Coffee News Recap, 23 Feb: Major roasters & traders urge EU to delay deforestation rules, PRF confirms multi-year Gold Sponsorship with One BIGG Island in Space® & other stories

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

Here are this week’s coffee news stories.

The word of the week is: partnerships.

Mon, 19 Feb

Producer & Roaster Forum confirms multi-year Gold Sponsorship with One BIGG Island in Space®. OBIIS, a venture launched by the Co-Founder of BIGGBY COFFEE, will be the Gold Sponsor across the next six events, supporting PRF’s aim to bring together producers, roasters, and other coffee industry stakeholders in coffee-growing countries. The first event of OBIIS’ sponsorship will be PRF Guatemala, set to take place on 7 & 8 March at the Anacafé venue in Guatemala City.

Advertisers encouraged to showcase their brands at MICE2024. Organisers say the the MICE Showguide presents an unique opportunity to showcase brands within Australia’s coffee industry. Over 15,000 copies will be distributed ahead of the event in Australia, New Zealand, and Southeast Asia. Expressions of interest will close on 15 March.

Origin Coffee improves B Corp Impact Score by 13.7 points in latest recertification. The UK specialty coffee roaster has completed its B Corp recertification, gaining recognition for its mission to “source exceptional coffee through a sustainable, triple bottom line approach”. It cites its new Environmental Management System as crucial to its successful recertification.

Hanns R. Neumann Stiftung calls for stronger emphasis on localisation in smallholder coffee farmer support. The German company is promoting a “local people for local people” approach to sustainable development for smallholder producers. It says that this “empowers communities to take charge of their development, addresses specific needs, and fosters trust between local and international stakeholders”.

Peet’s Coffee enters Saudi Arabian market with six store openings. The US coffee chain has opened six stores in the country’s capital, Riyadh. It adds that it “looks forward to becoming an integral part of the country’s rich coffee tradition”. It cites Saudi Arabia as a key market following its entry into the UAE last year.

Panther Coffee and Shopify to host “Women in Coffee and Creative Entrepreneurship” panel discussion in New York City, USA. Following the successful opening of their collaborative residency coffee shop in SoHo earlier this month, the companies will host a panel discussion to welcome Women’s History Month. Panellists include Leticia Pollock (Co-founder, Panther Coffee) and Anita Tam (Founder, Slow Pour Supply).

Cepea says January robusta prices were the highest since October 2021. Brazil’s Centre for Advanced Studies on Applied Economics says the CEPEA/ESALQ Index for robusta type 6, screen 13, averaged BRL 802.67 (US $161.69) per 60-kilo bag in January, representing an increase of 8% compared to December 2023. The index closed at BRL 854.71 (US $172.17) per bag, the highest value in real terms (IGP-DI) since October 7 2021.

Tue, 20 Feb

Millennials and Gen Zs are driving coffee production in the Philippines. According to Philstar Global, young coffee consumers are driving domestic demand for “sweet and fruity” coffee in the Philippines. This is encouraging local producers to ramp up production of less conventional coffee species. The country increased liberica production by 7.8% in 2023, while excelsa production increased by nearly 3%.

Starbucks launches pork-flavoured latte in China to mark Lunar New Year. According to CNN Business, the Abundant Year Savoury Latte combines espresso and steamed milk with Dongpo Braised Pork Flavour Sauce and pork breast meat for garnish. The latte has caused a stir on Chinese social media, with some questioning why they would drink the latte instead of eating real braised pork.

Light My Fire to supply reusable tableware at Nordic Coffee Fest 2024. The Swedish outdoor brand, which manufactures ethically sourced tableware, will support the Nordic Coffee Fest’s mission to be “the most sustainable coffee festival in the world”. The event will take place in Gothenburg, Sweden on 24 & 25 February.

Fairtrade International partners with Global Coalition for Social Justice to address social justice in supply chains. The organisation says it aims to work with the GCSJ to “intensify collective efforts to urgently address social justice deficits and to accelerate the implementation of the 2030 Agenda for Sustainable Development, the Sustainable Development Goals, and the Decent Work Agenda”.

El Niño continues to weaken despite recent tropical fluctuations. The Australian Government Bureau of Meteorology says that while El Niño continues to persist, “sea surface temperatures in the central tropical Pacific and temperatures in the Pacific sub-surface show a clear cooling trend”. All related climate models are expected to return to neutral by May 2024.

Wed, 21 Feb

Starbucks baristas in Chicago file 10 complaints alleging the company violated fair workweek law. According to the Chicago Tribune, unionised baristas allege that Starbucks violated Chicago’s Fair Workweek Ordinance, which requires certain employers to give staff advance notice of their schedules and pay a premium for last-minute changes. The baristas say Starbucks also hired new baristas to cover shifts before offering them to existing staff.

Guatemala becomes first Latin American coffee origin to partner with JDE Peet’s and Enveritas to ensure deforestation-free coffee. The country’s coffee authority, Anacafé, has entered into an agreement with JDE Peet’s and Enveritas to “enable Enveritas to verify that the coffee industry in Guatemala does not export coffee grown on land deforested after 2020”, as per the new European Union Deforestation Regulation (EUDR).

Café William and NEUHAUS NEOTEC put world’s first industrial-scale electric coffee roaster into operation. The roaster was officially inaugurated at Café William’s new Canadian production facility on 7 February, marking the first time that a coffee roaster is “roasting purely electrically on an industrial scale”. It has a roasting capacity of up to 3.5 tonnes per hour.

Italian Exhibition Group Asia announces three-year partnership with Singapore Coffee Association to host Singapore National Coffee Championships. The 2024 Singapore National Coffee Championships will be hosted during Speciality Coffee & Tea Asia, which will be co-located with SIGEP Asia and Restaurant Asia following the acquisition of the Speciality Coffee & Tea Asia series from Montgomery Events Asia.

Indian coffee farmers at odds with elephant conservation efforts. According to The South First, three individuals have been killed in elephant attacks in Wayanad, Kerala since January, sparking protests among coffee producers and others affected by human-animal conflict. Experts suggest that “developing tolerance and compassion” towards wild animals is the only solution.

Dutch Bros reports 26% increase in Q4 revenue year-on-year. In its Q4 and full-year financial results, the company says it had an “exceptional” 2023 and has entered 2024 “with great momentum”. It opened 159 new stores in the US, while total revenues grew by 30.7% year-on-year.

Thu, 22 Feb

European Coffee Federation urges EU to delay Deforestation Regulation. According to a letter obtained by Bloomberg, the trade group, which includes members like Lavazza, Illy, Nestlé, Starbucks, Ecom, and Sucafina, has warned that the implementation of the EUDR will be “shattering” for the millions of smallholder producers for whom the region is a significant marketplace.

Nestlé’s coffee portfolio made up 26.7% of total says in financial year 2023. The company has reported its full-year results for 2023. It notes that Nespresso experienced 5.3% organic growth, while Nescafé and Starbucks businesses contributed to single-digit growth throughout the coffee division.

L’OR enters into global partnership with Ferrari. The JDE Peet’s espresso capsule brand has partnered with Ferrari for the FIA World Endurance Championship, which includes the 24 Hours of Le Mans race. The company’s branding will be visible throughout Ferrari’s WEC racing environment.

Costa Coffee set to invest more than US$ 3.8 million in new Sainsbury’s partnership. According to Punchline, Sainsbury’s is launching in-store Costa Coffee cafés at supermarkets across the UK. Costa currently operates more than 1,000 Costa Express vending machines in Sainsbury stores and related petrol stations.

Next Level Energy wins People’s Choice for Best Product at Coffee Fest Orlando. The company’s flagship RTD coffee energy drink product, Synergy, was recognised with the award at the event. Next Level Energy notes that the award validates its efforts and encourages it to continue innovating.

Keurig Dr Pepper Inc. says its Keurig brewing system expanded to around 40 million US households in 2023. In its full-year 2023 financial report, the company says net sales grew by 5.4%. However, net sales in the US coffee segment fell by the same percentage. Despite a decrease in coffee pod revenue of 3.6%, around 40 million US households now use the K-Cup system.

PROBAT partners with ReiCat to eliminate smoke and odours from the roasting process. The company says ReiCat’s electrically heated catalytic converters will help it achieve “even greater cleaning efficiency without the use of fossil fuels”. The ReiCatino system replaces the afterburner and the thermal pre-cleaner previously used in PROBAT roasters.

Fri, 23 Feb

Coffee producers launch Paso Paso roasting collective in Hannover, Germany. Five producers from Costa Rica, El Salvador, Ethiopia, Costa Rica, and Nicaragua have partnered with green coffee buyer Bram de Hoog to launch Paso Paso – Farmer Owned Coffee. The company aims to place ownership of coffee roasting in the hands of producers, “ensuring their active involvement indecision-making and profit-sharing through a unique distributed ownership model”.

Luckin Coffee reports 87.3% increase in total net revenues in FY 2023. In the company’s latest financial report, it says it opened 8,034 net new stores during FY 2023, pushing revenues to a total of US $3.5 billion. It now operates 6,248 stores, comprising 10,628 self-operated stores and 5,620 partnership stores.

Cropster launches Roasting Intelligence 5 and Cropster Cafe software updates. The latest update to Cropster’s Roaster Intelligence platform includes features like replay sliders, reorder measurements, and new keyboard shortcuts. Meanwhile, the Cropster Cafe system has been augmented with a new Focus View and the Cafe Radar telemetry tool.

Steeped Coffee aims to raise up to US $5 million through crowdfunding. The single-serve specialty coffee manufacturer reported more than US $1 million in revenue over the past year. It now aims to raise more funds to “expand the limits of the entire coffee category by increasing customer accessibility”. Steeped is both a Benefit Corporation and certified B Corp.

Alliance for Coffee Excellence to showcase exotic Guatemalan coffees at El Injerto 2024 Private Collection Auction. The auction is set to take place on 23 July and will feature rare, award-winning lots of Geishas and Pacamaras “cultivated with an unwavering commitment to meticulous detail and exceptional microclimates”. Sample sets are available now.

Intelligentsia Coffee opens first international location in Seoul, South Korea. The store is located in a renovated historic building in Seoul’s Jongno District. It’s operated in partnership with local distributor MH Partners.

Here are a few coffee news stories from previous weeks that you might find interesting. Take a look.

Wed, 31 Jan – Giesen launches Profiler 2.0 roasting software. The roaster manufacturer says the latest update to its software will “revolutionise the way coffee roasters approach their craft”. It’s designed to enhance user-friendliness and functionality and optimise automated roasting procedures.

Tue, 13 Feb – Royal Coffee acquires new warehouse, distribution, and manufacturing facility in Oakland, California. According to Mercury News, the green coffee importer purchased the 73-year-old facility for US $31.7 million and plans to use it to expand its operations in the US. The company also operates a coffee tasting room in downtown Oakland.

Thu, 15 Feb – SŌVDA announces Torch Coffee Company as official distributor in Latin America. The company, which manufactures equipment that helps specialty coffee roasters increase efficiency and improve workflow, will distribute its products through the Guatemalan roastery.

Thu, 15 Feb – Restaurant Brands International announces plans to reach 1,000 Tim Hortons stores in the US by 2028. The coffee chain’s parent company says that as a result of slowed growth in the Canadian market, it will focus on the US and China over the next five years.

Fri, 16 Feb – Fairtrade co-founder Frans Van der Hoff passes away aged 84. Fairtrade international says Van der Hoff made it his life’s work to promote solidarity and justice “and create economies that work for people, not just corporations”.

Fri, 16 Feb – Starbucks announces new accessibility guidelines for US stores. The company aims to “support access and inclusion for the partners, customers and communities it serves”. The Inclusive Spaces Framework will be incorporated into all newly built and renovated company-operated stores in the US.

Fri, 16 Feb – JDE Peet’s to manufacture, distribute, and sell Costa Coffee branded aluminium coffee capsules in the UK. The company has expanded its existing partnership with Costa Coffee. It will now manufacture Costa Coffee-branded L’OR coffee capsules throughout the UK.

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