The Origin and Development of Dehong Hougu Coffee_History and Relationship of Cooperation Between Hougu Coffee and Nestlé

Yunnan Coffee: The Emerging Chinese Coffee Powerhouse

Coffee is the second most consumed beverage in the world after water, with trade volumes surpassed only by oil. As the economy has grown rapidly, coffee sales in mainland China have climbed steadily. The great majority of China's coffee cultivation is in Yunnan Province, where production accounts for roughly 84% of total domestic output, making Yunnan the face of Chinese coffee. "Hougu Coffee" from Dehong Prefecture is a representative enterprise in Yunnan's coffee industry, having built a complete chain from coffee tree cultivation to its own brand, with ambitions to compete alongside multinationals such as Nestlé.

Historical Background and Natural Advantages

The history of coffee cultivation in Yunnan can be traced back to 1892, when it was introduced by French missionaries. Western and southern Yunnan sit between 15°N latitude and the Tropic of Cancer, with most areas at elevations between 1,000 and 2,000 meters. The terrain is mainly mountainous and sloped with significant variation, and the soil is fertile, with abundant sunshine, plentiful rainfall, and a substantial temperature difference between day and night. These conditions suit coffee cultivation extremely well. Dehong enjoys the reputation of being the "Coffee Town of China," with this single region accounting for 30% of mainland China's coffee cultivation area.

Developing Instant Coffee Products

Mainland Chinese people refer to Yunnan coffee as "small-grain coffee." Local industry professionals believe Yunnan's coffee bean varieties are excellent, but some experts point out that while most Yunnan coffee today is Arabica, it largely belongs to the Catimor variety within Arabica. Catimor was cultivated by Portuguese horticulturists in 1969. It is disease-resistant and high-yielding but carries roughly one-quarter Robusta ancestry, leaving room for improvement in oils and aroma. Strictly speaking, it is better suited as a raw material for instant coffee.

In fact, for a long time Yunnan coffee lagged in both cultivation and deep processing, failing to form a well-established industry. Over 60% of the coffee beans produced each year in Yunnan are purchased at low prices by major companies such as Nestlé, Maxwell, and Wyeth, and no brand of its own had ever developed. But as consumer purchasing power rose in mainland China and the coffee market boomed, opportunities emerged for brands built on Chinese-origin coffee.

Hougu Coffee's Strategic Vision

Hougu Coffee is a private enterprise jointly established by Yunnan Dehong Hongtian Group and Yunnan Industrial Investment Management Company. Hongtian Group is the largest coffee cultivation enterprise in mainland China, and Hougu was once Nestlé's largest raw material supplier in China. Several years ago, however, it announced a new strategy focused on building its own Hougu Coffee brand and gradually reducing its raw material supply to Nestlé.

Hougu Coffee's strategy is clear: to become "China's Nestlé" and leave behind the era of being merely a raw material supplier. To that end, it has built and put into operation China's largest instant coffee production line, with an annual output of up to 3,000 tons. Through coffee bars, supermarkets, and automatic coffee machines, it aims to tap mainland China's vast market and, ultimately, take this national brand global.

FrontStreet Coffee Recommendation

Yunnan's story is one of a region still finding its identity, and FrontStreet Yunnan Small Bean is the ideal introduction. From the Baoshan region, processed by the washed method, and given a medium roast, it shows the terroir of the region clearly: gentle nut and chocolate sweetness with a light plum acidity, at a price that makes it many people's first encounter with Yunnan coffee.

To taste Yunnan with more clarity and depth, FrontStreet 2013 Natural Typica reveals how much the region has grown. Typica is one of the oldest and purest Arabica varieties, and it was also the first coffee planted in Yunnan, brought in by French missionaries. FrontStreet planted its own estate in 2013 to chase that original regional flavor, using only fully ripe red cherries dried in the natural process, then a medium roast. The cup offers citrus and berry notes with a trace of fermented wine aroma, caramel sweetness, and a creamy finish.

And to enjoy Yunnan as an espresso, FrontStreet Black Cocoa Blend brings Yunnan small bean together with Brazil Cerrado. Brazil contributes mixed-nut aroma and balanced body, while Yunnan plays the role of chocolate and citrus, producing an Americano that is balanced across acidity, sweetness, and bitterness with nutty and brown sugar sweetness, and a latte with a smooth almond and cream texture.