Join the conversation:

Juan Valdez targets Starbucks opening cafes in Florida

Juan Valdez targets Starbucks opening cafes in Florida

Posted by Liliana Castaño on July 21, 2014

Juan Valdez, the coffee brand backed by the Colombian Coffee Growers Federation, is opening franchised cafes in Florida in a fresh attempt to challenge Starbucks on its home turf.

The first store is slated to open Monday in downtown Miami and four more will be added in the area by year-end, according to Hernan Mendez, chief executive officer of Procafecol, the company that oversees the Juan Valdez brand. Within five years, Procafecol is planning 60 of the new stores in Florida.

As Juan Valdez cafes take on Starbucks in the U.S., the Seattle-based coffee giant is making its own inroads into Colombia. Starbucks opened a three-story outpost in Bogota last week that could serve as a model for a new line of flagship stores. The moves mean the two companies are increasingly competing for upscale coffee drinkers -- a market that generates $18 billion a year in the U.S. alone.

"We are a company that is world-class, that is prepared to compete with a company that is so large," Mendez said in an interview.

The new Juan Valdez cafes aren't the company's first attempt to build a retail chain in the U.S. It has seven stores in New York, Washington and the Miami airport, and a high-profile location in Times Square closed in 2010.

With the latest move, the company is working with a Florida franchisee to lessen the risk. The stores will sell 100 percent Colombian Arabica coffee and feature at least four different varieties, Mendez said.

For now, the Juan Valdez cafes will be dwarfed by Starbucks -- even locally. There are about 400 Starbucks in Florida, with dozens in Miami alone. Procafecol's total sales are expected to reach $85 million this year, up from $74 million in 2013 and $67 million the previous year. That compares with Starbucks' projected 2014 sales of $16.5 billion, according to analysts' estimates compiled by Bloomberg.

Link To Full Article: 

Facebook comments



Monthly newsletter featuring articles hand picked by our country managers from the best content across PanamericanWorld.



Monthly newsletter featuring articles hand picked by our country managers from the best content across the Caribbean Region on PanamericanWorld.

PANAMERICANWORLD COUNTRIES