Juan Valdez's footprint is about to grow in North America through a strategic partnership with GCC, aiming for $100 million in sales by 2030, with a goal to capture a 25% market share of Colombian coffee in the U.S. GCC, founded in 2017, is the largest coffee producer in Colombia, supported by significant U.S. investments. Juan Valdez plans to expand its global reach, targeting 1,200 stores by 2027, having already opened 61 new outlets in 2023, with 51 of them located outside Colombia.
Source: Emerging Real Estate Digest
In the latest move to expand Colombia's most popular coffee, Juan Valdez, to the rest of the world, its owner, Procafecol, has signed an agreement with Green Coffee Company Holdings ("GCC") to sell coffee in supermarkets in America and Canada.
The agreement is anticipated to be worth $100 million in sales by 2030 and give Juan Valdez a 25% share of the Colombian coffee sales in the United States.
"The materialization of this agreement is an immense opportunity for Juan Valdez in terms of its expansion in the United States and Canada," Procafecol President Camila Escobar was quoted as saying in a statement.
Escobar added, "Green Coffee Company will seek to penetrate this North American market by entering large supermarket chains in which we do not operate, with the aim of generating exponential growth in mass consumption in the U.S. and promoting greater sales of our product."
Green Coffee Company Rules in Colombia
Green Coffee Company is technically a U.S. company founded in 2017 with significant operations in Colombia owning 9,000 acres across 39 farms. The company's funding has come mostly from high-net-worth families in America, and the company has raised over $60 million according to reports.
GCC is the largest coffee producer in Colombia with more than 11.5 million coffee plants and is considering a 2026 IPO in the U.S.
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Juan Valdez's International Expansion of Shops
Higher margins can be achieved if the Colombian coffee giant can also prepare and serve hot coffee to customers directly. Juan Valdez has a commanding footprint in Colombia which houses 358 of the company's 533 shops.
The stated goal is to reach 1,200 stores by 2027 with much of the growth coming internationally. In 2023, Juan Valdez opened 61 new stores, and 51 of those were opened outside of Colombia.
Ecuador has the largest international presence for Juan Valdez with 68 stores, 13 of those opened in 2023. Turkey opened 12 new stores in 2023, bringing the total to 18, making it the largest market for the brand outside of South America. The U.S. received 12 new stores last year, Spain 5, and the Middle East saw new stores in the UAE, Kuwait and Qatar. The first Juan Valdez opened in Africa last year in Egypt.
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