FLASH: Switzerland Decides People Do Not Need Coffee to Live, Misses the Point of Living!
Recently, Switzerland announced plans to abolish the nation’s emergency stockpile of coffee, in place for decades, after declaring the beans not vital for human survival, though opposition to the proposal is brewing.
Nestle (OTCMKT:NSRGY), the maker of instant coffee Nescafe, and other importers, roasters and retailers are required by Swiss law to store bags of raw coffee. The country stockpiles other staples, too, such as sugar, rice, edible oils and animal feed.
This system of emergency reserves was established between World War I and World War II as Switzerland prepared for any potential shortages in case of war, natural disaster or epidemics.
According to the plan released for public comment, coffee stockpiling obligations would expire by the end of Y 2022, with companies free to draw down what they store in their warehouses.
“The Federal Office for National Economic Supply has concluded coffee…is not essential for life,” the government said. “Coffee has almost no calories and subsequently does not contribute, from the physiological perspective, to safeguarding nutrition.”
A final decision on scrapping coffee stockpiles is expected in November.
Switzerland’s mandatory coffee reserves are now spread over 15 companies, including the coffee giant Nestle, and amount to about 15,300 tonnes, enough to cover 3 months of the Alpine state’s domestic coffee consumption.
Switzerland’s 8.5-M residents consume around 9 kg (20 lb) of coffee per person annually, 2X the 4.5 kg consumed in the United States, according to International Coffee Organization figures.
A Nestle spokesperson declined to comment on its position.
Switzerland finances its mandatory coffee stockpile via a fee of 3.75 Swiss francs on every 100 kg of imported beans, raising 2.7 million Swiss francs ($2.70-M) annually to compensate companies for storing beans.
In the event the mandatory stockpile is eliminated, the government said it expects importers that are freed from the fee to pass on any savings to coffee consumers.
Have a Happy Easter Weekend.