Simexco DakLak, a leading coffee exporter, has identified the United Kingdom as a key strategic market for its specialty coffee products. According to Le Duc Toan, the company’s sales director for the southern region, Simexco exports around 100,000 tonnes of coffee beans annually, with major markets including the United States, European Union (EU), and China.
The United Kingdom is particularly important for Simexco’s specialty coffee line, with the company shipping around 20 to 30 containers of high-quality coffee each year. Toan described this as a niche market for the company, noting that specialty coffee offers exceptional value, with prices up to four times higher than regular coffee, although the production costs are also significantly greater.
A key advantage for Simexco DakLak is its direct export model, bypassing traders in Vietnam and selling directly to roasters. This strategy has enhanced the company’s competitiveness in international markets.
Simexco was also a pioneer in establishing coffee-growing zones that comply with the EU Deforestation Regulation (EUDR) standards. The company has already signed contracts for exporting EUDR-compliant coffee to international markets.
The UK-Vietnam Free Trade Agreement (UKVFTA), which came into effect in 2021, has been instrumental in facilitating Simexco’s exports to the UK. Under this agreement, tariffs on coffee and other agricultural products were eliminated, further boosting trade between the two countries.
A report titled “Connecting the United Kingdom and Vietnam in Agriculture, Food, and Drinks,” commissioned by the British Embassy in Hanoi, highlighted Vietnam’s potential as a key supplier for UK retailers. Processed products like coffee, cashews, and pepper are already popular in major UK supermarkets.
With the UK’s participation in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), access to UK markets for Vietnamese agricultural products is expected to improve further.
Vietnam’s agricultural sector has been shifting towards sustainability, focusing on reducing emissions, adopting organic practices, and utilizing renewable energy. These efforts align with the growing consumer demand in the UK for ethically sourced, environmentally friendly products.
The Vietnam Coffee Association also emphasized the importance of promoting Vietnam’s specialty coffees, which reflect the country’s unique characteristics and help elevate the global recognition of its coffee industry.
Related topics:
- Dutch Bros Moves to Charlotte, Challenging Coffee Giants in the Market
- Taco Bell Expands into Beverage Market with San Diego Café Launch
- Global Espresso Coffee Makers Market Set for Growth