Ethiopia Puts Logo on Its Hottest Export

A small design firm here was recently hired by an unusual client with an unconventional request: The Ethiopian government commissioned Brandhouse to come up with a logo that will make consumers feel like they are drinking a luxury when they have Ethiopian coffee.

This month, the Ethiopian government is releasing the logos for three varieties of Ethiopian coffee beans that it hopes will eventually appear from the burlap sacks that are used to transport coffee beans to coffee cups in cafes. It is the first time the country has introduced a brand for its major export.

The Ethiopian government hired Brandhouse after deciding that branding could establish Ethiopia's reputation for high-quality coffee around the world, like French wine, Russian caviar, or Cuban cigars. Drinkers would likely pay more for Ethiopian coffee, increasing wholesale prices and helping farmers, the government figured.

"People associate Ethiopia with drought and famine and that colors the perception of Ethiopian coffee," says Berhanu Kebede, Ethiopia's ambassador to the United Kingdom who was part of the coffee-industry committee overseeing the project. "Ethiopia is the birthplace of coffee, but surveys show only 2% of people know that."

The logos are the culmination of years of sometimes-bitter wrangling between Ethiopia, British charity Oxfam, Starbucks and the National Coffee Association, a trade association for U.S. coffee importers, wholesalers, retailers and roasters. The Ethiopian government has argued that companies such as Starbucks should sign licensing agreements for its coffee. Oxfam supported its cause and last year, the Seattle coffee chain reached a deal with Ethiopia to license, market and promote Harar, Yirgacheffe, and Sidamo coffee.

While the Starbucks deal was seen as a breakthrough, it is unclear how it will work in practice. The world's biggest coffee chain hasn't decided how or if it will use the new logos, said Dub Hay, Starbucks' senior vice president for coffee and procurement.

While other coffees have been marketed into brands based on their origin, such as Colombian coffee with a logo of fictitious farmer Juan Valdez, a logo on its own may have a hard time commanding higher prices. Some 83 companies in nine countries have signed up to licensing agreements, which require them to use the logos, says Crispin Reed, managing director of Brandhouse. That said, Mr. Reed hopes coffee retailers will voluntarily use the logos.

Some marketing experts say Ethiopia needs to create a compelling case that its coffee is special. "There is a story behind every country which makes coffee," says Mark Cotter, chief executive of WPP Group's Food Group, a marketing agency that works on coffee brands owned by Kraft Foods, including Maxwell House. "They need to put marketing spending behind it."

Mr. Kebede says there are plans for "some form of marketing" but he doesn't know the budget.

Ethiopia's coffee logo, created by Brandhouse, consists of a letter "e" in the shape of a bean over the name of coffee varieties Harar, Yirgacheffe or Sidamo, and the slogan "Ethiopian Fine Coffee."

Oxfam estimates the branding could help deliver more than $75 million a year in additional revenue to Ethiopia, on top of the current $350 million a year. Some 15 million Ethiopians depend on the coffee industry, Mr. Kebede says.

Brandhouse was paid by the Ethiopian government for its work, but did not charge full price, Mr. Reed says. The agency doesn't specialize in charity work and is known in the English ad industry for designing food packaging, including bottles and cans for popular Tango line of sodas.