August 5, 2022

Coffee News Recap, 5 Aug: Brazilian arabica could rebound in 2023/24, September futures fall & 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, 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.
  • 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.
  • 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.

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.
  • 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.

Wed, 3 Aug

  • 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.
  • 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”.

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.
  • 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.

Fri, 5 Aug

  • 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.
brazilian farmer adjusts irrigation system during drought

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.
  • 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.

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