Neumann Kaffee to expand in Indonesia as coffee market grows

(Reuters) - Neumann Kaffee Gruppe (NKG), the global coffee company controlled by Neumann Gruppe GmbH, on Tuesday said it will expand operations in Indonesia with a new business targeting green coffee imports, storage and distribution in the country.

Hamburg-based NKG said it will open integrated warehouses, a cupping lab and an import office in Jakarta in March to complement its business in the country, where it has been operating a coffee-exporting company for decades.

Indonesia is the world's third-largest producer of coffee, according to the USDA, growing both arabica and robusta beans.

The country's coffee consumption, however, has been increasing quickly and NKG expects local consumption to surpass the country's production soon, leading to increased imports.

A study by Allegra Group in December said the East Asian branded coffee shop market grew 24% in a year. China is the largest driver, but the study said that Indonesia will see double-digit growth in coffee shop openings over the next three years.

(Reporting by Marcelo Teixeira; Editing by Mark Porter)