February 9, 2010

Site Map

Home > Feature Columns > Coffee Chat News > Ethiopia Brands Its Prime Luxury Coffee After Protracted Protests by Starbucks

Ethiopia Brands Its Prime Luxury Coffee After Protracted Protests by Starbucks

June 20, 2008

After more than four years of effort to brand its own coffee crops, the country of Ethiopia has become the first African country to pursue marketing of its products through brand management. The key to this is its new 'e' logos for the three Ethiopian coffee varieties: Sidano, Harar, and Yirgacheffee. Oxfam International, a major supporter of Ethiopia's quest for branding, predicts that this will help generate $75 million or more in revenues this year alone.

Estimates are that Ethiopia will produce more than 177,000 tonnes of coffee worth $500 million during 2008 or approximately 15% of the world's total coffee production. It will use the new logo design on the burlap sacks of all coffee beans exported throughout the world. Creating the new logo design was London ad agency, Brandhouse, known for food packaging design. The Ethiopian logos are the small case letter ‘e’ in the shape of a bean over the name of the variety with the slogan "Ethiopian Fine Coffee."

The impact of an Ethiopian logo has been likened to the Juan Valdez character used to promote Colombian coffees and will enable the Ethiopian coffee industry, the largest African producer of coffee, to develop an equally memorable "story" attached to its renewed marketing efforts.

With the power of a branded logo behind it, Ethiopia has signed agreements with more than 70 global companies in nine countries to promote its coffees, a goal first begun by Getachew Mengistie, director general of the Ethiopian Intellectual Property Office, in 2004. He believes that licensees investing in Ethiopian brands will enable the 15 million coffee farmers of his country to reap the benefits in "the short, medium and long term." Ethiopia has successfully registered trademarks in Canada, the European Union, Africa, the United States, and Japan.

The U.S. Patent and Trademark Office has confirmed that Ethiopia is the sole owner of the Sidamo coffee trademark. The trademark for Yigacheffee has already been secured in the U.S. and the trademark for Harar is pending with every indication of similar confirmation.

Known for its sophisticated, elegant taste, Ethiopian coffees are usually priced well above most other producers throughout the world. So much so that Starbucks Corp. forced the country into a protracted legal battle, particularly for the right to market Sidamo. The battle also involved Oxfam and the U.S. trade group, the National Coffee Association. Resolution came with an agreement between Ethiopia and Starbucks in June 2007. More than 96,000 supporters called upon Starbucks to sign a licensing agreement which indicates that Starbucks may license, market and promote the three Ethiopian coffees as other licensees may do without exclusivity.

Oxfam America president Raymond C. Offenheiser, said, “This agreement represents a business approach in step with 21st-century standards in its concern for rights rather than charity and for greater equity in supply chains rather than short term profits….Harnessing market forces and allowing poor countries to benefit from intellectual property rights are keys to creating fairer and more equitable trade."

Oxfam International is an international relief and development agency that involves a confederation of 13 organizations working together with over 3,000 partners in more than 100 countries to find lasting solutions to poverty and injustice.

Love coffee? For great recipes, latest research on the health benefits of coffee, brewing tips, coffee reviews, and more, sign up to receive our FREE monthly newsletter Coffee Chat News. CLICK HERE to sign up now.

This discussion has been closed!

FREE WEEKLY NEWSFLASH: To register for SupermarketGuru's weekly updates by email, click here.