Photo credit: Neumann Kaffee Gruppe
Hamburg-based Neumann Kaffee Gruppe (NKG) announced plans to expand its operations in Indonesia in early February. The new business will focus on green coffee imports and expand storage and distribution capabilities to better service Indonesia’s rapidly growing domestic coffee consumption needs.
The new division, which includes an integrated warehouse, import office, and cupping lab in Jakarta’s Bumi Serpong Damai district, will open in March. Already one of the leading green coffee businesses in the world, NKG increased its influence in the sector last July with a majority stake in the Nordic Approach, a premium coffee company. NKG will now use its climate-controlled warehouse to store imported green robusta and arabica beans to satisfy the rising number of specialty coffee roasters and coffee shops opening up across Indonesia.
NKG Indonesia Imports c.o.o. Mira Yudhawati spoke about the new division’s ability to offer ‘unparalleled service and customized solutions’ for the region. “It is important to understand our client’s products and positions to offer value-added services that make NKG Indonesia Imports an essential player in the coffee ecosystem in Indonesia,” she said.
Indonesia is currently the world's fourth-largest coffee producer and third-largest robusta supplier, behind Vietnam and Brazil. Typically, more than half of Indonesia's coffee crop is exported. Based on the facts that domestic coffee consumption is on the rise and total domestic coffee production in the 2023-24 growing year has been reduced by 32% to 9.7 million 60kg bags due to excessive rainfall, NKG is predicting that importing foreign coffee to Indonesia will be necessary.
Research from the World Coffee Portal indicates that Indonesia’s branded coffee shop market now has 4,717 outlets, a 10% increase from last year. A study done in December by Allegra Group suggests that over the next three years, the number of new coffee shops opening in Indonesia will experience double-digit growth, with famous domestic brand Kopi Janji Jiwa leading the way. Indonesian Millennials are driving the increase in domestic consumption and the growing popularity of ready-to-drink beverages and high-end specialty coffee.
NKG has operated in Indonesia since 1997 through its export business, Berindo Jaya. The new NKG Indonesia Imports will be able to utilize the resources established by the exporter network of the NKG Asia Hub. This umbrella body includes operations in Singapore, Vietnam, and South Korea.
NKG changed its senior management lineup in 2023. Christian Bothe was named CEO of Bernhard Rothfos (BR), the company responsible for logistics and trade finance for NKG exporting companies worldwide. Bothe has worked for NKG for over ten years and was the former COO at BR. Jens Janeki, former CEO of BR, is now taking on senior roles at NG, including Coach of BR & IAC.
“We are convinced that these steps are an excellent base for driving the success and development of the Hamburg-based trading operations of NKG forward while setting new accents to enhance the great history and performance records for our suppliers and customers alike. We wish everyone all the best for the new responsibilities and pledge them our unconditional support,” says NKG c.e.o. David Neumann.
NKG currently runs more than 60 businesses that provide coffee-related services, such as export and mills, farms, agents, imports, and branches in 27 countries around the world.