Building the Brand “<i>Cafés do Brasil</i>”: The Institutional Challenges and Their Effects on the Brand’s Positioning on the International Market

Marco Aurélio dos Santos

doi:doi:10.11648/j.ebm.20180401.14

| Peer-Reviewed

Building the Brand “Cafés do Brasil”: The Institutional Challenges and Their Effects on the Brand’s Positioning on the International Market

Marco Aurélio dos Santos

Published in European Business & Management (Volume 4, Issue 1)

Received: 9 October 2017 Accepted: 6 December 2017 Published: 8 January 2018

Views: Downloads:

Download PDF

Share This Article

Twitter
Linked In
Facebook

Abstract

New consumption patterns based on quality and sustainability have encouraged the coffee production chain to innovate and adapt to the new competitive scenario. While Brazil is the world’s largest coffee producer, it is known mainly as a producer of commodity coffee. To overcome these weaknesses, the Brazilian government has implemented policies designed to align the coffee sector with the new global consumption patterns. The centerpiece of those policies is the creation and institutionalization of the “Cafés do Brasil” program with the purpose of promoting the brand “Cafés do Brasil” in the international market as a symbol of quality, flavor, diversity of origins and sustainability. This paper deals with how the institutional framework that guides the agents was designed, how the structure and mechanisms for coordinating and adapting the agents involved in the Cafés do Brasil program were established and to what extent the program has achieved its goals. The research findings reveal that elements linked directly to the institutional framework have compromised the program’s effectiveness. By decentralizing the coordination and control activities to regional agents, the Federal Government is failing to coordinate the program. The lack of alignment between the different organizational levels has led to the proliferation of regional brands aimed at the domestic market indicating a shift away from the original objective of the program to establish the brand “Cafés do Brasil” as a symbol of fine Brazilian coffees on the international market.

Published in	European Business & Management (Volume 4, Issue 1)
DOI	10.11648/j.ebm.20180401.14
Page(s)	24-27
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2018. Published by Science Publishing Group

Keywords

Specialty Coffees, Cafés do Brasil Brand, Innovation, Governance, Institutional Failure

References

[1]	Almeida, L. F. de, & Zylbersztajn, D. (2017). Key Success Factors in the Brazilian Coffee Agrichain: Present and Future Challenges. Int. J. Food System Dynamics, 8 (1), 45–53.
[2]	Brasil. (2012). Ministério da Agricultura Pecuária e Abastecimento. Plano Estratégico para o Desenvolvimento do Setor Cafeeiro. Brasilia, DF, 2012. 27 p. Retrieved from http://www.sapc.embrapa.br/arquivos/consorcio/PEDSCafeeiro_2012_a_2015.pdf (Accessed: 15/08/2017).
[3]	CHANG, H.-J. (2010). Institutions and economic development: theory, policy and history. Journal of Institutional Economics, Cambridge, 7 (4), 473–498.
[4]	Daviron, B., & Ponte, S. (2005). The Coffee Paradox: Global Markets, Commodity Trade and the Elusive Promise of Development. Zed Books.
[5]	Dequech, D. (2014). The Institutions of Economics: A First Approximation. Journal of Economic Issues, 48 (2), 523–532.
[6]	Dube, O., & Vargas, J. F. (2013). Commodity Price Shocks and Civil Conflict: Evidence from Colombia. The Review of Economic Studies, 80 (4), 1384–1421.
[7]	Farina, E. M. M. Q., & Zylbersztajn, D. (Coord.). (1998). Competitiveness in Brazilian Agribusiness - Study elaborated by IPEA: Agroindustrial system of coffee. Retrieved from http://www.fundacaofia.com.br/pensa/Biblioteca.aspx?tipo=12 (Accessed: 13/07/2017).
[8]	Galtier, F., Belletti, G., & Marescotti, A. (2013). Factors Constraining Building Effective and Fair Geographical Indications for Coffee: Insights from a Dominican Case Study. Development Policy Review, Nova Jersey, 31 (5), 597–615.
[9]	Mayer, F., & Gereffi, G. (2010). Regulation and Economic Globalization: Prospects and Limits of Private Governance. Business and Politics, Berkeley, 12 (3), 1–25.
[10]	Nadvi, K. (2008). Global standards, global governance and the organization of global value chains. Journal of Economic Geography, Oxford, 8 (3), 323–343.
[11]	North, D. (2003). The role of institutions in economic development. 2003. Retrieved from http://www.unece.org.unecedev.colo.iway.ch/fileadmin/DAM/oes/disc_papers/ECE_DP_2003-2.pdf (Accessed 25/08/2017).
[12]	OIC. (2015). International Coffee Organization. New consumption table. Retrieved from http://www.ico.org/prices/new-consumption-table.pdf (Accessed: 19/07/2017).
[13]	Saes, M., & Nakazone, D. (2002). “Chain: coffee. "In: COUTINHO, LG; LAPLANE, M.; LUPFER, D.; FARINA, E. (coords.). Integrated Chain Competitiveness Study. Brasília: Institute of Economics / UNICAMP, Ministry of Science and Technology and FINEP.
[14]	Saes, M. S. M. (2009). Strategies of differentiation and appropriation of quasi-income in agriculture: small-scale production. São Paulo: Annablume, Papesp.
[15]	USDA. (2014). -United States of Departament Agriculture. Coffee: World Markets and Trade. Retrieved from http://usda01.library.cornell.edu/usda/current/tro (Accessed: 29/08/2017).
[16]	van Rijsbergen, B., Elbers, W., Ruben, R., & Njuguna, S. N. (2016). The Ambivalent Impact of Coffee Certification on Farmers’ Welfare: A Matched Panel Approach for Cooperatives in Central Kenya. World Development, 77, 277–292.
[17]	Vieira, M., & Carvalho, G. (2000). Perceptives for Brazilian Coffee. In L. Zambolim (Ed.), Coffee: Productivity, Quality and Sustainability (pp. 75-90). Viçosa: Federal University of Viçosa.

Cite This Article

Plain Text BibTeX RIS

APA Style

Marco Aurélio dos Santos. (2018). Building the Brand “Cafés do Brasil”: The Institutional Challenges and Their Effects on the Brand’s Positioning on the International Market. European Business & Management, 4(1), 24-27. https://doi.org/10.11648/j.ebm.20180401.14

Copy | Download

ACS Style

Marco Aurélio dos Santos. Building the Brand “Cafés do Brasil”: The Institutional Challenges and Their Effects on the Brand’s Positioning on the International Market. Eur. Bus. Manag. 2018, 4(1), 24-27. doi: 10.11648/j.ebm.20180401.14

Copy | Download

AMA Style

Marco Aurélio dos Santos. Building the Brand “Cafés do Brasil”: The Institutional Challenges and Their Effects on the Brand’s Positioning on the International Market. Eur Bus Manag. 2018;4(1):24-27. doi: 10.11648/j.ebm.20180401.14

Copy | Download

@article{10.11648/j.ebm.20180401.14,
  author = {Marco Aurélio dos Santos},
  title = {Building the Brand “Cafés do Brasil”: The Institutional Challenges and Their Effects on the Brand’s Positioning on the International Market},
  journal = {European Business & Management},
  volume = {4},
  number = {1},
  pages = {24-27},
  doi = {10.11648/j.ebm.20180401.14},
  url = {https://doi.org/10.11648/j.ebm.20180401.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ebm.20180401.14},
  abstract = {New consumption patterns based on quality and sustainability have encouraged the coffee production chain to innovate and adapt to the new competitive scenario. While Brazil is the world’s largest coffee producer, it is known mainly as a producer of commodity coffee. To overcome these weaknesses, the Brazilian government has implemented policies designed to align the coffee sector with the new global consumption patterns. The centerpiece of those policies is the creation and institutionalization of the “Cafés do Brasil” program with the purpose of promoting the brand “Cafés do Brasil” in the international market as a symbol of quality, flavor, diversity of origins and sustainability. This paper deals with how the institutional framework that guides the agents was designed, how the structure and mechanisms for coordinating and adapting the agents involved in the Cafés do Brasil program were established and to what extent the program has achieved its goals. The research findings reveal that elements linked directly to the institutional framework have compromised the program’s effectiveness. By decentralizing the coordination and control activities to regional agents, the Federal Government is failing to coordinate the program. The lack of alignment between the different organizational levels has led to the proliferation of regional brands aimed at the domestic market indicating a shift away from the original objective of the program to establish the brand “Cafés do Brasil” as a symbol of fine Brazilian coffees on the international market.},
 year = {2018}
}

Copy | Download

TY  - JOUR
T1  - Building the Brand “Cafés do Brasil”: The Institutional Challenges and Their Effects on the Brand’s Positioning on the International Market
AU  - Marco Aurélio dos Santos
Y1  - 2018/01/08
PY  - 2018
N1  - https://doi.org/10.11648/j.ebm.20180401.14
DO  - 10.11648/j.ebm.20180401.14
T2  - European Business & Management
JF  - European Business & Management
JO  - European Business & Management
SP  - 24
EP  - 27
PB  - Science Publishing Group
SN  - 2575-5811
UR  - https://doi.org/10.11648/j.ebm.20180401.14
AB  - New consumption patterns based on quality and sustainability have encouraged the coffee production chain to innovate and adapt to the new competitive scenario. While Brazil is the world’s largest coffee producer, it is known mainly as a producer of commodity coffee. To overcome these weaknesses, the Brazilian government has implemented policies designed to align the coffee sector with the new global consumption patterns. The centerpiece of those policies is the creation and institutionalization of the “Cafés do Brasil” program with the purpose of promoting the brand “Cafés do Brasil” in the international market as a symbol of quality, flavor, diversity of origins and sustainability. This paper deals with how the institutional framework that guides the agents was designed, how the structure and mechanisms for coordinating and adapting the agents involved in the Cafés do Brasil program were established and to what extent the program has achieved its goals. The research findings reveal that elements linked directly to the institutional framework have compromised the program’s effectiveness. By decentralizing the coordination and control activities to regional agents, the Federal Government is failing to coordinate the program. The lack of alignment between the different organizational levels has led to the proliferation of regional brands aimed at the domestic market indicating a shift away from the original objective of the program to establish the brand “Cafés do Brasil” as a symbol of fine Brazilian coffees on the international market.
VL  - 4
IS  - 1
ER  -

Copy | Download

Author Information

Marco Aurélio dos Santos

Postgraduate Program in Rural Extension, Department of Rural Economy, Federal University of Vi?osa, Vi?osa, Brasil

Download PDF

Sections

Plain Text BibTeX RIS

APA Style

Marco Aurélio dos Santos. (2018). Building the Brand “Cafés do Brasil”: The Institutional Challenges and Their Effects on the Brand’s Positioning on the International Market. European Business & Management, 4(1), 24-27. https://doi.org/10.11648/j.ebm.20180401.14

Copy | Download

ACS Style

Marco Aurélio dos Santos. Building the Brand “Cafés do Brasil”: The Institutional Challenges and Their Effects on the Brand’s Positioning on the International Market. Eur. Bus. Manag. 2018, 4(1), 24-27. doi: 10.11648/j.ebm.20180401.14

Copy | Download

AMA Style

Marco Aurélio dos Santos. Building the Brand “Cafés do Brasil”: The Institutional Challenges and Their Effects on the Brand’s Positioning on the International Market. Eur Bus Manag. 2018;4(1):24-27. doi: 10.11648/j.ebm.20180401.14

Copy | Download

@article{10.11648/j.ebm.20180401.14,
  author = {Marco Aurélio dos Santos},
  title = {Building the Brand “Cafés do Brasil”: The Institutional Challenges and Their Effects on the Brand’s Positioning on the International Market},
  journal = {European Business & Management},
  volume = {4},
  number = {1},
  pages = {24-27},
  doi = {10.11648/j.ebm.20180401.14},
  url = {https://doi.org/10.11648/j.ebm.20180401.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ebm.20180401.14},
  abstract = {New consumption patterns based on quality and sustainability have encouraged the coffee production chain to innovate and adapt to the new competitive scenario. While Brazil is the world’s largest coffee producer, it is known mainly as a producer of commodity coffee. To overcome these weaknesses, the Brazilian government has implemented policies designed to align the coffee sector with the new global consumption patterns. The centerpiece of those policies is the creation and institutionalization of the “Cafés do Brasil” program with the purpose of promoting the brand “Cafés do Brasil” in the international market as a symbol of quality, flavor, diversity of origins and sustainability. This paper deals with how the institutional framework that guides the agents was designed, how the structure and mechanisms for coordinating and adapting the agents involved in the Cafés do Brasil program were established and to what extent the program has achieved its goals. The research findings reveal that elements linked directly to the institutional framework have compromised the program’s effectiveness. By decentralizing the coordination and control activities to regional agents, the Federal Government is failing to coordinate the program. The lack of alignment between the different organizational levels has led to the proliferation of regional brands aimed at the domestic market indicating a shift away from the original objective of the program to establish the brand “Cafés do Brasil” as a symbol of fine Brazilian coffees on the international market.},
 year = {2018}
}

Copy | Download

TY  - JOUR
T1  - Building the Brand “Cafés do Brasil”: The Institutional Challenges and Their Effects on the Brand’s Positioning on the International Market
AU  - Marco Aurélio dos Santos
Y1  - 2018/01/08
PY  - 2018
N1  - https://doi.org/10.11648/j.ebm.20180401.14
DO  - 10.11648/j.ebm.20180401.14
T2  - European Business & Management
JF  - European Business & Management
JO  - European Business & Management
SP  - 24
EP  - 27
PB  - Science Publishing Group
SN  - 2575-5811
UR  - https://doi.org/10.11648/j.ebm.20180401.14
AB  - New consumption patterns based on quality and sustainability have encouraged the coffee production chain to innovate and adapt to the new competitive scenario. While Brazil is the world’s largest coffee producer, it is known mainly as a producer of commodity coffee. To overcome these weaknesses, the Brazilian government has implemented policies designed to align the coffee sector with the new global consumption patterns. The centerpiece of those policies is the creation and institutionalization of the “Cafés do Brasil” program with the purpose of promoting the brand “Cafés do Brasil” in the international market as a symbol of quality, flavor, diversity of origins and sustainability. This paper deals with how the institutional framework that guides the agents was designed, how the structure and mechanisms for coordinating and adapting the agents involved in the Cafés do Brasil program were established and to what extent the program has achieved its goals. The research findings reveal that elements linked directly to the institutional framework have compromised the program’s effectiveness. By decentralizing the coordination and control activities to regional agents, the Federal Government is failing to coordinate the program. The lack of alignment between the different organizational levels has led to the proliferation of regional brands aimed at the domestic market indicating a shift away from the original objective of the program to establish the brand “Cafés do Brasil” as a symbol of fine Brazilian coffees on the international market.
VL  - 4
IS  - 1
ER  -

Copy | Download