About Juan Valdez and its Expansion Plans
Juan Valdez, often referred to as the Latin American Starbucks, has recently opened its first cafe in Brazil, marking the beginning of an ambitious plan to establish 300 cafes across the country by 2030. With over 650 stores in 20 countries, the brand was launched in 2002 by Procafecol, an entity of the National Federation of Coffee Growers of Colombia, which represents more than 550,000 families in Colombia.
Strategic Partnership in Brazil
In Brazil, Juan Valdez’s operations are based on a partnership between Colombian investors and the Zaher family, known for their contributions to education. This collaboration operates under a master franchise model.
Thamila Zaher, director of Grupo SEB, explained to Pipeline that the partnership took over a year to finalize. The Zaher family, with its experience in educational and consumer franchises, was approached by Juan Valdez due to their expertise. The partnership aims for a 10% market share in Brazil’s cafe segment.
Strategic Location Selection
Unlike many international brands that initially focus on major cities, Juan Valdez chose Ribeirão Preto for its inaugural Brazilian location. The flagship store in RibeirãoShopping will also serve as the brand’s office, training center, and testing ground in Brazil.
“Ribeirão Preto will be our showcase,” stated Patrick Galletto, Juan Valdez’s General Manager in Brazil. Galletto, with three decades of experience expanding brands like Blockbuster, Dia, and Fini, joined the cafe chain in September.
Galletto highlighted Ribeirão Preto’s significance as an economic hub within São Paulo state, boasting a high-income population and a coffee-growing tradition due to its proximity to Alta Mogiana. This background makes the local consumers accustomed to high-quality coffee, making Ribeirão Preto an ideal location for Juan Valdez.
Key Questions and Answers
- What is Juan Valdez? Juan Valdez is a Colombian coffee shop chain, often compared to Starbucks in Latin America. It was established in 2002 by Procafecol, an organization under the National Federation of Coffee Growers of Colombia.
- Why is Brazil significant for Juan Valdez? Brazil presents an opportunity for expansion, with a partnership between Colombian investors and the Zaher family, known for their educational contributions. The goal is to capture a 10% market share in the country’s cafe segment.
- Why was Ribeirão Preto chosen as the first location? Ribeirão Preto was selected due to its status as an economic hub within São Paulo state, with a high-income population and a coffee-growing tradition. This background makes the local consumers accustomed to high-quality coffee, making Ribeirão Preto an ideal location for Juan Valdez.
