso 2019, ISO 9001:2015, HACP CODE:2003.
Currently, K-Agriculture offers a wide range of wholesale coffee products that are carefully selected and processed from famous growing regions in Vietnam such as:
– Specialty Arabica Quang Tri
– Arabica Lam Dong – Commercial
– Arabica Honey Coffee
– Arabica Lac Duong Coffee
– Arabica Dalat – Cau Dat
– Robusta Lam Dong Honey
Whatsapp: +84 855555837
Java Bean Plus
One of the other wholesale coffee distributors that has to be mentioned is Java Bean Plus. This leading American wholesale coffee distributor offers high quality coffee with a commitment to satisfy all customers. Now, they have served over 2,000 customers across the US in particular.
Recently, Java Bean Plus is promoting online business channels and supplying many types of coffee like roasted coffee, green coffee, syrups, mixers, and accessories.
Whatsapp: +84 855555837