Kopi Luwak (pronounced 'kopi luak') or Civet coffee is coffee made from coffee berries which have been eaten by and passed through the digestive tract of the Asian Palm Civet (Paradoxurus hermaphroditus) and other related civets. The civets eat the berries, but the beans inside pass through their system undigested. This process takes place on the islands of Sumatra, Java, Bali and Sulawesi in the Indonesian Archipelago, in the Philippines (where the product is called Motit Coffee in the Cordillera, or Kape Alamid in Tagalog areas) and in East Timor (locally called kafé-laku). - Wikipedia
Kopi Luwak coffee comes from the Indonesian island of Sumatra, an area well-known for its excellent coffee and expensive (maybe). Also native to the area is a small civit-like animal called a Paradoxurus. That's the scientific name, the locals call them luwaks. These little mammals live in the trees and one of their favorite foods is the red, ripe coffee cherry. They eat the cherries, bean and all. While the bean is in the little guy's stomach, it undergoes chemical treatments and fermentations. The bean finishes its journey through the digestive system, and exits. The still-intact beans are collected from the forest floor, and are cleaned, then roasted and ground just like any other coffee.
The taste of this coffee is like no other, i mean really different. It has a rich, heavy flavour with hints of caramel or chocolate. Other terms used to describe it are earthy, musty and exotic. The body is almost syrupy and it's very smooth.
One must wonder about the circumstances that brought about the first cup of Kopi Luwak coffee. Who would think to (or even want to) collect and roast beans out of animal feces? Perhaps a native figured it was easier to collect the beans from the ground this way, rather than having to work harder and pick them from the trees? We'll likely never know. But because of the strange method of collecting, there isn't much Kopi Luwak produced in the world. The average total annual production is only around 500 pounds of beans.
Kopi Luwak was the most expensive coffee in the world, selling for between $100 and $600 USD per pound, and is sold mainly in Japan and the United States by weight, and served in coffeehouses in Southeast Asia by the cup. It is increasingly becoming available elsewhere, though supplies are limited; only 1,000 pounds (450 kg) at most make it into the world market each year.
Some more adventurous coffee houses are selling it by the cup, but you won't likely find it at your local coffee shop just yet.
One small cafe, the Heritage Tea Rooms, in the hills outside Townsville in Queensland, Australia, has Kopi Luwak coffee on the menu at A$50.00 (=US$33.00) per cup, selling approximately seven cups a week, which has gained nationwide Australian and international press, creating over $5 Million AUD of media attention for this rare coffee. In April 2008, the brasserie of Peter Jones department store in London's Sloane Square started selling a blend of Kopi Luwak peanut and Blue Mountain called Caffe Raro for £50 (=US$99.00) a cup. It has also recently become available at Selfridges, London, as part of their "Edible" range of exotic foods and beverages. The coffee may also be bought by the cup or as beans at The Funnel Mill in Santa Monica, California. It is also available in Toronto, Canada.
The coffee isn't so spectacular that it's truly worth that amount of money. You are paying for the experience of enjoying such an unusual and rare delicacy. Every body maybe like to drink coffee, but not much of the them will have a chance to taste the Kopi Luwak, which is one of the most chemically complex foods in the world. Icing the brew also seems to bring out some flavors that cannot be found in other coffee processes.