Coffee News Recap, 28 Feb: Arabica futures drop below US $4/lb but remain high, Starbucks to cut over 1,100 corporate jobs

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

Editor’s note

Two weeks after hitting US $4.41/lb, the highest number in the history of the C market, arabica futures dipped below $3.80. Precipitated by record exports from Brazil and a rebound in global arabica inventories, the downward trajectory isn’t expected to last long.

There are reports of some producers holding out for prices to rise again, forcing traders to acquire more credit and further straining already-slim margins. The increasing risk is likely to drive prices higher, with many in the industry questioning whether we could see another record high in late March or early April.

To survive what is predicted to be a high and volatile market for the next few months, coffee businesses will need to reshuffle their budgeting and financial planning. Much like during the pandemic, footfall in cafés is expected to decline while at-home consumption increases, pushing roasters to offer a more diverse range of affordable blends and premium single origins, invest in equipment distribution, and refocus on subscription services.

In other news, Starbucks announced it will axe over 1,100 global corporate jobs as part of its turnaround strategy. The chain, which employs more than 360,000 people in over 80 countries, is seeking to streamline operations to combat falling sales in key markets like the US and China.

Chinese coffee giant Luckin is still poised to open locations in the US this year, strategically targeting cities with higher concentrations of expats and tourists. This adds more pressure on Starbucks to keep finding new ways to improve efficiency – or risk losing its market share to a fierce competitor.

Top stories of the week

• Mon, 24 Feb – Starbucks will axe more than 1,100 global corporate jobs as part of ongoing turnaround strategy. CEO Brian Niccol announced that the roles will be cut to streamline support teams. The layoffs, forming part of the Back to Starbucks plan to combat falling sales and shares, won’t affect in-store teams. The company will also remove 13 “less popular” menu items in early March, including several Frappuccino drinks. (Seattle, Washington, US)

• Tue, 25 Feb – Alliance for Coffee Excellence announces 2025 schedule. CoE auctions will include Nicaragua on 19 June, Mexico on 24 June, Honduras on 3 July, Costa Rica on 8 July, Guatemala on 15 July, El Salvador on 24 July, Thailand on 29 July, Taiwan on 28 August, Peru on 2 December, and Brazil on 9 December. (Portland, Oregon, US)

• Tue, 25 Feb – Uganda’s coffee export earnings surged by 83% in January 2025. The country, Africa’s largest coffee exporter, shipped 550,341 60kg bags worth over US $156 million in January, up 14.4% by volume compared to January 2024. The sharp rise in export earnings was driven by record global coffee prices. (Kampala, Uganda)

• Tue, 25 Feb – African leaders assert plans to locally trade and roast half of the continent’s coffee by 2035. At the 3rd G25 Africa Coffee Summit in Dar-es-Salaam, over 1,500 stakeholders set an ambitious target to trade and roast 50% of the continent’s coffee locally in a bid to boost domestic consumption, emphasising the need to improve value addition in the supply chain. (Dar-es-Salaam, Tanzania)

• Wed, 26 Feb – Arabica prices dip below US $4/lb but remain high. Coffee futures fell as US consumer confidence declined, triggering long liquidation. Arabica inventories rebounded, while robusta supply remained tight. Brazil’s coffee exports rose, but prolonged dry conditions threaten future yields. (New York City, New York, US)

• Wed, 26 Feb – De’Longhi Group appoints professional coffee division CEO to oversee La Marzocco and Eversys. Guido Bernardinelli will serve as the CEO of the professional division, Lorenzo Carboni will be the CEO of La Marzocco, and Stefano Barato will be the GM at Eversys. The reorganisation aims to boost market leadership and innovation through shared resources and best practices. (Treviso, Italy)

• Thu, 27 Feb – Investors eye US $1 billion deal for Starbucks China stake. KKR, Fountainvest, and PAG, among other investors, are reportedly interested in acquiring a stake in Starbucks China’s 7,686 outlets. CFO Rachel Ruggeri is set to lead talks as the US coffee giant pursues a strategic franchise deal amid intense local competition. (Shanghai, China)

• Thu, 27 Feb – Three 2025 US Coffee Champions crowned in North Carolina. Over 30 coffee professionals competed in Durham. Justin Bull is the 2025 US Brewers Cup Champion, Jerry Truong is the 2025 US Coffee in Good Spirits Champion, and Piyapat “Flook” Lapteerawut is the 2025 US Latte Art Champion. They join US Roasters Champion Diego Guartan in representing the US at the 2025 World Coffee Championships. (Durham, North Carolina, US)

Industry news

• Mon, 24 Feb – Reborn Coffee Dubai will expand into Europe with Vienna, Florence, and Prague locations. The chain’s Middle Eastern hub of international expansion will spearhead the opening of three European locations, starting with a flagship store in Prague in June 2025. (Dubai, UAE)

• Mon, 24 Feb – ROR Coffee Solutions expands to Saudi Arabia. In collaboration with Qadr Financial, the UAE brand will launch turnkey coffee solutions, expert coffee bars, and advanced brewing tech that focus on sustainability, quality, and barista training. An exclusive partnership with Dalla Espresso will further boost expansion in the GCC. (Dubai, UAE)

• Tue, 25 Feb – Olam Group confirms sale of agribusiness stake to Saudi fund. Following confirmation, Olam Group will sell its 44.6% agribusiness stake for US $1.78 billion to Saudi Agricultural & Livestock Investment Co. The deal gives the Saudi fund an 80.01% stake, with a three-year call option on the remaining 19.99%. (Singapore)

• Tue, 25 Feb – Tomoro Coffee appoints interim leadership after global CEO steps down. The company announced that former Global CEO Xing Wei Yuan (Star Yuan) has stepped down, with interim leadership under Lulu Yang. Yuan remains a shareholder while the board searches for a new CEO to fuel expansion. (Jakarta, Indonesia)

• Tue, 25 Feb – Hemro Group partners with FETCO for exclusive US distribution of Ditting. FETCO’s extensive network will allow US specialty coffee businesses to purchase Swiss-engineered Ditting grinders, also offering technical support. (Zürich, Switzerland)

• Thu, 27 Feb – Joe & The Juice names new US Managing Director. Former Pret A Manger and Panera exec Jorrie Bruffett is appointed to lead Joe & The Juice’s US business. She will expand the 66-store network and drive efficiency, innovation and digital sales across the US market. (Copenhagen, Denmark)

• Fri, 28 Feb – Volcafe and Cotierra generate biochar carbon credits in Colombia. Colombia’s first biochar-based carbon credits were issued by Volcafe and Cotierra, led by Carcafe. Farm biomass was used to create biochar that enhances soil health and crop yields, marking a milestone in coffee decarbonisation efforts. (Winterthur, Switzerland)

• Fri, 28 Feb – Commonplace coffee appoints first CEO in 22 years. The Pittsburg roastery and café chain has named Alisa Paul as its first CEO. Formerly Senior Director at Year Up United, she will focus on leadership development, career pathways for staff, and expanding the company’s wholesale business while enhancing customer experience. (Pittsburg, Pennsylvania, US)

New launch

• Tue, 25 Feb – Excelsa Café to open in San Diego in March 2025. The world’s first café exclusively serving Excelsa coffee will open in California. The venture builds on thriving Excelsa farms in Nicaragua and sustainable cultivation. (San Diego, California, US)

• Wed, 26 Feb – TrueStart Coffee expands UK distribution with Morrisons launch. TrueStart Coffee will launch its caffeine-controlled instant range in Morrisons supermarkets from 3rd March, boosting its distribution points by 26% to 5,025 locations across the UK. The move meets demand from 39% of coffee drinkers seeking lower caffeine options. (Bristol, UK)

• Thu, 27 Feb – Ditta Artigianale and Victoria Arduino partner for new Milan café. Ditta Artigianale Magenta Milano integrates restored furnishings with Victoria Arduino machines, including Black Eagle Maverick, Mythos, and PureBrew+, to support traditional and innovative coffee extraction methods. (Milan, Italy)

• Fri, 28 Feb – Evoca Group announces new Netherlands branch. Evoca Group expands with Evoca Nederland B.V. in Gorinchem, South Holland, reinforcing local service. A 70 sqm showroom will open in July 2025, featuring an in-cup coffee experience and showcasing Gaggia, Necta, and Saeco machines. Operations continue as usual during the transition. (Valbrembo, Italy)

• Fri, 28 Feb – Bazzara Caffè launches new Rarity single origin line. The new product line-up includes a Panama Gesha, a Nepal Himalaya, and a Jamaica Blue Mountain coffee, which have been recognised and awarded by Michelin-starred chefs and prominent Italian haute cuisine professionals at the 2023 and 2024 Luxury Food&Beverage Quality Awards. (Trieste, Italy)

Milestone

• Tue, 25 Feb – Blue Bottle Coffee to open first Nevada location at UnCommons. Set to open in March 2025, the café in Southwest Las Vegas marks a significant milestone in Blue Bottle’s global expansion. (Las Vegas, Nevada, US)

• Tue, 25 Feb – Keurig Dr Pepper exceeds profit expectations on strong demand. The company forecasts high-single-digit profit growth after surpassing Q4 estimates. Robust demand for sodas, sports drinks and new flavours lifted Q4 net sales to US $4.07 billion, despite a 2.4% decline in its US coffee unit. (Frisco, Texas)

• Wed, 26 Feb – JDE Peet’s beats estimates amid rising coffee costs. The company posted a 13.2% EBIT rise to €1.28 billion in 2024, beating estimates despite coffee prices doubling. A slight EBIT dip is expected in 2025 as new CFO Yang Xu leads a €1 billion share buyback plan. (Amsterdam, the Netherlands)

• Thu, 27 Feb – Cornish Bakery posts record second-half-year results. The UK independent coffee and bakery chain saw 9.7% like-for-like growth and a 26% year-on-year sales rise in H2 2024. It added six outlets, including a strong launch in Milton Keynes, and now operates 66 stores. Plans include six new sites and five refurbishments for Easter 2025. (Falmouth, UK)

• Thu, 27 Feb – Post Coffee scales global subscription with new investment. The Japanese online specialty coffee marketplace has secured undisclosed funding from Joyance Asia to expand its DTC subscription service. Now serving 90,000 subscribers with beans from 200+ roasters, it plans global growth. (Tokyo, Japan)

• Fri, 28 Feb – Groupe SEB posts full-year sales of €8.27 billion, professional business down 4.5%. The company’s professional coffee division had its second-best year, with core business growing 7%. Adjusted net profit rose 9.3% to €422 million, excluding a €189.5 million fine under appeal. (Ecully, France)

Trade & production

• Thu, 27 Feb – Expocacer opens London logistics hub, eying 15% sales growth. Expocacer, the Cerrado Coffee Growers Cooperative, opened a logistics hub in London. The new international base, its second after the US, is expected to boost UK sales by up to 15% in the first year and support its direct-from-farm distribution model. (Patrocínio, Brazil)

Research

• Tue, 25 Feb – Coffee Science Foundation and Ohio State University partner for research on coffee value creation. CSF and OSU launched a study to quantify how sensory factors (aroma and flavour) and non-sensory factors (certifications and origin) affect coffee’s perceived value. The project uses discrete choice experiments in sensory booths and virtual settings to guide results. (Irvine, California, US)

• Wed, 26 Feb – Study finds that caffeine levels vary across roast profiles. Research led by Zachary Lindsey analysed Ethiopian beans and found that light and medium roasts have higher caffeine contents than dark roasts. (Rome, Georgia, US)

Events & competitions

• Tue, 25 Feb – The 2025 Golden Bean World Series held in Guatemala. Award-winning roasters from The Americas, Australia, and Asia took part in the event. The overall winner was Crimson Cup, Brandon Bir from Columbus, Ohio, US. The small chain winner was Toffy Café from East Asia, and the large chain winner was Gloria Jeans Coffee in Australia. Oceana Coffee, which has competed in Golden Bean events since 2015, received a silver medal in the Milk-Based Espresso category. (Antigua, Guatemala)

• Wed, 26 Feb – National Coffee Association announces 2025 NCA Convention award honorees. Allan B. Colley will receive the Distinguished Leadership Award for his 50-year career, and Kyle Bawot will receive Volunteer of the Year for his role in NCA Next Gen. Root Capital has been named Origin Charity of the Year. All winners will be recognised at the NCA Convention from 6 to 8 March. (Houston, Texas, US)

• Wed, 26 Feb – Heavenly Hawaiian Coffee Farms wins multiple awards at the 2024 AVPA Coffees Roasted at Origin competition. The group earned five awards, including gold for Kona Gesha Champagne, bronze for Kona Harmony and Pure Gesha Naturals, and additional honours for Peaberry Bliss and Kona Heritage, showcasing the region’s quality and diversity. (Paris, France)

• Thu, 27 Feb – Specialty Coffee Expo Houston will host 2025 World Coffee Roasting Championship. The competition, sponsored by Stronghold, will take place in the US for the first time from 25 to 27 April at the George R. Brown Convention Center. (Houston, Texas, US)

• Fri, 28 Feb – The first US Origami Cup will take place in Houston on 22 April. Scheduled prior to the 2025 Specialty Coffee Expo, the competition requires participants to prepare two beverages using the Origami brewer. The winner will receive a trip to Colombia. (Houston, Texas, US)

• Fri, 28 Feb – Malaysian International Food and Beverage Trade Fair announces three-year commitment as official host of the Malaysia National Coffee Championship. Malaysia’s premier food and beverage trade event will host the competitions in 2025, 2026, and 2027 as part of its strategic alliance with the Malaysia Specialty Coffee Association. This partnership also marks the start of MIFB’s efforts to launch the dedicated coffee and tea-focused platform Malaysia Café Expo. (Kuala Lumpur, Malaysia)

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