Coffee News Recap, 26 Apr: Starbucks unionisation case goes to US Supreme Court, 2024 US Roasting Champ Eduardo Choza gives exclusive interview & other stories

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

Here are this week’s stories – the word of the week is launch.

Mon, 22 Apr

The Barista League to return Berlin for the first time since 2019. The event will return to the German capital on 1 June Berlin, with teams of two competing in a fast-paced, multidisciplinary barista competition at Jules Biergarten & Café on Luckenwalder Straße.

Nespresso announces Philipp Navratil as Global CEO amid Nestlé leadership reshuffle. Navratil previously served as head of Nestlé’s Coffee Strategic Business Unit. Guillaume Le Cunff, former Nespresso CEO, will join Nestlé’s Group Executive Board as CEO Zone Europe from 1 July 2024.

London’s Shot charges £265 (US $332) for cup of Okinawa coffee. The Mayfair specialty coffee shop is offering the Okinawan Typica as espresso, macchiato, flat white, americano, cappuccino, or latte – and could well be the world’s most expensive cup of coffee. Shot’s menu also features other high-priced coffees, including a £70 (US $88) Savannah Zombie and a £32 (US $40) St Helena, both sourced from Haiti.

Starbucks reduces plastic in single-use cups by 20%. The new takeaway cups will be rolled out in locations in the US and Canada as part of the chain’s commitment to cut its carbon, water, and waste footprints in half by 2030.

London’s Gail’s Bakery aims to open 35 new stores in 2024. The company plans to expand to a total of 135 locations, with the recent Brentford opening marking its 131st shop. Gail’s plans to open four more outlets by the end of May.

Tue, 23 Apr

Finnish roastery releases AI-generated blend. Kaffa Roastery’s “AI-conic” blend was developed in collaboration with Helsinki AI consultancy firm Elev, and included four different coffees sourced from Fazenda Pinhal in Brazil to create “a well balanced blend [with] sweetness and [notes of] ripe fruit.”

This year’s HOTELEX Shanghai attracts over 420,000 attendees. The event also included a record number of 15,761 international visitors. The next HOTELEX trade show will take place in Guangzhou from 10 to 12 May 2024.

“Beanless” coffee brand Atomo Coffee opens 33,500 sq ft US roastery. The company plans to increase production of its “beanless” coffee to four million pounds every year. CEO Andy Kleitsch says scaled production could supply up to 2,000 coffee shops.

UK’s Grind to launch products in Tesco supermarkets. The company is selling its whole bean, roast & ground, home-compostable pods, and ready-to-drink iced coffee cans in the supermarket retailer. The partnership between Grind and Tesco is part of Tesco’s Accelerator Programme, which helps innovative UK brands reach a wider audience.

Root Capital releases its 2023 Climate Resilience Roadmap Report. The report, released on Earth Day, outlines the organisation’s progress supporting climate action in rural areas, including coffee-growing regions. Last year, Root Capital provided 123 businesses with agronomic and climate resilience advisory services, and disbursed US $67 million in climate finance to vulnerable communities.

Mayorga Coffee collaborates with Guatemala’s Cooperative La Hermosa to support local smallholders. Mayorga worked with La Hermosa to plant and grow 30,000 seedlings to 100 local, small family-run farms. The project is expected to generate US $2.8 million in new coffee sales. Partner producers like the Perez family at Finca La Hermosa also employ innovative sustainable farming methods like creating organic fertiliser from chicken waste, worms, and coffee cherries.

Neumann Gruppe USA & GrainPro collaborate to save 11 tonnes of plastic waste from landfill. The two companies, along with Continental Terminals and dozens of roaster partners, collected 40 bales of used GrainPro bags to divert them from going to landfill. The plastic waste was sent to specialised recycle Revolution in Arkansas to be processed.

Lavazza to buy vending machine manufacturer IVS. The Italian coffee roaster will pay €185 million (US $197 million) to increase its 20.4% stake in IVS. Additionally, Lavazza plans to fully acquire the vending machine company by 2027.

Wed, 24 Apr

Second edition of SIGEP China features over 500 exhibitors. In conjunction with Anuga Select China, the event is taking place until 26 April at the Shenzhen Convention Centre. The Italian Exhibition Group’s expansion in Asian markets is growing in anticipation of the launch of SIGEP Asia, scheduled to be held in Singapore from 26 to 28 June 2024

Foxtrot permanently shuts all 33 US locations and prepares for bankruptcy filing. Foxtrot says it “explored many avenues to continue the business, but found no viable option despite good faith and exhaustive efforts”. Employees were notified of their immediate termination via email on 23 April 2024.

US Supreme Court seemingly favours Starbucks in ongoing unionisation case. The US Supreme Court signaled support for the coffee chain in its challenge against a court order to rehire seven fired employees amid unionisation efforts. The final ruling is expected by the end of June.

Co-founder of Pret A Manger returns in boardroom shake-up. The coffee and food to-go chain is restructuring its board, welcoming back co-founder Olivier Goudet to navigate its international growth. Goudet will step down as chairman, with Konrad Meyer, another JAB veteran, replacing him.

Expocacer aims to double regenerative coffee production by 2027. The co-operative’s 2023 Impact Initiatives report highlights its socio-environmental goals – stating it aims to double the number of regenerative coffee hectares by 2027. Expocacer also generated more than 143,34 kWh of solar energy last year, and recycled close to 500kg of waste.

Nespresso extends aluminium capsule recycling to Jersey City. The company expanded its curbside recycling to Jersey City, allowing residents to recycle used aluminum capsules alongside other materials. This builds on the successful New York City programme which first launched in 2019.

AeroPress launches Clear Colours collection. After releasing the AeroPress Clear and Clear Pink in less than a year, the company has launched the Clear Purple, Clear Blue, Clear Red, Clear Green, and Clear Black versions.

Thu, 25 Apr

Redemption Roasters concludes £2.7 million (US $3.4 million) funding round. The UK roaster says it has secured the investment to triple sales in over the next three years – with plans to open four new outlets, expand prisoner rehabilitation programmes, and grow its wholesale business.

Robusta futures soar to record-breaking high of US $4,266. Robusta futures hit new highs as contracts closed at US $4,266 on the London market, while the price of arabica settled at US 225.90 cents/lb on the New York exchange. Tight supplies in Vietnam and lower yields in Brazil are contributing to market volatility. Additionally, domestic prices in Vietnam surpassed VND 120,000/kg earlier this week.

Coffee contributes to low single-digit growth for Nestlé. With continued sales momentum for Nescafé, Nespresso, and Starbucks-branded products, Nestlé reported total sales of CHF 22.1 billion (US $24.2 billion) – a decrease of 5.9% on the previous year.

Luckin Coffee unveils China’s largest coffee roastery. The chain’s new US $120 million roasting plant in Kunshan, China covers 53,000 square meters, and is expected to roast 30,000 tonnes of coffee every year. The new facility adds to its existing plant in Fujian – allowing for total annual production capacity of over 45,000 tonnes.

Japanese chain % Arabica to establish global headquarters in Dubai this year. The company operates 189 stores in 24 different markets – and says the new Dubai head office will help with further international expansion in the coming months.

Fri, 26 Apr

Mayorga Coffee’s Eduardo Choza gives exclusive interview following 2024 US Roasting Championship win. In the interview, Choza said he was “here because of the producers, the staff we work with, my family, and my culture”. Choza has been a vocal representative of the Latino community in specialty coffee, and a key part of Mayorga’s mission to raise awareness about the issues that producers face in Latin America. He will go on to represent the US at the World Coffee Roasting Championship in Copenhagen in June.

Uganda Coffee Development Authority reports sharp decline in March coffee exports. The country’s coffee exports dropped to 329,686 60kg bags last month compared to the same period in the previous year. Robusta exports declined by over 33%, while arabica exports dropped by more than 30% – largely attributed to smaller harvests and shipping container shortages.

Tallinn Coffee Festival to start 27 April. The eighth edition of the Estonian festival celebrates coffee culture in the Baltic States – and will include the 2024 Estonian Latte Art and Cup Tasters Championships. Last year’s event attracted more than 4,600 visitors, with more expected to attend this year.

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

Mon, 15 Apr – Contact Coffee releases UK’s “strongest” coffees. Boasting an impressive 1,293mg of caffeine per 12 fl oz of brewed coffee, the Red on! blend incudes 100% robusta beans from India’s Badra Estate.

Wed, 17 Apr – Spinn unveils its next-generation espresso maker. The Spinn 2 is an all-in-one espresso, coffee, and cold brew maker which uses innovative centrifugal technology.

Thu, 18 Apr – Ethiopia opens doors to direct trade with international buyers. Africa’s largest coffee producer recently revised its rules to permit foreign companies to directly purchase coffee from farmers and co-operatives. This move is part of the government’s efforts to liberalise its economy, marking a significant shift in its approach to coffee trade.

Fri, 19 Apr – Price of latte in UK high street coffee chains hits over £5 (US $6.26). The price of a medium latte at both Starbucks and Black Sheep Coffee are over £5, with Costa Coffee, Joe & the Juice, and Caffè Nero also coming in close.

Fri, 19 Apr – Circle K discontinues Sip & Save beverage subscription service. The subscription was introduced in May 2021, but the convenience store chain says its shifting its focus towards app promotions and Inner Circle rewards programme instead.

Thu, 18 Apr – Saudi Arabia’s Barn’s achieves 700-store milestone ahead of scheduled global expansion. The chain, owned by the Al Amjaad Group, aims to reach 800 stores by the end of 2024 and 1,000 globally by 2030. Barn also plans to open its first international outlet in Bahrain later this year.

Photo credits: Mayorga Coffee