Can Intangibles make a Lasting Difference in Global Value Chains?
December 12, 2017
The essential question is: can new value substantially increase not only the total value of coffee beyond its current estimates of $200 billion but keep a fair portion of that value with the growers at origin who currently earn less than 10% of the total? If so, it is clear that the lessons will likely apply to other consumer-facing commodities as well.
Together with Luciana Marques Vieira of the Brazilian think tank FGV, and former FNC officer and 4.0 Brands Founder Luis Fernando Samper, COSA President Daniele Giovannucci co-wrote a report titled “The Powerful Role of Intangibles in the Coffee Value Chain.” This effort was part of the UN’s annual World Intellectual Property Report 2017 that focused on intangible capital in the supply chains for three specific products: coffee, photovoltaics and smartphones. You may be able to guess which one COSA is an expert in.
This reports highlights the recent innovative consumption trends and logistical abilities from origin through to retail, which can enable the marketing of highly differentiated products that embed valuable intellectual property from growing origins. The implications are far reaching and include: a) new opportunities for coffee growing communities to improve their incomes; and b) effects on the strategic direction of more vibrant and diverse global value chains toward greater consumer value.