20 Years of Juan Valdez's Coffee Shop Exvansion

Not even the most challenging roads could stop Juan Valdez from its way to global recognition and success. In 1927 the National Federation of Coffee Growers of Colombia (NFCGC) was established to promote the production and exportation of Colombian coffee. Timing was unfortunate, to say the least: two years later, the collapse of the New York Stock Exchange sent commodity prices, including coffee, across the globe on a downward spiral. In the following decades, the federation faced an uphill battle, working tenaciously to provide technical support and professional guidance to its members.

By 1957, despite years of arduous work and noteworthy progress, Colombian coffee wasn't considered a premium product. So the federation conjured up the most potent tool to bring a product to the masses: a compelling story. The following year, sporting sandals and a faithful donkey, Juan Valdez's character was born. He represented the small farmers of Colombia's mountains, ready to prove to the world that their country's coffee was the best there was. The Juan Valdez brand is now known the world over and is a textbook example of a triumphant marketing campaign.

64 years after Juan was created, the NFCGC represents over 540K producers across the nation, and through the company Prolafecol S.A has carried the brand to new heights. In 2000, driven by the coffee shop culture massively spread by global franchises such as Starbucks, Juan Valdez bet on its first store to the public in El Dorado International Airport in Bogota. The company's expansion since then has been remarkable. Because of Juan Valdez, Colombia is one of those few markets (like Italy) where Starbucks is not at the top. At the end of last year, there were 33 Starbucks and 334 Juan Valdez shops.

Counting its international presence, there are 478 coffee shops and more than 90K distribution points (supermarkets, restaurants, airlines, and hotels) in 28 countries, including the US, Kuwait, and Malaysia. In 2021, Procafecol rebounded from the COVID-19 pandemic by breaking all-time high revenues and EBITDA. This year, Juan and his burro are not slowing down: International sales have grown 60.4% compared to the first half of 2021, and the company announced its entry into Spain.

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