Over the last decade, I have had the privilege of watching the US retail coffee market unfold and it has been quite a journey. Today, I invite you to sit back, relax and open a can of your favourite coffee as we reflect on where the market has been, where it is now and where it’s going next. 

RTD coffee was first introduced in the US in the 1950s but didn’t fully resonate with consumers until forty years later. In the mid-1990s, an icon was born: the Starbucks bottled Frappuccino. This sweet, creamy, indulgent coffee beverage set the tone for what would be the RTD coffee space for over two decades. 

The early 2000s saw a surge in the popularity of RTD coffee, with consumers increasingly interested in convenient on-the-go coffee options to fit busy lifestyles. Companies such as PepsiCo, Coca-Cola, and Nestlé began to invest heavily, launching products and acquiring existing brands. This helped the market nearly double from USD $450 million in 2001 to $850 million by 2005 (market size of canned and bottled RTD coffee from 2001 to 2015. Statista.com. 2017, February). 

By 2013, the market was valued at $1.5 billion (per Nielsen) and was still exhibiting decent growth rates. But change was in the air. Consumers were becoming more health conscious and seeking alternative canned or bottled coffees that offered less sugar, less dairy and more coffee-forward flavour. Enter cold brew. What many predicted to be a passing fad quickly exploded into a multi-million-dollar segment of the category that transformed the RTD coffee landscape. 

Cold brew has proven itself to be more than just a fad and has gained market share currently at over 20% of the total RTD coffee market. In just ten years it has gained nearly a quarter of an entire category. In fact, in recent years we have seen multiple variations: flavoured, nitro, dairy alternatives and most recently the explosive growth in multi-serve (32 ounces or above) cold brew coffee. 

What does the future hold? As consumers become increasingly educated about coffee and interest in new products grows, we expect to see impressive year-on-year growth and – importantly – increased opportunities for brands. Here are three trends I think you should keep an eye on: 

1. Multi-serve momentum carries on. Multi-serve coffee has been on the market for a decade, but its popularity exploded during the pandemic. As consumers have begun to realise they can get great coffee at an affordable price to enjoy at home, expect this segment to see even more growth in the coming years. 
2. Natural energy will continue to steal share. With younger consumers becoming increasingly proactive over their health and wellness, they are turning to more ‘natural’ products for cleaner ways to consume food and beverage. This creates an opportunity for more coffee-based ‘energy’ drinks to steal share from the traditional products in this market. 
3. Private label potential. Private label coffee is sometimes equated to lesser quality. Yet consumers have started to see the potential across categories in private label and coffee is no exception. As shoppers become increasingly cost-conscious and aware of the premiumisation of private label coffee, they will start to seek out these products to fill a gap as a cost-effective solution. 

• Stacy DeMars is marketing manager for Finlays Americas, a division of Finlays, a leading independent B2B manufacturer and supplier of tea, coffee and botanicals.

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As part of its annual Global Beverage Trends Report, B2B tea, coffee and extracts supplier Finlays has outlined five key trends that are predicted to impact the beverage industry over the next twelve months (and beyond). Finlays’ top global beverage trends for 2024 are:

• Fast Fad-sion — the ‘fad’ trend cycle in consumer behaviour represents the rapid rise and fall of popular trends, often driven by social media and influencers. From viral coffee concoctions (remember Dalgona coffee during pandemic lockdowns?) to ‘the next big ingredient’ in wellness, consumers embrace and move on from these trends swiftly. Finlays notes this presents both opportunities and challenges for beverage companies, which must stay nimble and be ready to innovate and adapt to ever-changing consumer preferences.
• Hyper Targeted Health — technology and data offering customized health solutions have revolutionized consumers’ attitudes to health and personal wellbeing. Individuals now have access to precise insights and recommendations tailored to their unique needs, from personalized nutrition plans to fitness routines and optimising mental performance. In the beverage sector, consumers can receive personalized tea blends and coffee roasts, utilizing data-driven recommendations to meet their health goals. (This also includes customizing additives, especially dairy-free ones such as almond milk and oatmilk.) “This empowers individuals to prioritize a holistic approach to their wellbeing, incorporating healthy beverages into their routines in place of traditional tablet-based supplements.”
• Statement Spending — within this trend, “consumers’ personal identities and values influence their purchasing decisions and shoppers seek products that align with their self-image and beliefs. For example, “individuals opt for artisanal, locally sourced coffees to showcase their support for sustainability and small-scale producers. While those seeking a health-conscious image may gravitate towards organic smoothies and wellness teas.” To cater to this trend, Finlays says brands must focus on authenticity, sustainability, and individual expression.

•  Need for Speed — in the beverage industry, simplified customer payment processes are gaining momentum. “Coffee shops are using mobile apps to allow customers to order and pay in advance to reduce wait times, and consumers can get craft beer and speciality coffee delivered directly to their door via subscription services.” It’s no longer just the quality of a product which will win a brand the edge over its competitors, it’s also the convenience and speed of its delivery. Finlays believes brands can stay ahead by adopting innovative solutions that reduce spending friction for consumers – whether that’s greater access to products online, ease of delivery or speed of preparation.However, Matthew Barry, senior beverages analysts has spoken on several occasions about the path coffee shops must take following the pandemic and amid concerns of an impending recession (which, thankfully, keeps getting ‘pushed back’): they must either offer speed/convenience or experience. While many consumers want to ‘get in and get out’ with their coffee or tea (hence the rise in mobile orders and shores retrofitting their interiors to increase space to accommodate the growing number of mobile orders), others want an elevated in-store experience either through enhanced offerings, the look, feel and ‘vibe’ of the store, and of course, superior customer service.
• Actively Green — in today’s consumer landscape, brands must adopt proactive sustainability strategies that reflect increasingly green customer demands, which is certainly not ‘new news’. This has shifted from merely ‘reducing impacting’, to becoming ‘zero impact’ or even promoting regeneration/carbon negative. Finlays explains that collaborating with suppliers that offer full supply chain transparency is crucial for understanding environment impacts, gaining consumer trust and promoting environmental causes. “Effective communication of ethical credentials, encompassing charitable initiatives and transparent metrics such as carbon output, is essential to resonate with today’s conscientious consumers.”

Commenting on the report, Finlays’ director of strategy & insights, Sian Edwards, said: “The beverage industry shows no sign of slowing down. Health, sustainability, and the thirst for innovation continue to be driving forces behind category development and high rates of launch activity. Our top trends for this year highlight the need for beverage operators to tune into consumers and be highly reactive to their needs. More than ever, working with trusted partners who can provide support for innovation is vital to accessing these high growth opportunities.”

To download Finlays’ full Global Beverage Trends Report 2024 click here.

I wish everyone a healthy new year filled with joy, peace, prosperity and certainly lots of great coffee and tea! Cheers!

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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The report, which details key trends in new seasonal beverage flavours and formats across 14 key European markets (including Belgium, Denmark, Finland, France, Germany, Ireland, Luxembourg, Netherlands, Norway, Poland, Romania, Spain, Sweden and United Kingdom), finds that despite the typical need for ‘winter warming’, iced beverages now account for 23% of all festive/holiday season new-product launches — with hot beverages comprising the balance (77%). The Benelux and German markets lead the way in iced beverages, with 50% and 45%, respectively, of launches in those regions. Indulgent brown and spiced flavours remain essential for the holiday season with an increase in iced frappe formats as cold beverages become a year-round menu item.

For Winter 2023, seasonal beverages continue to be a key trend on menus to deliver excitement and novelty for consumers while driving in-store traffic for foodservice operators. Per Kerry’s Art of Taste & Nutrition: Festive Edition, the top three festive trends this year are:

1. Flavour Evolutions: Consumers are craving new and adventurous flavours, but they are wary of spending too much on something they might not enjoy, so they do not want anything that seems too ‘out there’. To meet this need, brands are using well established tastes but getting creative with naming to convey a more exotic and seasonal offering. For instance, instead of simply calling the flavour ‘orange’ the flavour profile has evolved to ‘mandarin’ or ‘clementine’. This has the bonus effect of making the product seem more premium.
2. Warming Seasonal Flavours: Foodservice operators are catering to the season with the addition of warming winter spices and indulgent brown flavours. Joined by the always popular caramel, chocolate and toffee, local seasonal favourites like cinnamon, cardamon and gingerbread enhance the occasion.
3. Delightful Indulgence: The holidays can be a stressful time for everybody so brands are spotting an opportunity to create a relaxing ‘feel-good’ moment in their customer’s day. The report observes a rise in flavoured hot chocolate, mochas and delicious frappes for that added ‘treat yourself’ indulgence. Elevated toppings, such as flavoured cream, delicious sauces and tasty biscuit/cookie and chocolate inclusions, add a sprinkling of festive magic.

In terms of festive flavours, the report, which analysed 250+ 2023 winter beverage launches, shows that similar to the past two years, chocolate still leads the way, with gingerbread a close second:

Top Five Festive Flavours

1. Chocolate (14%)
2. Gingerbread (13%)
3. Caramel (7%)
4. Toffee (7%)
5. Cinnamon (5%)

Past Festive Flavour Favourites 2022 2021

1. Chocolate Chocolate
2. Gingerbread Gingerbread
3. Caramel Caramel
4. Hazelnut Orange
5. Cinnamon Cinnamon

When choosing which type of beverage to be the base for the festive flavours, the latte far outranks other beverages (although it seems odd that the mocha is last while chocolate is the number one flavour since mocha is chocolate and coffee…):

Top Beverage Platforms

1. Latte (47%)
2. Hot Chocolate (22%)
3. Frappe (9%)
4. Hot Tea (7%)
5. Mocha (3%)

However, while consumers may indulge in limited-edition festive flavours during the holiday season, the Art of Taste & Nutrition: Festive Edition also reveals that many consumers are being mindful of their sugar and/or calorie intake.

Commenting on the new report, Daniel Sjogren, vice president of foodservice for Kerry Europe, said, “Our research shows that the shift toward simultaneously enhancing both indulgence and nutrition has influenced menus across Europe this festive season, and in fact far more noticeably than ever before. With many foodservice operators still searching for ways to translate these trending recipe advances into their menus, for the time being this trend is being driven predominantly by leading innovators.”

“The big challenge for foodservice beverage product developers going forward is maintaining appealing, indulgent beverage flavours while also reducing sugar and calorie content,” explained Sjogren. “These sugar-reduction efforts will pay off decisively by also improving sustainability credentials and success in this area. This is particularly helpful in reaching the mainly younger consumers who prioritize sustainability as a key purchase driver.”

To download the 2023 Art of Taste & Nutrition: Festive Edition report, click here.

Whether hot or cold, merry festive beverage indulging! Happy holidays and best wishes for a joyous, peaceful and healthy New Year!

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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A new report from market research firm Circana, formerly IRI and The NPD Group, reveals an increased consumer appetite for specialty coffee, teas, and donuts as many employees return to the office post-pandemic. 

The data highlights a 4% upswing in traffic for gourmet coffee and tea quick-service restaurants (QSRs), and a 3% rise for donut quick-service restaurants in September 2023, compared to the same month in 2022. Additionally, case sales by leading broadline distributors for quick-service gourmet coffee and tea operators rose by 15% in September versus the year prior, pointing to elevated consumer demand. 

The rise in popularity of these specialty items is not only reflected in traffic and servings, but also in the expansion of quick-service restaurants selling these gourmet offerings. Unsurprisingly, driving the trend are gourmet coffee and tea shops, which, per Circana, witnessed a surge of 3,500 new locations in March 2023 compared to March 2022 as retailers catered to growing consumer demand. 

“We’re seeing a notable increase in interest in these specialty items as consumers opt for on-the-go beverages and snacks while rediscovering their morning routines,” said David Portalatin, senior vice president and industry advisor, food and foodservice, Circana, in a statement. “With a rising number of employees returning to the office post-pandemic and the fall season, gourmet coffee, tea, and donuts offer a small sense of indulgence and convenience for busy consumers.” 

The analysis from Circana found that specialty coffee segment (which included various flavours and lattes) experienced a 4% rise in popularity in September compared to the same month last year, emphasising consumers’ desire for new and unique taste experiences. Nearly half of all gourmet coffee, tea, and donut consumers (47%) purchased a pumpkin-flavoured coffee in September, highlighting the pivotal role of seasonal, limited-time offers in capturing consumer attention and loyalty. 

The pumpkin spice latte has become a staple on coffee shop menus around the world and spurred many other pumpkin spice beverages. Fans crave the limited-edition autumnal flavour so much that rather than debut in the fall, pumpkin spice beverages hit coffee shops, cafés and QSRs in August, and the release date seems to move up each year. (See Pumpkin spice and everything nice…). 

The report noted that energy drink purchases are also on the rise, with many consumers looking for a pick-me-up as they readjust to their daily routines. Servings of energy drinks at quick-service coffee and tea restaurants were up 55% for the three months ending in September, compared to the same time period last year. 

Circana’s quick-service restaurant insights unveil shifting consumer preferences, which is good news for foodservice operators in all segments (coffee shops, cafés, QSRs, etc), many of which are still struggling to rebound post-Covid. The transition from ‘fall flavour’ to ‘holiday flavour’ beverages began in early November with returning favourites like peppermint mochas, sugar cookie or eggnog lattes and gingerbread chais debuting on menus. In January, many foodservice outlets will switch to their ‘winter beverage offerings’, which tend to boast various turmeric and cardamom coffee and tea drinks. I am curious to learn if this ‘specialty beverage in the morning’ trend – all of which are higher ticket items – will continue through the holidays and into the new year. 

All this talk about specialty limited edition beverages has me jonesing for a festive coffee, but which one to try… 

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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Last week I visited Indonesia with a group of international journalists, organised by ofi (formerly Olam) to learn about the green coffee supplier’s regenerative practices and decarbonisation strategies in Aceh (12 hours by car from Medan). ofi is one of the top three suppliers of green coffee globally and operates in 18 growing origins across Africa, Asia, Central and South America. ofi has been in Indonesia since 1996, and today buys coffee, cocoa, nutmeg, and black and white pepper from more than 400,000 farmers, collectors and suppliers throughout the archipelago. Presently, ofi exports Arabica and Robusta, and has a combined market share of approximately 15%.

ofi’s Coffee LENS 2022 impact report (published in November) noted that in 2022, the company introduced regenerative land practices to an area equivalent to 47,000 football (soccer) fields, increased the share of renewable energy in its processing facilities to more than 50%, and achieved over 81% traceability to farmer/farmer group/regional level. ofi’s availability of sustainable coffee stands at more than 40% (directly sourced).

On the coffee farms throughout Aceh, we observed farmer training sessions on agroforestry, composting, and other regenerative practices in action (including fertiliser made from fruit that is safe for human consumption). We also participated in a mock polygon mapping, which ofi has been doing as part of its sustainability practices but this also meets EU requirements for traceability and environmental due diligence. We then had the opportunity to learn about post-harvest processing at wet and dry mills, and cup a variety of coffees (some were truly amazing, at least according to my limited palate).

The trip fell amid the peak of the second harvest period, when farm activities, post-harvest practices and processing were in full swing. During this time, ofi hosts its annual Farmers’ Day celebration, which, designed by its Indonesia team, acknowledges and rewards the efforts and engagement of the farmers in ofi’s supply chain in Aceh. Activities will include games, cultural displays, and distribution of premiums to the farmers. One of the more interesting awards was given to farmers in the cooperative who have downloaded – and are using – a banking app, in order to encourage more farmers to do so.

It is always beneficial to be able to interact with the farmers and politely pepper them with questions about being a coffee farmer – the rewards and challenges – what it is like working with new technologies and learning new coffee-growing methods and techniques, and of course, implementing the growing number of sustainability strategies, as well as to see how they operate and often, where and how they live (unlike many coffee-growing regions, in Indonesia, the farmers do not live on their coffee farms). And while speaking with the farmers, their children are most often not far behind, eyes wide open with curiosity. Some of the brave will come up – always in a group, never alone – and ask questions in the English they are learning. Then they giggle and run away, which is adorable.

On the occasion of ofi’s third Farmers’ Day, our group was treated to a special performance by the children, choreographed just for us. It was beautiful, fun and heartwarming.

When we visited Aceh, the prolonged and heavy rains had delayed the bulk of the harvest (some coffee had been picked), and while stressful for the farmers, on this special day celebrating them, the joy on their faces was evident, knowing that they were being appreciated for their efforts.

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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We were given a tour of the facility, with its state-of-the-art materials and component testing laboratory, dedicated processing area and pilot manufacturing facility, which allows the company to simulate its customers’ factory conditions as well as test shelf life in temperature controlled stores. Eviosys was also proud to show off the manufacturing process for its Ecopeel innovation, which offers customers a lighter, easy-to-open packaging format. Eviosys also had on display its Orbit and Horizon technology, the former which allows for easier-to-open screw top jars, and the latter an impressively thin and unobtrusive resealable metal lid, allowing for a 100% metal packaging format and therefore improved recyclability.

The latter piqued my interest especially, in regards to tea and coffee applications. I have seen a fair amount of coffee, particularly instant coffee, sold in tins on the shelves, but with plastic lids. While this is better than a completely plastic tub, and certainly a step in the right direction, I can’t help but think they are so close to a truly sustainable option. The metal lid could be recycled alongside the tin, and made into something new again and again, with no degradation of quality. Meanwhile, plastic, while certain types are recyclable, the quality and application opportunities decrease the more it is done so. The visual appeal of an all metal can is also something that offers further benefit. Companies such as Eviosys can offer myriad ways to finish and decorate metal packaging, from contrasting gloss and matte areas, embossing, debossing, and holographic foils, as the company demonstrated yesterday. The image attached to this blog is one of the promotional examples Eviosys gave of its capabilities.

Specialty tea and coffee in particular, already utilises metal packaging to some extent, as it offers valuable resealable capabilities, as well as a quality feel. Tins have the fabulous quality of not just being infinitely recyclable, but infinitely reusable in their original format. I can’t be the only one who has an extensive collection of various tins alongside my hoard of jars, for storing biscuits, grains, nuts, lentils, anything from a packet that I have opened and want to keep stored fresh, tidy and stackable.

Chatting to Isabelle Le Graët, Eviosys marketing, communication and sustainability manager, yesterday, she touched on a report that Eviosys is due to publish soon about how consumers use their metal packaging and the role they play within the home. The report showed that 80% of consumers keep tins after purchase. This presents a phenomenal opportunity for brands to not only enter consumers’ homes, but to remain in them for potentially years to come, their packaging being got out of the cupboard and reused time and time again. Every time a consumer uses a brand’s tin, they are being reminded of the brand, the product, hopefully the enjoyment they got out of drinking the tea or coffee that the tin contained, and perhaps even the fond memory of the receipt of the tin if it was a gift. Highly decorative tins are much more likely to be kept and reused, and where the specialty tea and coffee industry is striving to offer quality and a memorable experience to consumers’ interaction with their products, a beautiful and repeatedly functional tin is an exciting as well as sustainable opportunity to expand this objective.

The concept has already been utilised in some categories for refillable solutions, where consumers buy a tin, and then going forward only need to buy bags or packets of their products to refill their tins, or some places even have opportunities for customers to bring their tin to be refilled. This is already beginning to have applications in the tea and coffee industry.

It will be interesting to see how metal packaging applications evolve within the tea and coffee segment, particularly for specialty, and how brands will utilise what is a great opportunity for memorable branding, consumer experiences, and unparalleled sustainability.

• Kathryn Brand, associate editor, Tea & Coffee Trade Journal.
  Keep in touch via email: kathryn@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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On 9 November, the keynote speaker at the Canadian Coffee Association’s (CAC) conference, Daniel Lamarre, vice-chair of the board, Cirque du Soleil and author of Balancing Acts: Unleashing the Power of Creativity in Your Life and Work, challenged the coffee industry to both identify and embrace their innate creativity. During this dynamic conversation, he shared several examples of how creativity was an essential element of the company’s success and its role in reviving Cirque du Soliel after the mandated shutdown during the pandemic.

Ideas, on their own, are not enough, stressed Lamarre, as ideas will fall flat without a sense of purpose and direction. Advanced artificial intelligence can use algorithms and data to populate ideas for products and services. However, where artificial intelligence fails is in distinguishing which of these ideas should be put to fruition.

The human element is required to determine which of these concepts aligns with the purpose and brand of the business and to help put the strategy in place to move the idea into reality.

The core of creativity is not an artistic pursuit but about developing and implementing something that was not there before. This includes facing challenges and investing the time to discover new solutions. True creativity requires collaboration, listening, debating, paying attention to your intuition, and being willing to move quickly. “In an accelerated world, you cannot predict everything and eliminate all risks,” shared Lamarre. It is about going beyond the idea and investing the time to discover your purpose and allow that to drive you.

“Creativity is about leaning into, not just advertising, agility, problem solving, all of those things are important in a sea of change, to be able to navigate that and have a creative advantage is massive,” said Tracey Cooke, SVP, marketing and commercialisation, head of the Centre of Marketing Excellence, Nestlé, during a panel discussion at the CAC Conference. “There are types of tasks that artificial intelligence can do well; it is all about embracing it for what it can unlock. However, generating ideas and implementing the strategy are areas that require human expertise.”

Integrating artificial intelligence and automation into an operation will not extinguish the need to be creative. In fact, it might give businesses the drive to adopt a more creative mindset to ensure their operation remains unique and relevant. By allocating automation to standardised tasks, human resources can focus on tasks that require deep thinking and, in turn, present the opportunity for more innovation and increased alignment with brand values and purpose.

• Anne-Marie Hardie is a freelance writer, professor and speaker based in Barrie, Ontario. She may be reached at: annemariehardie1@gmail.com.

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I was honoured to moderate yesterday’s morning events at the UN headquarters, which, this year, featured a panel of leading experts in the coffee sector discussing the urgency of preserving and protecting the future of coffee through regenerative agriculture. The panelists also appealed to the international financial community (some of whom were in the audience) to invest in the transition to regenerative agriculture through public and private partnerships. Panelists included: Vanusia Nogueira, executive director, International Coffee Organization (ICO); Jeffrey Sachs, economy professor at Columbia University (NYC) and co-chair Regenerative Society Foundation; Oscar Schaps, president of the Latin America division of StoneX Financial Inc. and commodity trader; and Glaucio De Castro, president of Federação dos Cafeicultores do Cerrado Mineiro.

Andrea Illy, chairman of illycaffè and co-chair of Regenerative Society Foundation, kicked off the panel discussion reminding the audience of the impact the low and volatile coffee prices have had on farming communities. He explained that improvements the ‘caffeculture’ has achieved in recent decades through the process of de-commoditization – improvements that still have a long way to go before achieving economic, social and environmental sustainability – are at risk of being reversed due to climate change. Regenerative agriculture, Illy said, has proven to be more resilient and to produce both environmental and health benefits. “Today we have proof that this model works, it is essential to implement it.”

Glaucio De Castro, president of Federação dos Cafeicultores do Cerrado Mineiro (Brazil) is a pioneer of regenerative agriculture. He began transitioning to regenerative agriculture several ago, and although he admits it is challenging and changes and tweaks were – and still are – De Castro sees the benefits and believes regenerative agriculture is the “[way to go].”

While regenerative agriculture is the agreed upon model by the panelists, it is costly — it requires investments of approximately US $10 billion over the next ten years. Of course, producing countries do not have sufficient economic-financial capacity, so it is necessary to create private and public partnerships that can generate international supply chain funds (this challenge is nothing new as governmental, intergovernmental, non-governmental and private stakeholders have been involved or approached for many years).

“To have a future in coffee we need to think about the planet and the people involved,” said Vanusia Nogueira, executive director, ICO. “It’s part of our responsibility as leaders of this sector to look for alternatives to provide good life to the producers and their families and also to take care of our planet. It’s clear that the challenges are big enough to not be addressed individually but in a collective and pre-competitive effort. Together I believe we can find impactful solutions.”

Economist Jeffrey Sachs, who is an internationally recognized leader in the field of sustainable development, said that true economic development aims to transform our society by creating sustainable increases in wellbeing through investments in human capital, physical infrastructure, and business enterprise, all with attention to the preserve natural capital on which our economy and survival depend.

“My morning coffee will never be grown in Central Park but will continue to be grown in Kenya, Rwanda, Uganda, Ethiopia, Guatemala, Colombia, Vietnam, and elsewhere. A well-managed developing country with access to major markets and international finance can grow very quickly,” Sachs continued, noting, “after decades of severe human-induced environmental degradation, we need to transform our economies to the core principles of sustainable development and the regeneration of natural capital. The most basic principle of all is to act for the common good. This means that we must start from cooperation within our communities, our nations, and globally.”

Andrea Illy concluded the panel discussion explaining that two things are needed for adaptation to climate change: improved agronomic practices and the renewal of plantations with more resistant varieties. “Regenerative agriculture seems to provide an answer to the first need, and I hope that this will become a model for the whole ‘caffeculture’. As far as renewal is concerned, we need to speed up considerably. All this requires supply chain investments that cannot be delayed any longer.”

The 8^th Ernesto Illy International Award ‘Best of the Best’ and ‘Coffee Lovers Choice’ winners were announced at an evening gala at the New York Public Library. The 2023 ‘Best of the Best’ winner is São Mateus Agropecuária from Brazil and the 2023 ‘Coffee Lover’s Choice’ winner is Finca Danilandia from Guatemala.

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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Jordan Moore, director, emerging beverages at market research firm, NIQ Consumer & Category Outlook, noted that, although inflation may be decelerating, prices are still trending higher. In fact, CPG inflation has been well above the general inflation average in the US. “Consumers are feeling the pinch, with buying power significantly eroded,” she said, adding that consumers are spending 33% more at the grocery in the past 3+ years.

Any growth is largely inflationary as dollar growth is slowing, and shipments are down, but costs are higher. Tea volumes have been affected by the double-digit price increases. “RTD tea is still outperforming packaged tea, both black and green, with green experiencing the largest drop,” said Moore.

Gary Hemphill, managing director of research at the Beverage Marketing Group, echoed Moore’s comments, explaining that after the pandemic, consumer confidence dropped sharply. “US beverage market growth has been soft in 2022 and 2023 after a pandemic-induced performance rebound in 2021. Revenues have generally outpaced volume growth — a trend that has accelerated since 2021 due mostly to high inflation.”

Refreshment beverages have outperformed the overall beverage market, but volume performance has been soft the last two years, with most refreshment beverage categories experiencing slower growth in 2023. Hemphill said that the total tea category has been soft in recent years as the overall category has experienced modest declines. RTD tea returned to volume losses in 2022 and 2023, after pandemic recovery-based growth in 2021, but he shared, “the category remains well-positioned from a health and wellness perspective.”

It’s not ‘new’ news to say that health and wellness are key market drivers. Hence, beverage categories with health wellness attributes are outperforming those without. “People want healthier refreshment; caloric intake from refreshment beverages has been steadily declining over the last decade,” Hemphill commented, noting that “the diet segment of RTD tea is one of the best developed in all liquid refreshment beverage categories because it also includes unsweetened product.”

As consumers migrate to healthier options, they want more variety, and RTD tea offers that. The bulk of the RTD tea category is comprised of mainstream brands – PepsiCo/Lipton, Arizona and Coca-Cola are the leaders in the RTD tea category with the three combined accounting for more than half of the RTD category – however, both premium and specialty tea have made slight share gains in recent years, as more innovation is coming at the high end of the market.

“Innovations have played a key role in RTD tea, although much of the recent innovation has been in tea-adjacent categories,” Hemphill explained. “Much of the growth of RTD tea has been hived off into separate categories such as kombucha and mate/guayusa, but there are also other attempts at innovation such as cold brew and even herbal tea-based wellness soda.”

He noted that increasingly, there is an overlapping of alcohol and no-alcohol categories. “RTD tea is no exception, providing the foundation for alternative adult beverages such as hard teas and cannabis-infused tea drinks.”

Hemphill stressed that competition in refreshment beverages is fierce with innovation coming from within categories along with new categories emerging.

Beverage-wise, consumers have more than ever to choose from, so for RTD tea to successfully compete, brands must remain innovative and continue to meet consumers’ changing demands and needs.

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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I was out of town so I was unable to attend the show on the professional’s day – the first day – so instead wound up mingling with consumers the day I attended, which was packed and chaotic, not my ‘cup of coffee’ (pardon the bad pun). Consumer attendees were excited to sample the many offerings ranging from lattes and cold brews to chai teas and matcha to chocolate, and even coffee cocktails. The mix of new and returning exhibitors included Onyx Coffee, Parlor Coffee, Blueberry Roasters, Joe Coffee, Blank Street, Consulate General of India, De’Longhi, ansa, Aeropress, Dona Chai, Rishi Tea, Matcha Direct, Oatly, Hotel Chocolat, Raaka Chocolate, Bailey’s and Smirnoff, amongst others.

Newcomer Café Carrizal was offering samples of single origin Dominican coffee, while Wild House Coffee, another first timer, highlighted its rare Himalayan coffee. Bee 10 Coffee, another new exhibitor, is actually a bee farm, but was showcasing a line of instant coffees blended with different varieties of honey – definitely a unique taste and not for everyone – but it will likely appeal to consumer segment that are fans of 2-in-1 instant coffee mixes.

Bodum, long respected for its French presses and numerous other coffee-brewing devices and accessories, touted its new line of roasted coffee, both whole bean and ground. The company quietly launched it in 2022 but only in select markets, but is now making the line widely available.

The NY Coffee Festival also offered a roster of education sessions across of variety of topics such as Women in Coffee: How to Prioritize Gender Equity across Coffee Supply Chains, Mindful Morning Coffee, Matcha Made in Heaven and Improve Your Brews.

Jeffrey Young, CEO of Allegra Group was pleased with this year’s attendee turnout. “There’s turnover among exhibitors, as many companies are still struggling following Covid, but we do have a several new exhibitors. Attendance is up over 2022 and up slightly from pre-Covid numbers.”

Continuing its charitable component, 100% of profits from the New York Coffee Festival are donated to Project Waterfall each year, which, in partnership with NYC-based charity: water, delivers life-changing water projects in coffee-growing regions. Allegra reports that over USD $2 million has been raised to date. According to Allegra, this year’s event raised over $31k for Project Waterfall. To learn more about both charities, visit: Project Waterfall at projectwaterfall.org and charity: water at charitywater.org.

The New York Coffee Festival will return in 2024, with dates TBA.

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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Tea already has a ‘health halo’ with 54% of UK consumers believing that green tea has a positive impact on their health (per GlobalData Plc, 2022). Functional teas take this one step further and combine tea with botanicals and fortifications to offer a specific benefit and create products that deliver a compelling health proposition for consumers.

Super teas arrived in the UK in 2015 when Tetley brought out the first ever range of EFSA (European Food Safety Authority) backed Super Green and Super Fruit teas. This paved the way for other brands and supermarket own brands to capitalise with new products being put on the supermarket shelf at a faster rate than in any other tea sector.

And it’s not just physical health — post Covid, consumers are increasingly seeking products that promise psychological or emotional benefits too. Claims relating to sleep or stress management attract the most activity, with one in ten new products using these claims according to Mintel’s Tea and other Hot Drinks Report, 2022.

How can brands capitalise?

The key to capitalising on this trend is for retailers and brand owners to understand the top claims and flavours that appeal to consumers. The traditional black tea market is still significant with over 85% share, but consumers are seeking variety when shopping this category and have a higher preference for healthy beverages than ever before. With a slightly higher price premium than other ‘tea’ products, not only do functional teas add choice to the fixture, but they also help to drive value into the category.

What’s next for functional tea?

In my view, this is just the start of the super tea trend. As consumer tastes evolve and demand for functional food and beverage heightens, there is huge opportunity for retailers to increase sales by looking beyond what is happening now and asking what will happen next. Tea – with its health halo – will be a mainstay, as will botanical infusions… but inspiration can be found in other categories and markets, where emerging ingredients such as mushroom tea, protein tea and adaptogens like ashwaganda are increasingly popular.

The key, as ever, is to join forces with an expert partner, who can help you stay ahead of the curve and tap into the extremely exciting opportunities within the functional beverage space.

• Rebecca Coath, category manager at Finlay Beverages, analyses the rise of functional teas in the UK and where the trend might be going next.

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While innovation and new/upgraded technology are always key themes, similar to most exhibitions of late, the main theme was sustainable innovation, with exhibitors touting their sustainable/eco-friendly machinery and initiatives.

For example, Cimbria’s new SEA.IQ Optical Sorter is designed to recognise all defects and imperfections. It features cameras with integrated RGB, NIR and SWIR or UV working multifrequency to match multiple data collected during thousands of scans per second.

Goglio introduced a coffee capsule equipped with a degassing valve. This design makes it possible to immediately package fresh coffee without having to wait for the degassing process, which reduces storage times and preserves the aroma of the coffee. The capsule is also available in a 100% compostable version to meet the regulations being discussed in Italy and Europe, and is already certified as industrially compostable.

Mikafi, a Swiss startup, launched its electric tabletop roasting machine at Host Milan. The founders believe that in a world where sustainability, personalisation, and quality experiences are becoming more important, coffee roasting must be ‘rethought’. Designed for the HoReCa market, and in partnership with Thermoplan, the MikafiOne is a fully automated roasting system that uses AI and IoT that offers pre-programmed roast profiles – so non-baristas or inexperienced roasters can use it – as well as customisable roast profiles. “Anyone can roast the coffee, you do not need a roast master and it frees up the barista, said co-founder and CPO, Claudio Vögtli. He shared that the MikafiOne roasts 1 kilo of coffee, which enables businesses to offer a special roast daily in addition to their standard coffee assortment.

Caffe Vergnano was highlighting its ‘Women in Coffee’, which is the company’s women-focused sustainability initiative developed by CEO Carolina Vergnano. Launched in 2018 in collaboration with the International Women’s Coffee Alliance (IWCA), the initiative is aimed at supporting women working in small coffee plantations. The initial project in 2019 focused on the Dominican Republic, followed by Honduras beginning in 2020. This year’s project is a further evolution of the Honduras initiative, which will provide equipment for the library (that was built between 2021 and 2022) and a cafeteria. Proceeds from the Women in Coffee items – all pink – that are sold online and in WIC Cafés around the world, contribute to the project. For more information or to purchase items, visit caffevergnano.com.

After being decimated during the pandemic as stay-at-home orders were implemented globally, the office coffee service (OCS) industry is making a comeback this year. At Host Milan, OCS machine manufacturers exhibited a range of products that are stylish, fully automated, offer high quality beverages, and, most importantly, are durable, easy to use and easy to maintain. Bravilor Bonamat, Rancillo and Bunn were just a few of the companies that showcased the latest in OCS technology.

The 44th edition of Host Milan will be held at fieramilano from 17 to 21 October 2025.

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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Hosted in Islington’s Business Design Centre, London, it was great to see the coffee and tea industry so well represented at this scale of show compared to the other larger international events taking place at the moment. The show offered a great mix of big names such as Lavazza, Pukka and Sucafina, alongside the smaller-time roasters and newcomer businesses.

Elliot Gard, event director, commented, “One of my favourite things about Caffè Culture is bringing our fantastic industry together to share ideas, build new relationships, learn about the latest trends whilst reacquainting yourselves with old friends and colleagues for two busy days of invaluable networking.”

Alongside the 110 exhibitors, there was a speaker line up of over 40 experts, six of whom attended a panel discussing Supply Chain Sustainability. This included: Emma Haines, UK sales manager, Alegrano; Mandi Caudill, carbon project manager & lead ecologist, Falcon; Sarah Walker, sustainability officer, Origin Coffee; Catalina Gutierrez, co-founder, Cata Export; May Putman Cramer, change manager for sustainability, Sucafina; and Frank Turner, responsible sourcing manager, Taylors of Harrogate.

Catalina and Mandi begun by discussing what their respective companies’ main sustainability focus currently is. Catalina explained that pricing and nurturing connections along their supply chain is important, as stabilsing pricing creates loyalty and trust, and this not only leads to more sustainable relationships, but trust and accountability. Meanwhile Mandi revealed that Falcon currently have 20 different sustainability projects on the go, with lots of data and science driven initiatives. Its main objective is to consolidate how emissions are measured in the coffee industry, and find a common standard to hold companies to, rather than the current individualistic approaches which create a barrier for cross company comparisons and collaborations.

Emma added to this by explaining that access to finance is the main barrier for producer sustainability, alongside a lack of information and education on the issues. Communication at farm level and bringing the producers into the conversation about sustainability strategies is essential for the longevity and equality of the schemes.

Mandi agreed and commented that companies are making sustainability claims and expecting the farms to carry them out, despite the majority of emissions not even coming from the farm level of the supply chain. All of the responsibility cannot be placed solely on the farmer, especially when the vast majority of coffee farmers are living below the poverty line, pointed out Frank. For impactful sustainability practices to be implemented at origin, there needs to be a restructuring on how so much of our coffee is sourced to ensure security of farmer livelihoods.

This perspective of looking more holistically at the coffee supply chain was concurred by Sarah, who argued that we cannot just use technology as the solution, it can only delay or shift problems. She used the example of the development of bio-plastic; while a valuable innovation and substantially improved upon petroleum-based plastic, according to a study by University College London, if we were to replace all plastic we currently use with bio-plastic, in order to meet this demand there wouldn’t be enough land left to grow food. A longer term solution needs to be found. And this is the same with the coffee supply chain.

Frank asserted that we need to face up to the issues of the coffee supply chain and ask the uncomfortable questions if sustainable and long-lasting progress can be made to save the coffee industry for future generations.

• Kathryn Brand, associate editor, Tea & Coffee Trade Journal.
  Keep in touch via email: kathryn@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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The 2023 Gold Medal Tea Awards and the Sustainability Awards will be announced at the Chairman’s Dinner (T&CTJ will provide a list of winners and a review of the NATC after the event concludes). The Gold Medal Tea Awards celebrate teas from key producing countries, while the Sustainability Awards honour sustainability-focused projects and initiatives taking place at origin. Sustainability is definitely the theme of the week as the results of the second tea sustainability survey – Firsd Tea 2023 Sustainability Perspectives – have been tabulated and the results are now available.

Just a quick reminder, earlier this year, T&CTJ, in partnership with Firsd Tea, the US subsidiary of Zhejiang Tea Group, conducted a follow up to our late 2021/early 2022 tea sustainability survey. [For every completed response, a contribution was donated to 1% for the Planet, an international organisation whose members contribute at least 1% of their annual sales to environmental causes.] The original survey aimed to understand how professionals within tea and related industries (coffee, cocoa, wine) currently view sustainability efforts within the sector and their outlooks for the future. The survey picks up from our last one, exploring the following topics in depth:

• Progress on sustainability factors
• Worries about climate change
• Organic certification
• Current state and the future

We hope that this study offers insight into how the tea industry sees sustainability and encourages more investigation into opportunities for achieving a more sustainable tea sector.

I will not detail the full survey findings in this space but will touch upon a few. The survey revealed that most respondents now have an improved outlook on progress made in sustainability in the last ten years. They also view present-day efforts more favourably and predict an increased improvement trajectory in the next 10 years.

Furthermore, a majority of respondents in tea and related industries still agree that Organic Certification is the most important standard to consumers (84% in 2022 vs. 88% in 2023). However, the survey finds that now Non-GMO Certification is more important to consumers (58% in 2022 vs.81% in 2023) than Fair Trade (68% in 2022 and 2023).

To access the full report, Firsd Tea 2023 Sustainability Perspectives, click here.

If you have any questions or comments about the 2023 sustainability survey, please do not hesitate to contact me as we (T&CTJ and Firsd Tea) would welcome the feedback.

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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Although some may ‘flirt’ with other beverages, coffee is undoubtedly the preferred beverage in the United States (sitting above water), as National Coffee Association (NCA) president and CEO William ‘Bill’ Murray affirms, “coffee continues its reign as America’s favourite beverage, and we expect that to continue for many Coffee Days to come.”

Evidencing that statement, the NCA reports that Americans drink an estimated 440 million cups of coffee per day. Furthermore, Drive Research reports that 87% of Americans consider themselves somewhat or ‘full-on’ coffee-obsessed.

As we celebrate the upcoming ‘coffee days’, there is ample research supporting America’s obsession with coffee (if I recall correctly, the term – and activity – ‘coffee break’ was actually coined in New Orleans many decades ago). Drive Research (based on a nationwide survey of 1500+ people) finds that 74% (or 3 in 4) of Americans drink coffee every day, with 48% of coffee drinkers ‘limiting’ their coffee intake to 3 to 5 cups daily. The market research firm also reports that 32% of people purchase coffee from a coffee shop 1 to 3 days a week.

The NCA’s Fall 2023 NCDT (National Coffee Drinking Trends) report finds that coffee continues to bounce back from the Covid-19 pandemic, which did not affect overall coffee consumption but did impact out-of-home and workplace coffee. Cups per capita and cups per coffee drinker have held relatively steady since 2020 (1.7 and 2.8 respectively). Commissioned by the NCA since 1950 and now updated twice yearly, the NCDT report is the longest-running study of American consumers’ coffee drinking patterns.

At-home coffee consumption reached a high of 85% of past-day coffee drinkers in January 2021 data and has remained above pre-pandemic levels (82% in the current NCDT report). In-office coffee has rebounded to pre-pandemic levels — 36% of Americans report having an in-office coffee station, up from a pandemic low of 26% in January 2021.

The NCDT report further revealed that despite the many coffee preparation methods available, drip coffee makers are the most popular brewing method: 40% of past day coffee drinkers. The automatic drip method is followed by single cup brewers (27%), cold brewing (16%), and espresso machines (11%).

It is quite interesting to learn that cold brewing now ranks as the third most popular preparation method because cold brew was nearly unknown when the NCA began tracking it. The latest NCDT shows that cold brew’s popularity has skyrocketed up by 45% since January 2023 and 300% since 2016 (I wonder if the advent of pumpkin cream and pumpkin spice cold brews has anything to do with that… )

Other key findings from the Fall 2023 NCDT reveal that:

• Lattes are the most popular espresso-based beverage (consumed by 18% of Americans in the past-week) followed by espresso (16%) and cappuccinos (15%).
• 30% of Americans had flavoured coffee in the past week. Vanilla is the most popular, with caramel and hazelnut tied for second, followed by mocha.
• 81% of American coffee drinkers have coffee with breakfast, compared with 38% in the morning, 15% with lunch, 19% in the afternoon, 7% with dinner, and 10% in the evening.

When it comes to coffee roast preferences among Americans, Drive Research finds that 49% favour medium roast coffee, “appreciating its balanced flavour and aroma.” Meanwhile, 28% lean toward the bold and robust profile of dark roast, while 12% opt for the milder and more nuanced flavours of light roast. Curiously, 11% of coffee drinkers have no specific roast preference.

Further Drive Research insights note that:

• 40% of people drink two cups of coffee a day, while 9% of people drink 6 to 8 cups a day
• at 85%, retirees are most likely to drink coffee every day
• 41% of people prefer to drink their coffee black [Despite all of the coffee enhancement flavours available, 1 in 4 people prefer to drink their coffee black. Of all respondents surveyed, new moms and dads were most likely to consume black coffee (64%).]
• 49% of coffee consumers use normal sugar, whereas 34% of people prefer Stevia or similar zero-calorie sweeteners [Other coffee sweetener preferences include honey (18%), agave (9%) and maple syrup (7%).]
• 38% of Americans prefer coffee unsweetened
• 68% of people do not drink decaf coffee at all
• 18% of people strictly drink decaf coffee
• 56% of people agree that drinking coffee benefits their health.

So, whether celebrating National Coffee Day, International Coffee Day, or both, while indulging, I am reiterating my nearly annual suggestion this time of year for coffee lovers to engage in the lovely Italian gesture known as caffè sospeso. A caffè sospeso, which means ‘suspended coffee’ or ‘pending coffee’ in Italian, is a cup of coffee paid for in advance as an anonymous act of charity. The tradition evidently began in the working-class cafés of Naples, where someone who had experienced good luck would order a sospeso, paying the price of two coffees but receiving and consuming only one. A poor person inquiring later whether there was a sospeso available would then be served a coffee for free.

A wonderful charitable coffee concept every day, but especially during these celebratory ‘coffee days’.

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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In 2022, the Russian coffee market experienced a price shock, as the average price per cup jumped by 27% to 36%, the Russian issue of Forbes reported, citing local analysts. Although the price had steadily grown since 2019, last year’s hike was outstanding.

Russia consumes 1.5kg of coffee per capita, importing around 230,000 tonnes of coffee beans per year, estimated Marina Petrova, CEO of Petrova Five Consulting, a Moscow-based think tank.

Over the past several years, the consumption growth has been secured by multiple coffee-to-go chains, said Albina Koryagina, partner with a Moscow-based consultancy NEO-Center. These companies put a lot of effort into waking up the market – working on the brink of profitability for years – and eventually succeeded, introducing a coffee-to-go culture to large masses of the Russian population, she explained.

As a result, coffee has become a vital product for Russians, historically perceived as tea lovers, Koryagina said. For ordinary citizens, the price of coffee is an essential indicator of food inflation and the general state of play in the country’s economy. The Russian federal statistical service Rosstat calculates the monthly food inflation ratio valuing the coffee as high as gasoline, sausages and hot water supply.

Almost half of the coffee beans imported to Russia come from Vietnam, and nearly a quarter from Brazil. Both countries have not joined Western sanctions against the Russian economy, but imports suffered nonetheless.

Price matters

As Russia does not grow coffee, the price dynamics on the market are usually tightly linked to the Russian ruble’s exchange rate. In 2022, however, the correlation between these trends surprisingly disappeared, and they even went in the opposite direction. Between February and June 2022, the Russian ruble strengthened from 84 to USD $1.00 to 58 to USD $1.00, while coffee prices skyrocketed.

To some extent, this was associated with a hike in global prices, said Ramaz Chanturia, head of the Russian tea and coffee association Roschaicoffee. Low coffee harvests in Vietnam, Brazil and Indonesia contributed to this trend, he added.

A logistics crunch was another, likely much more important factor. Before 2022, almost all coffee was imported to Russia from Europe. Last year, the sanctions blocked this route, forcing importers to seek alternative supply schemes. Some options were found, but they reportedly appeared to be way more expensive, especially since leading global cargo carriers suspended working with Russia, and almost the entire country’s banking system is disconnected from the SWIFT network.

This year, imports are sustaining new blows. The Russian ruble has weakened by 26% this year as a result of a collapse in export revenues and growing budget spending, making it the third worst-performing global currency this year. During the last 12 months, the Russian ruble lost nearly half its value against the hard currency, notching a psychological barrier of 100 per USD.

As a result, in the next few months, Russian analysts anticipate a new price jump of around 20% to 25%.

Coffee changes taste

In this background, Russian retailers and coffee chains have to seek cost-saving solutions in order to keep their prices as low as possible.

Petrova said that the Russian coffee market is undergoing some big changes. She said that even Russian retailers like Azbuka Vkusa, normally focused on selling premium food, started selling blends with a 50% to 80% share of robusta, while in the previous year, this figure was never higher than 20%. There are also signs that Russian importers have abandoned arabica owing to low demand.

“Distributors’ stocks of high-quality raw materials are running out, and consumers will soon experience changes in the taste of their usual coffee-based drinks,” Petrova said.

The daily morning cup of quality coffee may well become an unattainable dream for a large portion of the Russian population in the near future, admitted Nikolay Vavilov, senior analyst of Total Research, a Moscow-based think tank.

In addition, a mass exodus of Western brands from Russia continues. Recently. JDE Peet’s announced plans to remove its tea and coffee brands: Jacobs, L’Or, Tassimo, Douwe Egberts, Pickwick and Senseo from the country.

The worst part is that all the negative trends hurting the Russian coffee market seem only to gain steam. Alexander Miller, a Russian independent economist, assumed that the Russian ruble could plummet to 130 by the end of the year, owing to an overall gloomy economic outlook. At the same time, Russian logistics companies complained that the external conditions remain harsh for their business, and they must be increasingly creative to keep the imports running.

It is yet to be seen whether the current crisis will lower the Russian coffee consumption figures, but this scenario also should not be ruled out.

• Vladislav Vorotnikov is a Batumi, Georgia-based multimedia B2B freelance journalist writing about the tea and coffee industry since 2012.

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There were ample exhibitors from across the speciality food and beverage sphere, from chocolate, cheese, spirits, and of course a sprinkling of speciality tea and coffee companies.

The ground floor was largely made up of more established companies, such as the English Tea Shop, a partner of the event, which, like almost all the companies exhibiting, had samples on hand for inquisitive visitors. Venturing upstairs I came across a couple of coffee roasters: Wales-based Bay Coffee Roasters had a great selection of its coffees on display, including project specific blends and roasts, and Rounton Coffee Roasters, who were sporting recent Great Taste Awards for six of its specialty coffee products, including two stars for Sparkling Water Decaf Coffee and Colombian Wilton Benitez Pink Bourbon Coffee.

It was also a pleasure to meet some of the many smaller, newer companies at the show many of which were part of The Start-Up Village, comprising companies trading under two years. QuirkyMonkey was launched only in November 2022, and came to the Speciality & Fine Food Fair to display its nootropic mushroom coffees, as well as its recently introduced mushroom hot chocolate. Darwin Fletcher, QuirkyMonkey’s founder, developed the idea for the company after discovering how nootropic drinks could support his focus throughout the day with his neurodiversity. The show presented a great opportunity for new companies, such as QuirkyMonkey, to place themselves in front of possible buyers and collaborators.

There was certainly a theme of health benefits and functionality at the show, and not just across tea and coffee. Functionality, sustainability and ethical production seem to be a necessity for specialty products, as customers are seeking more from their purchases than just a great taste; if they are going to pay that bit extra, they want the extra benefits, whether that be to their health or to the environment. Consumers want to feel that they are using their money for a good cause, and specialty producers are rising to meet this demand, with a tide of Fairtrade, organic, and B-Corp certifications flooding the packaging, and frequently more wellness claims of improved sleep or mood, calmness, better digestion and pretty much anything else you could want.

While some more budget and commercial products may still be able to get away with dodging sustainability pressures for now, as they have the price point advantage, consumers seeking more premium and specialty products do not withhold such demands from their purchasing choices. The array of projects and efforts on display at the Speciality & Fine Food Fair were a credit to this.

• Kathryn Brand, associate editor, Tea & Coffee Trade Journal.
  Keep in touch via email: kathryn@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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Coffee cherries are ‘superfruits’ that contain polyphenols, hydrocinnamic acids (sweet, balsamic and cinnamon tasting compounds), potassium, calcium, magnesium and vitamin C. Cascara is a by-product of coffee beans, obtained from the cherry after the coffee bean is removed. To consume cascara, it must first be dried fully and carefully. Cascara is subject to the same concerns about mold and toxins that coffee beans are, but unlike coffee, cascara is typically just dried, not roasted at high heat. Cascara has about a quarter of the caffeine levels compared to regular coffee brews. It is currently unregulated in the United States and several European countries but is banned in the UK. 

Against the backdrop of several prominent players’ tennis matches, Elena Calegari, innovation & development manager and Andrea Mazza, food & beverage senior expert, explained why Lavazza is developing cascara into beverages and presented attendees with several cascara drinks. In addition to the potential health benefits for consumers, they noted that selling cascara would offer coffee producers another revenue stream and enhance the coffee supply chain. 

During the presentation, attendees were able to sample four different cascara-based beverages: coffee nectar (plain cascara), peach coffee nectar (flavoured cascara) – both of which tasted similar to iced tea – a granita, and my personal favourite, a white cascara cocktail, which tasted similar to a White Russian, featuring cascara, vodka, Frangelico and cream. 

Lavazza’s plan for cascara beverage is still in the planning and testing stage but Calegari and Mazza said they will be hosting more cascara master classes and demonstrations at different events around the world. 

Several coffee brands have previously tested cascara beverages in their coffee shops, but most were limited-edition drinks. It will be interesting to see how Lavazza realizes its plans for cascara, what a cascara beverage rollout would look like, and if other coffee brands will follow suit. If cascara becomes a ‘legitimate’ beverage rather than just a limited-edition drink or fad, it could positively impact coffee producers’ livelihoods thereby furthering efforts towards a circular economy. 

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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Starbucks Coffee launched the pumpkin spice latte – aka ‘PSL’ – in 2003. According to Starbucks, following the peppermint mocha, which was introduced the winter before and was its first ‘blockbuster seasonal beverage’, the company was looking for its first autumn limited-edition beverage. Starbucks noted that when Peter Dukes, (who was heading Starbucks espresso beverages at the time) and his team asked potential customers what flavours they were likely to purchase in a written survey, chocolate and caramel beverages consistently performed the best but pumpkin scored high on ‘uniqueness’.

The beverage creation process started by first sampling pumpkin pies and sipping espresso, and then the experiments began. From there the pumpkin spice latte was born.

In the fall of 2003, Starbucks tested the PSL in about 100 stores in Washington, DC and Vancouver, Canada. The next fall, the PSL rolled out to Starbucks stores across the US and Canada. Starbucks was apparently not completely convinced the PSL would be successful and considered changing over the next few years for something new. However, Dukes and him team realised they had a hit when Facebook and Twitter arrived in 2006, and “customers began sharing their love for PSL” on social media with their family and friends; and the coffee culture was inevitably changed.

These days, PSLs are ubiquitous on coffee shop menus around the world – e.g., Dunkin’s pumpkin spice signature latte and its nutty pumpkin coffee, Peet’s Coffee’s pumpkin latte, PJ’s Coffee’s pumpkin sweet cold foam – and the offerings have been continually upgraded and expanded. Since 2015, Starbucks’ PSL pumpkin sauce has included real pumpkin puree, made from kabocha pumpkins. Pumpkin spice K-Cups and teas (loose leaf and tea bags) from leading brands are now available in grocery stores, mass retailers and online.

Of course, given the popularity of cold brew coffee, Starbucks introduced Pumpkin Cream Cold Brew a couple of years ago and many others followed suit (such as Dunkin’s pumpkin cream cold brew and Peet’s pumpkin oat foam cold brew to name just a couple). And in response to a TikTok craze last year, new to Starbucks’ fall menu this year is the Iced Pumpkin Cream Chai Tea Latte. Peet’s also offers a pumpkin chai, served hot or cold. (Check out our Main News section to see which brands have already launched their pumpkin spice beverage items.)

While I enjoy pumpkin spice-flavoured foods, I have never liked any pumpkin spice latte — too sweet and too filling. But I did try a cold brew version, and I admit that I quite enjoyed it because I found it to be less sweet and not as heavy as a latte.

Other autumn flavours have started appearing on coffee shop’s limited-edition menus such as apple and maple (like Costa Coffee’s maple hazel latte) but they have not yet hit the iconic status of the pumpkin spice latte. Maybe soon there will be a new beverage to challenge it, but for now fans can savour PSL season while it lasts.

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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We’ve known for years that coffee is associated with countless unique health benefits – but according to the National Coffee Association’s (NCA) own consumer research, less than half of the coffee drinkers we surveyed remember hearing about the health benefits of coffee within the past year. With a formal “healthy” designation for coffee, that could soon* change.

What does this mean for your coffee business?

In short: coffee companies may, for the first time, be able to market their plain, black coffee products as “healthy.” Imagine walking down the coffee aisle and seeing coffee package after coffee package proudly boasting – front-of-pack – its health food status. That would allow for much greater latitude when it comes to tightly regulated packaging and marketing requirements for food products — while potentially driving consumption among an increasingly health-conscious consumer base.

How did we get here?

This has been a multi-year industry-wide effort. To think, just a few years ago, we were combatting wildly inaccurate claims that coffee could cause cancer. Talk about a complete 180 — and due in no small part to NCA members big and small whose support has made it possible for us to set the record straight on coffee’s health benefits.

Many in our industry submitted formal comments in support of the healthy designation during last year’s public comment period, as did the NCA on behalf of our more than 250 members (you can read our submission here — it is full of fascinating research on coffee and health. A perfect “beach read” to consume with your favourite coffee beverage.)

Okay, but is coffee really healthy? Or is this just spin by “Big Coffee”?

Not spin, just facts. Regardless of how coffee is prepared, a robust body of evidence – including prospective studies of hundreds of thousands of people in the United States, the United Kingdom, other European countries, South Korea, and elsewhere – shows that coffee drinkers live longer than people who don’t drink coffee. And these studies are independent of industry support.

Drinking coffee has been associated with a reduced risk of cardiovascular disease, reduced risk of diabetes, and a reduced risk of multiple types of cancer. The American Institute for Cancer Research recommends drinking coffee “regularly,” and the American Cancer Society has concluded that coffee reduces the risk of multiple cancers including liver cancer, endometrial cancer, cancers of the mouth, pharynx and larynx, as well as basal cell skin cancer and melanoma.

Okay, so, this is all good news. But what can I do?

While the public comment period is closed, you can still have an impact. I was in Washington, D.C., late last month, visiting the Halls of Congress and sitting with federal regulators to make sure they are aware of the overwhelming scientific evidence on our side – and the implications that a “healthy” designation could have for coffee drinkers, coffee companies, their employees, and the farmers upon whom we all rely.

*“Soon” is a relative term with respect to Federal Government processes.

• William “Bill” Murray has been president and CEO of the National Coffee Association (NCA) since June 2014, having previously held leadership positions at the Public Relations Society of America and the Motion Picture Association of America. He takes his coffee black and is not the star of CADDYSHACK.

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