Hamburg based, Tchibo purchased the company back in 2016, and Capitol Foods in 2018 with each operating under its own name. Recognising the strong values and reputation for quality and sustainable practices, parent company Tchibo has taken the decision to consolidate its UK & Ireland businesses under the Scottish brand’s name. 

The single business will provide customers with a wider range of products from across the entire business portfolio whilst offering improved efficiency and service to its entire customer base. 

The recently announced investment in the Glasgow roastery has expanded its production capabilities, with new coffee products coming into the Glasgow HQ over the coming 12 months.  

The winner of Glasgow’s Most Outstanding Business at the Glasgow Business Awards in 2023, the company sees this move as one of the most exciting changes to the coffee market in a decade.  

Paul Chadderton, managing director, Matthew Algie said, “This is a significant moment for our business and particularly for our Glasgow HQ which is the beating heart of our business.  

“Coupling this move with the recent investment programme we announced back in April 2023 it places the firm in a very strong position to build upon our growth strategy and at a pivitoal moment in the coffee sector. 

“The majority of the senior leadership team, including myself, have all relocated to Glasgow as we continue to expand the capabilities of the site, including launching our new fully recyclable packaging, various new product lines and our training and development hub which is an industry leading centre for training the next generation of baristas across the UK and Ireland.”  

Coffee continues to be one of the fastest moving sectors, with the post pandemic boom in coffee drinkers showing no signs of slowing down. With the single company now operating under one collective vision, the team are excited to offer an even more customer centric operation.  

Paul continued, “We are seeing new markets emerge as businesses look to grow their sources of revenue. Sectors such as garden centres no longer simply use their cafes as a footfall driver but is a critical part of their income.  

“Matthew Algie is perfectly positioned to help these businesses and our staff are experts in helping firms get more out of their coffee offering. Whether it be helping firms move to more sustainable operations by using our carbon neutral products, or simply supporting local cafes in adapting to the ever-changing trends within the market- this new announcement will accelerate our ability to support out tens of thousands of customers.” 

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Green Coffee Price
The ICO Composite Indicator Price (I-CIP) averaged 175.73 US cents/lb in December, an 8.8% increase from November 2023. The I-CIP posted a median value of 177.64 US cents/lb, having fluctuated between 163.92 and 186.04 US cents/lb. The December 2023 I-CIP is above the December 2022 I-CIP by 11.8%, with the 12-month rolling average at 165.23 US cents/lb. The I-CIP grew steadily in December 2023, reaching a nine-month high. The rise in tensions in the Red Sea has prompted some shipping lines to re-route their coffee-carrying vessels. Thus, for South-East Asian and East African coffee en route to Europe, unintended consequences include a rise in freight costs as some shipping companies have introduced surcharges to account for the now-extended transit times.

The Colombian Milds and Other Milds increased by 7.6% and 6.9%, to 210.68 and 210.76 US cents/lb, respectively, in December 2023. The Brazilian Naturals presented a growth of 9.4%, reaching an average of 185.23 US cents/lb. However, the Robustas grew the most by 10.5% to 135.47 US cents/lb, the highest level since May 1995, when they were valued at 140.90 US cents/lb. ICE’s New York market was a strong driver of the positive growth, having increased by 9.6% to 186.67 US cents/lb, whilst the London Futures market expanded by 12.2%, to 123.91 US cents/lb, also the highest level since May 1995.

Arbitrage, as measured between the London and New York Futures markets, widened by 5.0% to 62.77 US cents/lb in December 2023.

Intra-day volatility of the I-CIP expanded to 10.2% between November and December 2023. The Colombian Milds’ and Other Milds’ volatility also increased to 10.8% and 10.9%, respectively. Meanwhile, the Brazilian Naturals’ volatility rose by 2.9 percentage points to 12.6% from November to December 2023. The Robustas presented the smallest volatility increase, with a 0.9 percentage point gain, averaging 9.2% for the month of December. The London Futures market’s volatility increased by 2.7 percentage points to 9.1%. Lastly, the New York futures market’s volatility moved in tandem to that of London, expanding by 2.4 percentage points and reaching 10.5%.

The New York certified stocks continued on their downward trajectory, retracting by 15.0% to 0.28 million 60-kg bags, one of the lowest figures ever recorded. Certified stocks of Robusta coffee reached 0.57 million 60-kg bags, a 68.4% increase since November 2023.

Exports by Coffee Groups — Green Beans
Global green bean exports in November 2023 totalled 9.79 million bags, as compared with 9.1 million bags in the same month of the previous year, up 7.6%. As a result, the cumulative total for coffee year 2023/24 to November is 18.39 million bags, as compared with 17.7 million bags over the same period a year ago, up 3.9%.

Shipments of the Other Milds increased by 17.9% in November 2023 to 1.31 million bags from 1.11 million bags in the same period last year. Peru was the main driver of the double-digit growth of this group of coffee, with the origin’s exports of the Other Milds increasing by 60.1% to 0.57 million bags in November 2023 from 0.35 million bags in November 2022, following a 28.9% increase in October 2023. The resurgence of Peru’s exports of the Other Milds is due to the return to normality of local production conditions in coffee year 2023/24 as compared with those seen in coffee year 2022/23. Irregular weather patterns negatively affected the local supply of coffee beans in 2022/23, especially in the first three months of the coffee year, when 1.15 million bags were exported. This was the lowest first three months of exports since the 0.93 million bags shipped in coffee year 2014/15, representing a 26.7% fall in the average volume of exports in coffee years 2015/16–2021/22, which was 1.57 million bags. As a result, the cumulative volume of total exports of the Other Milds also increased, jumping by 9.2% in the first two months of coffee year 2023/24 to 2.74 million bags, versus 2.51 million bags over the same period in 2022/23.

Green bean exports of the Brazilian Naturals increased in November 2023, rising by 1.6% to 3.63 million bags. For the first two months of coffee year 2023/24, green bean exports of the Brazilian Naturals amounted to 7.35 million bags, up 4.0% from 7.07 million bags over the same period a year ago. The relatively shallow positive growth rate reflects the 2.6% increase in exports of the Brazilian Naturals from Brazil, the biggest producer and exporter of this group of coffee, which rose to 3.2 million bags in November 2023 from 3.12 million bags November 2022.

Exports of the Colombian Milds increased by 34.0% to 1.15 million bags in November 2023 from 0.85 million bags in November 2022, driven primarily by Colombia, the main origin of this group of coffee, whose exports of green beans were up 35.6% in November 2023. As a result, exports of the Colombian Milds for the first two months of coffee year 2023/24 are up 18.7% at 2.1 million bags, as compared with 1.77 million bags in the first two months of coffee year 2022/23.

Green bean exports of the Robustas amounted to 3.7 million bags in November 2023, as compared with 3.56 million bags in November 2022, up 4.0%. In volume terms, these constitute the biggest November exports on record, surpassing the level set in November 2022. However, the rise was not sufficient to offset the 10.9% decrease observed in October 2023, when the 2.49 million bags exported represented the lowest quantity for the month since the 1.91 million bags in October 2011. As a result, the cumulative total for the first two months of coffee year 2023/24 is down 2.5%, at 6.2 million bags, as compared with 6.36 million bags in the first two months of coffee year 2022/23. The main driver of November’s Robustas increase was Brazil, shipping 0.86 million bags, a jump of 850.2%.

Exports by Regions — All Forms of Coffee
In November 2023, South America’s exports of all forms of coffee increased by 24.7% to 6.07 million bags. The source of the strong positive growth is mainly Brazil, which saw its exports increase by 21.1% to 4.34 million bags from 3.58 million bags in November 2022. More specifically, it was the Robustas from the origin, which in November increased by 850.2% to 0.86 million bags from 0.09 million bags, which drove the region’s positive growth. The November 2023 exports are Brazil’s highest on record for Robusta coffee, beating the 698,856 bags exported in August 2023. Brazil is one of the largest producers and exporters of the Robustas, having accounted for an 8.1% share of the group’s total exports in coffee year 2021/22, i.e. 3.94 million bags. That said, in July–October 2023, Brazil’s share of the Robustas more than doubled, increasing to 22.3%, with the country exporting 3.09 million bags in just four months. This surge was in response to the reduced volume of Robustas coming out of Vietnam, whose Robusta exports fell by 27.5% in July–October 2023 to 4.92 million bags from 6.78 million bags over the same period a year ago. The continued rampant expansion of Brazil’s Robusta exports despite Vietnam’s recovery in November 2023 suggests that its strong foray into this market may continue.

Robusta exports fell by 27.5% in July–October 2023 to 4.92 million bags from 6.78 million bags over the same period a year ago. The continued rampant expansion of Brazil’s Robusta exports despite Vietnam’s recovery in November 2023 suggests that its strong foray into this market may continue.

Exports of all forms of coffee from Africa decreased by 13.5% to 1.01 million bags in November 2023 from 1.16 million bags in November 2022. For the first two months of coffee year 2023/24, exports totalled 2.06 million bags as compared with 2.24 million bags in coffee year 2022/23, down 8.1%. This is the third consecutive month of negative growth for the region and it affected most origins, including all the major producers whose combined exports decreased by 11.4% to 0.93 million bags from 1.05 million bags in November 2022. It is speculated that the surge in Brazil’s Robusta exports is crowding out traditional exporters of the group from the market, thus broadly affecting Africa as a whole, which is a largely Robusta-producing region. Uganda, the largest producer and exporter of Robusta coffee in Africa, was also affected by a delayed harvest season which negatively impacted the supply availability.

In November 2023, exports of all forms of coffee from Mexico & Central America were up 15.7% to 0.41 million bags, as compared with 0.35 million in November 2022. As a result, total exports are up 11.0% for October 2023 to November 2023 at 0.9 million bags, as compared with 0.81 million bags for the same period a year ago. Guatemala, Honduras and Mexico are the three main origins behind the region’s double-digit growth in November, with their respective exports up 114.0%, 29.7% and 11.8%. These robust growth rates do not, however, herald the beginning of a record-breaking year for the three origins or for the region, but rather are indications that export volumes are returning to the levels of the recent past, following a sharp fall in coffee year 2022/23. Accordingly, the average October–November export volume for coffee years 2017/18–2021/22 was 0.7 million bags for the three countries as compared with 0.6 million bags in coffee year 2022/23, a 14.6% fall. This has now increased to 0.68 million bags in coffee year 2023/24.

Exports of all forms of coffee from Asia & Oceania decreased by 18.0% to 3.12 million bags in November 2023. November’s downturn was mainly due to Indonesia, with exports down 45.2% to 0.49 million bags from 0.89 million bags in November 2022. These are the lowest November exports since the 0.2 million bags shipped in 2018. The decrease can be attributed to a reduced harvest in coffee year 2023/24, which is estimated to have fallen by 16.6% to 10.0 million bags from 11.98 million bags in coffee year 2022/23 on the back of excessive rains that damaged cherries in April–May 2023. Vietnam’s exports fell by 7.7% in November, a vast improvement from the steep declines of 23.6%, 45.0% and 44.7% seen in August, September and October 2023. This may indicate that its supply issues have now started to resolve after very low in-origin stock levels were reported in Q4 of coffee year 2022/23, when the start of the harvest still remained three to four months away.

Exports of Coffee by Forms
Total exports of soluble coffee decreased by 25.4% in November 2023 to 0.77 million bags from 1.03 million bags in November 2022. In the first two months of coffee year 2023/24, a total of 1.75 million bags of soluble coffee were exported, representing a decrease of 3.0% from the 1.8 million bags exported in the same period during the previous coffee year.

Soluble coffee’s share in the total exports of all forms of coffee for the year to date was 8.6% in November 2023, down from 9.2% in the same period a year ago. Brazil is the largest exporter of soluble coffee, having shipped 0.24 million bags in November 2023.

Exports of roasted beans were down 15.5% in November 2023 to 54,379 bags, as compared with 64,324 bags in November 2022. The cumulative total for coffee year 2023/24 to November 2023 was 0.1 million bags, as compared with 0.13 million bags in same period a year ago.

Production and Consumption
World coffee production increased by 0.1% to 168.2 million bags in coffee year 2022/23. The stagnant growth rate belies the tremendous changes at the regional level, with the coffee world neatly split between the expanding Americas and the shrinking rest of the world.

Asia & Oceania and Africa’s 4.7% and 7.2% decreases in production to 49.84 million bags and 17.9 million bags, respectively, can be attributed to adverse weather conditions negatively affecting key producers in the regions, particularly Vietnam, Côte d’Ivoire and Uganda. The magnitude of the fall in outputs of the two regions was entirely mitigated by the Americas, especially by South America’s 4.8% increase, which in turn was driven mainly by the biennial production-affected 8.4% increase in Brazil. The combined output of the Americas was 100.5 million bags.

The Americas versus the rest of the world split was also reflected in the production split between the Arabicas and Robustas, with the former’s output increasing by 1.8% to 94.0 million bags as compared with the 2.0% decrease of the latter to 74.2 million bags.

Looking ahead, the output for coffee year 2023/24 is expected to increase by 5.8% to 178.0 million bags, with the Arabicas’ output rising to 102.2 million bags and the Robustas’ increasing to 75.8 million bags.

The biennial production effect will play a large role in the outlook, especially for Brazil and the Arabicas, as the impact of the July 2021 frost continues to be resolved. Coffee year 2023/24 is anticipated to be an exceptional off-biennial year, feeling more like a good on-biennial following an average on-biennial year. Adverse weather conditions, first noted in 2022 and continuing into 2023, will have a negative impact on the outlook for coffee year 2023/24. The anticipated El Niño phenomenon is set to dampen the outlook in Asia, especially for origins like Indonesia. Meanwhile, Vietnam is expected to benefit from the drier/hotter weather as irrigation mitigates the reduced precipitation.

World coffee consumption is continuing to resolve through the issues brought about by the COVID-19 pandemic, with the consumption trend following an established patten in response to an external shock. The expectation for coffee year 2022/23 was for a smaller positive growth rate; however, world coffee consumption actually recorded a decrease of 2.0% to 173.1 million bags.

Consumption in coffee year 2022/23 did not faithfully follow the established pattern due to the impact of the high cost of living, falling disposable incomes and a long stocks drawdown. Despite coffee being relatively inelastic, the challenging global economic environment would have had a negative impact on its consumption. The world inflation rate was at its highest in 2021 at 9.4%, while the benchmark interest rate averaged 4.9% at the end of September 2023 in the European Union, UK and USA, the highest level since an average of 5.8% in 2000. At the same time, there was a large drawdown of stocks, where combined stocks reported by the European Coffee Federation and those held at the Intercontinental Exchange’s warehouses in the USA fell by 4.8 million bags from 14.5 million to 9.8 million. This drawdown would have reduced the need for purchases on the international market, seemingly reflected as lower and anomalous global consumption rates for coffee year 2022/23.

The world coffee consumption outlook for coffee year 2023/24 is broadly framed by the assumption that the global economy will continue to grow at above 3.0%, and that the industry will respond to the large drawdown of stocks, which will be positively reflected in apparent consumption. As a result, world coffee consumption is expected to grow by 2.2% to 177.0 million bags, with non-producing countries making the biggest contribution to the overall increase. Coffee consumption in this group of countries should expand by 2.1%.

As a result, the world coffee market is expected to run a surplus of 1.0 million bags in coffee year 2023/24.

The outlook is taken from the newest publication of the Statistics Section of the Secretariat of the International Coffee Organization (ICO), the Coffee Report and Outlook (CRO). For the full CRO or for more information, visit the ICO website: icocoffee.org.

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Hagen (The Hagen Project), is a premium coffee brand born out of Copenhagen and founded in London.

“Hagen is focused on delivering premium specialty coffee and committed to doing that sustainably,” said Tim Schroeder, founder of The Hagen Project. “By partnering with Bellwether Coffee to roast our coffee blends in-house on the all-electric, ventless machine, we are continuing to provide our guests with the best in Danish hospitality while reducing our carbon footprint. It allows us to strengthen our brand even further with increased quality and product control, which in turn will grow our business for the future.”

“Our partnership with Hagen marks an important step in the electrification of coffee roasting, as it is the first in Europe to implement our clean technology that is revolutionising the industry,” said Ben Ireland, European managing director of Bellwether Coffee. “Hagen will pioneer electric roasting in London and prove to discerning European coffee consumers that sustainable on-site roasting with Bellwether provides the trifecta of superior taste, quality, and sustainability.”

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The CSP allows ofi to model the outcome of different decarbonisation interventions tailored to local contexts, so it can work with its customers to plan and cost out climate actions. It helps ofi customers tackle the complex and challenging issue of Scope 3 emissions which occur in a company’s value chain and make up the bulk of the food and beverage industry’s carbon footprint.

Dr Christopher Stewart, global head of sustainability at ofi, said, “We’re delighted that Food Ingredients Europe has chosen to recognise the progress we’ve made. For our customers, knowing where carbon emissions are coming from in their supply chains is critical to understanding how to reduce them cost-effectively, and meet science-based climate targets. The Carbon Scenario Planner translates ideas into detailed, robustly modelled scenarios that can deliver long-term greenhouse gas reductions.”

The tool is embedded into ofi’s sustainability management system, AtSource, which provides customers with data and insights for use in reporting their environmental, social, and economic impacts. ofi recently used the tool with a global coffee company to whom it supplies Guatemalan coffee beans. It modelled a 32% carbon reduction scenario to help support the customer’s climate commitments, identifying three impactful scenarios: using training for farmers to help them upcycle coffee waste, replacing chemical fertiliser with organic, and providing farmers with semi-mechanised tools to improve yields.

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Organised by Allegra Insights, a UK research agency, the European Coffee Awards are the most prestigious awards in the European coffee and hospitality sector, promoting and celebrating the excellence of companies with spectacular performances and results. Now in its 14th year, the Awards bring together the industry’s top leaders each year and the winners are chosen after rigorous analysis by a team of expert analysts and researchers.

“This was not the first nomination or recognition we received in the European Coffee Awards and we enjoyed each one equally, and this result is a first we had not hoped for and a confirmation we experienced with overwhelming excitement. It means a lot to us that the 5 to go brand has become a landmark and that we are present and awarded at such large-scale events, in order to make the Romanian coffee industry known internationally. Certainly, this award will be a catalyst for the performance of our business, because such a result must be reflected in all the characteristics of the 5 to go brand, from the quality of the products to the ability to transform and adapt to customer expectations and market evolution”, said Radu Savopol.

With over 20 years of experience in the HoReCa field and an entrepreneurial start as a pub owner, Radu Savopol had, in 2015, together with Lucian Bădilă, the vision to develop the 5 to go business, which is today the most accessed franchise in Romania, already present in 105 cities in the country.

This achievement comes after winning several trophies at the Horeca Awards, a gala organised in Romania by Horeca Insight Magazine: the 1st prize and the public award for the best coffee shop/cafeteria, the 1st prize for the Man of the Year in HoReCa, Radu Savopol, and the 3rd prize for the best barista, Laurențiu Sava, 5 to go trainer, two other 5 to go trainers being also nominated in the top 5 barista in Romania.

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Ferrarelle Società Benefit, one of the largest mineral water producers in Italy well-known for its unique naturally sparkling water properties, bottles “Boario”, “Vitasnella” and “Fonte Essenziale” mineral waters at its Boario plant. Vitasnella ‘Le Linfe’ combines the lightness of Acqua Vitasnella with the benefits of the natural ingredients, sugar-free and calorie-free.

Sidel supported Ferrarelle Società Benefit in installing its aseptic technology for its functional teas to ensure a high-end taste experience, product integrity and a long shelf-life, utilising its Predis dry preform decontamination solution – a safe, hygienic, cost-effective way of packaging a variety of sensitive beverages.

By installing Sidel’s Aseptic Combi Predis to produce Vitasnella ‘Le Linfe’ product range, the line is capable of handling two different formats, 0.5 litres and 1.25 litres, and achieves 18,000 bottles per hour.

“‘Le Linfe’ functional waters and tea ranges are extremely important for us and we wanted to avoid any potential risks,” said Nicola Tignonsini, operations director at Ferrarelle.

“As our only line producing sensitive beverages, it was crucial that we had an aseptic system that could ensure the highest level of product safety and integrity,” said Marcelo Astrini, plant director at Boario.

Find out more about Sidel’s Aseptic Combi Predis and how you can access this kind of support for your business on the Sidel website.

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Green Coffee Price
The ICO Composite Indicator Price (I-CIP) averaged 151.94 US cents/lb in October, a 0.8% decline from September 2023. The I-CIP posted a median value of 151.58 US cents/lb, having fluctuated between 145.99 and 160.09 US cents/lb.

The Colombian Milds and Other Milds increased by 0.5% and 0.2%, to 185.97 and 183.95 US cents/lb, respectively, in October 2023. The Brazilian Naturals presented the strongest growth of 0.9%, reaching an average of 155.52 US cents/lb. However, Robustas retracted 4.1% to 118.83 US cents/lb. ICE’s New York market grew by 1.5% whilst the London Futures market shrank by 3.4%, to 155.91 and 105.40 US cents/lb, respectively.

The Colombian Milds-Other Milds differential grew 38.5% to 2.02 US cents/lb. The Colombian Milds-Brazilian Naturals differential shrank 1.1% to 30.45 US cents/lb, whilst the Colombian Milds-Robustas differential also expanded 9.9% from September to October 2023, averaging 67.14 US cents/lb. Meanwhile, the Other Milds-Brazilian Naturals differential contracted 3.1%, reaching 28.43 US cents/lb. However, the Other Milds-Robustas and the Brazilian Naturals-Robustas differentials expanded 9.2% and 21.1%, averaging 65.12 and 36.69 US cents/lb, respectively, in October 2023.

Arbitrage, as measured between the London and New York Futures markets, widened by 13.7% to 50.51 US cents/lb in October 2023.

Intra-day volatility of the I-CIP remained stable at 6.3% between September and October 2023. The Colombian Milds’ and Other Milds’ volatility also increased to 6.8% and 7.6%. Meanwhile, the Brazilian Naturals’ volatility rose by 0.5 percentage points to 8.6% from September to October 2023. The Robustas presented the smallest volatility increase, with a 0.1 percentage point gain, averaging 7.5% for the month of October. The London Futures market’s volatility decreased by 0.6 percentage points to 6.7%. Lastly, the New York futures market’s volatility moved in the opposite direction to that of London, expanding by 0.4 percentage points and reaching 8.1%.

The New York and London certified stocks moved in the same downward direction, where London retracted by 7.9% to 0.67 million 60-kg bags, whilst certified stocks of Arabica coffee reached 0.44 million 60-kg bags, a 10.7% decrease and the lowest figure since October 2022.

Exports by Coffee Groups – Green Beans
Global green bean exports in September 2023 totalled 7.8 million bags, as compared with 8.83 million bags in the same month of the previous year, down 11.6%. For coffee year 2022/23, exports of green beans were down 5.5% to 110.81 million bags from 117.28 million bags in coffee year 2021/22. The global macro-economic environment was not conducive to consumer confidence in coffee year 2022/23, with global inflation and interest rates in many of the key advanced economies high and rising, increasing the cost of living and thus reducing disposable income levels for a very large section of the world.

These conditions seemingly support a downturn in the consumption of coffee and consequently in global exports of green beans. Nevertheless, the global economy was not only projected to expand in calendar year 2023, but the outlook was also raised between April–October 2023 by the International Monetary Fund (IMF), which suggests otherwise. The drop in global exports of green beans in coffee year 2022/23 may therefore lie more with logistics/the supply chain than the economy and actual consumption of coffee. Average green bean exports amounted to 118.13 million bags in coffee years 2018/19–2021/22, as compared with an average 109.59 million bags for coffee years 2014/15–2017/18, a jump of 8.54 million bags. This suggests a build-up of stocks in non-producing countries which have been heavily drawn down in the past 12 months.

Shipments of the Other Milds decreased by 13.1% in September 2023 to 1.57 million bags from 1.8 million bags in the same period last year. For coffee year 2022/23, exports of the Other Milds were down 12.1% to 22.11 million bags from 25.16 million bags in coffee year 2021/22. Green bean exports of the Brazilian Naturals decreased in September 2023, falling by 13.4% to 2.69 million bags. For coffee year 2022/23, exports of the Brazilian Naturals were down 8.5% to 34.17 million bags from 37.33 million bags in coffee year 2021/22. Exports of the Colombian Milds increased by 6.7% to 0.87 million bags in September 2023 from 0.82 million bags in September 2022. For coffee year 2022/23, exports of the Colombian Milds were down 11.2% to 10.77 million bags from 12.14 million bags in coffee year 2021/22. For coffee year 2022/23, total green bean exports of the Arabicas were down 10.1% to 67.05 million bags from 74.63 million bags in coffee year 2021/22.

Overall, for the Arabicas, exports were seemingly negatively affected by the drawdown of stocks in consuming countries, with buyers staying away from the markets in coffee year 2022/23. Furthermore, substitution towards the more competitively priced Robustas, induced by the increased cost of living and reduced disposable income, would have also added to the downturn (see Green Coffee Price).

Exports of the Colombian Milds fell below the 11.0 million bags mark for the first time since coffee year 2012/13. These exports were primarily driven by Colombia, the main origin of this group of coffee, and weather-related disruption affected supply throughout most of coffee year 2022/23. Indeed, Colombia’s green bean exports contracted for the first 11 months of coffee year 2022/23, with only September 2023 showing an expansion. Figures for the year show that, overall, the country’s exports declined 13.1% to 9.42 million bags, the first time they have dropped below 10.0 million bags since coffee year 2013/14.

Green bean exports of the Robustas amounted to 2.67 million bags in September 2023, as compared with 3.09 million bags in September 2022, down 13.8%. For coffee year 2022/23, exports of the Robustas were up 2.6% to 43.76 million bags from 42.66 million bags in coffee year 2021/22. Of the four groups of coffee, the Robustas were the only group to experience positive growth in coffee year 2022/23, benefitting from macro-economic-induced substitution away from less competitively priced Arabicas.

The September 2023 exports represent the lowest September volume for the Robustas since the 2.58 million bags shipped in 2012 and were a result of the 43.4% decrease in exports from Vietnam, the world’s largest producer and exporter of the group, which only shipped 0.81 million bags – the lowest September exports since 2008 (0.79 million bags). Vietnam has been struggling with supply since the start of Q4 of coffee year 2022/23, when very low in-origin stock levels were reported at a time when the start of the harvest still remained three to four months away. The low September 2023 export levels appear to be a continuation of the industry’s deepening struggle with supply issues.

Exports by Regions – All Forms of Coffee
In September 2023, South America’s exports of all forms of coffee decreased by 3.4% to 4.74 million bags. For coffee year 2022/23, the region’s exports were down 11.0% to 50.59 million bags from 56.83 million bags in coffee year 2021/22. The region’s two largest producers and exporters, Brazil and Colombia, saw their total exports fall by 7.9% and 12.8%, respectively. South America’s fortunes are closely tied to the fortunes of the Arabicas and many of the same factors that explain the latter’s double-digit fall also explain the former’s. After all, from coffee year 2018/19 to 2022/23, 93.2% of the total green bean exports from South America were Arabicas, on average. The drawdown of stocks in consuming countries and substitution towards the Robustas are the two main factors. Two specific and additional factors are that (i) Brazil’s export performance was poor due to its relatively limited supply following two consecutive years of below-par harvests; and (ii) Colombia struggled with weather-impacted supply conditions that negatively affected the origin’s export volume.

Exports of all forms of coffee from Africa decreased by 1.9% to 1.21 million bags in September 2023 from 1.23 million bags in September 2022. For coffee year 2022/23, the region’s exports were down 1.4% to 13.53 million bags from 13.73 million bags in coffee year 2021/22. The relatively strong global demand for Robustas was the fundamental source of Africa’s positive export growth rate in coffee year 2022/23. Moreover, particularly during Q4 of coffee year 2022/23, the reduced volume of exports from the Asia and Oceania region, and more pointedly from Vietnam, strengthened Africa’s own export performance. Uganda, the largest producer and exporter of Robusta coffee in Africa, took the opportunity to fill the gap in the market left by Vietnam and the Asia and Oceania region as a whole.

In September 2023, exports of all forms of coffee from Mexico and Central America were down 9.2% to 0.74 million bags as compared with 0.81 million bags in September 2022. For coffee year 2022/23, the region’s exports were down 3.1% to 15.3 million bags from 15.78 million bags in coffee year 2021/22. The downturn was primarily driven by Guatemala and Mexico, which suffered 11.5% and 16.5% decreases, respectively. However, the mitigating factor that limited the region’s fall in exports to a low single-digit decrease was Honduras’ 13.5% increase.

Exports of all forms of coffee from Asia and Oceania decreased by 35.7% to 1.91 million bags in September 2023 as compared with 2.98 million bags in September 2022. For coffee year 2022/23, the region’s exports were down 0.9% to 43.56 million bags from 43.95 million bags in coffee year 2021/22. Asia and Oceania’s fortunes are closely tied to the fortunes of the Robustas and many of the same factors that explain the latter’s single-digit increase also explain the former’s. From coffee year 2018/19 to 2022/23, 89.1% of the total green bean exports from Asia & Oceania were Robustas, on average. In coffee year 2022/23, Vietnam’s exports were up 0.4% to 28.29 million bags from 28.19 million bags in coffee year 2021/22.

Exports of Coffee by Forms
Total exports of soluble coffee decreased by 27.3% in September 2023 to 0.75 million bags from 1.03 million bags in September 2022. For coffee year 2022/23, soluble coffee exports were down 5.7% to 11.47 million bags from 12.16 million bags in coffee year 2021/22.

Soluble coffee’s share in the total exports of all forms of coffee for the year to date was 8.7% in September 2023, down from 10.4% for the same period a year ago. For coffee year 2022/23, soluble coffee’s share of the total exports was 9.3%, the same as in coffee year 2021/22. Brazil is the largest exporter of soluble coffee, having shipped 0.27 million bags in September 2023 and 3.77 million bags in coffee year 2022/23.

Exports of roasted beans were down 26.7% in September 2023 to 55,203 bags, as compared with 75,355 bags in September 2022. For coffee year 2022/23, roasted coffee exports were down 16.0% to 0.71 million bags from 0.84 million bags in coffee year 2021/22.

Production and Consumption
Under the current circumstances, the estimates and outlook of production and consumption for coffee years 2021/22 and 2022/23 remain the same.

World coffee production decreased by 1.4% to 168.5 million bags in coffee year 2021/22, hampered by the off-biennial production and negative meteorological conditions in a number of key origins. However, it is expected to bounce back by 1.7% to 171.3 million bags in 2022/23. Increased global fertiliser costs and adverse weather conditions are expected to partially offset the positive impact of biennial production from Brazil, explaining the relatively low rate of growth in coffee year 2022/23.

The impact of biennial production is anticipated to drive the outlook for Arabica, which is projected to increase by 4.6% to 98.6 million bags in coffee year 2022/23, following a 7.2% decrease in the previous coffee year. Reflecting its cyclical output, Arabica’s share of the total coffee production is expected to increase to 57.5% from 55.9% in coffee year 2021/22. South America is and will remain the largest producer of coffee in the world, despite suffering from the largest drop in output for almost 20 years, which fell by 7.6% in coffee year 2021/22. The recovery in coffee year 2022/23, partly driven by biennial production, is expected to push the region’s output to 82.4 million bags, a rise of 6.2%.

World coffee consumption increased by 4.2% to 175.6 million bags in coffee year 2021/22, following a 0.6% rise the previous year. Release of the pent-up demand built up during the Covid-19 years and sharp global economic growth of 6.0% in 2021 explains the sharp bounce back in coffee consumption in coffee year 2021/22. Decelerating world economic growth rates for 2022 and 2023, coupled with the dramatic rise in the cost of living, will have an impact on the coffee consumption for coffee year 2022/23. It is expected to grow, but at a decelerating rate of 1.7% to 178.5 million bags. The global deceleration is expected to come from non-producing countries, with Europe’s coffee consumption predicted to suffer the largest decrease among all regions, with growth rates falling to 0.1% in coffee year 2022/23 from a 6.0% expansion in coffee year 2021/22.

As a result, the world coffee market is expected to run another year of deficit, a shortfall of 7.3 million bags.

The outlook is taken from the newest publication of the Statistics Section of the Secretariat of the International Coffee Organization (ICO), the Coffee Report and Outlook (CRO). To download the full CRO or for more information, visit the ICO website: icocoffee.org.

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The company, which owns brands across seven countries, has launched Caféière in a ten-million-euro investment to meet growing demand for quality, organic hot drinks.

With financial support from the European Union and the European Agricultural Fund for Rural Development (EAFRD), La Caféière is exemplary of Ecotone’s global ‘Food for Biodiversity’ mission – through which it strives to meet high environmental and sustainability standards.

La Caféière has been installed with a roasting smoke burner which cuts C02 emissions by 30% compared with traditional methods. Through green energy, wetland water management, 100% LED lighting and photovoltaic roof panels, the plant is taking a global approach to energy efficiency.

The factory also operates a 0% landfill, 100% circularity policy. 85% of total leftover materials are recycled or reused in compost, and 15% are incinerated with energy recovery.

Through its commitment to producing exceptional organic coffee and tea, the factory will harness traditional production methods such as slow roasting to create unique aromatic balances. Three roasters and an R&D team work on site to ensure that the different vintage coffees are made to the finest quality.

More than 60% of La Caféière’s sales will now be through Fairtrade certified products. The aim is to achieve over 70% Fair Trade coffee and tea within two years.

The term “caféière” refers to a plantation of coffee trees, the shrub from which the coffee beans come. These plantations are originally islands of biodiversity, because the 80 species of coffee trees in the world thrive in rich and varied ecosystems.

To preserve biodiversity, the coffee cherries are hand-picked when ripe from high-altitude plantations and mainly come from organically grown and reared ‘Coffea arabica’ coffee trees in Central and South America and East Africa. The cherries are then washed and air-dried by partner producers to create a dense, transportable, and storable green coffee.

The coffee and tea sectors that supply La Cafétière are demonstrate agricultural practices, which go further than organic standards. This includes the diversity of plant species grown per plot (agroforestry), fair income for small producers, and positive action by partner cooperatives to combat deforestation in their areas.

La Caféière holds six certifications: Organic, Fair for Life, Fairtrade/Max Havelaar, Qualité Artisan, Bio Entreprise durable, and B Corp.

Local associations also work with La Caféière, such as a local ESAT for the social and professional integration of adults with disabilities, and the Bordeaux and Gironde food bank for the redistribution of products.

La Caféière, is the next milestone in Ecotone’s journey to reimagine a sustainable future of food, driven by its brands: Destination, Naturela, Clipper, Bonneterre, Alter Eco, and Piramide.

Key figures for La Caféière

180 organic tea and coffee products

60 direct jobs

9500 m2 (including 8000m2 dedicated entirely to the coffee factory)

Coffee:

3200 tonnes of organic coffee received each year
5.5 million units of organic coffee sold annually
12 organic coffee origins, i.e., around thirty green coffee material codes
60% of coffee sales generated by fair trade labelled products
100 ref coffee products

Tea:

100 tonnes of organic tea produced each year
80 references of tea products
72% of tea sales made with fair trade labelled products

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Coffee culture is currently thriving in the UK, and consumers are increasingly discerning about how they enjoy their caffè moment, with authenticity being key.

The ground coffee is created using a blend of Arabica beans and Robusta beans. The beans are roasted and blended to create a full-bodied coffee with notes of chocolate and toasted bread.

Crosta & Mollica, which simply means ‘crust & crumb’ in Italian, was founded with a desire and dedication to bring well-made Italian food to the UK. Over the past year, the brand has expanded its Italian supermarket range with new launches into the oven-ready meal and bakery categories as it continues to capitalise on the growing UK market for Italian food. Crosta & Mollica is now making a move into the coffee category with Caffè Torinese.

The post Italian food brand debuts into the coffee category appeared first on Tea & Coffee Trade Journal.

The Italian coffee blend which had been available in the UK for a number of years under Tchibo Coffee, is now part of the Matthew Algie family and has been relaunched at a time when coffee sales are continuing to grow.

The coffee has been developed by world renowned Italian barista, Graziano Chessa, to create three premium blends, designed exclusively for professionals.

The name for Piacetto comes from the Italian word ‘Piacere’ meaning ‘a small moment of joy or pleasure.’ It is known as La Selezione Barista – the Barista’s Choice.

Paul Chadderton, managing director of Matthew Algie UK said: “Piacetto is a coffee designed by baristas for baristas. Its consistent high quality comes from using only the finest coffee beans which have been exclusively sourced from Rainforest Alliance Certified farms.

“Our relaunch is the beginning of our new focus on the product line which will be accompanied with new collateral, marketing and industry insight to help our client base grow their sales.

“The growth in coffee is opening up new opportunities for businesses and Piacetto combined with our service package offers our clients the perfect gateway into maximising your returns on coffee sales.

“We are very excited about this brand and how we can help even more clients grow their business.”

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Below is a sampling of T&CTJ advertisers that will be exhibiting at Host Milan 2023.

Brambati SpA

Brambati will be present at the next edition of Host Milan 2023, in Hall 22 booth #P47-P57-R48-R58.

We will be there to introduce attendees to all the latest innovations and the new KL250 grinder, which joins the range of proven roller grinder, will be presented.

There will also be a preview of the new company video that will tell our story, enabling visitors to see our growth through totally different eyes.

We look forward to meeting our customers – both current and new – in Milan and, in the meantime, please do not hesitate to contact us for any information. See you soon.

Brambati SpA

Codevilla (PV) Italy

Web: brambati.it

Host Milan: Hall 22, Booth #P47-P57-R48-R58

Image: Brambati

Cimbria A/S

Adding Value, from the Coffee Plant to the Roasted Bean

In the green coffee processing business, Cimbria is well-known for its high-performing and reliable equipment and turnkey solutions meeting the high-quality requirements for plants and end products. Cimbria equipment ensures highly precise cleaning, hulling, polishing, separation, grading, and sorting resulting in a very high purity of the final product, and very low levels of product waste, while preserving the characteristics and quality of the bean throughout the process.

Cimbria’s optical sorting solutions use advanced technology offering the highest accuracy with extreme precision. Experts with in-depth product knowledge and expertise in the most modern processing technology and plant design ensure optimum processing of coffee at low energy consumption. The innovative and user-friendly sorting solutions give customers full control throughout processing and drive their coffee production to new heights.

Cimbria A/S

Thisted, Denmark

Web: cimbria.com

Host Milan: Hall 22, Booth #R60

Image: Cimbria

Colombini Srl

ANGEL, Giant Inside.

As per our industrial grinders, ANGEL is a high-tech product, equipped with discs in tungsten carbide (hardness: 1300 Vickers) and very high precision adjustment with resolution of two microns and digital display of discs position; due to its solidity and high precision, it can produce batches of ground coffee in continuous cycle, with a capacity of 90-120 kg/h. The duration of the discs is in the order of 40-80 tonnes, depending on the fineness of the ground coffee.

ANGEL can also grind Turkish coffee, with cardamom too; in this case, the capacity is around 50 Kg/h.

It is useful in laboratories to repeat very similar results of our industrial grinders.

All the ANGELs are equipped with a cooling system by ventilation.

Seven different versions can be provided and the prices are all similar. The main difference is the power supply as the 220 volt single-phase version is also equipped with a variable speed drive.

The .LAB and .ST versions are equipped with a manual device that ensures, by means of a simple hand gesture, that the product exhaust duct remains cleaned inside every time a ground coffee package is filled.

The RTV.special and the RT.special are equipped with an automatic cleaning system for the exhaust duct, very helpful when working in a continuous cycle for several minutes/hours.

Colombini Srl

Settimo Torinese (TO), Italy

Email: info@colombini.srl

Web: colombini.srl

Host Milan: Hall 22, Booth #N45-P46

Image: Colombini

Goglio Spa

Goglio’s innovative solutions for coffee presented at Host 2023

Goglio is a globally leading group in flexible packaging which designs and develops complete packaging systems providing laminates, valves and capsules, packaging lines and advanced services. Goglio has always been at the forefront of the coffee sector and will present some of the latest innovations for this sector at the Host fair in Milan at Pavillion 18, Booths F52 – F58 G51 – G57.

The Group’s solutions, which introduced the one-way degassing valve back in the late 1960s and today produces more than one billion units a year, now includes a wide range of coffee packaging systems to meet a variety of needs: from packages for coffee beans or ground coffee, characterised by high-barrier laminates which allow the most hermetic guarantee, to the first in the world capsule with degassing valve, which allows the outflow of gases naturally released by coffee, while at the same time preventing oxygen from entering.

Thanks to this innovative technology, roasted coffee can be packaged immediately, without having to wait for the degassing process to be completed. The capsule also stands out for its exceptional brewing quality, achieved through self-perforating lids that guarantee perfect compatibility with coffee machines. As a testament to Goglio’s focus on sustainability, the capsule is also available in the “100% compostable” (Industrial) version.

Goglio also introduced a line of green packaging for coffee, exclusively composed of mono-material – polyethylene or polypropylene – which provides excellent barrier properties to preserve the product and maintains the same level of machinability as conventional laminates.

Also on display at the fair will be the G14 CK, a reel-start packaging line that is optimal for granular, powder and products in pieces and allows for the packaging of 1kg packs of coffee beans in fully suitable for recycling mono-material packs in 100% polyethylene. The line also allows the application of Goglio’s one-way degassing valve and is equipped with connection to Goglio’s MIND Industrial Internet of Things remote monitoring system for real-time, 7-day-a-week, 24-hour monitoring of packaging lines. The latest release of Goglio MIND has been presented at the fair, together with the new fres-co SYSTEM®+, which allows direct connection between laminates and the packaging line.

Goglio Spa

Daverio (VA), Italy

Web: goglio.it/en/

Host Milan: Hall 18, Booth #F52 – F58 G51 – G57

Image: Goglio

IMA Coffee

The IMA Coffee Hub’s commitment to research into new sustainable projects and technologies is on show at HOSTMilano.

IMA Coffee Hub strives to answer the needs of the global coffee industry and engineer quality solutions to enhance the performance of its customers. To meet the needs of a rapidly evolving market, IMA Coffee Hub covers all aspects of the processing and packaging processes, from consultancy and design to production planning and turnkey solutions.

“The perfect balance of the IMA Coffee Hub will be visible at HOSTMilano. Starting from a classic-style product, the IMA Petroncini TTA60, the strongest roaster ever, up to the most sustainable and flexible solution for coffee roasting: the IMA Petroncini TMR roaster,” said Nicola Panzani, CEO at IMA Petroncini and sales director at IMA Coffee Hub.

“Also on show will be the TMR25 LAB, the perfect scale-down of IMA Petroncini industrial model, meant for lab purposes. TMR25 makes it possible to perform new roasting profiles, testing new blends and transferring the roasting parameters on the industrial roaster to launch the production. That’s possible thanks to Orchestra, the new roasting control applied on TMR models, capable of self-tuning the machine parameters, thus enabling the roasting technologist to achieve constant roasting results over time, especially for products such as pods and capsules,” Panzani said.

The TMR also uses just one burner as a heat generator and after burner to reduce carbon dioxide, NOx and VOC emissions. The heat recirculation allows, on average, 30 to 35 percent energy saving, compared to traditional roasters.

“Thanks to OPENLab, we can analyse new sustainable and innovative materials such as compostable, paper-based, or ultra-thin film, before they are commercially available,” said Alessandro Nobili, head of product and project management at IMA Coffee | Packaging Solutions.

At HOSTMilano, IMA will be presenting the latest projects developed at IMA OPENLab alongside the new SB1 LAB, an extremely compact rotary machine for the filling and sealing of single capsules, and the SR4N, designed for medium production volumes. Every filler from the IMA Coffee portfolio can handle all types of capsules, whatever material they are made of, be it compostable materials, aluminium, or plastic.

IMA Coffee

Web: ima.it/coffee.

Host Milan: Hall 22P, Booth #K47-K57 L48-L58

Image: IMA Coffee

Syntegon

Syntegon is very excited to have the PMX packaging machine to bring to the coffee market. The PMX can be used for ground coffee and whole beans and can also accommodate different packaging formats thanks to fast changeover times. A modular concept enables manufacturers to react quickly to fluctuating market requirements and customer needs. Along with its undeniable flexibility, the PMX simultaneously fulfils modern requirements with respect to sustainability and digitalisation. Moreover, the new digital solution Synexio Empower offers cost savings through condition monitoring by optimising energy and material consumption.

With the PMX, different bag variants and closure elements can be combined along with different sealing options, like full-corner-sealing, which allows for perfect shelf appearance. Therefore, specific customer requirements can be realised, while also achieving efficient output. For example: the PMX can pack up to 65 packages of 500 grams of whole coffee beans per minute. The machine can accommodate an output of up to 100 packages per minute through its double tube version. During the packaging process, if the bag cross-section format is changed, the machine will be ready for use again after just 30 minutes. It is therefore suitable for small, medium, and large packaging formats.

The PMX produces coffee bags with package weights between 200 and 1200 grams, both with upright and downfolded top parts. The bags are resealable via tin tie, labels, or adhesive tape. If required, manufacturers can use an innovative spout closure through which the coffee beans are emptied out at the packaging side – a convenient feature, especially for end users. This ‘neutrafill’ process, in which the coffee is gas-flushed before and during the packaging process, ensures aroma protection.

Syntegon Technology is a leading global process and packaging technology provider. The company, headquartered in Waiblingen, Germany has been offering complete solutions for the pharmaceutical and food industries for over 50 years. The portfolio of intelligent and sustainable technologies includes stand-alone machines, along with complete systems and services. In the food industry, the portfolio includes process technology for confectionery, as well as packaging solutions for dry foods, frozen foods, bakery items, and dairy products.

Syntegon

Waiblingen, Germany

Web: syntegon.com/solutions/food/coffee-packaging-machine

Image: Syntegon

Teepack Gmbh

Tradition, improved upon!

In the tea business, Constantas are famous machines, providing their owners with a lot of prestige and profit. Now, the new interpretation successfully continues this legacy by using a simple formula: German reliability with global flexibility.

The new version keeps the traditional strengths of the proven Constanta by being a simple and reliable machine, working even under the harshest of conditions. A lot of them are still performing satisfactorily, even after more than 60 years of service. These strengths seem to have hit a mark since its first delivery in 1949, with over 2,500 machines sold all over the world. This is a tradition worth keeping, so we continue to completely design and build our machines at our headquarter in Germany.

Now, it was time to improve upon these strengths and to make the machine ready for the 21st century and the modern customer. We therefore equipped the new Constanta with modern knotting technology, a faulty bag ejection, and a hygienic design.

However, most important is the addition of one more feature: the ability to be configured into over 1,000 variants. Two speed versions, two bag sizes, various removal options and all current envelope types can be combined freely to exactly meet the customer’s requirements.

This modularity is unique in the market and provides the customer with the necessary flexibility to be successful in the fast-changing world of today.

We are happy to report that these new capabilities are already appreciated by the market. Our trusted customers are happy with the new interpretation of this proven concept. And new customers all over the world are starting fresh chapters in their development.

Teepack Spezialmaschinen GmbH & Co KG

Meerbusch, Germany

Email: hello@teepack.com

Web: teepack.com

Image: Teepack

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Green Coffee Price
The ICO Composite Indicator Price (I-CIP) averaged 153.13 US cents/lb in September, posting a median value of 152.74 US cents/lb and fluctuating between 147.86 and 160.17 US cents/lb.

The Robustas remained at a near-record high in September, staying firmly above the 120.00 US cents/lb mark. The Colombian Milds and Other Milds decreased by 1.4% and 1.7%, to 184.98 and 183.52 US cents/lb, respectively, in September 2023. The Brazilian Naturals and Robustas both contracted by 0.3% and 0.6%, reaching an average of 154.19 and 123.89 US cents/lb, respectively. ICE’s New York market fell by 1.9%, whilst the London Futures market shrank by 2.0%, to 153.55 and 109.14 US cents/lb, respectively.

The Colombian Milds-Other Milds differential grew 79.1% to 1.46 US cents/lb. The Colombian Milds-Brazilian Naturals differential shrank 6.4% to 30.79 US cents/lb, whilst the Colombian Milds-Robustas differential also contracted 2.9% from August to September 2023, averaging 61.09 US cents/lb. Meanwhile, the Other Milds-Brazilian Naturals and the Other Milds-Robustas both contracted 8.6 and 4.0%, reaching 29.33 and 59.63 US cents/lb, respectively. However, the Brazilian Naturals-Robustas differentials expanded 0.9%, averaging 30.30 US cents/lb in September 2023.

In September 2023, the Colombian Milds-Other Milds Arabica differential fluctuated between positive and negative.

Arbitrage, as measured between the London and New York Futures markets, narrowed by 1.8% to 44.41 US cents/lb in September 2023. This marks the lowest point since October 2019, when arbitrage sat at 44.07 US cents/lb.

Intra-day volatility of the I-CIP followed a consistent downtrend, reaching 6.3%, a 0.7 percentage point decrease between August and September 2023. The Robustas presented the strongest volatility decrease, with a 1.3 percentage point drop, averaging 7.4% for the month of September. The Colombian Milds’ and Other Milds’ volatility also contracted to 6.5% and 6.8%. Meanwhile, the Brazilian Naturals’ volatility dropped by 0.7 percentage points to 8.1% from August to September 2023, whilst the London futures market’s volatility also decreased by 2.1 to 7.3%. Lastly, the New York futures market’s volatility moved in the same direction as London, retracting by 0.9 percentage points and reaching 7.7% for New York.

The New York and London certified stocks moved in opposite directions, where London grew 25.7% to 0.73 million 60-kg bags, whilst certified stocks of Arabica coffee reached 0.49 million 60-kg bags, a 13.8% decrease.

The absence of market participants, as evidenced by the falling exports (see Exports by Coffee Groups – Green Beans), continued to prevail over the I-CIP, explaining the overarching trajectory of the I-CIP in September. However, currency movements, market sentiments, dwindling supplies, weather and the fundamentals all played their part in the coffee price movements in September, which saw the I-CIP rally, before falling once again due to foreign exchange movements.

From 22 August to 19 September 2023, the I-CIP recovered, increasing from a low of 148.79 to 160.17 US Cents/lb, ie, an increase of 7.6%. This came on the back of reports of heavy rain in Brazil and a continued fall in the certified stocks held at the New York ICE warehouses. Somar Meteorologia, a Brazilian meteorology company, reported on 5 September that Brazil’s Minas Gerais region, the country’s largest coffee producing region, received 22.8 mm of rain in the past week, or 308% of the historical average, leading to speculation regarding a delay in the completion of Brazil’s coffee harvest. Meanwhile, ICE’s Arabica inventories fell to a low of 0.49 million bags in September. The impact of these positive factors was more profound on the prices of the Arabicas, particularly the Brazilian Naturals which rallied by 5.3% and 81.%, respectively.

Nevertheless, this rally was halted and reversed by the sharp weakening of the real against the US dollar. From 19 to 29 September the real depreciated by 3.2%, from 4.87 to 5.03, while the I-CIP fell by 7.1% over the same period. Once again, the negative impact was felt relatively more by the Arabicas (-8.1%) and particularly the Brazilian Naturals (-9.3%) as compared with Robustas (-5.9%). The price of the Robustas fell at a relatively slower rate due to Vietnam’s current dwindling supply (see Exports by Regions – All Forms of Coffee), with supply from the 2023/24 harvest still at least two months away in November at the earliest.

Exports by Coffee Groups – Green Beans
Global green bean exports in August 2023 totalled 9.36 million bags, as compared with 9.07 million bags in the same month of the previous year, up 3.2%. As a result, the cumulative total for 2022/23 to August is 102.9 million bags, as compared with 108.26 million bags over the same period a year ago, down 5.0%.

Shipments of the Other Milds decreased by 9.7% in August 2023 to 1.99 million bags from 2.2 million bags in the same period last year. As a result, the cumulative volume of exports continued to fall, decreasing by 12.2% in the first 11 months of coffee year 2022/23 to 20.56 million bags, versus 23.42 million bags over the same period in 2021/22.

Green bean exports of the Brazilian Naturals increased in August 2023, rising by 10.2% to 3.06 million bags. For the first 11 months of coffee year 2022/23, green bean exports of the Brazilian Naturals amounted to 31.5 million bags, down 8.0% from 34.22 million bags over the same period a year ago. Changes to the fortunes of the Brazilian Naturals are mainly due to changes in Brazil’s total green bean exports, the biggest producer and exporter of the Brazilian Naturals, which also increased in August 2023 (27.6%) to 3.35 million bags from 2.63 million bags in August 2022.

Exports of the Colombian Milds decreased by 2.1% to 0.84 million bags in August 2023 from 0.86 million bags in August 2022, driven primarily by Colombia, the main origin of this group of coffee, whose exports of green beans were down 5.6% in August 2023. This is the fourteenth consecutive month of negative growth for the Colombian Milds and, as a result, the exports of this group of coffee for October 2022 to August 2023 were down 12.5%, at 9.9 million bags, as compared with 11.32 million bags in the first 11 months of coffee year 2021/22.

Green bean exports of the Robustas amounted to 3.47 million bags in August 2023, as compared with 3.22 million bags in August 2022, up 7.3%. This is the fifth consecutive month of positive growth for the Robustas and, as a result, the exports of this group of coffee for October 2022 to August 2023 were up 4.2%, at 40.94 million bags, as compared with 39.31 million bags in the first 11 months of coffee year 2021/22.

Exports by Regions – All Forms of Coffee
In August 2023, South America’s exports of all forms of coffee increased by 13.0% to 4.98 million bags. This is the first positive growth rate for the region since the 0.3% expansion in June 2022. The source of both the positive and strength of growth is Brazil, which saw its exports increase by 24.4% to 3.67 million bags from 2.95 million bags in August 2022. More specifically, it was the Robustas from the origin, which in August increased by 388.1% to 0.7 million bags from 0.14 million bags, that drove the region’s positive growth. The August 2023 exports are Brazil’s highest on record for Robusta coffee, beating the 696,873 bags exported in December 2014.

Fundamentally, the region’s turnaround is due to the recent downturn in Asia and Oceania, especially in Vietnam, the world’s largest Robusta producer and exporter. Pointedly, Brazil is the largest producer and exporter of Robustas in South America, and it has been taking advantage of the reduced volume of Robustas coming out of Vietnam. It is pertinent to note that Brazil is the fifth biggest exporter of Robustas in the world, having shipped 1.87 million bags in coffee year 2021/22 as compared with the 25.44 million bags exported from Vietnam or the 4.89 million, 4.28 million and 4.03 million bags from Uganda, India and Indonesia, respectively, the second, third and fourth largest exporters. However, in August 2023, Brazilian Robusta exports were second only to Vietnam with 1.34 million bags. To put this into perspective, in August 2023 Brazil exported the equivalent of four-and-half months’ worth of Robustas in a single month (as measured against the total Robusta exports in coffee year 2021/22).

Exports of all forms of coffee from Africa increased by 10.9% to 1.37 million bags in August 2023 from 1.23 million bags in August 2022. For the first 11 months of the current coffee year, exports totalled 10.84 million bags as compared with 12.31 million bags in coffee year 2021/22, down 1.5%. This is the third consecutive month of positive growth rate for the region. The continued global demand for Robustas, as reflected in the latest cumulative positive growth rates for Robusta green bean exports, is the fundamental source of Africa’s positive export growth rate in August. However, like the situation in South America, the reduced volume from the Asia and Pacific region, and more pointedly Vietnam, explains this growth.

Uganda, the largest producer and exporter of Robusta coffee in Africa, took the opportunity to fill the gap in the market left by Vietnam, increasing its exports by 48.4% to 0.74 million bags in August 2023 from 0.5 million bags in August 2022. This represents the second largest monthly exports on record, just behind the 0.79 million bags exported in March 1973.

In August 2023, exports of all forms of coffee from Mexico and Central America were down 2.0% to 1.23 million bags as compared with 1.26 million in August 2022. As a result, total exports are down 2.6% from October 2022 to August 2023 at 14.57 million bags, as compared with 14.96 million bags for the same period a year ago. The relatively shallow negative growth rate of the region masked the dynamic changes at the individual country level.

Two origins experienced strong positive growth rates (Honduras and Nicaragua), with a combined 37.2% increase in August 2023, while three others experienced sharp negative growth rates (Costa Rica, Guatemala and Mexico), with a combined 20.5% decrease. Honduras and Nicaragua outperformed both the region and group of coffee (Other Milds) to which they predominantly belong in August. This may reflect their competitive edge over other origins in Mexico and Central America – the average export unit value of Arabica green beans for Honduras and Nicaragua was 157 US cents/lb for coffee years 2017/18–2021/22, while it was on average 63 US cents/lb higher for the others (excluding Cuba, Haiti and Jamaica) at 220 US cents/lb.

Exports of all forms of coffee from Asia and Oceania decreased by 14.9% to 2.72 million bags in August 2023 and but were up 1.3% to 41.28 million bags in the first 11 months of coffee year 2022/23. August’s downturn was mainly due to Vietnam, with exports down 23.6% to 1.44 million bags from 1.98 million bags. This is the lowest month of August exports since the 1.4 million bags shipped in 2012. The decrease can be attributed to the depletion of available supply, reflecting the strength of its exports in the first 10 month of the current coffee year, where between October 2022 and July 2023 Vietnam shipped 25.98 million bags –3.3% higher than the same period in coffee year 2017/18, a record exporting year when the origin shipped 29.73 million bags over the full year.

Exports of Coffee by Forms
Total exports of soluble coffee decreased by 4.6% in August 2023 to 0.89 million bags from 9.3 million bags in August 2022. In the first 11 months of coffee year 2022/23, a total of 10.46 million bags of soluble coffee were exported, representing a decrease of 5.7% from the 11.09 million bags exported in the same period during the previous coffee year.

Soluble coffee’s share in the total exports of all forms of coffee for the year to date was 8.6% in August 2023, down from 9.2% for the same period a year ago. Brazil is the largest exporter of soluble coffee, having shipped 0.32 million bags in August 2023.

Exports of roasted beans were down 39.9% in August 2023 to 58,226 bags, as compared with 96,937 bags in August 2022. The cumulative total for coffee year 2022/23 to June 2023 was 0.66 million bags, as compared with 0.77 million bags in same period a year ago.

Production and Consumption
Under the current circumstances, the estimates and outlook of production and consumption for coffee years 2021/22 and 2022/23 remain the same.

World coffee production decreased by 1.4% to 168.5 million bags in coffee year 2021/22, hampered by the off-biennial production and negative meteorological conditions in a number of key origins. However, it is expected to bounce back by 1.7% to 171.3 million bags in 2022/23. Increased global fertiliser costs and adverse weather conditions are expected to partially offset the positive impact of biennial production from Brazil, explaining the relatively low rate of growth in coffee year 2022/23. The impact of biennial production is anticipated to drive the outlook for Arabica, which is projected to increase by 4.6% to 98.6 million bags in coffee year 2022/23, following a 7.2% decrease in the previous coffee year.

Reflecting its cyclical output, Arabica’s share of the total coffee production is expected to increase to 57.5% from 55.9% in coffee year 2021/22. South America is and will remain the largest producer of coffee in the world, despite suffering from the largest drop in output for almost 20 years, which fell by 7.6% in coffee year 2021/22. The recovery in coffee year 2022/23, partly driven by biennial production, is expected to push the region’s output to 82.4 million bags, a rise of 6.2%.

World coffee consumption increased by 4.2% to 175.6 million bags in coffee year 2021/22, following a 0.6% rise the previous year. Release of the pent-up demand built up during the Covid-19 years and sharp global economic growth of 6.0% in 2021 explains the sharp bounce back in coffee consumption in coffee year 2021/22. Decelerating world economic growth rates for 2022 and 2023, coupled with the dramatic rise in the cost of living, will have an impact on the coffee consumption for coffee year 2022/23. It is expected to grow, but at a decelerating rate of 1.7% to 178.5 million bags. The global deceleration is expected to come from non-producing countries, with Europe’s coffee consumption predicted to suffer the largest decrease among all regions, with growth rates falling to 0.1% in coffee year 2022/23 from a 6.0% expansion in coffee year 2021/22.

As a result, the world coffee market is expected to run another year of deficit, a shortfall of 7.3 million bags.

The outlook is taken from the newest publication of the Statistics Section of the Secretariat of the International Coffee Organization (ICO), the Coffee Report and Outlook (CRO). The full CRO can be downloaded from the ICO website: icocoffee.org. For further information, contact the Statistics Section at stats@ico.org.

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The company’s latest Burundi coffee, Turihamwe, has proudly secured a 92 score in last week’s Coffee Review. This accolade is a testament to JNP Coffee’s commitment to quality and the rich terroir of Burundi, says the company. As it gears up for its new harvest, customers can sign up for exclusive pre-ship samples and experience Turihamwe alongside JNP’s other offerings, Bahire and Incuti.

JNP Coffee continues to champion the exceptional coffee offerings from Burundi, a nation where coffee plays a pivotal role, contributing to more than 80% of its exports. This year, delve into the intricacies of Burundi coffee, from its unique production and processing methods to the anticipated flavours of the 2023/24 harvest. The dedication of over 800,000 smallholder farmers ensures quality and distinctiveness. As the new harvest season approaches, Jeanine Niyonzima-Aroian, the founder of JNP Coffee, highlights in her latest blog the efforts to enhance coffee processing, the rise in popularity of natural Burundi coffees, and the initiatives to boost the coffee industry in Burundi.

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In June 2021, Shanghai police broke up a ring of pu’er counterfeiting dens and confiscated over ten tonnes of fake pu’er cakes that would have been sold for an estimated 1.8 billion RMB (about USD $250 million). The police made a public display of destroying the seized teas, which included a road roller pulverising the fake cakes.

Police busts like this in China are not uncommon. Guangzhou police confiscated about 23,000 cakes in 2014, and 120,000 cakes again in 2018. Counterfeiting pu’er cakes appears to be big business.

Shanghai police steamroll counterfeit pu’er teas in June 2021. Image source: zhuanlan.zhihu.com/p/420794580

Authentic pu’er cakes can be quite pricey. The value of pu’er is due to a combination of several factors. Pressed pu’er cakes can be aged for decades or even centuries. A properly aged pu’er is comparable to an aged bourbon or wine in that aged pu’er are appreciated for their exquisite character. Use of the name “pu’er” or “pu’erh” has also been deemed a protected geographical indication (PGI) within China since 2008, and a 2021 China/EU agreement expanded its international recognition.

Pu’er tea can only be produced within designated areas in Yunnan province. This PGI creates further constrictions on producers of authentic pu’er in that they now have a more defined region from which they must procure leaf of various quality levels and sizes to follow blend recipes. The more highly prized pu’er often comes from celebrated mountains where tea trees have been growing for hundreds of years. Generally, the better the mountain’s reputation and the more ancient the source tea trees, the more valuable the pu’er.

Before delving further into the nuances of pu’er and counterfeit pu’er, it helps to have some definitions in place. Outside of China, “pu’er” may be used to refer to many different dark teas. Dark teas are teas that have undergone a pile fermentation process in which bacteria and enzymes break down elements like naturally occurring sugars and amino acids in the tea leaves. This process is different from oxidation, the more common process that is controlled to create green, black, and wulong (oolong) teas. Dark teas are produced in Yunnan province as well as other provinces. Hunan province, for example, is known for producing various styles of dark tea, but Hunan dark teas would not be considered pu’er teas in China. Additionally, lower grade pu’er products, like some fannings and bulk leaf products bound for the export market, may be manufactured in the pu’er style in places outside of the PGI designated areas. These lower value pu’er items are best understood by the import countries as a product reflecting shu (see below) pu’er flavour and character without the intent of infringing on PGI status or counterfeiting.

Pu’er teas come from designated areas within Yunnan province. PGI and China domestic designations specify that pu’er tea must meet several criteria, including:

• The leaf material must come from the designated pu’er areas;
• The type of leaf used;
• The processing methods used.

When these criteria are met, two kinds of pu’er can be produced:

• Raw, or “sheng” pu’er. Sheng pu’er is a greener leaf that is often pressed into cakes for the purpose of aging over years or decades. The fundamentals of the traditional sheng pu’er process have been used for centuries.
• Ripe or “shu” pu’er. Shu pu’ers and shu pu’er processing methods were developed roughly 50 years ago to replicate some of the look and characteristics of sheng pu’er. It can be thought of as a type of rapid aging process, but the result is considered inferior to a well-aged sheng pu’er.

Modern pu’er cake nei fei with anti-counterfeiting features. Image: Google/JW Kaler

On the counterfeiting side, forgers employ several methods to create fakes. The more egregious counterfeits copy the packaging of well-known pu’er brands. This involves copying the outer wrapper of the pu’er cake along with the nei fei (paper label pressed into the surface leaves of the pu’er cake) and the nei piao (paper ‘ticket’ placed on top of the cake before wrapping the cake. More modern pu’er cakes employ anti-counterfeiting measures on their internal and external packaging.

In addition to imitating famous brands, counterfeiters may also use substandard tea leaf or leaf from outside of the official pu’er area. The overall quality of the tea cake may be compromised, with higher quality leaves showing on the outside of the pressed pu’er cake, while broken and poor quality leaves are used below the surface of the pressed cake. Newer and lesser-known pu’er brands may also falsify information on the mountain or the age of the trees that the leaf material came from, knowing that older trees and specific mountain origins command higher prices.

The impact is vague

Counterfeiting pu’er may be a lucrative criminal business within China, but the impact outside of China is less clear. China’s annual production records provide a breakdown of overall dark teas produced each year. Export data is classified differently. In December 2020, the China Customs Tariff Commission of the State Council adjusted the export codes used to delineate exports of shu pu’er from other dark teas. No separate designation for sheng pu’ers was provided. Reports tell us that China consumed 364,000 metric tonnes (mt) of dark tea in 2022. The average price was 88.19 RMB per kg, compared to 160.99 RMB per kg for green tea.

Exports of shu pu’er totalled 1,916mt, or 0.5 percent of all 2022 tea exports. In comparison, 351mt of dark tea was exported. A further breakdown is harder to find, but well established pockets of pu’er and dark tea consumers can be found in Hong Kong, Taiwan, and Malaysia. These export destinations are also known to have communities of pu’er and dark tea collectors who seek out rare and high quality teas. The climates of these areas are considered ideal for naturally aging these teas.

Pu’er and dark tea consumers outside of China have a limited range of options to avoid purchasing counterfeit pu’er. For starters, it is the more expensive pu’er that gets copied, so one should exercise caution when purchasing pu’ers that are decades old with asking prices in the thousands of USD. In the United States and other countries that do not recognise PGI, problems also arise when “pu’er” gets used as a broad category term for a wider variety of dark teas. In such situations, a reputable vendor is important in verifying whether a pu’er product complies with GI standards used in China or the EU. When purchasing pu’er pressed cakes, experienced buyers have learned how to examine the inner and outer packaging (ie, the wrapper, nei fei, and nei piao) for evidence of forgery.

Counterfeit pu’er teas remain an ongoing problem, particularly for investment-grade pu’er cakes. However, opportunities to avoid fraudulent purchases exist where traceability of geographic indicated products and anti-counterfeiting packaging practices are properly scrutinised. In some regions of the world, better distinctions between dark tea and pu’er will also enable customers to better understand the kinds of teas they purchase.

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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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The private label tea and coffee market in Eastern European and Nordic states is steadily growing this year, thanks to a stable demand and the ongoing expansion of portfolios by leading local players. 

In contrast to Western Europe, where the tea and coffee private label segment has been actively developing since the 1980s, most Eastern European states have registered significant market growth and massive launches of new, private label products in recent years. The same, however, cannot be said for the Nordic states, where the popularity of private label tea and coffee brands, produced by leading local retail chains has always been high. 

One such brand is Norwegian chain, REMA, which is implementing its REMA 1000 private label strategy that involves actively developing its private label brands in both the Nordic states and other Eastern European states. REMA has significantly expanded its portfolio of private label tea and coffee brands over the past few years, and most of analysts expect the company will continue to develop this segment. 

REMA’s current list of tea and coffee brands is wide and includes some iconic brands in the Nordic market. An example of this Kolonihagen, a well-known Norwegian coffee and tea private label supplier within REMA, which in recent years has strengthened its positions both in the domestic market and overseas.  

Arnt Ove Dalebø Englund, co-founder and director of innovation at Kolonihagen, said that Kolonihagen recently entered the premium tea category with a range of four variants. “This is part of the REMA 1000 private label strategy, having alternatives — [opening price point] (Prima), mid-range (R) and now finally also covering the premium through the organic Kolonihagen brand.” He said that this series of teas is nationally distributed and is present in all 650 REMA 1000 stores in Norway. According to the size of the category [in each store] (both shelf space, rotation and turnover), there are four premium products at the moment. 

“We do not have plans to expand the [number of products, [instead] bringing in new flavours [as a] one in-one out. Additional value propositions are also highly relevant and part of a continuous strive to do things better. That is the core of our brand,” said Dalebø Englund. “One example of this is to put regenerative principles (and certifications) on top of the organic standards. Seasonal products are [also always being considered].” 

Dalebø Englund expects Norway’s private label market and that of other regional countries as well as Eastern Europe will show stable growth rates in years to come. “It’s hard to answer this on behalf of competitors in FMCG market in Norway, but in general, the private label category share is lower than that of other Nordic and European countries. [I predict] that moving from 20 percent to between 40 and 50 percent is likely in a two to three-year period, and this will probably be even higher for the tea and coffee category. 

Other major players are also considering accelerating their expansion both in the market of Nordic states and Eastern Europe. 

Bethany Physick, marketing manager at Finlays Europe Extracts, shared that across Europe, Finlays is continuing to help European brand owners tap into the health and wellbeing trend with its Just Add Water solution, a range of sachets containing tea and botanical powder blends that are designed to meet consumers’ desire to drink functional water on the go. “Later this year, Finlays’ new cold brew coffee extraction facility will open in the United Kingdom bringing an exciting range of cold brew coffee extracts to the fast-growing European market,” she said. “The coffee extraction facility will produce for branded and [private]-label suppliers in the UK and European and Eastern European retail and hospitality sectors.” Physick noted that Finlays is already a global leader in cold brew in the United States, and it expects growth in the category in the European market. 

Regarding future market prospects, Sian Edwards, insights manager, Finlays Group, explained that tea in all formats offers major potential in Eastern Europe, in terms of the market scale and growth prospects. “There are big markets, many of which are fast premiumising, as consumers seek a wide range of healthy, functional and indulgent beverages. The ready-to-drink (RTD)/iced tea market was valued at USD $2 billion in 2022, and has yet to reach maturity, with a forecast of 18 percent CAGR between 2022 and 2027, to reach an estimated market size of $5 billion in 2027.” Furthermore, he noted that RTD/iced tea is being bolstered by consumers seeking healthy and innovative alternatives to traditional soft beverage categories. 

“Hot tea and infusions are a more mature category for consumers in Eastern Europe. The category was valued at USD $9 billion in 2022 and is expected to exceed $10 billion by 2027 – with a 2 percent CAGR,” said Edwards. “Per capita consumption in the region is particularly high, with tea established as a habitual, daily necessity in many Eastern European markets. There is continued consumer demand for both RTD/iced tea and hot tea and infusions, and we see private label continuing the play a valuable role in this market growth.” 

PL still strong in Western Europe 

The private label market is traditionally within the interests of some major Western European players. 

Jens Schneider, managing director of Kloth & Köhnken Teehandel GmbH, one of leading tea suppliers in Europe, said the company has big plans for the further expansion this year. “There is an ongoing demand for organic and the wish for a sustainable supply chain throughout the world. The Nordic states, and Eastern Europe are markets we have good contacts in for many years, and we [see] steady, growing consumption [in both]. 

Still, according to Schneider, after three years of continuous challenges with consequential influences in sales channels, filled stocks and market movements, “it is currently difficult for the company to predict what trend or demand it really has in the market. [However], the focus on and trends toward organic, transparency and sustainable sourcing will be ongoing and rising.” 

PL optimism fades in the Nordics 

Representatives of some leading Nordic and Northern European retailers are less optimistic, regarding further prospects of the private label market, particularly in the coffee segment. Juhani Haara, a senior sales manager, S Group, a Finnish retailing cooperative organisation, said that private label, the coffee segment in particular, has decreased. “According to our sales data, there is a clear decline in private label coffee sales volume – a nearly 19 percent drop – this year. The reason for this is the increased campaigning with branded products both in S-Group and in the market. On the other hand, private label tea sales volume has increased significantly, by about 25 percent, during this year,” she said, adding, “this is certainly influenced by the economic situation. We expect this trend to continue towards the end of the year.” 

Haara said that new private label products have been added to the tea selection this year: two Kotimaista herbal teas and four different X-tra products. “There hasn’t been any promotion in tea products, but our own PL products are remarkably affordable compared to brands. This year there have been no private label novelties in coffee yet, but we are developing our selection.” 

Most independent analysts also do not expect sharp market growth rates in years to come. Julija Poliscuk, a senior consultant at global market research firm, Euromonitor International, believes that private label tea and coffee items are not growing as quickly as in other food and drinks categories. “The slow dynamics in current value and flat or declining volume share can be attributed to these products’ association with rituals and thus, the demand for high-quality offerings, reflecting the cultural and image significance they hold.” 

She said that in 2022, the current value share of private label in Nordic countries for coffee and tea increased slightly, reaching 9.3 percent. “This cooling trend aligns with stabilised consumer financial confidence and desire to spend after the challenging years of Covid-19. Notably, the volume share of retailers’ own brands in coffee rose by 0.7 percentage points, reaching 11.8 percent in 2022, signaling better performance compared to the overall coffee market in Norway, Sweden, Finland, and Denmark combined,” Poliscuk explained. “In Eastern Europe, historically known for brand-oriented preferences in tea and coffee, the current value share declined by 0.2 percentage points in 2022, reaching 5 percent. Coffee’s volume share was 7.2 percent (versus 7 percent in 2021), which pales in comparison to the strong growth of discounters and retailers’ own brands’ performance in other categories.” 

She added that many Eastern European markets offer big promotions for national tea and coffee brands, which reduces price gap between those products and private label ones. This market situation, according to Poliscuk, favours branded products. “When the price difference is marginal, consumers opt for familiar brands, purchasing them on discount. This hampers the development of private labels in tea and coffee in the region.” 

Poliscuk said that the hyperinflation in Eastern Europe, did not boost private label in 2022, as consumers inertially continued their ‘revenge’ spending after the Covid-19 period. “However, 2023 might bring a different outcome as consumers already started downtrading, potentially making private label a more attractive option. The level of sophistication and price segmentation within private label is more prominent in countries with well-developed modern grocery retail.” Additionally, recent launches of private label coffee and tea products in the Nordics target audiences seeking added value, which leads to the appearance of more specialty coffee (eg, specific bean origins). “Retailers are also expanding their assortment to align with sustainability strategies, offering more organic teas and coffee in modern, environmentally friendly packaging.” 

Per Poliscuk, private Labels primarily are considered ‘anti-crisis products’, allowing consumers to save or maintain their preferences without compromising on quality. The hyperinflation in Eastern Europe during 2022 and continuing into 2023 will impact consumer behaviour and drive the surge in private label adoption. As people seek cost-cutting measures, price increases in coffee and tea will push them to revise their previous preferences. “While Private Label won’t dominate the hot drinks market due to the nature of these products, its expansion alongside aggressive discounters will positively influence retailer’s offerings.” 

In Nordic countries, Poliscuk said the volume of private label hot drinks is expected to stagnate, even decline, but the value share will increase alongside the price. More premium coffee and tea aimed at quality seekers eager for better prices will emerge. “More caffeine-free and health-improving teas are expected, while coffee offerings will focus on specific beans and roasting variations. Retailers in these Western countries have the expertise to develop premium store brands based on specific needs like sustainability or fair trade.” 

Despite the impact of war on logistics chains and prices, with a small private label market and a decreased national brands presence, Eastern Europe expects a stronger demand than ever before for retailers’ own brands. 

• Eugene Gerden is an international freelance writer, who specialises in covering the global coffee, tea and agricultural industries. He worked for several industry titles and may be reached at gerden.eug@gmail.com. 

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Tea has been enjoying its fair share of popularity since the last several decades – centuries, even – so much so that there are people whose day does not start in the true sense without taking a sip of hot tea. Plus, tea is known as a good antioxidant. 

With regard to flavoured tea, the very concept springs from the fact that ‘variety is the spice of life.’ Breaking the monotonous rut is what humankind cares the most about. Tea has come a long way over the last few years in terms of flavours and the way they are being devised and marketed. Starting with fruits, the flavours have made a beeline to flowers, alcohols, and several chemical compounds. For instance, amyl acetate, which gives banana flavour, is distilled from real bananas. The mixture of amyl alcohol and vinegar also gives banana flavour, but then it won’t be termed as ‘natural. Likewise, strawberry flavour could be devised naturally as well as artificially. 

The best part about tea leaves is that most are receptive to flavours. It has been found that green and black tea leaves go well with almost every type of flavour. Dry flavours do well with loose teas, whereas liquid ones work for the teabags.  

There are several variants regarding tea flavours as follows:  

• Natural Extracts: These flavours come from extracts of the essential oils of the blossoms, fruits, leaves, roots, and likewise. The basic function of these extracts is that of contributing to fragrance of teas.  
• Natural Granules: These granules, as the name suggests, come from natural essence that is spread on tea leaves all through. The mixing happens till blending with leaves happens. Most flavours come from granules comprising blossom, herb, and fruit extracts. Also, herbal infusions come as inclusions, which are solid particles of fruits, herbs, spices, and blossoms mixed with tea leaves on direct basis — when steeped, the right taste is obtained. 

• Nature-Close Flavours: These are the flavours extracted through chemical processes. There is not much difference between natural and nature-close flavours except for the extraction process. Preserving turns out to be simpler as compared to natural processes and cost-effective. It needs to be noted that here the extraction is artificial, not the flavour. 
• Artificial Flavours: The name is self-explanatory. The flavours are created artificially to make stronger and better blends. 

Another variety is that of scented tea. It is obtained from flowers like jasmine. Also, smoked tea is popular, which is processed around cypress or pine wood fires.  

Medical benefits of flavoured tea 

Tea has many healthy attributes such as being ‘chock full’ of antioxidants, polyphenols, and catechins, but there are also many medical benefits associated with various teas. 

Earl Grey tea, for example, is a popular flavour that is formed by blending bergamot oil and tea leaves. The medical benefits include improvement in dental health, reduction of anxiety, helping in digestion, increasing energy levels, and body detox. Elderflower tea, a flavoured tea that is especially popular in Europe, is derived from a cream-coloured flower (elderflower) of the elderberry plant. This tea is a rich source of vitamin A, C and several essential nutrients. Apart from Europe, North America is the other major consumer of elderflower tea. In terms of medical benefits, elderflower tea relieves from fever, cough, headache, and cold. The respiratory disorders like tonsillitis, asthma, laryngitis, and others could also be relieved by drinking elderflower tea. 

Though its origins could be traced to China, green tea’s popularity is unmatched across now. Japanese green teas are inclusive of hojicha, genmaicha, tencha, matcha, kabusecha, gyokuro, and sencha. Green tea is available in the form of iced green tea, green tea instant mixes, and green tea bags. The flavours include jasmine, wild berry, cinnamon, vanilla, lemon, and aloe vera. It helps in prevention of loads of ailments like tooth decay, diabetes, cancer, heart disorders by ascertain maintenance of proper blood level and cholesterol all over the body. 

The least processed leaves on the part of Camellia sinensis produce white tea. It comprises juvenile buds. The floral-fruity flavour finds its applications in various industries like pharmaceuticals and cosmetics. It does possess anti-microbial properties and acts as an excellent antioxidant. 

Those vying for clean label products will sync with detox tea, which is conventional as well as organic. Detox tea, as the name suggests, helps in intestinal detox, liver detox, cardiac detox, and likewise. 

Delving into flavoured tea 

By type, bubble tea could be categorised as chocolate, fruits and berries, mixed/blend flavours, and honey. It is popular in the Asia Pacific, India, in particular. The latest offerings include fresh ingredients like fresh fruit, organic cream, green tea, and soy milk. 

Amongst the instant tea mixes, encapsulated tea is trending in certain regions at the moment. Encapsulation is a technique to protect or entrap fragrance and flavours within a coating material. Encapsulated tea reduces the preparation time for the drink. The flavours available include cranberry, raspberry, mango, and lemonade. These flavours are captured by entrapping them within the tea leaves. 

As far as alcoholic tea is concerned, it comes in a wide range of flavours including coconut, mint, peach, cucumber, lime, sweet apricot, mango, and berries.  

In a nutshell, flavoured tea will continue to evolve as the taste buds of consumers will ask for more variations and there would be no stoppage to research being conducted therein. 

• Divakar Kolhe is a tech blogger, is a seasoned digital marketing professional, having worked for numerous online firms in his distinguished career. He believes in continuous learning, considering that the digital marketing sector’s rapidly evolving nature. His forte is analysing the commercial viability of a new breakthrough. 

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In-Home sales increased organically by 2.2% and in Away-from-Home by 9.0%, resulting in a four-year organic CAGR of 6.7% for In-Home sales and 0.6% for Away-from-Home sales.

Total adjusted EBIT decreased organically by 3.0% to EUR €581 million as an increase in gross profit was offset by an increase in SG&A. Including the effects of foreign exchange and scope changes, adjusted EBIT decreased by 7.9%. Underlying profit – excluding all adjusting items net of tax – decreased by 21.4% to EUR €411 million. This performance was mainly driven by an unfavourable impact from fair value changes in derivatives and forex and a lower level of operating profit and includes an underlying effective tax rate of 23.5%.

Net leverage of 2.8x net debt to adjusted EBITDA at the end of H1 23 was kept well below 3.0x, with a net debt of EUR €4.2 billion at the end of H1 23. Free cash flow was EUR €14 million in the first half of 2023, which was lower than the comparative period in 2022 due primarily to the normalisation of working capital as well as higher capital expenditures. JDE Peet’s’ liquidity position remains strong, with total liquidity of EUR 2.2 billion consisting of a cash position of EUR €0.7 billion (excluding restricted cash) and available committed RCF facilities of EUR 1.5 billion.

Commenting on the results, Fabien Simon, CEO of JDE Peet’s, said, “In the first half of 2023, we delivered resilient financial performance in a category that is globally adjusting in the aftermath of the pandemic, and coping with persistent inflation. Against this backdrop and despite an industry volume decline in Europe, we delivered mid-single-digit top-line growth, driven by our premium product portfolio, E-commerce acceleration and strong performance in the US and in emerging markets.”

In the first half of 2023, JDE Peet’s initiated the transition of an omni-channel organisation in Europe, and towards a local portfolio in Russia. Simon said the company will increase its global consumer reach, with the intended acquisition of Maratá’s coffee and tea platform in Brazil and the launch of L’OR Barista in the US. “While anticipating an acceleration of our organic sales growth in H2, we expect the business environment to remain volatile,” he said. “As there is uncertainty of the impact of the transition from international brands to local brands in Russia, we believe it is more appropriate to guide our full year organic adjusted EBIT growth in the range of a low single-digit increase and low single-digit decrease.”

In the first half of 2023, JDE Peet’s said it has made good progress against its strategic sustainability roadmap and multi-year objectives, with its long-term sustainability agenda is now deeply embedded across the entire organisation and in its strategic decision making. The carbon accounting system has been rolled out and enables the company to track its carbon footprint up to the individual SKU level and allows to have a full view of its carbon reduction performance alongside financial performance.

During the first half of 2023, JDE Peet’s announced its intention to launch a new, fully compostable coffee capsule and a new paper pack for our soluble coffee ranges, which is recyclable and is the first of its kind in the coffee market. The company said the coffee from this new paper pack will generate the lowest carbon footprint within its existing range of products.

In addition, JDE Peet’s has become a member of the ILO Child Labour Platform, to tackle the root causes of child labour in the coffee supply chain, and it published its Water Stewardship Policy and its Nutrition Policy.

Since the start of the war in Ukraine, JDE Peet’s has sought to ensure that its business in Russia is operated as a stand-alone business to the greatest extent possible. The company has now taken the next step by transitioning to a local portfolio of brands, which resulted in a non-cash impairment of EUR €185 million of the Jacobs brand in H1 23 and is expected to lead to meaningfully lower contribution from Russia in H2 23.

JDE Peet’s expects the business environment to remain volatile and vulnerable for the remainder of 2023. As there is uncertainty on the impact of the transition from international brands to local brands in Russia, the company now expects to deliver the following for full-year 2023:
• Organic sales growth at the high end of its medium-term range of 3 – 5% (unchanged)
• Adjusted EBIT to fall within the range of a low single-digit organic increase and a low single-digit organic decline (updated)
• Net leverage below 3.0x, with Free Cash Flow of around EUR 400 million, post normalisation of working capital, confirming an ongoing run-rate of EUR 1 bn on a 3-yr average (additional)
•A stable dividend (unchanged)

Total reported H2 2023 sales increased by 2.4% to EUR €3.988 million. Excluding a -1.6% effect related to foreign exchange and 0.4% related to scope and other changes, total sales increased by 3.5% on an organic basis, with 3 out of 4 segments growing between 5% and 10% organically. Organic sales growth reflects a price effect of 6.8% and a volume/mix effect of -3.3%. In-Home sales increased organically by 2.2% and in Away-from-Home by 9.0%, resulting in a 4-yr organic CAGR of 6.7% for In-Home sales and 0.6% for Away-from-Home sales.

Total adjusted EBIT decreased organically by 3.0% to EUR 581 million as an increase in gross profit was offset by an increase in SG&A. Including the effects of foreign exchange and scope changes, adjusted EBIT decreased by 7.9%.

H2 2023 Financial Review by Segment
Europe delivered a sequential improvement versus H2 22, although slower than originally anticipated. Organic sales growth of 0.3% was driven by an increase in price of 8.9% and a decrease in volume/mix of 8.6%, as positive volume/mix performance in the Away-from-Home business was more than offset by a volume/mix decline in the CPG business.

Notable strong performance was delivered by countries such as France, Switzerland and most Eastern European markets and brands including L’OR, Kenco and Pickwick. Reported sales decreased by 0.2% to EUR €2.268 million, including a net effect of -0.4% from foreign exchange and changes in scope/other. Adjusted EBIT decreased organically by 8.4% to EUR €476 million in H1 23, due to lower volumes, inflationary pressure, and due to an increase in advertising spend. Based on a 4-yr CAGR, the organic adjusted EBIT growth was -4.4%.

LARMEA: Organic sales growth of 10.0% was driven by an increase of 7.0% in volume/mix and 3.0% price. Volume/mix performance continued to be broad-based across most geographies, product portfolio and price points, with notable strong performance delivered by countries such as Ukraine, Morocco and Mexico. Reported sales increased by 5.6% to EUR €734 million, including a net effect of -4.5% from foreign exchange and changes in scope/other. Adjusted EBIT increased organically by 17.4% to EUR €125 million in H1 23. Based on a 4-yr CAGR, the organic adjusted EBIT growth was 19.1%.

Peet’s Organic sales growth of 8.6% was driven by an increase of 5.0% in price and 3.5% in volume/mix. Same stores sales and ticket size were up in Peet’s’ US coffee retail stores, and Peet’s CPG business continued to deliver competitive growth. Reported sales increased by 9.8% to EUR €576 million, which included a positive foreign exchange effect of 1.3%. Adjusted EBIT increased organically by 10.1% to EUR €67 million. Based on a 4-yr CAGR, the organic adjusted EBIT growth was 10.3%.

APAC: Organic sales growth of 4.7% was driven by an increase of 4.5% in price and 0.3% in volume/mix. Positive volume/mix and organic sales growth performance in most CPG businesses was partly offset by relatively soft performance in select Away-from-Home businesses. Sales performance was geographically broad-based and supported by strong brand performance from brands including Campos, Moccona and Super. Reported sales increased by 1.8% to EUR €397 million, including a foreign exchange effect of -2.9%. Adjusted EBIT decreased organically by 21.6% to EUR €51 million in H1 23, primarily impacted by one-off costs related to a temporary supply chain disruption connected to one of our main manufacturing facilities in the region. Based on a 4-yr CAGR, the organic adjusted EBIT growth was 4.7%.

Summing up JDE Peet’s H2 2023 and looking ahead, Simon said, “We continue to be guided by our renewed strategic framework to become more global, more digital and more sustainable. We are now very pleased to witness the in-market outperformance of JDE Peet’s globally from the disciplined execution of our strategic priorities.”

For the full and original version of the press release click here.

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MOMO’s unfiltered kombucha is blended with Sentinel Watermelon, resulting in a fruity flavour balanced by the tones of Kombucha. The Sentinel Watermelon is grown by Oscar Zerbinati, in Mantua, Northern Italy, an area renowned for its melon growing; the Zerbinati family is one of the most celebrated growers in the region. The watermelons are grown slowly, reaching up to 18kg, Oscar grows one melon per plant to ensure the plant puts all its energy into the one fruit; he carefully restricts their water intake, forcing them to cling to the nutrients in the mineral rich clay soils, resulting in dense, rich flesh.

The new addition to MOMO’s portfolio is the lightest, most refreshing kombucha the company says it has ever made, and really highlights both the quality of the produce and kombucha as a medium. Zerbinati’s Watermelon makes the kombucha ideal for summer occasions, such as picnics, BBQ’s or hot London tube journeys.

Founder of MOMO Kombucha, Josh Puddle said of the collaboration, “We are so grateful to have partnered with Natoora and to have been able to combine Zerbinati’s expertly grown watermelons with our kombucha. I wasn’t sure the flavour would cut through the kombucha, but it really does and has totally surpassed our expectations – all credit to our head brewer Matt Canham. We’re also happy to be supporting Natoora’s Farm Fund through this partnership, a fantastic organisation supporting young farmers committed to agroecological methods.”

MOMO Kombucha is on a mission to produce the best tasting and highest quality kombucha, which they achieve by using finest ingredients, including a blend of the finest teas and slow pressed juice; brewing in glass jars, in super small batches, and leaving the liquid completely unfiltered to offer the maximum health impact.

Find MOMO X Natoora Watermelon Kombucha at Planet Organic, Whole Foods, Natoora and via the MOMO website.

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