Coffee News Recap, 19 Jan: Robusta futures reach record high, ICE introduces origin differentials for C futures contracts & 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: deforestation.

Mon, 15 Jan

SCA announces Stronghold as the 2024-2027 World Coffee Roasting Championship Official Production Roaster Sponsor. Stronghold will supply the 2024 WCRC with its SX9 roaster, adding that the deal marks “a significant step forward” towards “challenging the industry norm and bringing an economically and environmentally sustainable future to the global stage”.

Rainforest Alliance rolls out AI-led remote sensing to help companies comply with EU Deforestation Regulation. The organisation has taken steps to support companies affected by the new regulations, leveraging AI-driven technology to map deforestation risks in producing countries.

Louis Dreyfus partners with The Nature Conservancy to promote regenerative agriculture. The collaboration aims to implement regenerative agriculture and habitat conservation in agricultural supply chains, targeting a minimum of 1,214,057 hectares by 2030.

The Gentlemen Baristas enters administration. Reports suggest that the UK company, which currently operates four cafés, has appointed an administrator to help it navigate insolvency.

UK roaster 200 Degrees Coffee anticipates 26% increase in revenue by the end of the financial year. Managing Director Stephen Fern says the company aims to open four to five new sites in the next financial year, building on strong sales growth.

Carble launches The Beginners Guide to Remote Sensing for Coffee & Cocoa Supply Chains. The emissions mitigation company says its latest guide introduces coffee and cocoa traders to remote sensing, teaching them to leverage it to fight deforestation and achieve climate goals.

Tue, 16 Jan

Sucafina says Red Sea attacks have increased coffee transit times by two to three weeks. The green coffee trader says several carriers are rerouting vessels to the Cape of Good Hope, while other carriers have imposed a “war risk surcharge” for vessels using the Suez Canal.

Cecafé says Brazilian coffee exports decreased by 0.4% in 2023. The organisation says that despite the slight decrease year-on-year, robusta export volumes increased by 212%. Notably, shipments to China more than tripled in 2023.

Pret A Manger launches first dedicated kids’ menu. The UK café chain says the menu will initially be available at around 70% of its outlets, featuring sandwiches, pizza, and various healthy snacks, as it aims to grow its family customer base.

Cooks Coffee Company reports 15.8% increase in group store sales. The company says its franchised stores in the UK and Ireland experienced positive results in 2023, including significant sales growth and 19 net new store openings.

Tims China partners with Shanghai Metro to open cafés in Line 14 train stations. The official operator of Tim Hortons stores in China has opened seven new stores at various Shanghai Metro stations. Shanghai currently boasts the world’s largest metro system, serving around 13 million passengers daily.

Coffee hoarding threatens Vietnamese exports. Reports suggest that some Vietnamese coffee producers are hoarding their beans as logistical issues continue, following an underwhelming harvest season. Annual output is expected to fall by around 7% year-on-year.

Vietnamese coffee dealer goes bankrupt with nearly US $1 million in undelivered consignments. According to VietnamNet, Mai Cau, a coffee agent in Dak Nong province, has declared bankruptcy. Owner Tran Thi Mai says she intends to settle the outstanding debts during the subsequent process.

Intercontinental Exchange introduces origin differentials for C futures contracts. Effective for contracts with an expiry date of March 2026, the differential for delivery of coffee from Colombia, Kenya, and Costa Rica will be a premium of 10 US cents per pound, while the differential for Guatemala coffees will be a premium of 5 US cents per pound.

Selecta announces pan-European partnership with Change Please to fight homelessness. The Swiss company says it aims to lift people out of homelessness “through the power of coffee”. Change Please works to support homeless individuals through work opportunities, training, and housing.

Wed, 17 Jan

Robusta futures prices reach new record high following Red Sea logistics concerns. The main robusta contract for March delivery closed at a record high of US $3,170/lb on Tuesday, following the Suez Canal Authority’s announcement that it continues to closely monitor military tensions in the Red Sea.

New record for Yemeni coffee in the second national auction. An anaerobic fermented Udaini produced by Mohammed Yahya Elrowmeim in the Al-Haemah Al-Kharijiyah region sold for US $444/lb. All 17 lots, including four that received 90 points or more, were auctioned online on 11 January.

Millab set to launch E01 portable electric coffee grinder this month. The wireless electric coffee grinder features a 5,000 mAh lithium battery paired with a top mounted motor and a patented burr, promising 130 servings per charge. The device will be available via Indiegogo.

Thailand’s 50R Group files US $290m lawsuit against Luckin Coffee. An official filing confirms that the company has filed a lawsuit claiming compensation for economic losses incurred as a result of a long-standing trademark dispute. Luckin initially won the dispute before a court reversed the decision last month.

Thu, 18 Jan

Simonelli Group opens branch office in Dubai, UAE. The company says the office will serve as the reference point for the entire Middle East region for sales and technical and educational services. The new team will be present at World of Coffee Dubai from 21 to 23 January.

Snapchill set to launch e-commerce platform with Walmart. The partnership aims to promote regional roasters from across the US, streamlining logistics and creating new sales channels for smaller companies. The platform will launch in February.

Covoya Coffee introduces new coffees sourced from India. The green coffee trader has secured three Indian coffees for its customers: a monsooned Malabar, a washed robusta peaberry, and a washed robusta from Hoordi Estate. The coffees ship from Covoya’s Alameda, California warehouse.

Researchers develop “E-nose” system to accurately identify coffees by aroma. Researchers at the National Kaohsiung University of Science and Technology in Taiwan say their “electronic nose” digitises coffee aromas and uses them to “create coffee-aroma fingerprints”, identifying coffees with a 98% accuracy rate.

Expocacer reports record coffee sales volumes in 2023. The Cerrado Coffee Growers’ Cooperative says coffee sales volumes increased by 20% last year, totalling more than 1.3 million 60kg coffee bags. The region now produces around 15% of Brazil’s coffee.

Fri, 19 Jan

The Barista League Dubai scheduled for 23 January. The 2024 season gets underway at RAW Coffee Company in Dubai, featuring three rounds of multidisciplinary barista competition. Guest judges include Estella Zuleta Carmona of RoR Roastery and Sulaiman Alalawi of Things Cafe.

North American Agroforestry Conference scheduled for 20 to 22 February at CATIE in Costa Rica. The 18th edition of the conference will feature various educational events focused on tropical agroforestry in Latin American and Caribbean nations. It’s set to take place at the CATIE (Tropical Agricultural Research and Higher Education Center) headquarters in Turrialba, Costa Rica.

Non-profit Hope Heals set to open Mend café in Atlanta, USA. The coffee shop will double as a community hub, promising to “offer dignifying employment to adults with disabilities”.

SIGEP The Dolce World Expo scheduled for 20 to 24 January in Rimini, Italy. The 45th International Trade Show of Artisan Gelato, Pastry, Bakery and the Coffee World will take place at the Rimini Expo Centre, featuring extensive business opportunities, exhibitions, and several competitions.

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

Tue, 9 Jan – Café William launches first cargo sailboat carrying 72 tonnes of coffee. The company has set out to contribute to a more sustainable supply chain by shipping coffee using sailboats. Its first shipment set sail from Colombia on 18 December and arrived in North America 20 days later.

Fri, 12 Jan – Atomic Coffee Roasters partners with Elevate Youth to support outdoor education for youth. The Loud Pow coffee blend was developed in collaboration with Elevate Youth, a non-profit organisation “dedicated to empowering youth through outdoor exploration and mentorship”. With every purchase, US $2 will go to the organisation.

Fri, 12 Jan – Rancilio Specialty announced as official sponsor of two Italian Coffee Championships at SIGEP 2024. From 20 to 24 January, the company will supply the Italian Latte Art and Italian Coffee in Good Spirits Championship with its RS1 variable steam lever espresso machines.

Sat, 13 Jan – Little’s becomes only UK coffee brand to manufacture coffee capsules in-house. The family-run company has invested in specialised equipment that enables it to manufacture Nespresso-compatible coffee capsules. It aims to begin production in early 2024.