Product and Process Innovation in Coffee Supply Chain: From Seed to Cup

Introduction

This chapter illustrates the relationship between the transition of products and the structure of supply chains through the case of coffee beverages. During the long history of coffee, the coffee beverage has evolved many times and been drunken worldwide. According to the evolvement and development of coffee beverages, the coffee business and its supply chain changed dramatically.

An untold number of people drink coffee all over the world. The coffee they consume and the places where they drink are all different. In addition, the time and reason for drinking coffee are varied. These facts are evidence that there are countless coffee supply chains throughout the globe. To survive, supply chain members need to consistently improve their supply chain process and develop their appropriate strategy together as a whole unit to implement that strategy accordingly.

Regarding the origin of coffee, there is a legend about ancestors of the Oromo tribe in Ethiopia being the first to eat coffee beans and then cultivate coffee plants a long time ago. Around the 15th century, drinking coffee during Islamic religious ceremonies was introduced to prevent drowsiness and hunger during long periods of prayer and meditation. Later, people began to drink the liquid of boiled coffee beans. The Yemeni port of Mocha, located on the opposite bank of the Red Sea across from Ethiopia, quickly became famous as a coffee bean exporter.

Today's coffee goes through the following steps before drinking:

• Step 1:

  Plant coffee trees (Coffea genus plants)

• Step 2:

  Harvest coffee cherries from coffee trees (cherry).

• Step 3:

  Remove the exodermis and pulp of coffee cherries (parchment).

• Step 4:

  Remove the inner pericarps (green bean).

• Step 5:

  Roast coffee beans (roast bean).

• Step 6:

  Grind coffee beans (ground coffee).

• Step 7:

  Pour boiling water over the ground coffee and filter (drip method).

• Step 8:

  Drink coffee.

From steps 1 to 4, the first half of making green beans is conducted near the production area to prevent decay. The taste and flavor differ depending on whether cherries and parchments are dried or washed with water. A green bean covered by silver skin can preserve the freshness longer. Temperature is the most critical parameter of storage. At a warm temperature, green beans lose aroma due to the oxidation process. An excellent way to keep the coffee fresh is to freeze the beans during transportation and storage.

From steps 5 to 8, the second half is mainly conducted near the consumption area. The silver skin is removed from the green beans during the roasting process. Roast beans lose their freshness quickly. When roast beans are ground outside of their consumption area, they need to be stored in an inert atmosphere (i.e., nitrogen) or in a vacuum to prevent the degradation of aroma and flavor through oxidation. Ground coffee is more susceptible to aging than whole roast beans. Sometimes, different kinds of coffee beans are blended to adjust the taste and flavor of the finished coffee. There are numerous options for drinking coffee. After dripping, step 7, some dripped coffee is packaged in bottles or cans or processed into instant coffee.

Nowadays, people can choose their roasting and grinding preferences, brewing method, hot or cold, and drinking venue, starting with selecting coffee beans. Most consumers have their likes and choose one from the broad types of products and places. Companies strategically define their consumer needs to meet and manage their supply chains.