Coffee is one of the most widely consumed beverages in the world, ranking only behind water and tea. Whether or not you are a coffee drinker, the story of coffee contains a great lesson. Why business works—let’s take a look.
According to Gallup, 64% of U.S. adults drink coffee, an average of 2.7 cups per day. This is a popular drink.
Coffee is grown in Central and South America, Asia, and Africa. Top producing countries include Brazil, Vietnam, Columbia, Indonesia, and Ethiopia. Coffee is also important to the economies of Uganda, Guatemala, Costa Rica and other places. Virtually none is grown in the continental United States.
Americans drink a lot of coffee, but none grows here. Farmers in other lands grow the beans, and we wake up and smell the coffee. How does this work?
Of all the people and enterprises involved, not one is a charity. The farmers, truck drivers, buyers, exporters, processors, millers, roasters, grinders, coffee companies, grocers, waiters and baristas—they all have the same reason for being involved. Every single one makes a living by providing a good or a service for which other people voluntarily pay.
Think about it: a product that starts its journey on one of three other continents is a popular beverage here in America. Why? Because there is money to be made in providing goods and services that others need or want.
Another part of the story of coffee is about change and transformation over time, to meet the desires of the marketplace. Fifty years ago, for most Americans, coffee meant Maxwell House or Folgers, brewed at home in a percolator. Today coffee might mean a trip to the popular chains or local independents, cafés, fast food places, or truck stops—to enjoy fresh-ground or gourmet or organic and a wide variety of other types of coffee.
Why did these sweeping changes in the coffee market occur? Clients, you know how this works: there was a buck to be made in bringing us what we want.
Decades ago, one coffee advertisement had a jingle that went “the best part of waking up is Folgers in your cup.” Seems to us that what is in the cup is actually capitalism at work.
Clients, please call or email us if you would like to discuss this concept, or any other idea of interest.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.