RusHOLTS company prepared a letter to the Customs Union Commission on the labeling of coffee and coffee-containing beverages. Thus, the company will initiate amendments to the Russian law, according to which the instant coffee should be called "coffee-based beverage".
The legal basis for such work is the "International Coffee Agreement of 2007" to which Russia joined in March 2015. The agreement is aimed at strengthening international cooperation in the consumption and development of the coffee market in the interests of all its participants. In the case of coffee and coffee-containing beverages that kind of clarity is absent at the moment. The precedent for such work is a legislative motion for labeling of milk and milk-based products. The objects of regulation are coffee, coffee extract, coffee oil.
In Russia the very culture of coffee consumption has only begun to emerge. Experts believe that it will develop according western markets’ patterns. In the early 80’s in the US instant coffee held leading positions. However, ten years later the share of instant and natural coffee consumption had become equal - 50% each. The sooner the consumer will understand the difference between various types of coffee and coffee-containing beverages, the more informed choice he would make. Now in Russia about 80% of coffee products consumption accounts for instant coffee. For comparison, in Italy, the same figure does not exceed 1%.
Instant coffee, along with other concentrates, has been created by military industry to supply troops in the field, it is the same product as canned stewed meat or egg powder.
The economy of cup of coffee in HoReCa
Russia has almost the most expensive coffee in Europe. Retail price of 1 kg in 2013 was $37. In Western Europe it’s $23 per 1 kg, in Eastern Europe - $18 per 1 kg. At the same time the average price of a cup of coffee in HoReCa is about 80 rubles, the cost doesn’t exceed 20 rubles. In other words, the profitability of sales may exceed 300%! But the cost of a cup of instant coffee - 1.5 - 3 rubles, and sometimes it’s possible to sell it even for 50 rubles due to the absence of competition.
RusHOLTS specializes in a very particular niche in HoReCa, supplying products and equipment for gas stations’ cafeteria. Perhaps it is the first company that massively faced the fact that there are places where coffee is sold on an uncontested basis as, for example, at gas station. In the vicinity of large cities there’s a choice among several gas stations and one can postpone the purchase, whereas the long journey offers a situation in which you should take what you are given. And this choice is really made by those who are planning the designing of shops and cafeterias at gas stations. We would like to make it so this choice was made not only because of available level of cheapness.
In 2014, the price of coffee beans grew by almost 20%. But the cost of instant coffee only by 15-20% depends on the cost of green coffee, whose prices are rising on the stock exchanges. Another prerequisite to select the "cheap" version of the supply in terms of coffee-oriented HoReCa.
RusHOLTS believes that the Technical regulations, which will regulate the labeling of coffee and coffee-containing products will have a broad scope of applicability and will prevent actions that mislead consumers from happening. It is worth noting that it is important not only to mark products by the documentation, but also to have the visual marking of goods, including the correct name of the product.
Basic notions and terms
Coffee is a beverage prepared from roasted seeds (grains) of several species of plants belonging to the Coffee genus (Coffea).
Instant coffee is prepared from roasted seeds (grains) of several species of plants belonging to the genus Coffee (Coffea). But instant coffee in its chemical composition is very different from the natural. In order to improve palatability, color and odor of instant coffee almost all manufacturers use different chemical additives: flavors, stabilizers, colorants, and preservatives. (See fact sheet 1).
There are several types of instant coffee: powder (spray-dried), agglomerated (granular), freeze-dried and coffee blends - coffee-mix. It is believed that the organoleptic properties of the fresh product are only preserved in soluble freeze-dried coffee.
Coffee-containing beverages are drinks that do not contain caffeine. Its taste and aroma are close to natural, but they do not have a tonic effect on the body.
Fact sheet 1
The chemical composition of instant coffee Nescafe 3 in 1: glucose syrup (or glucose syrup solids), vegetable oil, additives E340ii (potassium phosphate), E451i (sodium triphosphate), E452i (sodium polyphosphate), E331iii (trisodium citrate), sodium caseinate, E471 and E472e (cyclamic acid and its sodium, potassium and calcium salts), E952 (sucralose - a complex chemical compound from the family of chlorinated carbohydrate). It contains only 11% of caffeine.
Fact sheet 2
Structure of coffee consumption.
Coffee consumption in Russia in 2015 reached 250 thousand tons per year. The volume of the market in terms of money is close to 3 billion US dollars.
Coffee consumption in Russia increased in comparison with 1998 by more than 50%. 77% of Russians regularly consume coffee (2009-2013 data).