Brazilian coffee company Café Santa Monica is expected to supply coffee to two roasting units to be built in China under a memorandum of understanding signed recently in Shanghai, InvestSP said in a statement.
InvestSP, the São Paulo state investment promotion agency, said the memorandum involved the Greenfield Capital investment fund and the government of China, with a total investment of US$1.5 billion to build the two roasting units and the installation of 100,000 vending machines.
Colin James Francis, director of international business at Café Santa Monica, said in the statement that the company is expected to export approximately 100,000 60-kg bags of coffee over the next 12 months, with revenues of around US$25 million.
The agreement will allow the Brazilian company to sell São Paulo coffee directly in the Chinese market, thus ensuring better profit margins throughout the production chain, according to InvestSP.
Café Santa Monica already exports to over 30 countries and has recently started its first shipments to China, but as yet in small batches. This memorandum should allow the company to significantly expand its participation in that market.
The signing of the agreement between Café Santa Monica, Greenfield Capital and the Chinese government took place during the China Mission 2019, organised by InvestSP, whose delegation included Governor João Doria, five Secretaries of State and 31 Brazilian companies interested in expanding trade relations with China. (Macauhub)