Denmark's Coffee Industry
Strengths
• Government control of coffee market has consumer confidence high
• Denmark has no restrictions on capital transfers. Denmark adheres to EU rules on the liberation of capital movements. Also Denmark has no foreign exchange restrictions.
• Political violence is unknown in Denmark
• Corruption is generally unknown in Denmark.
• After oil, coffee is the most traded and valued commodity in the world.
• The Scandinavian countries (Finland, Denmark, Norway, Sweden) consume between 8 and 11 kilos per capita, per annum. This is the highest level of coffee consumption in the world.
• This expansion could strengthen a coffee shop’s global presence and also minimize risk.
• Danish currency, the Danish Krone (DKK), is pegged to the Euro.
Weaknesses
• Denmark citizens may not acquire a taste for an American coffee, which in turn could lead to diminishing returns.
• There are a very few coffee shops based in Denmark, so creating a pioneering image could backfire.
• In the coffee industry, beverage innovation is a determining factor of the Company’s success. The lack of beverage innovation could have a significant adverse affect on performance.
• Denmark has yet to adopt the Euro, the common currency of the European Union, as its currency.
Opportunities
• Volume of coffee sales increased in 2003 and showed strength in 2004.
• Hot drinks are subject to international influences. These influences are slowly changing drinking patterns in the hot drink market.
• In 2003 coffee consumption outside the home increased to 27% compared to its 2002 mark of 25%.
• The tea market was in a downward trend in volume sales in 2003.
• The Denmark hot drinks market is dominated by international players. Sara Lee Corp., Kraft Foods and Nestle all gained a dominant position in Denmark’s hot drink market by means of acquisition of already
• Government control of coffee market has consumer confidence high
• Denmark has no restrictions on capital transfers. Denmark adheres to EU rules on the liberation of capital movements. Also Denmark has no foreign exchange restrictions.
• Political violence is unknown in Denmark
• Corruption is generally unknown in Denmark.
• After oil, coffee is the most traded and valued commodity in the world.
• The Scandinavian countries (Finland, Denmark, Norway, Sweden) consume between 8 and 11 kilos per capita, per annum. This is the highest level of coffee consumption in the world.
• This expansion could strengthen a coffee shop’s global presence and also minimize risk.
• Danish currency, the Danish Krone (DKK), is pegged to the Euro.
Weaknesses
• Denmark citizens may not acquire a taste for an American coffee, which in turn could lead to diminishing returns.
• There are a very few coffee shops based in Denmark, so creating a pioneering image could backfire.
• In the coffee industry, beverage innovation is a determining factor of the Company’s success. The lack of beverage innovation could have a significant adverse affect on performance.
• Denmark has yet to adopt the Euro, the common currency of the European Union, as its currency.
Opportunities
• Volume of coffee sales increased in 2003 and showed strength in 2004.
• Hot drinks are subject to international influences. These influences are slowly changing drinking patterns in the hot drink market.
• In 2003 coffee consumption outside the home increased to 27% compared to its 2002 mark of 25%.
• The tea market was in a downward trend in volume sales in 2003.
• The Denmark hot drinks market is dominated by international players. Sara Lee Corp., Kraft Foods and Nestle all gained a dominant position in Denmark’s hot drink market by means of acquisition of already