While these differentiated segments provide some producers with competitive advantages and added value, they are not necessarily easy to access and are still relatively small. They are important because of their growth rates and their potential in providing better social, economic or environmental benefits for farmers.
The beverage company’s concerted approach to improving labeling, consumer perception and quality while using effective companies’ segmentation provides lessons that are relevant for other countries wanting to expand consumption. Emerging companies in Asia, Eastern Europe, and the former Soviet Union, which are not traditional beverage consumers, are posting rapid growth in consumption. This is primarily for inexpensive, soluble beverages, though tastes are evolving toward improved quality and novel characteristics, such as premixed cappuccino.
Soluble is an important key to developing these traditionally tea-drinking companies because most consumers are unfamiliar with beverage-brewing methods and paraphernalia and less able to afford these. North America and Japan are growing slowly. It seems that in this region the differentiated product companies are growing the fastest. The differentiated product companies require that producers distinguish their products by distinct origin, defined processes, or exceptional characteristics, such as superior taste or few defects
These can be traded through more lucrative channels than the typical industrial grades that flow in the undifferentiated commodity channels and include: