News

The second project includes participation from Mr. Brown Coffee, a coffee brand operated by King Car Group, a leading beverage and food conglomerate in Taiwan. With this agreement, Mr. Brown Coffee becomes the first Taiwanese company to join the TYPICA enterprise market.

TYPICA Holdings, Inc. (CEO: Masashi Goto), a global venture advancing the sustainability of high-quality coffee, signed a Memorandum of Understanding (MoU) on June 12, 2025, for its second long-term, fixed-price direct trade project with partner companies in Taiwan and Brazil. The MoU, valued at up to $20.8 million over five years, represents the first such initiative in Taiwan as part of the global rollout of a new government-endorsed direct trade ecosystem, which was announced with the endorsement of both the Japanese and Brazilian governments and in the presence of their respective heads of state at the Japan-Brazil Economic Forum held in Tokyo on March 27, 2025.

Background and Purpose of the MoU

In international coffee markets, green coffee prices have traditionally been dictated by the futures market. However, in recent years, speculative capital has caused price volatility to intensify, with fluctuations reaching up to 125% within a single year. This has created an unpredictable environment for both producers and buyers, making it difficult to invest in long-term improvements in quality and supply stability. As a result, the added burden is often passed on to consumers, undermining the sustainability of the entire coffee industry.

To tackle these issues, TYPICA is developing a tailor-made direct trade ecosystem specifically designed for category-leading companies in the coffee industry. This MoU represents the second project under this framework and the first in Taiwan. It introduces a sustainable trading structure where producers and buyers build trust-based relationships and engage in direct trade based on actual production costs and added value, under long-term fixed pricing.

Positive Impact on the Coffee Industry

Through this initiative, buyers can secure high-quality raw materials at stable prices and consistently deliver affordable, high-quality products to consumers. Producers gain the ability to plan and manage their farms over the medium to long term, without being subject to the volatility of the futures market. This enables steady investments in climate resilience and quality improvements. The benefits to both sides strengthen the resilience and sustainability of the coffee industry as a whole.

Momentum is also growing at the production level. A recent producer briefing was held in the Araxá region of Minas Gerais, one of Brazil’s key coffee-producing areas and home to ACAUA, the partner company for the first project. Around 30 leading farms from the region participated in the event, which was filled with enthusiasm. A lively Q&A session reflected the strong interest and high expectations from producers, demonstrating the model’s compelling value on the ground.

A scene from the producer briefing held in the Araxá region of Minas Gerais. Around 30 leading local farms took part.

Outlook and Future Vision

Building on this model, TYPICA aims to complete 10 long-term, fixed-price direct trade projects between Japan and Brazil, and three between Taiwan and Brazil by 2030, promoting direct trade in each market. Through these Japan-Brazil and Taiwan-Brazil initiatives, the company aims to create a new international coffee market valued at approximately $902.8 million. TYPICA also plans to introduce this model in South Korea in 2025 and China in 2026, further refining its unique value proposition with a focus on the Asian market. TYPICA also intends to scale this model in earnest in Europe and the United States from 2027 onward. These developments will drive adoption across TYPICA’s global network of buyers in 58 countries, particularly among enterprise-level partners.

On the production side, the initiative will extend beyond Brazil to suppliers in 43 countries connected to TYPICA’s platform, especially small- to medium-sized producers. Through these efforts, TYPICA seeks to establish a new global standard for coffee trade, one grounded in conscience and long-term sustainable development.

A Direct Trade Community Where Quality Meets Scale

Since its founding, TYPICA has focused exclusively on specialty coffee. While specialty coffee delivers high added value and contributes to increased producer income, it still accounts for only a small portion of global coffee consumption. Many producers, even those growing high-quality commercial coffee, are forced to sell it as a commodity vulnerable to market volatility.

By enabling the stable, long-term distribution of high-quality commercial coffee, TYPICA allows producers and roasters to connect with partners that meet their specific needs, helping them build stronger business foundations. This model fosters a more inclusive direct trade community, one where large and micro roasters coexist, amplifying the synergies between economies of scale and economies of quality.