Every Friday, Perfect Daily Grind rounds up the top coffee industry news from the previous week. Here are this week’s stories.
Mon, 1 Aug
- Ally Champ Trip 2022 takes place in Brazil. Several World Coffee Championship winners, including Emi Fukahori and Agnieszka Rojewska, are attending the event organised by Ally Coffee. The 2022 Ally Champ Trip participants are visiting several farms in the states of São Paulo and Minas Gerais, including Fazenda Minamihara and Fazenda Bela Época.
- September arabica coffee futures fall despite rise in Colombian exports. The September price fell 1.84% on Monday in spite of supply concerns brought on by extended dry spells in Brazil’s Minas Gerais. The ICE-monitored arabica inventory is at a 23-year low despite a 6% rise in Colombian arabica exports in June.
- Packaging partner for Oatly, Stumptown, and Intelligentsia recalls 53 products over bacterial contamination concerns. Lyons Magnus LLC says the products may be contaminated with Cronobacter sakazakii, which can cause fever, vomiting, and urinary tract infection. Several “barista-style” plant milks are affected.
- Brazil’s arabica production could rebound in 2023/24 season. Brazil’s current crop is anticipated to reach 63 million bags, lower than expected because of the previous season’s frost and an extended period of La Niña. Although dry conditions may affect next year’s crop, it’s still expected to hit 71 million bags.
- AeroPress launches stainless steel reusable filter. The filter is made from premium 316 stainless steel, which the company says is more durable than many other options on the market. A 178 micron hole size keeps “grit out and oil in”.
- Union asks Starbucks to extend wage increases to other stores. After the company promised wage hikes at non-unionised stores in May, Starbucks Workers United is requesting that the benefit be applied to unionised stores, as well. Starbucks maintains that it must first bargain with unions, delaying the process, but lawyers suggest unions need only agree to terms to proceed.
- Ethiopian study claims “better quality coffees come from selective hand-picking of red-ripe cherries“. A study published in the Agrosystems, Geosciences and Environment journal asserts that among the many factors that affect coffee quality, selective hand-picking ripe cherries is key.
- Nestlé hikes prices over first half of 2022 as coffee sales drive recovery. American consumers saw a 9.8% price hike over the first six months of the year, with Europe experiencing a 5% rise. Coffee contributed 27% of sales last year, but increasing demand in 2022 may not mitigate further price increases.
Tue, 2 Aug
- Japan flags non-recommended pesticide use in Kenyan coffee imports. Japanese authorities have raised compliance checks from 10% to 30%, citing Chlorpyrifos use as a health concern. Japan is Kenya’s sixth-largest importer of coffee and the Kenya Coffee Producers Association believes the industry may suffer dire consequences if other importing countries raise their own concerns.
- Applications open for Barista League Copenhagen 2022. Twelve teams will be drawn from the pool of applications and will compete at Flere Fugle, Copenhagen on 17 September. The winning team will join winners from other events for a five-day “mystery coffee vacation”.
- RAVE launches compostable coffee bags for easy brewing. The online roastery says its coffee bags are “the ultimate in convenient specialty coffee” and require only boiling water to prepare. The first offering is a medium roast house blend. One percent of sales will be donated to environmental causes.
- China Post launches coffee brand to capitalise on the country’s coffee shop boom. The first Post Coffee location has opened in Beijing and will be followed by more in the city and across the state-run entity’s 54,000-strong post office network.
- Crem unveils new modular EX2 espresso machine. The EX2 features Expobar hydraulics, barista lights, an extra steam wand, and an electronic pre-infusion chamber group head. The manufacturer says the machine is aimed at businesses seeking a balance between cost and quality.
- Bootstrap Coffee Roasters rebrands to Backstory Coffee Roasters. The Minnesotan company says the new identity represents its maturity and will “lean into” collaboration and storytelling. The change will be accompanied by new branding, signage, and a new location in Minneapolis.
- India National Barista Championship gets underway in Bangalore. The 20th edition of the event takes place from 2 to 7 August at Orion Mall, Rajajinagar. The winner of this event will represent India at the World Barista Championships in Melbourne, Australia later this year.
- Caffè Borbone profits crash by 27% despite slight growth in revenue. The Italian roaster cites increasing raw material costs as the main cause, with efforts being made to shield end consumers from the price hikes.
Wed, 3 Aug
- Last call for inclusions in the official Melbourne International Coffee Expo 2022 Show Guide. The 2022 event returns after a three-year absence and will host the World Barista and Brewers Cup Championships. Coffee businesses can still sign up to feature in the Show Guide. A total of 15,000 copies will be distributed before and during the event.
- Agnieszka Rojewska says her competition wins have helped women become “more visible”. The multi-champion barista says despite the huge number of women in the coffee industry, many “are somewhere in the shadows”. She believes her success increases women’s visibility and hopes more will be motivated to “be braver”.
- Starbucks US sales up by 9% but fall dramatically elsewhere . Starbucks CEO Howard Schultz says a bigger wage bill and store closures in China cut pre-tax income to US $1.4 billion, a 16% drop on the previous financial year. Sales in China fell 44% as a result of falling demand following strict lockdowns under the country’s zero-Covid policy, but Schultz aims to “reinvent” the company in the coming months to drive recovery.
- JDE Peet’s reports 19.7% rise in sales and 1.4% increase in profit. The Dutch owner of Douwe Egberts and Peet’s Coffee has posted promising results for the first half of 2022, in spite of supply chain disruptions, lingering pandemic issues, and runaway inflation.
- Pact Coffee obtains B Corp certification. The certification means that Pact meets high standards of social and environmental impact initiatives. Pact CEO Paul Turton says the company has wanted to be a part of the scheme “for a very long time”.
- Cup of Excellence and Alliance for Coffee Excellence set to launch new auction platform. Developed by tech firm M-Cultivo, the platform will feature a check-out process for winning bids and various shipping options. The system will premier at the Costa Rica and Nicaragua auctions this month.
- Oatly reports strong revenue growth in Q2 but lowers full-year outlook. The company says it has increased production and that its multi-channel strategy has laid the foundations for long-term success. However, its sales outlook has been cut by up to US $90 million as a result of the war in Ukraine, inflation, and ongoing supply chain issues.
- Study suggests that “craft” coffee is taking over the industry. A paper published in the Journal of Marketing says that craft companies have “transformed” the coffee market.
Thu, 4 Aug
- ABICS develops new sensory analysis methodology for instant coffee. The Brazilian Soluble Coffee Industry Association (ABICS) has partnered with the Institute of Food and Technology (ITAL) to establish set quality standards for instant coffee. The methodology classifies the coffee by its attributes and intensity, rather than a score.
- Colombian coffee production falls 22% in July. The Colombian Coffee Growers Federation (FNC) says just 944,000 bags of coffee were produced last month, compared to 1.2 million in July 2021. The local industry is bracing for a “price collapse” caused by the anticipated resurgence of Brazilian production.
- Brazil arabica prices fall in July but September futures rally by 4.75%. With most of the country’s total arabica crop already harvested, the price dropped by 4.4% from June’s figures. However, dry conditions have supported the predicted rise in September arabica futures after Monday’s 1.84% drop, boosted by tight inventories.
- William Reed acquires the London Coffee Festival from the Allegra Group. The UK-based events and hospitality media group says it will continue to work with Allegra on the brand. The event will also continue to be held at the Truman Brewery in Tower Hamlets.
- HOTELEX Shanghai hosts 2022 China Coffee Championships. The 31st Shanghai HOTELEX is expected to welcome more than 220,000 visitors and 3,000 exhibitors, and runs from 4 to 7 August. The Coffee Championships will include the Barista Championship and Brewers Cup, among other events.
- New York Coffee Festival announces expanded exhibitor lineup. The event, set to be held in early October, had already announced an extensive list of exhibitors including Slayer, Oatly, and others, but now says it will also welcome a group of all-new exhibitors, including several roasters.
- Gaggia launches Classic espresso machine in iconic “Red Lobster” colour. The original Gaggia colour is considered iconic of the Italian brand. To celebrate the 45th anniversary of the launch of the company’s first home espresso machine, consumers can now buy the Classic model in the nostalgic colour way.
- Restaurant Brands International bolstered by promising Q2 Tim Hortons results. The Canadian coffee brand posted 16.7% sales growth in Canada and 14% elsewhere, beating pre-pandemic figures for the very first time.
Fri, 5 Aug
- El Avión’s natural Catuai Rojo sells for US $25.20/lb at Cup of Excellence Nicaragua auction. The coffee was grown in the Nueva Segovia region and was bought by Coffee Libre of Seoul. The total amount paid was US $6,667.92.
- Registration opens for International Women’s Coffee Alliance Colombian Chapter Encounter. The trip will take place in Quindío, one of Colombia’s most productive regions, and will include open discussions, an academic agenda, and visits to local coffee farms.
- Coffee Culture Week begins in Shanghai. The event runs from 4 to 18 August and aims to celebrate China’s rapidly growing coffee culture with tastings, specialty coffee stalls, a night market, and competitive barista events.
- Rapper Ice Cube teams up with Green Mountain Coffee Roasters for quirky collaboration. The coffee company has partnered with Ice Cube to market a line of coffee capsules that are intended to be brewed over ice.
Here are a few news stories from previous weeks that you might find interesting. Take a look.
- Mon, 25 Jul – Ethiopian scientists develop new treatment for coffee wilt disease. Researchers at Addis Ababa University say a new drug containing a “biodegradable fungus” can combat the fungal infection, which is scientifically labelled tacheomycosis. Plans are already in place to begin distributing the treatment throughout East Africa.
- Tue, 26 July – Study suggests shade growing coffee is not enough on its own to preserve birdlife at origin. The Smithsonian Migratory Bird Centre says that while shade-grown coffee farms protects many species of birds, a combination of non-shaded coffee and dedicated, intact forest is better for forest-specialising and breeding birds.
- Wed, 27 Jul – Beyond the Bean challenge set to pit baristas against bartenders. In partnership with La Marzocco and Bristol Syrup Co., the Dusk Till Dawn: Baristas vs. Bartenders Challenge will test the skills of some of the world’s best behind-the-bar professionals.
- Thu, 28 Jul – Metropolis Coffee Company aims to dominate US capsule market. The family-owned business has invested more than US $1 million to develop sustainable capsule packaging and filling technology. Its capsules are compostable and Nespresso-compatible and will be marketed from Q4 this year.
- Fri, 29 Jul – US coffee shop sales hit plateau driven by remote work. The country’s coffee shop sales have rebounded since lockdown, but recovery has seemingly hit a ceiling. The Bank of America Institute reports that the extended popularity of remote working has reduced the demand for in-store and takeaway coffee.
- Fri, 29 Jul – illycaffè reports 21% year-on-year growth over Q1 and Q2. The steep increase in revenue was driven by growth in all markets, increasing profitability and closing the gap on pre-pandemic levels. At-home segment growth boosted online sales by 11% despite the recovery of out-of-home consumption.
- Fri, 29 Jul – DēLonghi reports slight revenue growth in first half of 2022 thanks to coffee equipment sales. Total sales reached €1.4 billion (US $1.4 billion) Q1 and Q2, up 0.9% from the same period last year. Net profit for the period is €71.7 million, driven by an upward trend in the coffee category in several markets. However, DēLonghi says Q2 was “unsatisfactory” because of the impact of the Russia-Ukraine crisis and rising inflation.
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