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Tea and cocoa-loving Nigerians finding new thirst for coffee

Published 12/03/2020, 12:00
Updated 12/03/2020, 12:01
© Reuters.  Tea and cocoa-loving Nigerians finding new thirst for coffee

By Libby George and Angela Ukomadu

LAGOS, March 12 (Reuters) - Businessmen in the Nigerian city

of Lagos typically broker deals over cognac or champagne. But,

on a sunny afternoon in the city's upmarket Victoria Island

business district, a clutch of men celebrated with steaming

coffee that cost 35,000 naira ($114) for a three-cup brew.

Jamaica Blue Mountain, the gourmet variety they imbibed, is

coveted around the world for its superior quality.

Ibrahim Samande, owner of the Mai Shayi Coffee cafe that

sold the drink, knows not everyone can afford the splurge. But

he believes cachet and ceremony, and attractive spaces to enjoy

a cup, will lure more of Nigeria's 200 million people to drink

coffee.

At present, Nigerians drink only a tiny amount of coffee.

Tea or cocoa are the hot drinks of choice, and are forecast to

account for close to 40% of Nigeria's non-alcoholic drink

spending by 2023, according to research body Fitch Solutions. By

contrast, spending on coffee is seen only at 2.5 percent.

Samande is among a new breed of entrepreneurs hoping to cash

in on coffee. They are betting that wealthy Nigerians will

cultivate a cafe culture that can also spur consumption of

locally grown crops.

"Nigeria is a very aspirational society," Samande said. "And

it's very easy for things to catch on."

Consumption is rising; the retail value of coffee sold has

nearly tripled since 2010 to $29 million last year, according to

Euromonitor.

But it is still a market in its infancy. Kenya, with a

quarter the number of people as Nigeria, consumes close to the

same amount of coffee, and spent $11 million more on the drink

last year. Meanwhile South Africa consumed more than six times

as much coffee as Nigeria and spent 9 times as much.

In a country where the majority live on less than $2 a day,

most Nigerian coffee-drinkers opt for bitter cups of instant

coffee that street vendors hawk for 100 naira, just a few cents.

International coffeeshop chains have yet to enter the

country significantly, although there are a few domestic chains.

Nigeria's Cafe Neo has several locations in Lagos, and Happy

Coffee also aims to bring coffee to the masses.

Samande, whose grandmother roasted her own beans with

cardamom and ginger, believes that brewing with imported Italian

Moka pots, Japanese siphons and American Chemex coffeemakers can

convince Nigerians to drink higher-quality coffee.

Coffee is one of the world's most-traded commodities, he

said. "I think there's room for us to plug into that sort of

supply chain."

He buys Nigerian beans from Kim's Coffee, a roaster around

1,000 kilometres (621.37 miles) to the north of Lagos. Kim's

founder David Dayi said strong demand saw them roast 3 tonnes of

locally grown coffee last year - triple the 2017 level.

Dayi said Nigeria could easily grow more coffee -- and that

local consumption could help spur this.

Dr. Nasra Ali, a Kenyan who founded Lagos-based Kaldi Coffee

Ltd in 2014, said luring Nigerians who had only tasted bitter

instant coffee was tough.

Ali, who grew up on a Kenyan coffee farm, focuses on selling

high-quality beans and serving them correctly.

Kaldi buys Nigerian beans from the eastern state of Taraba.

It also trains baristas and sells grinders and espresso

machines. Its roastery capacity has grown from 10 tonnes in 2016

to 50 tonnes today.

"It's a gradual, steady growth every year," she said. "More

and more young Nigerians appreciate the benefits of coffee and

the different ways that it can be consumed."

($1 = 306.4000 naira)

Retail Value of Coffee Sales png https://tmsnrt.rs/3cPu8c5

Nigeria's Coffee Production https://tmsnrt.rs/3cI1LN3

Nigeria's Growing Coffee Consumption https://tmsnrt.rs/2IG1Anj

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