History of Caffe Vergnano [PDF]

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History of Caffe Vergnano Caffe Vergnano was founded way back in 1882 and it began as a small grocer's shop in Chieri which is a small town at the foot of the Turin hills. The first shop was set up by grandfather of the current owners of the company which is Mr.Domenico Vergnano. Within a few year times, the small shop mastered all the secret special roasting and selling coffee method. The company start growing at dramatically speed and the expansion with the first three Italian shops in Turin, Alba and Chieri. In 1930s, the brave decision where they decided to purchase of a coffee factory in Kenya. The company have great mission with their 13500 square metre factory and 22 automatic production lines that running at the same time. In year 2008, Caffe Vergnano became the seventh largest Italian large scale distributor which operated in 19 regions with more than 5000 clients. Meanwhile it had more than 40 branches in 13 countries worldwide. The company exports to more than 60 countries worldwide. In September 2008, the Èspresso1882 project was launched and it brings introduction of the capsules which intended for the large distribution to several areas. Then, TRE machines are launched in December 2012 in 3 distinctive colors. With the positive balance sheet in 2012 for Caffè Vergnano and it leading the Italian capital. This company guided by Vergnano family for continuously 4 generations and 131 years of history. Among the other competitors, Caffe Vergnano is the first to bring organic coffee biodegradable capsules into the Australian market. All the green coffees are imported from Brasil, Vietnam, India and other country. Espresso capsules are available in 6 different tastes which are Arabica, Cremoso, Intenso, Lungo Intenso, Organic and Decaf. Caffe Vergnano is currently one of top 5 Italian coffee companies in the world. The company is present in 13 countries worldwide. Caffè Vergnano was one of Italian success and follow trend with respect to the national and international market. Focused and innovative management that push the reality of excellence in the Italian and economic market.

Products of Caffe Vergnano In this century, Caffe Vergnano still follows the traditions from years ago, but it is still one of the most dynamic and high quality coffee producers. The good quality of the blends comes from the strict selection of the best coffee sources available and extraordinary production process. Roasting is the most important stage in coffee production where it bring up the concentration of taste and flavour from the beans depends on the expert level of roasting method. There are a few types of coffee that introduced by Caffe Vergnano to the market. First, non-decaffeinated roasts which are coffee beans in various packaging and it can be single type of bean or different types. Next, it will be decaffeinated roasts where the beans in various packaging. Due to the roasting process the coffee, the caffeine content had been removed.

And the most commonly instant coffee would be soluble and freeze-dried. The aromatic smell where extracted from the beans and concentrated by the way of freeze-drying. Basically instant coffee is in powder or granule form and it packaged in completely water resistant packaging. For the past 130 years, Caffe Vergnano has offered real made coffee in Italy espresso. The selecting process for the coffee beans origins from the best plantations from all over the world. Meanwhile, they processed the coffee beans according to traditional ancient roasting methods. Today, Caffe Vergnano is the first to launch a new type of coffee in the market which is capsules in the Decaffeinated, Creamy, Intense, Arabica, Long Intense and Organic versions. Besides, the next product will be Espresso Tea which has filled a capsule with the loose-leaf tea where bringing a new taste experience to their customers. The capsule can be quick enough to be prepared, and it’s ready to enjoy in just a few seconds. Espresso Tea available in 4 types of flavours which are Lemon, Green Tea, Earl Grey and English Breakfast, And the best product that ever been invented by Caffee Vergnano which is Èspresso1882. It was a project that reinterpret the coffee tradition in the way that offered consumers the real Italian espresso in instant way. This research programme had took over three years period to be completed. Èspresso1882 is just much more than a product. It encapsulates all the values that characterised the company for over a century. The ranges of the capsules are basically created for mass retailing which is the only kind that Italian market compatible with. In December 2012, there the launch of TRE which is the new coffee machine designed by Caffe Vergnano and manufactured in Italy. Èspresso1882 is now becoming a completed system which allowing the coffee lover to enjoy the perfect espresso in their own home. These machines have been exclusively designed for ÈSPRESSO1882 and ÈSPRESSOTEA.

SWOT analysis of Caffe Vergnano Strengths:  Good locations to attract customers  Established logo, brand, patents, copyrights, trademarks and website  Retail stores and international stores  Good work environment  Good relationships with suppliers and distributors  Industry market leader with a globally well-known brand

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Customer based loyalty Knowledge based

Weakness:  Lack of internal focus  Cross functional management  High product pricing Opportunities:  Expansion into retail operations  Technological advancement  New distribution channels  New products line  Brand extension  Globalization  Population Growth

Threats:  Growing competition  Coffee price volatility in developing countries  Consumer trends  Cultural and Political issues in foreign countries  Increasing cost