What is the name of the coffee, and what are the benefits of the beans digested by cats?
Civet coffee, also known as Kopi Luwak.
Here are some excerpts from the Wikipedia entry:
refers to the coffee that includes part-digested coffee cherries eaten and defecated by the Asian palm civet.
in the coffee industry, kopi luwak is widely regarded as a gimmick or novelty item... "general consensus within the industry ... it just tastes bad"
It would appear that the Luwak processing diminishes good acidity and flavor and adds smoothness to the body, which is what many people seem to note as a positive to the coffee.
The gist of it: The animal is supposed to pick the ripest beans and eat them. So its only getting good ripe beans. The animal partially digested the beans, and that process is supposed to improve the flavor.
Edit: source Wikipedia: Kopi Luwak / Civet coffee