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Case
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Reference no. 9A97GC12
Simplified Chinese language
Published by: Ivey Publishing
Originally published in: 1997
Version: 1997-10-14
Length: 8 pages
Data source: Field research

Abstract

This is the simplified Chinese version of ''9A97G012''. In early 1996, the vice president of the instant drinks department of Nestle (Philippines), had to decide how to respond to a major change in Nestle''s environment. Until January 1996, imports of coffee in any form - green beans, roasted, or ground and processed - were prohibited. As of January 1996, however, coffee within a specified quota could be imported over a 30 per cent tariff. Nestle was the only foreign-owned producer of coffee in the Philippines and had over 60 per cent of the market, up from 52 per cent seven years before. Over the same period, total coffee consumption in the Philippines doubled. Nestle produced its coffee from Philippine-grown robusta beans, since Philippine arabica beans were of inferior quality. Outside the Philippines, however, usually a mixture of robusta and arabica beans were used. There were rumors that both Procter and Gamble (Folgers) and Kraft General Goods (Maxwell House) were planning to enter the Philippine market, initially via imports, but possibly in the future with production facilities.
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Abstract

This is the simplified Chinese version of ''9A97G012''. In early 1996, the vice president of the instant drinks department of Nestle (Philippines), had to decide how to respond to a major change in Nestle''s environment. Until January 1996, imports of coffee in any form - green beans, roasted, or ground and processed - were prohibited. As of January 1996, however, coffee within a specified quota could be imported over a 30 per cent tariff. Nestle was the only foreign-owned producer of coffee in the Philippines and had over 60 per cent of the market, up from 52 per cent seven years before. Over the same period, total coffee consumption in the Philippines doubled. Nestle produced its coffee from Philippine-grown robusta beans, since Philippine arabica beans were of inferior quality. Outside the Philippines, however, usually a mixture of robusta and arabica beans were used. There were rumors that both Procter and Gamble (Folgers) and Kraft General Goods (Maxwell House) were planning to enter the Philippine market, initially via imports, but possibly in the future with production facilities.

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