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Costa coffee - Essay Example

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UK government rules and laws are very strict in Health and Nutrition sector and companies need to ensure that they follow the existing and new policies. UK Heath Secretary has pushed companies to follow calories-oriented menu labelling and he has shown an urge to select a date by which all companies in UK will follow calories-oriented menu labelling…
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Since coffee retailers in the UK largely depend on coffee producing economies therefore, governments of coffee producing economies also influence the operations of coffee shops in UK. For example, Venezuela was the largest coffee exports however, because of government price controls; growers consider growing coffee as not an economically viable option (BBC, 2010). UK government with the support of members of coffee associations is struggling to support the producers of coffee such as through farm certifications, direct-buying initiatives and quality improvement which supports the farmers to improve their position and long term sustainability (British Coffee Association). Economic Population of UK has grown over 60 million people and in 2006, the total population was 60.6 million as compared to 55.9 million in 1971. Moreover, it has been estimated that people above 65 years old will be more in number as compared to individuals below 16 by 2021. Poverty reduction has become an important target for UK and government has been able to lift 2.4 million people out of poverty including 800,000 children and government aims to halve child poverty by 2010 and eliminate poverty by 2020. Economic problems faced by coffee producing economies influence the coffee companies in UK because most of the companies are acquiring coffee from these economies. For example, Uganda farmers are facing increasing level of pests and diseases and extremely harsh weather conditions (Butler, 2011). Around 70 percent of the world’s coffee is grown on area less than 10 hectares and most of the famers, out of 25 million in 50 developing economies that produce coffee, sell coffee in small quantities to local traders, manufacturers or exporters. The manufacturers of Coffee in UK are buying green beans from international trading houses or exporters. However, Government of UK is encouraging the companies to buy coffee direct from the famers to access best quality coffee in the long term (British Coffee Association). Social Consumers are asking for fair deals from suppliers at coffee shops and according to a Concerned Consumer Index Survey, 54 percent of the participants have showed that coffee shops should consider social issues ahead of environmental issues such as treating workers in plantation fairly (Gibbons, 2010). UK Fair trade market has grown from ?493 million in 2007 to ?712.6 million in 2008 and according to survey 72 percent of people are aware that they can buy coffee through fair trade certification. In the period of six months, 36 percent of the people have bought coffee through fair trade and the trend of buying coffee through fair trader is further boosting (Mortimer, 2010). More than 60 million cups of coffee are consumed on average in the UK in one day (British Coffee Association, 2011). The coffee culture is continuously increasing in UK however, because of the economic downturn; consumers in the UK were giving preference to drink coffee at homes rather than at coffee shops (Euromonitor, 2011). Consumers in UK are more focusing on taste and quality of coffee and the increasing consumption of coffee at homes is evident from increasing household penetration of coffee pod machines (Euromonitor, 2011). Technological Between 2002 and 2005, the UK internet sales to households have increased by ...Download file to see next pagesRead More
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