Coffee News Recap, 2 Aug: La Marzocco acquisition boosts De’Longhi’s revenue by 10%, ECF signs open letter to call for more EUDR support & other stories

Every Friday, Perfect Daily Grind rounds up the top coffee industry news from the week. 

Editor’s note

Following the end of 2024’s second quarter, many of the industry’s key players have started to publish their financials. Across the board, data shows that the global coffee market remains strong – with international giants like Luckin, Starbucks, and JDE Peet’s all leading the charge.

But what’s more interesting than this growth is where it’s coming from, and in many cases, we can point to acquisitions. After buying a stake in La Marzocco earlier this year, De’Longhi directly attributed 10% of its H1 revenue increase to its 41% share of the premium espresso machine brand. The company reported similar results in February and May, too.

Acquisitions like this have been a common theme of the last few years as bigger corporate players buy up brands in a growing market. It seems unlikely that they’ll ever slow down, either. But what will be interesting to watch is just how long it continues in this vein. Can all of these acquired brands make their parent companies money in the long run? Or are they just cashing in before the market gets too saturated? Only time will tell.

Top stories of the week

• Mon, 29 Jul – Fore Coffee announces 2024 World Barista Champion Mikael Jasin as Chief of Coffee Innovation. Jasin will lead product innovation and barista training programmes, and will promote Indonesian coffee on an international level. He will also debut as head judge for the 2024 Fore Grind Master competition, alongside 2023 World Barista Champion Boram Um. (Jakarta, Indonesia)

• Mon, 29 Jul – Reborn Coffee announces 35% revenue increase in 2024 Q1. The chain’s revenues were US $1.5 million for the three months ended 31 March 2024 – compared to US $1.1 million for the comparable period in 2023. Reborn also recently acquired iconic Korean bakery chain Bbang Ssaem Bakery, which is expected to increase revenue in the coming financial year. (Brea, California, US)

• Tue, 30 Jul – European Coffee Federation signs open letter to call for more EUDR support. The letter, co-signed by associations in producing countries, requests that the European Commission provides more clarity and support to address key challenges in the EUDR implementation by October 2024. (Brussels, Belgium)

• Wed, 31 Jul – Luckin Coffee reports 35% net revenue increase in 2024 Q2. The chain opened 1,371 new locations in the second quarter, and recently hit a 20,000-store milestone. Average monthly customers rose by 61.8% to 69.7 million, while self-operated store revenue grew by 39.6% to US $863.7 million, despite a 20.9% same-store sales decline. (Beijing, China)

• Thu, 1 Aug – De’Longhi attributes 10% revenue growth to La Marzocco acquisition. The coffee equipment manufacturer reported €1.423 billion in revenue and €106.2 million in net profit for 2024 1H. De’Longhi purchased a majority stake in La Marzocco in January 2024, and also fully acquired Eversys in May 2021. (Treviso, Italy)

Industry news

• Mon, 29 Jul – Oatly’s Q2 growth driven by sales in Europe and North America, but China market underperforms. The company narrowed its quarterly loss to US $11 million and saw a 7% sales increase in Europe and a 10% rise in North America, with the latter achieving its first profitable growth quarter. Oatly credits supply chain restructuring and marketing campaigns for its improved performance. (Malmö, Sweden)

• Mon, 29 Jul – Keurig Dr Pepper reports Q2 US $3.9 billion net sales, but US coffee sales drop by 2.1%. K-Cup shipments increased by 0.2%, led by strong market share trends in the company’s owned & licensed portfolio. Net coffee sales decreased to US $1 billion, with growth of 0.8% offset by a net price decline of 2.9%. (Burlington, Massachusetts, US)

• Tue, 30 Jul – illycaffè reports revenue growth in all major markets during 2024 1H. The company’s revenue increased by 4% to €289.1 million, with EBITDA rising by 26% to €46.2 million. The US market saw 11% growth, while Spain and Italy grew by 21% and 5%, respectively. (Trieste, Italy)

• Wed, 31 Jul – Starbucks’ profits grow despite slow sales in US and China. Revenue in the US rose by 2% year-on-year, but price sensitivity slowed like-for-like sales and transactions. Sales in China also fell by 11% in the wake of growing market competition from other major coffee chains. (Seattle, Washington, US)

• Wed, 31 Jul – JDE Peet’s 2024 1H sales rise by 5.6% to exceed expectations and prompt improved full-year outlook. Total reported sales reached €4,210 million, following the company’s acquisition of Brazil’s Maratá and Caribou Coffee roasting operations in January 2024. (Amsterdam, Netherlands)

• Thu, 1 Aug – Michigan’s Velodrome Coffee acquired by MQT Hospitality. Velodrome founder Brice Sturmer will no longer hold ownership, but will remain an employee for the foreseeable future. MQT will continue to operate Velodrome under the same team, branding, and operations. The financial terms of the acquisition were not disclosed. (St. Marquette, Michigan, US)

New launch

• Mon, 29 Jul – Varia Brewing enters commercial market with VS6 grinder. Designed for light professional or prosumer use, the VS6 includes variable speed and different burr sets. Orders are expected to ship next month. (Auckland, New Zealand)

• Tue, 30 Jul – Hauck Tamper launches new vibrating Vibra Tamper. The company’s latest product debuted at WoC Copenhagen, where it received a Best New Product award. The Vibra Tamper features four preset vibration intensity levels and durations, with options for custom settings. The tamper is also compatible with various basket depths and capacities. (Rossbach, Austria)

• Wed, 31 Jul – Kahawa 1893 launches two K-Cup blends through new KDP partnership. The Safari and Serengeti blends are available as K-Cup pods in the US this summer. The brand sources coffee directly from female producers in Africa. (New York City, New York, US)

Milestone

• Thu, 1 Aug – Root Capital celebrates US $2 billion lending milestone over 25 years. The non-profit social impact investor partners with agricultural enterprises in Latin America, Africa, and Southeast Asia. Since 1999, Root Capital has provided financial support to over 2.3 million farmers. (Cambridge, Massachusetts, US)

• Fri, 2 Aug – Kaffelogic celebrates 10,000th customer milestone. The countertop roaster manufacturer has sold its Nano 7 machines to 10,000 international customers since its launch in 2014. (Dunedin, New Zealand)

Trade & production

• Wed, 31 Jul – Arabica prices remained near three-week low as supply concerns lessen. Arabica futures hovered near a three-week low at US $2.30/lb, influenced by mild weather in Brazil and a potential drop in demand. The market’s “frost premium” decreased towards the end of July due to minimal risk of sub-zero temperatures, according to Sucafina SA traders.

• Wed, 31 Jul – UNDP and Vietnam’s Department of Forestry host EUDR compliance workshop. The session – aimed at coffee producers and commercial forestry workers – covered data sharing, zero-deforestation methods, and smallholder support, with insights from Peru’s traceability systems. (Hanoi, Vietnam)

• Thu, 1 Aug – Neumann Kaffee Gruppe announces EUDR compliance strategy. The green coffee trader has established a geodata collection system to prove due diligence, and has partnered with osapiens to increase efficiency and maximise value creation. (Hamburg, Germany)

Research

• Mon, 29 Jul – Researchers at University of Florida explore ways to increase climate resilience in coffee. The team found that adapting farming practices or focusing on more resilient species are two of the most viable solutions, with higher-elevation robusta being one of the best alternatives to arabica. (Gainesville, Florida, US)

Events

• Mon, 29 Jul – Bloom Coffee School hosts three training sessions near Lake Kivu in Rwanda to support local producers. Following the Best of Rwanda competition held last month in Italy, the three sessions covered topics such as processing methods, quality assessment, and cupping.

• Tue, 30 Jul – Fairtrade Fortnight scheduled for 9 to 22 September. This year’s theme of “Be the Change. Choose Fairtrade” highlights the need for fairer prices for producers and farm workers. Marking 30 years of Fairtrade in the UK, the campaign will emphasise the positive impact of ethical shopping and call for continued support. (London, UK)

• Fri, 2 Aug – Café Show Seoul 2024 to take place on 6 to 9 November. The 23rd edition of the event is expected to bring in more than 675 exhibitors from 35 countries and over 127,500 visitors from 75 countries. This year’s expo will host the 2024 Seoul Coffee Festival, the Coffee Alley and Cherry’s Choice event features, and the World Coffee Leaders Forum. (Seoul, South Korea)

• Fri, 2 Aug – Over 30 buyers purchase top-scoring coffee at 2024 CoE Guatemala auction. The 92.27-point exotic washed Gesha from La Reforma y Anexos sold for US $117.66/lb, with more than 30 buyers purchasing a total of 289.50 lbs for over US $34,062. (Guatemala City, Guatemala)

Competitions

• Tue, 30 Jul – Hawaii Coffee Association announces winners of 2024 statewide cupping competition. The 15th edition of the event received a record 103 entries. The top-scoring coffee was Kona Coffee’s natural Gesha which achieved 87.83 points, while Monarch Coffee Farm’s washed Gesha took second place with 87.40 points and Uluwehi Coffee Farm’s natural process SL34 scored 87.25 for third position. (Honolulu, Hawaii, US)

• Thu, 1 Aug – Colombia’s Cauca Sabe a Cafe to host four competitions from 15 to 18 August. The 2024 Colombian AeroPress Championship, the April Brewer’s Cup, the regional Harvesting Competition, and the regional Latte Art Championship will all take place at the event. (Popayán, Colombia)

• Fri, 2 Aug – Dates announced for 2024 US, Argentinian & Irish AeroPress Championships:
  • The Argentinian competition will be held as part of En Taza Expo Café on August 29 in Córdoba
  • Onyx Coffee Lab will host the US championship on 22 & 23 August at The Momentary in Bentonville, Arkansas
  • The Irish competition will take place on 30 August at the Monk’s Kitchen in Clondalkin

Photo credits: Fore Coffee, Hawaii Coffee Association

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