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Colombia’s Colcafé Plans to Expand Coffee Operations in Malaysia

By: Diana Delgado, Contractor

Banner Currencies

Colombia’s Colcafé Plans to Expand Coffee Operations in Malaysia

Bogota (Coffee Network) -Colombian coffee roaster Colcafé, a major player in Latin America, the United States, Malaysia, and Colombia, plans to expand its production plant in Malaysia in partnership with its Japanese joint venture, as part of efforts to meet rising demand in the Southeast Asian market, where consumer habits are rapidly evolving, president of the coffee business Francisco Gómez said.

“Our goal is to become one of the largest coffee roasters in Southeast Asia,” Gómez told Coffee Network on the sidelines of the 89th Asoexport Coffee Conference held in Cartagena. “We want to continue expanding our production facilities in a region with a very large population, where consumer habits are changing and out-of-home coffee consumption is becoming increasingly important and sophisticated.”

In December 2022, Nutresa, Colombia’s largest food company and parent of Colcafé, signed an agreement to acquire — through Colcafé — 44% of Dan Kaffe (Malaysia) Sdn. Bhd. (DKM).

The other shareholders of the Malaysian firm are Mitsubishi Corporation, a Japanese multinational trading company, with 30%, and Takasago International, a global producer of flavors and fragrances, with 26%.

DKM is one of Malaysia’s largest producers of instant coffee and coffee extracts, operating a modern factory in Johor Bahru, just 25 kilometers from the Port of Singapore. The plant specializes in frozen coffee extract and spray-dried instant coffee powder.

“The truth is, you have to be very close to where consumers are,” Gómez added, emphasizing Colcafé’s focus on proximity to key markets.

Global Footprint and Innovation

Colcafé operates seven production plants worldwide serving different regions: Four in Colombia — Colcafé (Medellín and Bogotá), Industrias Aliadas (Ibagué), and Tropical Coffee Company (Santa Marta); One in the United States — Cameron’s Coffee in Shakopee, Minnesota; One in Malaysia — Dan Kaffe (Johor Bahru); and One in Chile — TMLuc.

In the United States, Colcafé’s Minnesota facility roasts and flavors coffee for the North American market, while additional sales come from exports from Colombia and Latin America. During the Cartagena coffee conference, the company showcased flavored coffee produced at its U.S. plant.

“Colombia is accelerating the development of innovative products, and flavored coffees are being very well received by both existing and new consumers,” Gómez said.

In Colombia, Colcafé holds a 43% market share in the coffee category with brands such as Café Sello Rojo, La Bastilla, Colcafé, and its premium brand Matiz.

Across Latin America, Colcafé markets its Sello Rojo and Colcafé brands in Chile, Peru, Panama, and Ecuador, where sales are expanding steadily.

“Sello Rojo is the market leader in Ecuador and ranks third in Panama,” Gómez noted.

Currently, about half of Colcafé’s total sales come from Colombia and the United States, with the remainder distributed across Asia and Latin America.

Colcafé’s business spans consumer brands, coffee ingredients, and food service operations.

Managing Inflation and Market Pressures

In Colombia, rising coffee prices have pressured costs for consumers. Colcafé has absorbed part of these increases to protect consumers and maintain its market share.

As of September 2025, coffee prices in the Consumer Price Index (CPI) showed a 50% cumulative increase, according to think tank Anif, adding inflationary pressure.

On average, the domestic price per 125-kg load reached COP 2.8 million, up from COP 1.9 million in 2024. Meanwhile, international coffee prices averaged US$3.8 per pound between January and September, compared with US$3.4 in 2024.

“Over the past year and a half, the increase in domestic raw material costs has been extremely high for mass-market coffees,” Gómez said. “We’ve absorbed a large portion of those costs.”

Nutresa’s Broader Performance

Parent company Grupo Nutresa reported total revenues of COP 18.6 trillion, down 1.7% from COP 18.9 trillion in 2023. In U.S. dollar terms, sales totaled US$4.6 billion, up 4.0% year-on-year.

By region, Colombia accounted for COP 11.2 trillion in sales, down 0.4%, representing 60% of total revenue. International sales reached US$1.8 billion, a 2.2% increase, and represented 40% of total revenues. In Colombian pesos, those foreign sales equaled COP 7.4 trillion.

According to a report filed with Colombia’s Superintendency of Finance, exports from Colombia reached US$420 million, growing 8.1% over the previous year.

By Diana Delgado

 

  • Coffee

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