The Michael Lee-Chin-owned Wallenford Coffee Company Ltd, based in Kingston, will supply large chain Starbucks with Jamaica Blue Mountain (JBM) coffee in Japan, starting this month.
Starbucks Reserve Wallenford JBM coffee will sell for 6,330 yen or US$53 per 250 grammes (nine ounces) in Japan.
The development comes within the context of the proliferation of 100 yen single-serve coffee packets in that market.
But Wallenford boss Mark McIntosh told the Jamaica Observer that the deal reflects a positioning of the brand as a premium product within an important JBM coffee market.
“It is important to note that Japan is the boss of the entire JBM world. They are the most important coffee market for luxury coffees,” he stated in his e-mailed correspondence.
He added that the deal means that when Starbucks sells its reserve JBM coffee in Japan it will come from Wallenford’s single estate. McIntosh, however, remained mum on volumes and projections.
“No comment on contractual details (volumes, price, terms),” he insisted.
Wallenford expects that Starbucks will next roll out its Wallenford JBM Reserve in Korea, followed by China. Last year, Amber Estates, controlled by the Lyn family, won the contract to supply Starbucks with JBM, especially to the US. Currently that product — Starbucks Reserve Jamaica Blue Mountain Amber Estate, which previously sold for US$29.95 (J$3,400) for 250 grammes — is out of stock based on checks online.
This is the fourth time on record that Starbucks will sell JBM as a reserve. On each occasion the deal went to Wallenford or Amber Estate. Wallenford last sold to Starbucks in 2010, but the current deal is the first since Lee-Chin acquired the company in 2013.
Wallenford, established in 1760, was sold by the Government to the Lee-Chin-led AIC International Investments in 2013 for US$16 million, with plans to pump in US$23.5 million over four years.
Export earnings from Jamaican coffee fell from highs of US$30 million just prior to the 2008 Western recession to a low of US$13 million in 2012. The industry was affected by storms, farm abandonment, disease and drought. Each event reduced the potential crop size.
