Coffee News Recap, 18 Mar: Coffee prices rise for 17 consecutive months, US coffee consumption hits two-decade high & other stories
Every Friday, Perfect Daily Grind rounds up the top coffee industry news from the previous week. Here are this week’s stories.
Mon, 14 Mar
- Green coffee marketplace Fantine launches online. The B2B platform directly connects producers to green coffee buyers. Alongside the launch of the marketplace, Fantine is releasing a non-fungible token (NFT) to support the Fundación Germinar coffee training school in Colombia. The NFT was created by children involved in the Coffee For Peace project.
- The Barista League Hamburg to take place on 19 March. Rancilio is the technical sponsor for The Barista League Hamburg. The three-round barista competition will be held at Drilling bar. Competitors will use Rancilio Specialty RS1 espresso machines.
- Global soy milk market expected to be worth US $11.8 billion by 2031. According to Persistence Market Research, the compound annual growth rate is predicted to be 9.1% between 2022 and 2031. The South Asian and East Asian markets are expected to experience the most growth throughout this period.
- Coffee ground recycling company bio-bean receives award for Inficaf product. Inficaf is made from upcycled used coffee grounds collected from UK businesses. bio bean’s product received an award from the “cofinitive #21toWatch” campaign, which recognises global innovation and entrepreneurship.
- Coffee sales account for over 27% of Nestlé’s total 2021 sales. The company’s coffee brands – including Nescafé, Starbucks, and Nespresso – totalled sales of CHF 24 billion (US $25.7 billion) in 2021. Coffee sales were the biggest contributor to Nestlé’s organic growth.
Tue, 15 Mar
- International Women’s Coffee Alliance and International Trade Centre host gender inclusivity webinar. The virtual event forms part of a series focusing on the fourth edition of the newly published Coffee Guide. The webinar discussed how access to finance can be improved for female coffee producers in Latin America and Africa.
- Tim Hortons China confirms US $100 million financing commitment. The facility will be used to fund the company’s five-year business plan.
- Ukrainian and Russian coffee shipments redirected due to conflict and economic sanctions. Thanks to economic sanctions, many Russian roasters are now unable to buy coffee. Many major shipping container companies have suspended shipments to Russia, while Ukraine’s ports remain closed because of the invasion.
- New York chain Blank Street Coffee to open locations in London. The first location will open in Fitzrovia, near University College London. Blank Street aims to open two dozen UK locations by the end of 2022.
- Coffee consumption in US reaches 20-year high, according to National Coffee Association. The NCA’s 2022 Spring National Coffee Data Trends report found 60% of the US population drinks coffee every day – a 14% increase since January 2021. This is the largest increase since the NCA began collecting data on US coffee consumption. The report also found that specialty coffee consumption has reached a five-year high in the US.
- Specialty Coffee Association announces World Coffee Championships qualified sponsors. Cafetto is the Qualified Cleaning sponsor for the World Barista Championship, World Brewers Cup, and World Cup Tasters Championship. BRITA is the Qualified Water Filtration sponsor for the World Brewers Cup and World Cup Tasters Championship. Sage is the Qualified Brewer sponsor for the World Cup Tasters Championship. Breville is the Exclusive Coffee Brewer sponsor for the World Brewers Cup.
Wed, 16 Mar
- Starbucks announces Howard Schultz will be CEO for third time. At the 2022 annual shareholder meeting, the company announced that Schultz will replace Kevin Johnson as the interim CEO. Johnson will leave his position on 4 April and step down into an advisory role. Starbucks also announced it will relaunch the automatic single-serve Clover brewing system in its US stores. The coffee chain plans to install the Clover Vertica to all company-owned US locations by 2025.
- Equator Coffees opens first southern California location. The 50-seat coffee shop in Culver City is the roaster’s third new location in the past six months.
- Brazilian coffee farmers expected to use less fertiliser in 2022. This is a result of the frost in July, as producers uprooted and pruned more trees. Following the Kremlin’s invasion of Ukraine, the volume of fertilisers purchased in Brazil over a two-day period was the equivalent of levels bought throughout all of January. However, most fertiliser was purchased by soybean, corn, and wheat producers.
- Peet’s Coffee launches plant-based seasonal drinks. The coffee chain’s spring drinks range includes the Hazelnut Oat Latte, Vanilla Almond Latte, and Cold Brew with Vanilla Oat Foam. Peetnik Rewards members can also purchase the Hazelnut Cold Brew Oat Latte through the mobile app.
- Economic development organisation MARKUP publishes social media guides for African small-to-medium coffee enterprises. In partnership with the International Trade Centre, the organisation published a general social media guide and a guide to using images on social media. The MARKUP programme aims to support economic development in Burundi, Kenya, Rwanda, Tanzania, and Uganda by improving market access to the European Union.
- Robusta prices rise in Brazil as a result of decreasing arabica production. Per bag, robusta received R$540 (US $106) at the beginning of 2021, but is now being sold for R$820 (US $162). The cost of production has also increased, with the Cooabriel co-operative claiming costs have jumped from R$222 (US $44) to R$517 (US $102), mainly attributed to rising fertiliser costs.
- Winners of 2022 Italian Coffee Championships announced. The Italian Barista, Brewers Cup, and Cup Tasters championships were held at SIGEP from 12 to 16 March. Matteo Pavoni is the 2022 Italian Barista champion, Giacomo Vannelli is the 2022 Italian Brewers Cup champion, and Fabio Dotti is the 2022 Cup Tasters champion.
- Starbucks pledges to phase out single-use cups. The chain is piloting reusable cup programmes in six international markets (including the US, UK, and Japan) to reach its goal of halving waste levels by 2030. The company will encourage customers to bring their own reusable cups. Starbucks is also installing electric vehicle chargers in 15 US stores by the end of 2022.
Thu, 17 Mar
- Dubai’s DMCC signs trade agreements with Turkey. The UAE trade authority held several exhibitions and discussions in Istanbul to boost bilateral trade relations. DMCC signed 13 trade agreements to partner with over 400 Turkish businesses – including coffee companies.
- Global coffee prices continue to increase over 17 consecutive months, despite the Russian invasion of Ukraine. The International Coffee Organisation’s February 2022 report states global coffee prices fell by 3.1% on 24 February following the Russian invasion of Ukraine. This is the biggest daily decrease since 30 July 2021. However, the ICO Composite Indicator Price rose to 210.89 US cents/lb in February 2022.
- coffee&climate to host webinar on 30 March. Missed Wake-Up Call: The Coffee Industry and the Impacts of Climate Change will feature climate scientist Dr. Peter Baker providing insights on how smallholder producers might be affected by climate change. The webinar will be held at 15:00 CEST.
- UK roaster 200 Degrees Coffee to open new location in south Yorkshire. The Barnsley store will be the brand’s 16th UK coffee shop. The new 101-seat café will open on 25 April.
- Turkish National Coffee Championships take place at Coffeex in Istanbul. The Turkish Barista Championships, Brewers Cup, and Latte Art Championships will be held from 17 to 20 March.
- Women-focused Nia Coffee partners with UAE Wyndham hotel chains. Nia sources coffee directly from female farmers in Africa. Wyndham hotels will serve and sell Nia’s coffee at its café locations.
- Over 400 exhibitors to attend 2022 Specialty Coffee Expo. The event will take place from 8 to 10 April in Boston, and will also host the 2022 US Coffee Championships.
Fri, 18 Mar
- SCA US announces 2022-24 National Committee members. The 2022-24 committee appointed 9 positions via a lottery selection. The new National Coordinator position was elected through a voting system, while 14 committee members are returning to their positions.
- Alliance for Coffee Excellence announces 2022 auction dates. The dates for the Cup of Excellence, National Winners, and Private Collection auctions for the first half of 2022 have been released. The first CoE auction to take place will be Mexico on 12 July.
- COFE App acquires coffee ordering platform Kaffeen. The coffee platform is popular in Saudi Arabia. COFE App also acquired the UAE SippyBeans platform in January 2022.
- Verve Coffee Roasters releases three new RTD plant milk flash brew coffees. The US roaster debuted its new line of Flash Brew Oatmilk Lattes at Expo West in Anaheim, California. The RTD beverages will come in three flavours (Original, Chocolate, and Lavender) and will be available to purchase in retail stores in June 2022.
- Tim Hortons to open 250 stores in India within five years. The first stores are scheduled to open in New Delhi and Punjab through partnerships with AG Café and Gateway Partners. Tim Hortons India will be led by Navin Gurnaney, who previously served as CEO for Starbucks India.
- A&W launches Canada’s first lidless compostable coffee cup. The Canadian fast food chain’s Zero Cup contains no plastic liner and requires no lid or straw. The Zero Cup is designed by UK-based ButterflyCup. A&W is the first major brand in North America to use the Zero Cup.
Here are a few news stories from previous weeks that you might find interesting. Take a look.
- Tue, 8 Mar – Australian coffee accessory manufacturer launches Temperature Pressure Device. Pesado 58.5’s new meters can measure temperature and pressure inside groupheads and portafilters. The meters attach to Pesado-manufactured portafilters.
- Wed, 9 Mar – Riff Energy launches first carbon-neutral functional beverage in US. The RTD plant-based energy drink is certified carbon-neutral by the Carbonfund.org Foundation’s Carbonfree Product Certification Programme. Riff Energy+ is made using upcycled cascara.
- Wed, 9 Mar – Tim Hortons plans to open total of 200 locations in Saudi Arabia. Main Saudi Tim Hortons franchisee AG Café will open all new locations by 2024.
- Wed, 9 Mar – Nestlé to build new US production facility in Arizona. The company will invest US $675 million in the new facility, which will produce Coffee Mate creamers and Starbucks-branded products. The facility is set to open in 2024 and will use 100% renewable energy by 2025.
- Thu, 10 Mar – San Diego companies Intelligent Blends and Better Buzz Coffee Roasters partner on new capsules. Better Buzz’s “Best Drink Ever” (containing blended coffee and vanilla powder) is now available in 15g coffee capsules.
- Thu, 10 Mar – Italian company Scolari Engineering launches low-carbon emission roasting technology. The e-Roaster uses electrical energy during the preheating stage and includes heat-recovery systems. Scolari claims the technology reduces up to 25% of the machine’s energy use.
- Thu, 10 Mar – World Coffee Research seeks funding from US government. WCR’s advocacy activities are looking to increase Congressional support for legislation benefitting the coffee industry, namely the Coffee Plant Health Initiative Amendments Act (CPHIAA) and the Global Food Security Act. So far, 13 members of Congress are cosponsoring the legislation.
- Fri, 11 Mar – Breville Group acquires LELIT Group for US $168 million. Italian company LELIT manufactures coffee machines and barista accessories. Key members of the LELIT executive team – including the founders – will now join Breville.
- Fri, 11 Mar – Nestlé suspends non-essential trade to and from Russia. Imports and exports of items such as Nespresso capsules are temporarily suspended because of the ongoing conflict in Ukraine.
- Sat, 12 Mar – First Starbucks in South Florida files to unionise. Around 70% of employees at the Hialeah location have registered with the National Labour Relations Board. Four other Starbucks locations in Miami-Dade County are reportedly set to file for unionisation.
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