The UKVFTA, chances to promote coffee exports to the UK market

DNHN - Ministry of Industry and Trade, Vietnamese enterprises must act fast to capitalize on the potential provided by UKVFTA in increasing coffee exports to the UK. Because, according to the UKVFTA pledge, the UK will reduce import tax on 99.2 per cent of tariff lines, equal to 99.7 per cent of Vietnam's export sales, six years from the agreement's effective date.

Mr Tran Thai, Director of T&T Meridian Company (United Kingdom), said that coffee trading firms in the United Kingdom are aware that Vietnam is a major supplier of coffee beans. However, in terms of completed coffee brands, Vietnam does not rank as high as Italy, France, or Switzerland.

Historically, British consumers eat more instant coffee than Europeans. The fact, though, is that sales of ground coffee and speciality coffee are rising. Coffee certified for quality, ecology, labour, etc. is very essential to British customers.

In terms of flavour, the British do not drink strong coffee as the Vietnamese do. The resulting coffee has a strong aroma and flavour that will make it tough to sell in the UK market.

In terms of packaging, British people have a practice of carefully reading information on packaging to discover if a product includes allergenic chemicals, how it should be cooked, and whether it fulfils ESG (environmental, social, and governance) standards. Distributors will appreciate items that are both appealing to customer preferences and have attractive packaging.

Many experts believe that since green coffee from Vietnam is largely low-quality Robusta coffee, price competition is no longer acceptable. Businesses must spend on producing high-quality Arabica coffee from smaller-scale growing regions with solid management skills to fulfil the wants and preferences of the British, as well as to expand further into this market. better, more verifiable, and long-term development

Simultaneously, businesses must actively build and develop customer relationships with large distribution corporations; take the lead in preserving technology and shipping agricultural products by sea, and make good use of preferential credit policies and credit rating and verification services provided by British banks...

By 2022, the UK coffee market is expected to generate $8.81 billion in sales. Between 2022 and 2025, the market is predicted to increase at a 10.98 per cent annual rate. By 2025, 83 per cent of UK coffee expenditure and 29 per cent of coffee consumption will take place outside the house, in cafés, hotels, pubs, and restaurants.

Nghi Lam