Every Friday, Perfect Daily Grind rounds up the top coffee industry news from the previous week. Here are this week’s stories.
Mon, 2 May
- Beans Coffee Club becomes official coffee partner for electronics retailer Currys. Currys customers who purchase selected home coffee machines will receive two free bags of roasted coffee from Beans Coffee Club, which are personalised according to their taste preferences.
- Yara launches world’s first electric-powered shipping container vessel. The Yara Birkeland will domestically transport fertiliser (which is used in the coffee industry) from Yara’s Porsgrunn plant to Brevik port in Norway. The company states the new electric ship will reduce its annual carbon emissions by the equivalent of 40,000 diesel trucks.
- Lost Sock Coffee Roasters meets with US President Joe Biden. The US roaster visited the White House as part of President Biden’s promotion of small business growth in the US. Lost Sock opened its first brick and mortar store in 2021.
- Chobani to end production of cow’s milk. The company states it will instead focus on the production of its coffee creamers and oat milks. Chobani has also delayed its IPO until late 2023.
- United States Department of Agriculture report states China’s 2022 coffee imports to increase 5%. The China: Coffee Imports Show Strong Growth Potential report predicts China’s green coffee imports will increase to 4 million 60kg bags by September 2022. The country’s domestic coffee production, however, is estimated to drop to 1.75 million 60kg bags in 2022.
- Packaging solutions companies IMA and Goglio enter strategic partnership to develop sustainable packaging materials. The two Italian multinational companies will consolidate their respective research and development of new sustainable packaging materials, but the companies will not merge.
- Union Hand Roasted Coffee becomes B Corp. The UK roaster received 106.3 points out of a possible 200 for several of its business practices, including a direct trade model and environmentally-friendly initiatives.
Tue, 3 May
- Tim Hortons’ 2022 net outlet growth increases almost 7% in 2022 first quarter. The coffee chain’s holding company Restaurant Brands International reported a 14% increase in systems-wide sales growth in the first quarter of this year, with Tim Hortons being a significant driver.
- Global ready-to-drink coffee and tea market to be worth over US $153 billion by 2027. The RTD market’s annual expected growth rate is over 7%, according to Research and Markets. North America is predicted to be the fastest growing market.
- Costa Coffee to launch RTD frappé line. The new HFSS-compliant Chocolate Fudge Brownie and Caramel Swirl flavours will be available in the UK from May 2022.
- Café Holdings develops new farmer-focused platform with blockchain specialist Iron Sight Industries. The acquisition company states the app can improve equity and sustainability in the coffee supply chain. Café Holdings will license the blockchain platform to non-profit Kaldi Foundation.
- Starbucks reports record US $7.6 billion global net revenue in 2022 second quarter. The coffee chain opened 313 stores in the second quarter of this year, totalling 34,630 stores globally. Comparable store sales in North America increased 12%, but sales in China decreased 23% as a result of the country’s strict Covid-19 measures.
- Pentair releases new home water filtration system. The countertop Pentair Rocean Reservoir is certified to reduce and remove around 76 contaminants in tap water. The filters are made with coconut-shell based activated carbon.
- Certification body 4C partners with Melitta to improve European market access for Colombian coffee farmers. Through the Improving working and living conditions for coffee smallholders in Colombia project, 4C is supporting farmers in the Magdalena region to export their coffees to several European markets. Germany company Melitta purchased the first lots of 4C-certified coffee from the project beneficiaries earlier this year.
Wed, 4 May
- Vietnamese coffee farmers plant more avocados, durian, and black pepper to cope with rising fertiliser costs. Bloomberg reports that even with the additional income from these crops, Vietnamese farmers are cutting back on investments in coffee trees, largely because they use fertilisers imported from Ukraine, Russia, and Belarus. The Vietnam Coffee and Cocoa Association states this could result in a 10% drop in the country’s next coffee harvest.
- Ethiopian coffee earnings increase around 113% over past nine months. The passing of the Ethiopian government’s 1051/2009 bill has ensured that more smallholder coffee farmers in Ethiopia have more direct access to international traders.
- SCA Italy elects new committee. New members include National Coordinator Davide Cobelli, Community Coordinator Stefania Zecchi, and Events Coordinator Alessandro Coda.
- Heifer International and Lutheran World Relief launch sustainable platform State of the Smallholder Coffee Farmer. The open-access resource provides data on the economic, social, and environmental situations of coffee farmers and their households. Developed in partnership with the Agroecology and Livelihoods Collaborative (ALC) at the University of Vermont and Statistics for Sustainable Development (Stats4SD), the platform aims to present a more realistic representation of the livelihoods of coffee-growing communities and make this data more accessible to coffee producers.
- Oatly reports 18.6% revenue increase on 2021 first quarter. The company stated its global 2022 first quarter revenue reached US $166.2 million, compared to US $140.1 million in the same period last year. Oatly claims strict lockdown measures in China have negatively affected revenue growth, as well as supply chain disruptions.
- IDH – The Sustainable Trade Initiative to support sustainable coffee farming programme in Vietnam. The IDH Farmfit Fund announced it closed a US $1 million credit facility which will support a project ran by a subsidiary company of the ECOM Agroindustrial Corporation. The programme will support around 3,300 Vietnamese coffee farmers with improving coffee quality, productivity and climate-resiliency.
- Visitor registration opens for World of Coffee Milan 2022. The event will take place from 23 to 25 June and will include five 2022 World Coffee Championships: Latte Art Championship, Coffee in Good Spirits Championship, Cup Tasters Championship, Roasting Championship, and Cezve/Ibrik Championship. Submissions for the Coffee Design and Best New Product Awards are also open.
Thu, 5 May
- ofi partners with blockchain platform to improve coffee traceability in southern central Guatemala. Through the company’s app, farm data can be securely stored, while sustainability insights platform AtSource will provide information on the carbon footprint of every coffee purchased. Each of the project’s coffees, which are sold by Melitta, includes a QR code for consumers to access the data.
- Starbucks brings back Coffee Master programme. The training programme was launched in the early 2000s in North America. Starbucks employees who pass the course wear black aprons (instead of green) and have the opportunity to visit the company’s coffee farm in Costa Rica.
- Lavazza and Arsenal Football Club partner on A Cup of Learning training programme. The barista training course helps youth to find long-term employment opportunities. The programme will support communities surrounding the club’s stadium in north London.
- SCA Roasting Foundation to host Aillio Bullet virtual live session. The two-hour course led by Morten Münchow will guide roasters on best practices when using the Aillio Bullet roaster. The live session will be held on 11 May between 9:00 and 16:00 CEST.
- International Coffee Organisation predicts global coffee consumption to grow by 3.3% in 2022. The ICO estimates 170.3 million 60kgs bags will be consumed this year, compared to 164.9 million bags in 2020/21. According to the ICO, consumption is expected to exceed production in 2021/22 by 3.1 million bags. The ICO also stated that coffee prices for all groups increased in March and fluctuated throughout April, averaging between US 186.85 cents and 202 cents/lb.
- Paulig Group sells operations in Russia. In March, the food and beverage company announced it would cease operating in Russia because of the ongoing conflict in Ukraine. Paulig completed the sales of its operations in Russia to investor Vikas Soi for an undisclosed amount.
- CEPEA Index shows Brazil’s domestic coffee prices fluctuated widely in April. On 29 April, the CEPEA/ESALQ Index for arabica coffee closed at BRL 1,267.35 (US 256.13 cents)/60kg bag – up 1.9% on 31 March. Price fluctuations are attributed to the US dollar appreciation against the Brazilian Real, increases in future contracts, and the absence of sellers in the market.
- Colombian coffee production falls 7% in April. Around 750,000 60kg bags were produced last month, compared to 810,000 bags produced in April 2021. So far this year, Colombia’s production has reached 3.5 million bags – a 15% decrease on the same period in 2021.
- Cup of Excellence announces new auction dates. The auction dates announced include:
- July: CoE Mexico on 14th, CoE Guatemala on 19th, and CoE El Salvador on 21st.
- August: CoE Nicaragua on 4th, CoE Costa Rica on 11th, and CoE Honduras on 16th.
- Panera Bread appoints new Senior Vice President. Marlene Gordon joins the US chain (which is a part of Panera Brands alongside Caribou Coffee and Einstein Bros. Bagels) from Fresh Del Monte Produce’s global leadership team.
Fri, 6 May
- Probat releases new Neptune 1000 drum roaster. The new 110kg to 220kg-capacity roaster (242lb to 485lb) includes a built-in air recirculation system. Probat will digitally launch the Neptune 1000 roaster on 18 May at 14:00 CEST.
- Schaerer debuts fully automatic Schaerer Coffee Skye machine at the 2022 Internorga event. The Swiss coffee machine manufacturer’s latest model includes three different operating modes that can be configured for a range of hospitality businesses.
- Non-profit organisation TechnoServe publishes Coffee Wet Mill Processing Guide. TechnoServe developed the guide as a tool for East African coffee farmers to improve quality and sustainability in post-harvest processing. The guide covers best practices for each stage of wet mill processing, as well as a number of waste management techniques.
- World AeroPress Championship 2022 final to be held in Vancouver BC. Taking place from 1 to 3 December, this will be the first time that the final round will be held in Canada. The World AeroPress Championship is also looking for roasters and coffee shops to host the national competition stages.
- Hemro Group opens new Anfim manufacturing facility in Milan. In addition to production sites in Hamburg, Germany and Changzhou, China, the new factory will enable Hemro Group to scale production of Anfim grinders.
- Brazilian Specialty Coffee Association announces winner of 2022 Brazilian Roasting Championships. Túlio Fernando de Souza of Nerd Coffee House in João Pessoa, Paraíba will compete in the 2022 World Roasting Championships at World of Coffee Milan from 23 to 25 June.
- Alliance for Coffee Excellence to host second Taiwan Private Collection Auction. Registration is open and the auction will take place on 30 June 2022.
Here are a few news stories from previous weeks that you might find interesting. Take a look.
- Thu, 28 Apr – Customer files lawsuit against Dunkin’ over second and third degree burns. The prosecuting lawyer claims the burns are a result of Dunkin’s “structurally and dangerously-defective four-cup paper coffee carriers”. The lawsuit claims Dunkin’ failed to anticipate that its four-cup carrier could result in serious injury.
- Thu, 28 Apr – Cup of Excellence Honduras 2021 runner up Iris Dariela Carvajal Bonilla passes away. Bonilla also placed 9th in the 2019 competition and was a member of the IWCA Honduras chapter.
- Thu, 28 Apr – Smile Coffee Werks receives Compost Manufacturing Alliance certification for compostable pods. Smile Coffee Werks is also certified compostable by the Biodegradable Products Institute (BPI), Carbon Neutral, and USDA Biobased.
- Fri, 29 Apr – Regalia Roasting Collective launches Kickstarter after damage to roasting facility. A fire was reported at the New York roaster on 25 April and caused extensive damage to the property. Donations will be used to restore the roastery to its original condition.
- Fri, 29 Apr – Etzinger launches gravimetric grinder in US. The Etzinger etzMAX Filter coffee grinder includes the Etzjet system, which rotates the ring burr in the conical burr set to reduce grind retention.
- Sat, 30 Apr – Lavazza launches organic RTD cold brew. The new 100% arabica RTD beverages are available as Classic Cold Brew, Nitro Cold Brew, Cappuccino Cold Brew with Milk, and Double Shot Cold Brew with Oat Milk.
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Photo credits: Julio Guevara