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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Coffee farmers continue to face relentless challenges including mounting economic and climate pressures. Available data show that smallholder farmers produce 60 percent of the world’s coffee yet nearly half of them live in poverty and nearly 25 percent of them live in extreme poverty (less than USD $2.15/day). Furthermore, although coffee prices in 2022 were relatively high, profits ultimately failed to trickle down to the farmers themselves. Studies have shown that producers typically retain around one percent of the retail coffee price — for a USD $4 cup of specialty coffee that equals around $0.04 per cup.

The new Fairtrade prices, which were announced in March and implemented 1 August 2023 (for contracts signed by that date), increase the baseline price by 29 percent and 19 percent for Fairtrade-certified Arabica and Robusta, respectively. The new prices come after a cost-of-production study and consultation – including outreach to more than 600 producer organisations and 745 commercial partners – confirmed that farmers need to be paid more or they cannot continue to grow coffee.

“Paying farmers a fair price for their crops is the bare minimum to keep them farming,” Benjamin Kouame, chair of Fairtrade Africa shared of the new price model.

The Bonn, Germany-based social justice organisation said the increase will provide farmers with significant price risk management support in times of wild market fluctuation and adapt to their needs as they face inflation in their home countries and substantial additional costs due to climate change adaption. The new Fairtrade Minimum Price for washed Arabica beans – which represent more than 80 percent of all Fairtrade coffee sold – is USD $1.80 per pound, an increase of 40 cents over the previous price of $1.40 per pound. For natural Robusta, the price increases by 19 cents to $1.20 per pound. The additional value for organic Fairtrade coffee has been increased by a third, from 30 cents to 40 cents per pound. According to the non-profit organisation, more than half of Fairtrade coffee beans sold in 2021 were also organic certified.

“Despite the recent spikes in global coffee prices, coffee farmers are struggling with inflation, skyrocketing production costs, and crop loss due to the effects of climate change. Many coffee farmers are abandoning their farms in search of opportunities elsewhere and young people today in coffee-growing communities struggle to see a future in coffee,” Monika Firl, senior manager for coffee at Fairtrade International, said in a statement when the new minimum price was first announced. “The fact that farmers cannot make a living in coffee is a tragic commentary for the industry and a huge risk for the future of the global coffee sector as a whole.”

With its new minimum price, Firl said that Fairtrade is offering coffee farmers and their cooperatives a pricing safety net, “better adapted to the uncertain times we are living in, while leaving the door open for them to earn more when market prices are above the Fairtrade Minimum Price.” She added, “This is an essential tool that coffee farmers must be allowed to leverage in order to find renewed stability in their profession.”

Fairtrade’s global coffee network comprises nearly 900,000 certified coffee farmers in over 650 producer organisations spanning 31 countries. In addition to the Fairtrade Minimum Price, Fairtrade-certified farmers also receive a Premium – an additional sum of money that is collectively invested in projects to improve productivity, climate adaptation, quality, infrastructure, and basic community services identified as priorities by the farmers themselves and their organisations.

“The future of coffee is one where fair pricing is the norm. It is not acceptable for coffee farmers to continue to subsidise the multi-billion dollar coffee industry, while also taking on the hard work of sustainable transition,” emphasised Firl.

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

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So, are workers afraid for their jobs? Apparently not. It seems people – that is, those not in the entertainment industry – are not convinced that artificial intelligence (AI) is going to replace them in the workplace. 

Despite all of the recent debate around the rapidly increasing abilities and use of AI, a new survey by digital identity security specialists, ID Crypt Global, reveals that more than 80% of people have no concern that the technology is going to replace them in the workplace. 

The UK-based survey of approximately 1200 office workers revealed that: 

• When asked whether the use of AI in the workplace is a positive step, opinion is split with 45% saying ‘yes’ and 55% responding ‘no’. 
• When asked whether they believe AI will one day make their job role obsolete, 81% said ‘no’. 
• 94% stated that they are doing nothing to prepare for the eventuality of AI replacing them in the workplace, such as learning new skills or looking for new industries to work in. 

• If, however, the time does come when lots of people are losing their jobs to AI, 52% believe that their employer and the government share responsibility for re-training them to take on new jobs that AI has not disrupted. 
• 18% say the responsibility should lie only with employers; 16% say it’s the job of government; and 14% say it’s up to each individual to ensure they are future-proofing themselves against the rise of technology. 
  

The survey found that overall, opinion is mixed as to whether artificial intelligence is ultimately a good or bad thing for society. When asked whether they believe it’s going to do more harm or good, 47% fall on the side of ‘harm’, 36% say it will be a benefit, and 17% remain unsure either way.  

“It’s worrying that so many people remain unconvinced that AI is going to disrupt their lives. At this point, it’s clear that AI is going to become a dominant force in society, not least in the workplace,” said CEO and founder of ID Crypt Global, Lauren Wilson-Smith. “There are certain jobs that AI is going to be able to execute to a far higher level than any human can and do it in a much faster and cheaper way.” 

However, the use of AI and automation (including robots and cobots) has been occurring within manufacturing for many years and rapidly accelerated during the Covid-19 pandemic within the consumer packaged goods (CPG) industry (as well as other industries of course) due to labour shortages. 

I noted in a previous blog that widespread disruption to production lines during the pandemic and subsequent disruption to supply chains together with labour shortages are driving CPG companies to adopt automated solutions. PMMI’s (The Association for Packaging and Processing Technologies) 2022 report, The Future of Automation in Packaging and Processing, highlights how CPGs are looking to enhance and optimise their production, storage, and distribution processes using automated solutions including automated guided vehicles, industrial robots, collaborative robots (aka ‘cobots’), and mobile robots, with some of these technologies being supported by AI and advanced vision tools. 

The report revealed that e-commerce is fueling the automation trend. Furthermore, 60% of companies [in the report] said that labour shortages are extremely impactful on their packaging and processing operations, pushing CPGs toward automation, and increasing the importance of developing a skilled workforce. 

“The labour shortage is a significant problem, so the question is how to use technology to compensate for a reduced workforce,” said Jorge Izquierdo, vice president, market development, PMMI, during a conversation at the 2022 Pack Expo International. “The challenge [for equipment manufacturers] is to provide machinery that can be operated by fewer people [often one person] but that also maintains high speeds and volume.” The key, he added, is making training accessible and employee retention. 

AI, automation and robotics reduce the reliance on personnel and accommodate less skilled workers and help to decrease the amount of monotonous and less rewarding work that must be done manually. So, whether we like it or not, AI and automation (including robots and cobots) are necessary in today’s world, maybe not yet in the office, but definitely in manufacturing, and their use will not abate any time soon, rather their use will expand. 

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

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In the National Coffee Association’s (NCA) July webinar, RTD Coffee: Category Performance & Innovation, presenter Gary Hemphill of Beverage Marketing Corporation, said that the total U.S. beverage performance experienced strong dollar growth, although volume has increasingly softened due to inflation. However, niche categories like ready-to-drink (RTD) coffee continued to outpace traditional mass-market categories, although performance varies widely by segment.

Hemphill noted that most large mass market refreshment beverage categories have struggled while niche categories have experienced growth. RTD coffee is a good example of a niche category that has experienced strong growth. He explained that the coffee category is unique in that it is one of the large traditional beverage categories that has been experiencing growth in recent years but was slowed by the pandemic and now inflation. “Total coffee category growth in all formats has generally ranged from 1% to 2% through 2019 with the exception of a pandemic-driven dip in 2020 and a more sizeable dip in 2022 caused by higher prices.”

RTD coffee had experienced high accelerating volume growth until a slowdown in 2022. The partnership of Starbucks and Pepsi has dominated the RTD coffee category – in 2022, the Starbucks and Pepsi partnership accounted for just over half the category – but competition is heating up as the category continues to grow with many smaller players entering the market with unique products or new spins on existing ones.

RTD coffee innovations are plentiful, mainly the cold-brew process, but Hemphill noted they are also occurring in areas such as packaging, use of dairy alternatives, nitrogenation, extra caffeine and value-added ingredients like protein and MCT oil. “Meaningful innovation can have a significant impact on a category’s performance. Cold brew coffee has helped to spur growth in RTD coffee,” he said adding that cold brew RTD coffee share is likely to exceed 25% of the category by 2027.

Chilled format RTD coffee has been leading the category growth in recent years. And while the chilled grab ‘n go (single-serve) format continues to be a strong performer, Hemphill said multi-serve containers of chilled coffee sold through take-home channels have performed especially well.

Furthermore, although the RTD coffee category is dominated by single-serve bottles and cans, there is now a shift to multi-serve sizes. This trend was accelerated by the pandemic with more people at home in 2020 and 2021.

Curiously, once dominated by cans and glass, plastic has emerged as a key package for RTD coffee. Hemphill pointed out that glass is still the most popular package but has lost share in recent years.

Within the refreshment beverage category, Beverage Marketing Corp forecasts the strongest growth in 2023 for energy drinks with bottled water, carbonated soft drinks and RTD coffee likely to increase slightly.

Hemphill sees prospects for RTD coffee growth with products offering functional/health benefits and even in the no-alcohol shot category. “Energy shots still dominate the market but have experienced soft performance in recent years. It is an area to watch as the opportunity is there for coffee.”

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

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So as the coffee industry looks for solutions to meet the growing challenges of the climate crisis, World Coffee Research (WCR) has taken an important step by publishing its first Robusta Variety Catalog to help Robusta farmers make informed decisions about varieties. 

The catalogue, which is available in English and Spanish, profiles 47 Robusta varieties – from origins such as Brazil, India, Indonesia, Uganda, Mexico, and Vietnam – using 20+ variables, like yield potential, stature, bean size, nutrition requirements, lineage, susceptibility to pests/diseases, among others. 

With Robusta’s growing prevalence in the global market, WCR hopes the catalogue will lower the risk associated with coffee farming by providing direct information to enable farmers and other planting decision-makers to make an informed choice about what varieties will grow best in particular environments. “The catalogue is a critical new resource to fill the information gap that exists in our industry regarding Robusta coffee,” said Hanna Neuschwander, WCR’s strategy and communications director. 

With the life of a coffee tree being 20 to 30 years, the decision farmers make about which variety to plant has long-term consequences. If a farmer makes an uninformed decision on variety, the cumulative loss can be huge. Comparatively, if a farmer makes the right decision, the cumulative gain can be significant. For instance, WCR explains that a Robusta farmer in Uganda who successfully cultivates a healthy Coffee Wilt Disease resistant (CWD-r) plant can earn 250% more than a farmer who plants a susceptible, unhealthy plant. (Uganda has an ambitious plan to increase its coffee exports, including Robusta within five years. Uganda’s current coffee exports are around USD $627 million annually, with the goal in five years being $1.5 billion — a 28% increase.) 

WCR noted that most Robusta farmers in particular do not have access to transparent information about available varieties and how they differ. Robusta farmers typically sell into lower-value markets where variety differentiation is nonexistent. In addition, Robusta requires more than one variety and simultaneous flowering for successful pollination. Because of this, farmers must cultivate a mix of complementary clones to enhance fruit production and quality. These mixtures, which typically comprise officially-released commercial varieties, are often distributed to farmers with minimal transparency about what clones are included in the mix and their unique properties. The lack of up-to-date variety information puts farmers at risk and perpetuates low yields around the globe. 

“WCR [works] to empower farmers by making tools available to choose the right varieties for their farms and their markets — varieties that deliver high yield and better-tasting coffee in the long term,” said WCR’s CEO Dr Jennifer ‘Vern’ Long in a statement. “And now that Robusta comprises 40 percent of the coffee produced and marketed globally, we saw the need to support farmers by creating this tool.” 

The Robusta catalogue was generated through collaborative sourcing of data about varieties from breeders and other experts. The varieties in the Robusta catalogue were selected for inclusion because of their economic, historical, cultural, or genetic importance. Even so, significant gaps in data for many Robusta varieties remain. The genetic diversity of Robusta coffee is also much larger than that of Arabica, and it is only just beginning to be explored by breeders and the industry at large. The catalogue does not aim to represent an exhaustive list of all coffee varieties in existence. 

Alongside the detailed variety profiles, users can find a consolidated and peer-reviewed history of Robusta as a species, which tracks it from its origins in central and western sub-Saharan Africa through its dispersal across Asia and Latin America to its cultivation today. In addition, the history provides a brief overview of the genetic diversity and conservation of Robusta to provide readers the opportunity to better understand how well-differentiated the various populations of this species are. Users are also able to filter different variables, such as yield potential, country of release, etc.  

The Robusta resource serves as an expansion of WCR’s Arabica Variety Catalog, which was launched in 2016 and profiles Arabica varieties from around the world. 

The Robusta and Arabica catalogues can be accessed here. 

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

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At the category level, the top three performers currently are: RTD coffee, still waters and soft drinks. Brands with the strongest momentum (brand trajectory) include Chameleon Hand-Crafted Cold Brew, PRIME and Electrolit; the weakest in brand momentum include: 7-Up, Sprite and Canada Dry. 

The performance of RTD coffee on the list is not unexpected given that 65% of Americans consumed coffee in the past week according to the National Coffee Association’s (NCA) Spring 2023 National Coffee Drinking Trends (NCDT) Survey, with 11% consuming RTD coffee within the past week. 

Category laggards – ranking among the bottom three – include enhanced waters, RTD teas and sparkling waters. It is surprising to see the RTD tea category so low on the list given that more than 85% of tea consumed in the US still is either RTD tea or iced tea. 

Favoured brands among the youngest and oldest surveyed generations, Gen Z (15% of the US adult gen pop) prefers Starbucks Frappuccino, Dunkin’ Iced Coffee, AriZona Iced Tea, Nestlé PureLife. and Gatorade, while Baby Boomers (27% of US adults) choose Lipton, Aquafina, Dasani, Gatorade, and Coca-Cola. 

The Bev50 survey, created by neuro-market research firm Alpha-Diver, is based on 100+ psychological metrics across a representative US population sample. Alpha-Diver is a market research firm that applies neuroscience to better understand marketplace behaviour. The firm’s neuroscientists and strategists work with leading brands, retailers and the Wall Street analyst community to explain, measure, and predict consumer behaviour. 

The survey, fielded online (via computer or mobile device) between April and June 2023, among 2,970 respondents, was conducted across eight categories, from multi-billion dollar brands to challengers. There were two waves of 1,500 respondents each, one conducted from 27 April 27 to 2 May, and the second from 2-8 June. The sample is closely matched to US census figures for gender, age, and ethnicity to approximate the general population ages 18-75 as closely as possible.  

Fifty-one percent of responders were female, with an average age of 45 and a media income of USD $59,000. Forty-two percent of responders live in suburban settings, 36% in urban areas and 22% in rural communities. The generational breakdown: 15% Gen Z, 32% millennials, 27% Gen Xers, and 27% Baby Boomers. Two-thirds (66%) of responders were White, 12% Hispanic, 14% Black, and 6% Asian/Pacific Islander. 

“Our goal was to produce a survey inclusive of all ethnic groups drawn from the key demographic and geographic sectors that explains WHY consumers behave toward brands in the soft drink sector,” said Hunter Thurman, president of Alpha-Diver. “Data drawn from this large sample enabled us to rank the brands according to three dimensions: consumer purchase behaviour, their emotional attachment to brands, and the trajectory of brand usage: increasing, stable or declining. Together this data set provides deeper insights into the beverage sector than previously available.” 

Alpha-Diver’s proprietary research methodology breaks down brands by the four leading drivers of consumer behaviour, as well as mapping their sales trajectory, the strength of consumers’ attachment to a brand, and their habituation or routine consumption of beverage brands. 

• Experientially-driven brands – providing new sensory discoveries – standouts are: AHA sparkling water, Starry Lemon Lime and LaCroix. 
• Rationally-driven brands – practical options – Dasani, Celsius and Aquafina lead. 
• Tribally-driven brands –providing a social connection among users – Lipton, Pepsi and Nestlé Pure Life. 

• Instinctual – feel good, impulse driven brands – Red Bull, Monster and Mtn Dew, are favourites. 

The Bev50 Psych Pulse also includes key data on the five potential barriers to consumer brand choice, including: 

• Price: Does the brand offer a good value? 
• Time: What must I give up doing to obtain? 
• Social: What will others think of me? 

• Emotional: Will I be disappointed by the beverage? 
• Physical: How will dinking this beverage make me feel? 

Consumers have a strong emotional connection to their coffee and tea brands. Currently, the RTD category, within both coffee and tea, is where the most innovation is taking place so its inclusion on the top 50 brand list makes sense. RTD brands are continually meeting consumer demand for new flavours, organic and natural ingredients, unsweetened/less sweetened, lower caffeine/caffeine free, higher caffeine, functional ingredients, improved packaging — the list goes on. I’m curious to see how the list may differ next year — will the same RTD coffee and tea brands ‘make it’ or will new/younger brands top the list? 

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

The post RTD coffee and tea brands top the BEV50 Brand Index appeared first on Tea & Coffee Trade Journal.

Both the Tea Association of the USA, Inc., and the Tea Council of the USA have been working for the last three DGAC cycles leveraging the healthfulness of tea, to influence tea being incorporated into the DGA. The DGAC is using data analysis, food pattern modeling, and systematic reviews to examine a list of prioritised scientific questions. The questions about dietary patterns reference the effect of beverages on growth, body composition, risk of obesity and risk of type 2 diabetes. Tea, as well as dairy and coffee, are included specifically as these questions are being reviewed. 

This is a significant achievement for tea Peter F. Goggi, president of the Tea Association of the USA said, explaining that “tea has been discussed by the DGAC in the past but has never made it to the final recommendations.” 

The DGAC uses three scientific approaches to examine the evidence: data analysis, food pattern modeling, and systematic reviews. In an email alert to its members, the Tea Association and Tea Council of the USA offered updates on DGAC activities to date in 2023, which included key points discussed at the second DGAC Meeting (the next meeting has not yet been scheduled). 

According to the update, sustainability is an area of interest for the DGA 2025 to better understand how sustainability intersects with food systems, diet, nutrition, and health, highlighting that “information we can provide about the sustainability of tea should be included in our comments.” The DGAC is viewing the 2025 guidelines through a ‘health equity lens’ and they are considering diverse racial, ethnic, socioeconomic, and cultural backgrounds.  

Furthermore, in his letter to members, Goggi said the DGAC committee is looking to recognise that American consumer’s frustration with choosing healthy foods runs deep and is rooted in individual daily battles. The DGAC looks to consider factors such as economic and social aspects of obstacles to food access, health, and healthcare, and works on ways to remove barriers. 

The relationship between beverage consumption and type 2 diabetes is being examined by the committee. The DGAC notes that as beverages are consumed throughout the day, the effect of beverages on blood sugar levels is important to consider. 

The DGAC is also exploring the relationship between coffee and/or tea consumption and growth, body composition and risk of obesity. 

The 2025 Dietary Guidelines Advisory Committee is examining a list of prioritised scientific questions informed by the proposed list of scientific questions identified by Health and Human Services (HHS) and USDA. The full list of questions, including the beverage-focused ones, may be viewed here. 

Louise Pollock, president, Pollock Communications, which represents the Tea Council of the USA, and has been working with both organisations to promote research findings that tout the many healthy attributes of tea as well as to leverage the healthfulness of tea over the last three DGAC cycles in order to influence tea being incorporated into the DGA, said the [tea] organisations plan to address the research on tea and obesity and diabetes in their comments in late 2023 or early 2024. 

“The Tea Council of the USA will do this by sending written comments to the Dietary Guidelines Committee citing [published] research,” said Pollock. “Additionally, we will work with a highly respected researcher to provide in-person comments, if selected, about the health benefits of tea directly to the Committee.”

The Tea Association and Tea Council will continue to monitor the activities of the DGAC and will offer input when comments are requested, and T&CTJ will continue to provide updates as they become available. 

While on the topic of tea and sustainability, just a quick reminder that T&CTJ’s tea sustainability survey deadline has been extended to 30 June. Please voice your opinion on this critically important topic. Access the survey here. 

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

The post Tea makes the DGAC cut! appeared first on Tea & Coffee Trade Journal.

The USDA first passed organic regulations in December 2000. The ‘Strengthening Organic Enforcement’ (SEO) Rule took effect in October 2002, and those regulations were in place until 2020 when a new rule was proposed. The USDA published a final rule 18 January 2023, which took effect 20 March 2023. The compliance deadline for the Final Rule is 19 March 2024.

The National Coffee Association (NCA) held a webinar on 31 May – ‘Strengthening Organic Enforcement” (SEO) Rule & its Impact on the Coffee Sector’ – to help green coffee importers understand the new regulations and who is affected, but tea importers should also heed the advice.

Mabell Rivas, technical manager, Quality Assurance International (QAI), one of the presenters, said there is now a significant increase in oversight and authority to address incidences of fraud and fewer parties are exempt from certification. In the coffee industry, she said the impact is primarily on entities that interact as intermediaries, which are currently exempt but will now have to be certified per SOE, these include: brokers, traders, exporters, importers, and some warehouse operations such as green coffee gathering centers.

The webinar highlighted some of the notable updates to the SEO Rule. Among them: import certificates for all imported products entering the US will be required (by March 2024); additional info is to be displayed on nonretail containers; and companies will need to develop and implement Supply Chain Fraud Prevention Plans, which will be assessed.

Except for the exempt operations described in the Code of Federal Regulations Title 7 205.101, each operation or portion of an operation that produces or handles agricultural products intended to be sold, labelled, or represented as ‘100 percent organic’, ‘organic’ or ‘made with organic (specified ingredients or food group(s))’ must be certified.

Within the coffee supply chain, Rivas said that at origin, farmer, wet process, intermediary, dry process, and the green coffee trader/exporter must be certified. In the importing country, the broker/trader agent/importer and processor, must be certified, but she said some activities at the warehouse such as distribution and finished product distribution are exempt. Exemptions to the SOE Rule (under 7 CFR Part 205.101), in terms of ‘Operation Type’ include:

• Operations whose gross organic sales total USD $5,000 or less annually;
• A retail establishment that does not process organically produced agricultural products;
• Retail establishments that process, at the point of sale, [previously] certified organic products;
• Handling operations that only handle agricultural products containing less than 70 percent organic ingredients;
• An operation that only receives, stores, and/or prepares for shipment but does not handle products and the products are packaged in tamper-evident packages or containers.

Under the new SOE Rule (§ 205.273), import certificates will now be required for any organic product coming into the US. Roxanne Beavers, senior technical reviewer, Quality Assurance International (QAI), who also presented during the webinar, explained that Import Certificates must be created using the National Organic Program (NOP) Organic Integrity Database; will be generated using the Organic Certificate listings. She said that it is possible to create one Import Certificate to cover multiple imports for a period of time (e.g., season, quarter) with a maximum amount of product identified. Before product ships, Beaver said the importer must upload the Import Certificate to the Automated Commercial Environment (ACE) of Customs and Border Protection.

What is an import certificate? Beavers explained that the NOP Import Certificate must list:

• Exporter and their Organic Certifying Agency
• Recipient
• Product Name
• HTS Code
• Manufacturer of product and Certifying Agency (if not exporter)
• Amount of product and shipping ID
• May have start and end date

Furthermore, Beavers said that an Integrity Database online system is currently being developed, noting that NOP began testing the system in Q2 2023. She noted that in the US, transaction certificates are used in the coffee industry, thus, this is not a huge change so players should be able to handle it better than other agricultural commodities.

Another change to the SEO Rule is that organic operators need to create a fraud prevention plan, which is designed to improve supply chain traceability. Beavers said the Fraud Prevention Plan must be developed, reviewed, and approved by 19 March 2024. Those, those importing organic coffee or tea need to:

1. Conduct a vulnerability assessment (all fraud), including:

a. Know your products and risks (history, economic and geographical factors)

b. Know your suppliers (manufacturer, broker, history)

c. Know your supply chain (length, complexity, supply and demand)

d. Know your existing verification measures and identify the gaps

2. Design and implement internal mitigation measures including a robust supplier approval program that involves internal audits and second-party supplier audits.

3. Ensure practices are effective through monitoring practices and verification tools such as internal audits and control testing.

4. Document the vulnerability assessment, mitigation measures and monitoring practices in an Organic Fraud Prevention Plan.

5. Integrate mitigation measures into the Organic System Plan (OSP).

Just a reminder, the compliance deadline for the SOE Final Rule is 19 March 2024.

T&CTJ will provide any updates as they become available.

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

The post The impact of the updates to the USDA Organic Rule for imported products appeared first on Tea & Coffee Trade Journal.

Plantable packaging, that is, packaging created from natural and biodegradable materials, is an emerging market – still small within the coffee and industries but expanding – that FMI believes has the potential to grow rapidly in the coming years due to its sustainable and environmentally friendly qualities.

As people become more aware of the environmental impact of plastic waste, there is a greater demand for sustainable packaging alternatives. Plantable packaging is not just a sustainable solution, but it also has other advantages in addition to biodegradability, such as durability and moisture resistance.

Although, the amount of coffee and tea packaging that is ‘plantable’ is relatively small, we are seeing more compostable and biodegradable packaging and single serve capsules/pods enter the market each year. Some companies are fully committing to the ‘plantable’ aspect, such as Four Stages Tea and Herbals, a company that offers all organic and fair-trade loose-leaf functional tea blends and which proceeds go to saving the monarch butterfly, which is on the verge of extinction. Four Stages has announced that it is launching plantable packaging that has milkweed seeds and nectar plants infused inside (see T&CTJ’s July/August 2023 issue for a story on Four Stages Tea and Herbals).

The regulatory push for sustainable packaging enhances plantable packaging’s appeal. As the report notes, governments around the world are implementing measures to decrease plastic waste and encourage sustainable packaging. The European Union (EU), for example, has set ambitious targets to eliminate plastic waste and promote the use of environmentally friendly packaging materials. The EU Circular Economy Action Plan, which aims to make the European economy more sustainable and circular, is one method Europe uses to promote plantable packaging options. Furthermore, several EU countries have enacted legislation and measures to limit plastic waste and encourage sustainable packaging options.

As part of its efforts towards sustainable development, India is actively promoting plantable packaging options. FMI reports that the government has implemented several initiatives and legislation to encourage the use of environmentally friendly packaging materials.

Within North America, several programs have been implemented to encourage the usage and adoption of plantable packaging solutions, such as the Sustainable Packaging Coalition (SPC), a membership-based collaborative that strives to create a more sustainable packaging sector. The SPC has created a set of sustainable packaging guidelines, which include the use of plant-based materials and compostable packaging. It also provides companies with tools and resources to help them implement sustainable packaging solutions, such as plantable packaging.

Plantable packaging also provides a unique value proposition to clients because it not only functions as a packaging material but also doubles as a way to produce plants. This packaging technology can help businesses stand out in a congested market and attract customers who want something different. As with all packaging, plantable varieties can be customized with various forms, colours, and designs.

While there are many upsides to plantable packaging, FMI’s report reveals some current disadvantages that must be considered before any investments are made. For example, the limited market size — while the plantable packaging market is expanding, it remains modest in comparison to other packaging materials. In the short term, this may limit the potential for high returns on investment. Additionally, plantable packaging is currently more expensive than standard packaging materials, making it less competitive in price-sensitive applications. Furthermore, scalability might be a challenging aspect for businesses that rely on natural materials as they can be altered by weather or other external factors.

Investment in the plantable packaging industry can provide significant opportunities for growth and sustainability. However, as FMI’s report advises, comprehensive study and due diligence are required to examine the product’s market potential, competitive landscape, and environmental impact, among other things. Yet, as governments ramp up their efforts to reduce packaging waste and consumers demand more sustainable options, plantable packaging is one to strongly consider.

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

The post A growing trend: plantable packaging appeared first on Tea & Coffee Trade Journal.

In 2019, the United Nations General Assembly adopted a resolution that establishes 21 May of each year as International Tea Day. Commenting on the creation of International Tea Day, the UNGA said it “is an opportunity to celebrate the cultural heritage, health benefits and economic importance of tea, while working to make its production sustainable ‘from farm to cup’ ensuring its benefits for people, cultures and the environment continue for generations.” 

In honour of the 4th International Tea Day (ITD), which takes place this Sunday, many events are taking place around the world on Friday, 19 May. For example, this year will feature the 3rd global observance in Rome led by the UN Food & Agriculture Organization (FAO). The FAO’s office in New York City will also be holding an ITD event, “A Magic Leaf: Tea for Green Development” in which Tea & Coffee Trade Journal is presenting – at the UN. 

The Tea and Herbal Association of Canada (THAC) is holding its 4th Annual Sofa Summit on 19 May, between 8:30am and 7:30pm EDT. Participants can travel virtually around the globe to chat with industry experts on the topic of ‘A Sustainable Tea Industry’. The 11-hour event will be streamed live on THAC’s YouTube channel. Click here for information about the event or click here to view the Sofa Summit. 

In December 2021, T&CTJ and Firsd Tea collaborated to create what we believed to be the ‘first of its kind’ tea survey to gauge perceptions of sustainability in the global tea industry among business leaders in the tea, coffee, cocoa, and wine sectors. The survey revealed that although professionals in tea and related industries believe some progress has been made on sustainability from 10 years ago, they are not hopeful for the immediate future. Additionally, all professionals agreed that changing rain patterns, unpredictable weather and extreme heat are the biggest climate change risk factors (95%, 94% and 91% respectively). 

According to the tea sustainability survey, which ran until February 2022, professionals in tea and related industries: 

• Are worried about the effects of climate change on production (80% of respondents). 
• Believe environment/carbon footprint is the most important sustainability issue to consumers (84% of respondents). 

• Believe organic certification is the most important sustainability standard to consumers (85% of respondents). 
• Say that out of tea, coffee, wine and cocoa sectors, tea is the most sensitive industry to the effects of climate change (93% for tea followed by 82% for coffee). 
• Say that out of tea, coffee, wine and cocoa sectors, tea performs the best on worker’s rights (61% for tea followed by 46% for coffee). 

In honour of International Tea Day, T&CTJ, in conjunction once again with Firsd Tea, is launching a revised version of the tea sustainability survey. The survey – which takes about 10 minutes to complete – launches today. It will be interesting to see if responses have changed since 2021 and if so, which ones. 

Please access the survey here. We hope you will take time to share your thoughts on sustainability within the tea sector as it compares to sustainability within the coffee and cocoa industries this International Tea Day weekend, and of course, while enjoying your favourite ‘cuppa’ (or several)! 

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

The post Celebrating International Tea Day with global events and a new tea sustainability survey  appeared first on Tea & Coffee Trade Journal.

This year’s Expo was vibrant with exhibitors and attendees back to pre-Covid levels with all the activities and caffeine-induced excitement and frenzy to go along with it as people raced around the Oregon Convention Center from meetings to lectures to workshops to competitions to cuppings as well as to attend many other events that took place on and off the show floor (World of Coffee’s Think and Drink, the IWCA breakfast and Coffee Quality Institute lunch) and around the city.

The annual Re:co Symposium – also in Portland – was held just prior to the Expo and rather than its annual welcome reception, the SCA held a party for exhibitors on the eve (20 April) of the show. On opening day, before the doors officially opened just outside the show floor, the SCA held a reception with live music, coffee and treats.

During Re:co and the Expo, the SCA released the Beta version of the Coffee Value Assessment, an evolution of the association’s cupping protocol and form. The updated cupping protocol is part of a years’ long endeavour to evolve the way the industry captures information about valued attributes in coffee into a modern system underpinned by user research and sensory science best practices. The SCA cupping system was last updated in 2004.

Country pavilions returned with representation from origins such as Costa Rica, Ethiopia, Hawaii, Guatemala, Indonesia, Jamaica, Panama, Uganda, and of course, Brazil and Colombia, among many others. It was reassuring and refreshing to see so many producers back at the Expo. Sylvia Achebet, executive director of Masha Coffee, who made the trip from Uganda, excitedly commented how she was “out of samples” because there was much interest in Ugandan coffee. Several others at the booth, including Dr Emmanuel Niyibigira, managing director of the Uganda Coffee Development Authority (UCDA) and James Muhangi, general manager of Rubanga Cooperative Society Limited (which represents several farms), echoed the sentiment, noting what a “good show it was for Ugandan coffee.”

Vinicius Estrela, the executive director of the Brazil Specialty Coffee Association (BSCA), said the Expo was the ideal venue to introduce buyers (and coffee enthusiasts) to new Brazilian coffees (the US is the biggest buyer of Brazilian coffee, importing eight million bags in 2022). The BSCA presented some unique flavours and aromas such as floral, citrus, red fruits, chocolate and nuts, from varieties such as Arara, Catuaí, and MGS Paraíso among others at the show. He said that there is a new ‘flavour revolution’ taking place with Brazilian coffee.

“Because of new technologies and fermentation methods, there is a lot of experimentation going on so we are able to create new Brazilian profiles such as higher acidity and complexity, and different levels of sweetness,” Estrela explained. For example, a Natural, Catuaí 44 from Caparaó was one of the newer profiles being displayed. It was more acidic and had peppery notes. I tasted several coffees including a specialty Robusta from Rondonia, all of which were lovely. It was apparently a highly successful show for the world’s biggest coffee producer as the BSCA issued a release announcing that 29 producers secured USD $20 million in sales at the Expo.

This 2023 event also hosted several competitions – the first full competitions cycle since 2019 – including the US Coffee Championships (USCC), concurrently with the Expo. The winners were announced at the close of the show on 23 April. The 2023 US Coffee Champions are:

• US Cup Tasters Champion: Jake Donaghy, Olympia Coffee Roasting
• US Barista Champion: Isaiah Sheese, Archetype Coffee
• US Brewers Cup Champion: Wenbo Yang, Artly Coffee
• US Roaster Champion: Andrew Coe, Elevator Coffee
• US Latte Art Champion: Piyapat Lapteerawut, Coffee Project NY
• US Coffee in Good Spirits Champion: Sam Schroeder, Olympia Coffee

Next year’s SCA Expo will take place in Chicago, Illinois, 11-14 April — most attendees and exhibitors expressed excitement about the show taking place in the ‘Windy City’.

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

The post A return to vibrancy and caffeinated excitement at the SCA Expo appeared first on Tea & Coffee Trade Journal.

The 2023 SCA Expo kicks off tonight with a welcome reception and runs through April 23rd (the show floor opens on the 21st). The annual event – the biggest specialty coffee show in the world – is ‘Disneyland’ for specialty coffee enthusiasts, connoisseurs and professionals, focusing on espresso, espresso-blended beverages, specialty ‘graded’ coffee, cold brew and nitro cold brew.

The specialty coffee industry has grown tremendously over the past 15 years. In her presentation, Specialty Coffee on the Rebound, at the NCA Convention in March, Megan Rankin of market research firm, Dig Insights, noted that in 2008, 34% of consumers (in the US) drank specialty coffee. In 2023, in the US alone, that number has grown to 52%. ‘Specialty coffee’ in 2008 included espresso, cappuccino, latte, café mocha, traditional specialty coffee and frozen blended coffee. Today, she pointed out that ‘specialty coffee’ also includes caffè Americano, macchiato, flat white, cold brew coffee and nitro cold brew.

The National Coffee Association (NCA) of the USA’s Spring 2023 NCDT Study reveals that younger Americans, non-Caucasians drive consumption of espresso-based beverages. The strength of the broader specialty coffee category is driven by those under 40 years with the 25 -39 demo driving espresso -based beverage consumption. According to the study, those under 40 also have a stronger propensity to consume cold coffee beverages, suggesting the category’s growth of cold coffee should target a younger demographic. Furthermore, consumers who identify as Hispanic-, African- and Asian-Americans are also more likely than Caucasian-Americans to be specialty drinkers. About 49% of Caucasian-Americans had a specialty coffee beverage in the past week — this percentage increases among the other three ethnic groups tracked in the NCDT.

So, despite the high inflationary environment, specialty coffee is showing resilience. According to the NCA’s Specialty Coffee Report, which is part of its Spring NCDT (National Coffee Data Trends) Study, although broader consumer trends suggest that many are and will be cutting back on discretionary expenses, the specialty coffee consumer is still happily buying specialty coffee. For example, in January 2023, just over four-in-ten Americans aged 18+ had at least one cup of specialty coffee yesterday. This is driven by espresso-based beverages, which are also sustaining at high levels.

In terms of purchasing behaviour, the NCA’s Specialty Coffee report reveals that there is evidence to suggest some specialty consumers are ‘buying in bulk’ to save money in the face of inflation, but not all are cutting back. In fact, per the findings, there are more specialty coffee drinkers agreeing to the statement ‘I’ve tried making the coffees I buy out-of-home but it doesn’t taste the same’ — an indication that while coffee preparation in-home provides cost savings, there are some coffee beverages that are better out-of-home.

Supporting this finding, in her presentation, Rankin explained that 40% of specialty coffee drinkers purchase coffee out-of-home versus 23% of traditional coffee drinkers, while 77% of specialty coffee drinkers prepare coffee at-home versus 89% of traditional coffee drinkers.

So, although the possibility of a recession still looms and personal financial situations may be gloomy, specialty coffee is proving to be quite resilient, hence, the outlook is positive.

For a ‘sneak peek’ at some of the companies exhibiting at the SCA Expo, see: SCA Expo, Interpack and PLMA’s World of Private Label exhibitor preview – Tea & Coffee Trade Journal (teaandcoffee.net).

Safe travels to Portland! Come visit T&CTJ at booth #1820 and grab a copy of our latest issue!

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

The post Specialty Coffee is Resilient appeared first on Tea & Coffee Trade Journal.

The programme is part of the Ditching Disposables initiative from Zero Waste Scotland, a pilot that ran in Portobello, Edinburgh in 2021, which saw six businesses in Edinburgh cut their use of single-use items by up to 99%. A total of 14 businesses across Stirling will now offer customers a reusable cup for a £1 deposit that can be refunded by returning it to any participating café. The initiative will last for six months, with other cafés able to sign up throughout that period.

Ditching single-use items is one of the most effective actions businesses can take to reduce their contribution to climate change. Much of the carbon emissions that are produced can be attributed to the products that we make, use, and discard — and single-use items are an avoidable contributor. Consumers use an estimated 16 billion disposable coffee cups each year. The single-use cups (along with lids, sleeves and stir sticks) are often made with hard-to-recycle materials like Styrofoam, polyethylene or polypropylene that are sent straight to the landfill. Ditching disposable items can not only help businesses close the gap on their own net zero goals, but they can also save money by negating the need to reorder items that are thrown away after one use.

The Ditching Disposables Stirling trial is being managed and funded by Zero Waste Scotland on behalf of the Scottish Government and delivered in conjunction with environmental consultancy Green Gain. Zero Waste Scotland aims to lead Scotland to use products and resources responsibly, focusing on areas that can have the greatest impact on climate change. Its goal “is to inform policy, and motivate individuals and businesses to embrace the environmental, economic, and social benefits of a circular economy.”

Commenting on the initiative, Iain Gulland, chief executive of Zero Waste Scotland, said in a statement, “Single-use items are emblematic of our throwaway culture, which it’s vital we change if we’re serious about tackling the climate crisis. Choosing to reuse is one of the best things we can all do for the environment, and the Ditching Disposables initiative has a proven track record of supporting businesses and consumers to live their best sustainable lifestyle.”

One of the cafés participating in the reusable cup scheme is Kings Park Pavilion, whose owner, Craig Wilkie, shared in a statement, “[we] signed up to Ditching Disposables to try and tackle the amount of single use disposable cups we use for takeaway drinks. Our café gets a lot of takeaway trade throughout the year, but particularly in the spring and summer months. We are really keen to monitor the impact of the reusable cups on reducing wasteful single use cups and lids.”

Wilkie said the programme represents a great opportunity to test the reusable cup model and looks forward to sharing the experience with other cafés in Stirling, adding, “we hope to work with our customers to engage them in the scheme and give them a better takeaway experience, whilst reducing waste, and hopefully saving money on disposable cups.”

In addition to Kings Park Pavilion, the 13 other cafés participating in the Ditching Disposables Stirling initiative (as of 3 April) include Luna CBD, Nooch Café, Piece Out (at The Peak Leisure Centre) Stirling Coffee, The Burgh, The Pend, The Smith Café, The Tolbooth, Toasted Stirling (formerly Voseba), Unorthadox Roasters, Victoria’s Coffee Shop and the Village Café (at The Peak Leisure Centre), and beginning in May, The Station Coffee House. (Participating cafés can be located by visiting: transitionstirling.org.uk/ditching-disposables.)

The Ditching Disposables Stirling will run until 5 October, and other local hospitality venues are encouraged to sign up throughout the trial.

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

The post Scotland ditches disposable cups appeared first on Tea & Coffee Trade Journal.

Exhibitor attendance more than doubled from the 2022 show and included many first-time companies such as Wild Orchid Tea Company, Nepal Tea, the Tanzania Tea Collective, the American Yerba Mate Association, Bloomi Tea, and Conjure Tea, as well as returning companies such as Harney & Sons, SerendipiTea, Urban Tea Party, Ohki, Glenburn Tea Direct, Caraway Tea, Nasa Fuso, Florapharm International Tea Importers (ITI), the Sri Lanka Tea Board (representing multiple Sri Lanka Tea companies), Jay Shree Tea, among many others. Returning exhibitors, many of whom had not exhibited since before the Covid-19 outbreak, said how wonderful it was to see friends, colleagues and customers – and conduct business – in person again.

There was an even larger boba/bubble tea presence in 2023 versus 2022, with new exhibitors such as Milk + Tea and Mayde Boba, as well as the returning US Boba Company among several others. Long-time exhibitor, Firsd Tea which is the largest importer of Chinese tea in the United States, debuted its boba offerings. This year’s WTE also included an expanded Asian presence with many new and returning companies from multiple countries including China, Japan, India and Nepal.

Visitor attendance increased as well with a steady flow of traffic over the course of two days (the first day of WTE is now a ‘tea incubator’ for start-up and young tea businesses) – buyers from retailers such as Whole Foods Market and national and multinational tea brands could be seen walking the show floor.

Co-locating with the Bar and Restaurant Expo does bring excitement, noise and traffic to the show floor, and perhaps packaging and labelling companies benefit from the union, but I am not convinced that the union actually brings any added benefits to tea exhibitors, that is, those companies providing origin teas, herbs, spices, flavours, equipment or even accessories. How many bars and mid-tier or moderately priced restaurants are looking for specialty tea programmes, and WTE, at its core is a specialty tea show. Many of the tea exhibitors I spoke with said attendees from the Bar and Restaurant side visited their booths but most were looking for samples and ‘freebies.’

Although, one of the most intriguing ‘tea’ exhibitors I came across was on the Bar & Restaurant side: ClouTea’s ADAM, a robot that makes boba tea drinks, from milk tea to taro root. The two-armed robot has two drink handles that can be customised to make specific drinks and can function as a bartender or barista. The ADAM can be rented for events or hired full-time.

However, the visitors who attended specifically for World Tea Expo of the show were there to learn skills, enhance their knowledge about the tea industry, and conduct business, with many exhibitors saying they either closed deals or had multiple post-show follow ups scheduled with ‘serious’ interested buyers. Most exhibitors I interacted with were extremely pleased with the show and planned to exhibit again at next year’s show.

The annual Tea Tycoons competition took place 28 March. The Tea Tycoons competition honours the late Devan Shah, who was the founder of the International Tea Importers and over his career helped make considerable contributions to the growth, education and innovation of the specialty tea industry. The competition is designed for new businesses, brands, and products to pitch to a panel of expert judges during a live contest at on WTE’s floor’s NxT stage. The goal of this programme is to celebrate emerging small businesses, which produce innovative products that add significant value to the global tea industry. Winners receive numerous benefits to support their growth, including passes to World Tea Expo 2024 and an ITI wholesale account with USD $1,000 credit.

This year’s Tea Tycoon winners were: Brittnee Lau/Treehouse Teas in the Camellia- Sinensis-Focused Company category; Sharyn Johnston/Sinensis (a non-alcoholic tea-based wine in three varieties) in the Innovation category; and Patricia Graells & William Karis/Seven Senses Organic Herbal Teas in the Sustainability category (which curiously beat out Wild Orchid for its regenerative teas and Four Stages Tea & Herbals, which is working to save the monarch butterfly from extinction).

I look forward to seeing the growth and changes at the 2024 World Tea Conference + Expo, which again takes place in Las Vegas, 18-20 March.

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

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While the NCA Annual Convention is a leading event for executives and decision-makers in the US coffee industry, this year’s gathering welcomed individuals from more than two dozen countries, and included representatives from international coffee organizations such as the British Coffee Association, CeCafe (Brazil), the Coffee Association of Canada, the European Coffee Federation, the German Coffee Association (Deutscher Kaffeeverband), the International Coffee Organization (UK), Sintercafe (Costa Rica), the Swiss Coffee Trade Association as well as the Specialty Coffee Association (US/UK).

“We are thrilled to finally welcome back the coffee community to their beloved annual event, in person for the first time in three years,” said William “Bill” Murray, NCA president & CEO, in his opening day remarks. “These past few years have been challenging, and I continue to be awed by the strength and resilience our industry has shown.”

Murray also reiterated the NCA’s mission –to grow the US coffee community through education, advocacy, and connection – and vision for an open, sustainable and growing future for coffee. He noted that the NCA is ramping up its advocacy efforts this year in jobs, climate change, sustainability, deforestation, gender equity, plant research, public health, immigration, innovation, and international development.

He also pointed out that while coffee consumption in the US remains strong (the exception being instant coffee), a particular bright spot is cold brew. Quoting statistics from Technavio, Murray said that the cold brew coffee market is estimated to grow at a CAGR of 7.73% between 2022 and 2027, adding that the size of the market is forecast to increase by USD $439.93 million.

This year’s convention theme, Resilience & Reinvention, spoke to the industry’s ability to evolve to meet the challenges of the day and thrive despite ongoing economic and public health challenges. The opening keynote speaker was Amanda Lindhout, who was kidnapped by criminals while working as a freelance journalist in Somalia in 2008. Her speech discussed her need to stop asking ‘why me’ and all that she suffered and let go of her anger because it was only hurting her after she was freed so she could find and harness her innate inner resource of resilience.

In her keynote presentation, ‘Say What you Mean in a Nice Way: Communication with Kindness and Compassion’, and quoting Maya Angelou, “I’ve learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel,” Sarita Maybin advised attendees on ways to transform uncomfortable conversations – whether

in business or personal situations – into constructive communication by offering ways to ‘say what you mean and mean what you say in a nice way’.

The always popular and insightful G Scott Clemons, partner & chief economic strategist, Brown Brother Harriman, returned and shared his economic outlook for 2023, noting that the likelihood of a recession in the second half of the year is growing. “The job market is relatively robust but it is more of job recovery than new job growth,” he said, adding that the biggest issue has been trying to find workers. Clemons explained that the labour market growth will weaken as trends return to normal and the housing market is declining as mortgage rates — combine this with consumer confidence, which remains at post-pandemic low levels, as well as weak manufacturing confidence and the continuing Russia/Ukraine conflict, and the probability of a recession is strong. However, “I believe if we have a recession, it will be a relatively short one as households are in better financial shape than they have been (household debt is at all-time lows),” he said.

Many conversations during the convention centred around the impact of the proposed European Union Deforestation Regulation (EUDR), on businesses. The goal of the EUDR is to prevent a significant share of global deforestation and forest degradation, and in turn, reduce greenhouse gas emissions and biodiversity loss. The EUDR is at a standstill as trade representatives for the targeted commodities (along with coffee, there is soy, beef, palm oil, and rubber, among others) argue that it should not be a ‘one size fits all’ approach as each commodity is unique and its impact varies greatly. Furthermore, Michael von Luerte, secretary general for the SCTA, explained that DG Environment, which is drafting the regulation, had “very little consultation with the private sector, which should have been heard and third-party producing countries were not heard.” Producing countries should have been given a word, he said, because those impacted the most will be the smallholders. Essentially, the people and the countries the new law is intended to help, will currently be hurt the most by it.

The NCA also presented two awards on the convention’s opening day. The first went to Days for Girls International, NCA’s 2023 Origin Charity of the Year, in recognition of their work improving the health, education, and livelihood outcomes of women and girls in coffee-growing regions around the world. NCA also presented Charles ‘Charlie’ Cortellini with the NCA Distinguished Leadership Award in honour of his over four decades of service and dedication to the NCA and coffee industry.

The next NCA Convention will be held 7-9 March 2024 in Nashville, Tennessee.

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

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As with previous NCA Convention programming, much of it will be forward looking. But looking back at 2022, it was another strong year for the US coffee market, with retail sales alone reaching USD $18 billion, making the United States the world’s largest coffee market in terms of sales (consumption wise Brazil is higher), per global market research firm, Euromonitor International.

In an NCA webinar in January, a sort of preview to many topics that will be discussed during this year’s convention – US Coffee Outlook – presenter Matthew Barry, food & beverage insights manager at Euromonitor, said that the average American spent $223 on coffee last year, with out-of-home spending around $131 per person per year –the largest spend – no small amount given rising prices and consumers’ tightening budgets.

Barry noted that RTD remains the key growth category in US coffee. Fresh ground coffee pods the next largest category, followed by standard fresh ground coffee, and then fresh coffee beans. Instant coffee, he said, is the only category that is expected to decline in the US.

Coffee, like most grocery items, continues to rise in price — coffee prices are up about 15% since 2021. “Standard/staple grocery items are rising in price faster than inflation,” said Barry. “Inflation rates are starting to slow down but American consumers are not confident.”

And yet, despite the macroeconomic problems that are all weighing down the US economy (federal rates tightening, declining consumer savings, trouble in China and Europe), coffee has been surprisingly resilient so far. Coffee, Barry explained, has been deemed a ‘permissible indulgence’.

“There are two paths to succeed for coffee in tough economic times: essential product and permissible indulgence,” he said. Furthermore, coffee is compatible with all major current diet trends – Keto, intermittent fasting, paleo, Mediterranean, and vegan/plant-based, to name just a few – which bodes well for its continued growth.

Questions around caffeine and energy remain important trends with two competing sub-trends: more caffeine and moderating it. Not so much a trend, but more so a desire to be more sustainable remains strong (according to Euromonitor, 62% of Americans say they actively try to help the environment in their everyday actions), but “consumer willingness to spend is limited,” said Barry.

NCA Convention speakers and sessions will address trends and challenges impacting the US coffee industry primarily (but globally as well). As we are nearing the end of the first quarter of

2023, it will be interesting to how the ‘outlook’ has changed since January, and what it is for the remainder of the year.

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

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