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Net sales for the second quarter of 2023 increased 6.6% to USD $3.79 billion, compared to $3.55 billion in the year-ago period. On a constant currency basis, net sales advanced 6.1%, reflecting net price realisation of 8.2%, only slightly offset by lower volume/mix of 2.1%. The volume/mix performance reflected the continued strength of the Burlington, Massachusetts and Frisco, Texas-based company’s brand portfolio and in-market execution, as well as continued modest elasticities across most categories.

U.S. retail dollar consumption (Retail consumption data based on KDP’s custom IRi category definitions for the 13-week period ending 2 July 2023) of KDP Manufactured K-Cup® Pods decreased 2.3% in IRi tracked channels in the quarter, and KDP Manufactured dollar share was approximately 79%. Total at-home coffee category trends during the second quarter continued to be impacted by greater consumer mobility versus the prior year, though the company observed sequential improvement in category consumption towards the end of the second quarter, which continued into the third quarter. The single serve segment continued to gain volume share of the at-home coffee category throughout the period.

GAAP operating income increased 34.4% to USD $769 million, compared to USD $572 million in the year-ago period, reflecting growth in gross profit, as the strong net sales growth and productivity more than offset continued input cost inflation. Also impacting the comparison was the favourable year-over-year impact of items affecting comparability.

Excluding items affecting comparability, adjusted operating income increased 4.4% to $873 million, including a strong double-digit increase in marketing investment, reflecting the strong growth in net sales and adjusted gross profit, which more than offset transportation, warehousing and labour inflation. On a percent of net sales basis, adjusted operating income was 23.0%.

GAAP net income for the quarter increased 130.7% to $503 million, or $0.36 per diluted share, versus $218 million, or $0.15 per diluted share, in the year-ago period. This performance reflected a favorable year-over-year impact of items affecting comparability and the increase in adjusted operating income, partially offset by a higher GAAP effective tax rate. Excluding items affecting comparability, adjusted net income for the quarter advanced 7.0% to $596 million, and adjusted diluted EPS increased 7.7% to $0.42.

During the quarter, the company repurchased approximately 7 million KDP shares at a weighted average price per share of $32.34, totalling approximately $226 million. The company has approximately $3.2 billion remaining under its share repurchase authorisation expiring on 31 December 2025.

Commenting on the announcement, chairman and CEO Bob Gamgort stated, “Our second quarter results demonstrated the strength of KDP’s brand portfolio and our high-quality retail execution. We saw continued momentum in the U.S. Refreshment Beverages and International segments, as well as encouraging intraquarter developments in U.S. Coffee, where we expect a sequential recovery in revenue and a meaningful inflection in margins in the back half.”

Second Quarter Segment Results
U.S. Coffee net sales for the second quarter decreased 5.7% to $970 million, compared to $1,029 million in the year-ago period, reflecting net price realisation of 1.6% and a volume/mix decline of 7.3%.

At-home coffee consumption in the quarter continued to be impacted by year-over-year changes in mobility, with sequential improvement in category volume trends observable each month of the quarter. Pod revenue declined 4.6%, driven by a shipment decline of 7.7% that primarily reflected mobility-driven category softness, the exit of some lower-margin private label contracts and an unfavourable comparison in the prior year during which the company rebuilt trade inventory levels following supply chain constraints. On a trailing twelve-month basis versus the pre-pandemic Q2 2019 period, at-home pod shipments grew 16.9%, representing a mid-single digit compound annual growth rate (CAGR).

Brewer shipments totalled 9.9 million for the twelve months ending 30 June 2023, representing an 11.0% decline year-over-year. Compared against pre-pandemic levels represented by the twelve months ending 30 June 2019, brewer shipments grew 17.8%, representing a mid-single digit CAGR. Brewer shipments in the second quarter continued to be impacted by trade inventory adjustments, which the company believes are now mostly complete, and slower discretionary spending for small appliances.

GAAP operating income decreased 15.3% to $250 million, compared to $295 million in the year-ago period, reflecting broad-based inflationary pressures, the decline in volume/mix and a significant increase in marketing investment. Partially offsetting these drivers were the benefits of productivity, higher net price realisation and a modest year-over-year benefit of items affecting comparability. Excluding these items, adjusted operating income dropped 14.6% to $292 million and, on a percent of net sales basis, totalled 30.1%.

International net sales for the second quarter increased 10.9% to $489 million versus $441 million in the year-ago period and, on a constant currency basis, net sales advanced 7.0%. This strong performance was driven by higher net price realization of 6.1% and volume/mix growth of 0.9% and reflected broad-based momentum in both Mexico and Canada.

GAAP operating income increased a strong 14.3% to $112 million, compared to $98 million in the year-ago period, largely reflecting the benefits of the higher net sales, increased productivity and the year-over-year benefit of items affecting comparability, partially offset by inflationary pressures and a significant increase in marketing investment. Excluding items affecting comparability, Adjusted operating income increased 7.7% to $116 million and, on a percent of net sales basis, totaled 23.7%.

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T&CTJ, in conjunction once again with Firsd Tea, invites you to add your voice to the 2nd Annual Tea Sustainability Perspectives survey. This survey gauges perceptions of sustainability in the tea industry among business leaders in the tea, coffee and cocoa sectors. It covers social, economic, and environmental issues associated with sustainability.

“The previous survey was a critical mirror for us in the tea industry. This year we want to be aware of any incremental gains or be watchful for any potential regressions. We can then fine-tune our shared actions in a united effort for the betterment of all people, the planet, and the tea plant that is so dear to each of us,” said Jason Walker, marketing director, Firsd Tea North America.

The survey takes about 10 minutes to complete. The deadline has been extended to 31 August 2023.

For every completed response, a contribution will be donated to 1% for the Planet, an international organisation whose members contribute at least one percent of their annual sales to environmental causes. Their mission is to “build, support and activate an alliance of businesses financially committed to creating a healthy planet.”

Access the survey here.

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ICoT is designed to support customers across the cocoa and coffee industries in demonstrating their compliance with regulation being introduced by the EU to minimise the extent to which the consumption of certain commodities in the EU, including cocoa and coffee, result in deforestation worldwide. IBA anticipates launching ICoT in 2024, in advance of the regulation entering into application on 30 December 2024.

“Recognising ICE’s established position in the cocoa and coffee markets, where the benchmark prices for these commodities are formed every day, ICE has been working closely with the industry to design a solution to help customers meet the requirements of the deforestation regulation. This includes the need to receive and verify supply chain data from sellers when entering into transactions,” said Toby Brandon, senior director, ICE Soft Commodity Operations.

“ICE’s customers, stakeholders, and the countries where cocoa and coffee are grown, have made significant investments in supply chain sustainability processes and technology over many years. ICoT builds on this infrastructure by providing a single, standardised platform, allowing the multiple technologies which will be used by customers to provide farmer location and traceability data required by the deforestation regulation. ICoT will independently validate this data to allow cocoa and coffee to be readily traded and placed on the EU market,” continued Brandon.

ICE’s benchmark Cocoa, London Cocoa, Coffee C® and Robusta Coffee futures and options contracts are the largest markets in the world to trade cocoa and coffee. Last year the equivalent of over 500 million tons traded on ICE’s cocoa and coffee markets.

“By collating, standardising and validating supply chain data, ICoT will assist customers in demonstrating compliance from the farm to European consumer product,” said Clive de Ruig, president of IBA. “ICoT is designed to facilitate customers’ successful implementation of the deforestation regulation and maintain the free-flowing and commoditised physical trade of cocoa and coffee, which is crucial for countries where the commodities originate and to businesses in the EU.”

He added that “users of ICoT will benefit from IBA’s proven and market-leading technology and data management, together with IBA’s long-standing experience and reputation for establishing robust and independent governance processes and oversight functions. Combining this expertise with ICE’s established position in commodity markets means that we are well-placed to help customers meet the requirements of the new regulation.”

IBA’s launch of ICoT remains subject to satisfactory testing and feedback, and other dependencies such as system and data availability required under the deforestation regulation.

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A partnership, decades in the making, came together in its ad, which aired during Super Bowl LVII. The ad features Dunkin’s #1 fan, Ben Affleck, donning a Dunkin’ uniform and working the drive-through of a Dunkin’ restaurant in Medford, Massachusetts.

As guests placed their orders, Ben shared one of Dunkin’s latest offers to hit the menu – the Dunkin’ Run – where guests can buy a USD $1 classic donut with any medium or larger coffee. While working his “shift,” Ben even takes a surprise order from his wife, Jennifer Lopez.

Affleck’s long-standing love for Dunkin’ started when he was a kid in Massachusetts. Like so many Dunkin’ diehards, growing up with the brand made him a lifelong fan. So much so that he took a morning shift to share the love and serve real Dunkin’ guests in its latest commercial. That’s the thing about Dunkin’ — the classics bring back childhood memories and feel like home, no matter where or who you are.

While this is a first for Dunkin’ and Ben, it is certainly not the last! Stay tuned for more to come, and check out the spot: Dunkin’ ‘Drive-Thru’ Starring Ben – YouTube

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Firsd Tea recently released a first-of-its-kind Sustainability Perspectives Report in 2022 to capture the tea and coffee industry’s views on how well the tea sector performs in areas of sustainable practices. In conjunction with Tea & Coffee Trade Journal and a third-party research firm, the study was developed with guidance from industry peers and an academic research and think-tank. Respondents of the survey included a diverse spectrum of wholesalers, importers, exporters, retailers, and others based in North America, Europe, and Asia. While many studies have examined consumers’ perceptions of sustainability, this study targeted professionals in tea, coffee, and related industries to understand their concerns and views on the tea industry’s sustainability performance.

The findings of the research can generally be grouped into perspectives about three areas: environment, people, and certifications. Part three of this series focuses on sustainability and certifications.

As a quick recap from the previous coverage, the survey of tea and coffee professionals revealed:

1. Industry professionals show strong concerns about the environmental impact on their businesses — 80 per cent are worried about climate change’s effects on their operations.
2. Respondents are generally split as to the tea industry’s performance in some human welfare areas, like gender equity and poverty reduction.

The survey also revealed some surprising attitudes about sustainability and certifications. Sustainability was not a high-priority consideration for industry respondents in terms of their decisions to carry specific teas in their product offerings. Respondents ranked flavour (96 per cent), leaf grade (90 per cent), origin/terroir (88 per cent) and price (83 per cent) above sustainability (79 per cent). In addition, a significant majority of Industry respondents (85 per cent) view organic certification as the most valued certification standard among consumers. Certifications more closely associated with sustainability fared lower in perceived value, with Fair Trade at 68 per cent, non-GMO at 58 per cent, and Rainforest Alliance/UTZ at 56 per cent. Taken together, these findings suggest that sustainability is seen as lower in importance among consumers, and that sustainability-focused certifications are even lower in priority.

Then there is the obvious disconnect between concerns about environment and human welfare and the prominence of organic certification. Do consumers mistakenly view organic certification as a sustainability credential? The organic programme was never designed to serve as a mark of sustainability; its standards and compliance measures do not include any forms of evaluation of environmental or human welfare impacts. From the producers’ perspective, compliance with organic certifications does overlap with certain compliance practices of other certifications, (e.g., non-GMO and regenerative agriculture), but these are also not certifications with a dominant emphasis on the people plus planet issues of sustainability.

Mixed results concerning certifications

On the surface, the findings suggest that industry respondents see consumers as more concerned about the impact of tea purchase decisions on their immediate and local well-being: be it price, absence of pollutants (e.g., organic), and overall food quality. However, Mintel Consulting’s recently published global 2022 Sustainability Barometer showed that consumers who are more invested in sustainable purchase decisions do rely on certifications as an important guide in making those choices.

Write-in feedback from respondents reflect split attitudes toward the role of certifications. Some respondents feel more certification, and more enforcement of certification practices is needed. Others feel that certification often places too much focus on administrative paper-pushing and not enough on-the-ground support. Some commenters believe certification alone is too costly for small farmers and not transparent enough in terms of actual practices recorded and activities in the value chain. The most often repeated comments regarding certification call for more action in terms of less economic burden for growers and legal/compulsory compliance across a unified, streamlined certification scheme for organisations.

Any discrepancies in sustainability across consumer perceptions, business practices, and certifications may soon face a re-alignment. Governments across the globe have passed or are drafting legal guidance that will require businesses to further comply with sustainability practices. For example, the European Union published its Draft Corporate Sustainability Due Diligence Directive in February of 2022. If ratified in its current form, the directive would require companies to identify and seek to rectify negative impacts on the environment and human welfare that are found within the business’s value chain. In the United States, California passed the California Transparency In Supply Chains Act, with the explicit purpose of increasing awareness of human welfare issues within organisational supply chains. These are just a couple of examples of laws directed toward enforcement of corporate sustainability practices. As these laws develop, certification bodies will likely adjust their certification process to streamline the path to legal compliance or to exceed the legal standards so that their certification badge stands out as a mark of greater distinction.

When viewed as an integrated whole, the report findings indicate that sustainability certifications may be unbalanced in terms of their perceived value to tea consumers. This may be partially due to the certification’s role in environmental and human welfare aspects of sustainability, and as a factor of public sentiment towards sustainability initiatives. Additionally, industry members tend to see more of the transparency issues and economic costs associated with certification as obstacles to providing greater value in tea sustainability.

• Jason Walker is marketing director of Firsd Tea North America. Prior to his work with Firsd Tea, Walker served in a variety of roles in tea and beverage business capacities. His experience includes business services for small tea companies, a top-ranked online destination for tea consumer education and co-founding a coffee business. His insights draw upon his diverse range of experience in sales, operations and management in the tea world. He may be reached at: jason.walker@firsdtea.com.

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Seattle’s Best Coffee’s approachable line of whole bean, roast and ground packaged coffee, and K-Cup pods are available in a variety of roasts and flavour profiles across both foodservice and grocery channels. In addition to Starbucks packaged coffees distributed by Nestlé under the Global Coffee Alliance, Seattle’s Best Coffee joins Nestlé’s roster of well-known coffee brands in the United States including Nescafé, Nespresso and Blue Bottle. The addition adds depth to Nestlé’s North America coffee portfolio by further expanding the company’s position in the category.

“We continue to deepen our partnership with Nestlé to deliver the best of the Starbucks Experience to our customers in channels outside of our retail stores,” said Michael Conway, group president, Starbucks international and channel development. “We’re confident that Nestlé will continue to grow the Seattle’s Best Coffee brand as we focus on our strategy to elevate the premium coffee experience for consumers through the Starbucks brand.”

“Our partnership with Starbucks has confirmed Nestlé’s leading position in the dynamic and growing global coffee market,” said David Rennie, head of Nestlé Coffee Brands. “With the well-known Seattle’s Best Coffee brand, we will continue to build our leadership in coffee by offering consumers more choice for their everyday coffee.”

Since forming the Global Coffee Alliance in 2018, Vevey, Switzerland-based Nestlé and Seattle, Washington-based Starbucks have brought a wide range of premium coffee products to new markets at a fast pace – including whole bean coffee, roast and ground coffee as well as Starbucks capsules for Nespresso and Nescafé Dolce Gusto proprietary systems. Today, Nestlé distributes Starbucks consumer products and foodservice beverages across more than 80 markets outside Starbucks retail stores under the Global Coffee Alliance. The total global sales of Starbucks products distributed by Nestlé in 2021 reached CHF 3.1 billion (approximately USD 3.085 billion).

Through the Global Coffee Alliance, Nestlé and Starbucks will continue to work together closely to develop new, innovative products and go-to market strategies that will amplify the reach and expand the unique experience of the Starbucks brand locally and globally.

The transaction is expected to close by the end of 2022, subject to respective board and customary regulatory approvals. Terms of the transaction have not been disclosed.

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“Since we have had so much volatility due to external factors over the last few years, we have been forced as an industry to create tools and to pay much more attention to inventory and logistics.” Don Lawrence, Intelligentsia Coffee

Even when it may seem obvious that supply chain management and logistics are fundamental steps in the coffee value chain – given that without them coffee simply wouldn’t arrive at its final destination – they are some of the least discussed stages of the coffee journey.

The crisis generated by Covid-19 changed the coffee industry as a whole, but more particularly the logistics sector, which has experienced huge issues related to container and vessel availability, lack of warehouse space, and changing priorities on the part of ocean carriers. According to Don Lawrence of Chicago, Illinois-based Intelligentsia Coffee, “before the pandemic, we simply anticipated that coffee would arrive on time.”

Yet the world has changed significantly since the first lockdowns, and these transformations have compelled coffee professionals along the entire supply chain to focus more on digitalisation and logistics in an attempt to navigate the new scenario. However, information on the available digital tools, their functionalities, and their pros and cons is not always readily available in a way that makes sense to many of us. For this reason, Digital Coffee Future (DCF), an interactive platform focused on digitalisation in the coffee industry based in Udine, Italy, launched ‘The Logic of Coffee Logistics’, a series of webinars that sought to explore the intersection between logistics and technology in this industry.

The importance of data organisation

It is a reality that most companies still use Excel sheets to keep track of their logistics. While this tool is excellent for keeping data organised, it is often not powerful enough when companies seek to scale up. Small and medium-sized companies around the world are already taking small steps to move towards solutions that provide them with more flexibility. A good example is Daye Bensa, an Ethiopian coffee exporter that decided to create its own technological solutions based on their needs once the tools they were using turned out to not be enough to allow the company to grow and keep good communication flows between teams. Meanwhile, Colombian-German exporter Col-Spirit looked for options already available on the market instead of developing their own tool. Either option may be far from perfect, but they allow these companies to have their data organised and make better decisions. For Kenean Dukamo of Daye Bensa, it’s all about “really striving to make it as easy as possible for the team to use the software, and to make their lives easy.”

Larger companies go through similar processes. Mercon Coffee Group’s IT and commercial operations director, Felipe Cam, described how they went through a ten-year development process: “Basically, we created a whole culture of process automation and digitalisation among the different Mercon teams. What we did first was to replace all the email-based data, to create the standard logistics style, such as itineraries, the transfer from the warehouse to the port and vice versa.” This was done in phases and included a change in the leadership culture and the integration of information by all actors involved to create an algorithm that could automate the data.

The range of responses to the different situations experienced by companies is diverse. In this sense, creativity and teamwork are variables that must be combined to achieve better results when it comes to data organisation.

The challenges of coffee logistics

The digitalisation of coffee logistics can be a complex process with an ever-evolving set of challenges. One of them is access to digital tools in producing countries, especially for small and medium-sized entrepreneurs and at affordable costs. Obstacles such as language and digital illiteracy must be overcome, but also aspects such as transparency and trust. For Kume Chibsa, founder of AfroValley, technology can add a layer of trust when it includes information verification processes, such as Know Your Customer (KYC) solutions, which her company, a platform that connects farmers and buyers, has successfully used.

Trucks awaiting cargo amid continued congestion and delays at ports. Image: Port of Los Angeles

When it comes to connecting the value chain, from the farm to the warehouse at destination, a single digital solution may not offer all the answers. María Grajales, co-founder and COO of exporter Col-Spirit, explained how they were forced to find multiple tools due to language barriers and legal issues.

In addition, Grajales explained how operations at Col-Spirit are still adjusting to the container crisis generated, among other reasons, by the Covid-19 pandemic. She described how before the first lockdowns “it was easy to know that, normally, from Cartagena to Hamburg it [would] take a specific number of days.” However, the situation since has changed dramatically, and the accuracy of available tools is not always good. This lack of reliability applies to shipping bookings and ETAs, among many other crucial details for exporters, which make planning and forecasting a struggle. “So, actually [it is not easy to find] a platform where you can have all the information integrated at the same time,” said Grajales.

Colleen Walsh of Olam Specialty Coffee agreed, “The logistics sector is still in the process of developing solutions that can impact and integrate the value chain on a daily basis… Even now, what is available isn’t necessarily always accurate.”

Nevertheless, Aleksandrs Sidorecs of Cognizant is optimistic about what he sees in the market, “I am personally following LogTech start-ups and there are already around 900 worldwide, oriented to [developing] affordable models for another market segment that [has not had] access to this kind of solution [before]. [You] can track freight rates, costs, market analysis, cargo monitoring, among others, to give customers solutions based on data and maximise the value they have.” With these type of possibilities, a window opens to overcome the digital divide that still exists in the industry.

Walsh gave an account of their daily challenges as an example of how different actors in the coffee supply chain had been faced with an array of varying challenges during the global Covid-19 pandemic. For her, the struggle lies in finding space for moving coffee. “Coffee is not considered a high value product [by ocean carriers], so they don’t prioritise things for us. The other problem is that coffee moves in 20 feet and it is difficult to get containers with these dimensions to move coffee,” she explained. This shortage of shipping containers stems from the fact that their owners decided to scrap or sell them for other purposes during the early days of the pandemic, as it did not make financial sense to keep them given the slowing down of international trade.

If we try to look for solutions, Sidorecs thinks the situation will possibly be alleviated in 2024, taking into account the technical factors that caused it, “Container availability is very low, and that will persist continuously, including the capacity at the docks, in terms of building new vessels.” Although new vessels are currently being built, they will replace old ones that do not meet the new CO2 emission standards that come into effect in January 2023. This will keep the pressure on logistics professionals – in particular, those who must move coffee and other foodstuffs.

The future of digitalisation requires collaboration

Beyond the need to physically move coffee, the need for a change in the way developers approach digitalisation is pressing. Designing and developing digital solutions has historically been done, for the most part, individually and with little room for system integration. However, to make the most of the digitalisation processes, we need to change the way we approach their development. To Brianna Dickey of CropCone, the issue is clear, “We have multiple different systems in multiple different languages, recording data in multiple different ways, and then we have silos of data. It’s no wonder why it’s really challenging to have a seamless transfer process… We have to start thinking about what data is being recorded and how it’s being recorded, what terminology is being used, [and] how we translate that from one system to another. We have to really start thinking as an industry about different standards that we can set.”

The pandemic greatly impacted logistics, particularly with container and vessel availability. Image: Port of Hamburg

Another issue is the slow adoption of digital alternatives. For example, at the moment, only 5 per cent of the documents required for export and shipping are electronic, so to make this more operational, collaboration between the private and the public sectors is needed. Although very slowly, this cooperation is already happening. Guillermo Grassi of edoxOnline explained how different initiatives are already being promoted, including standardisation of processes and digitalisation of documentation. A game-changing example is the adoption of the electronic bill of lading, which is being advanced by a variety of relevant international organisations, including the International Federation of Freight Forwarders (FIATA). “These initiatives have the ability to transform global trade through the standardisation of [key] processes, and among them, the electronic shipping document. So we believe this will provide massive traction soon,” he said.

The three webinars hosted by Digital Coffee Future addressed the dynamics behind the need for technological tools and how companies should build this path. Although the learning curve of each of the organisations has been different, they have in common the wish to seek digital solutions that improve their operational efficiency and minimise errors. The future is optimistic: digitalisation – if well managed and used extensively and in partnership with others along the supply chain – can alleviate part of the pressure and can contribute to the transformation of how the coffee supply chain is managed.

The recordings of the webinars are available on Digital Coffee Future’s Youtube channel in both English and Spanish.

• Marta Salazar is programme coordinator at Digital Coffee Future, and is also the CEO of Venus en La Tierra. She is based in Colombia.

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Narasimhan brings nearly 30 years of experience leading and advising global consumer-facing brands. Known for his considerable operational expertise, he has a proven track record in developing purpose-led brands. Building on companies’ histories, he has succeeded in rallying talent to deliver on future ambitions by driving consumer-centric and digital innovations. Most recently, he served as CEO of Reckitt, a FTSE-12 listed multinational consumer health, hygiene and nutrition company, where he led the company through a major strategic transformation and a return to sustainable growth.

“Laxman is an inspiring leader. His deep, hands-on experience driving strategic transformations at global consumer-facing businesses makes him the ideal choice to accelerate Starbucks growth and capture the opportunities ahead of us. His understanding of our culture and values, coupled with his expertise as a brand builder, innovation champion, and operational leader will be true differentiators as we position Starbucks for the next 50 years, generating value for all our stakeholders. On behalf of the entire board, I am thrilled to welcome Laxman as Starbucks next CEO,” said Mellody Hobson, independent Starbucks board of directors chair.

During the transition period, Narasimhan will be fully immersed in the company, spending time with Schultz and the management team, partners and customers and gaining in-depth exposure to the brand, company culture, and Reinvention plan. This will initially include Starbucks store immersions, visiting manufacturing plants and coffee farms, connecting with partners around the globe as well as Starbucks long term business partners.

Schultz will remain in the role of interim CEO during this transition period, following which he will continue as a member of the Starbucks board of directors. He will remain closely involved with the company’s reinvention and act as an ongoing advisor to Narasimhan.

“When I learned about Laxman’s desire to relocate, it became apparent that he is the right leader to take Starbucks into its next chapter. He is uniquely positioned to shape this work and lead the company forward with his partner-centered approach and demonstrated track record of building capabilities and driving growth in both mature and emerging markets. As I have had the opportunity to get to know him, it has become clear that he shares our passion of investing in humanity and in our commitment to our partners, customers and communities. The perspectives he brings will be a strong asset as we build on our heritage in this new era of greater well-being. I greatly look forward to our partnership over the coming months and years,” said Schultz.

“Starbucks commitment to uplift humanity through connection and compassion has long distinguished the company, building an unrivaled, globally admired brand that has transformed the way we connect over coffee. I am humbled to be joining this iconic company at such a pivotal time, as the reinvention and investments in the partner and customer experiences position us to meet the changing demands we face today and set us up for an even stronger future,” said Narasimhan. “I look forward to working closely with Howard, the Board, and the entire leadership team – and to listening and learning from Starbucks partners – as we collectively build on this work to lead the company into its next chapter of growth and impact.”

Previously, Narasimhan held various leadership roles at PepsiCo, including as global chief commercial officer, where he was responsible for the company’s long-term strategy and digital capabilities. He also served as CEO of the company’s Latin America, Europe and Sub-Saharan Africa operations, and previously as the CEO of PepsiCo Latin America, and the cfo of PepsiCo Americas Foods. Prior to PepsiCo, Narasimhan was a senior partner at McKinsey & Company, where he focused on its consumer, retail and technology practices in the US, Asia and India and led the firm’s thinking on the future of retail.

Narasimhan is also a trustee of the Brookings Institution, a member of the Council on Foreign Relations, served as a member of the UK Prime Minister’s Build Back Better Council, and is a member of Verizon’s Board of Directors. He holds a degree in Mechanical Engineering from the College of Engineering, University of Pune, India. He has an MA in German and International Studies from The Lauder Institute at The University of Pennsylvania and an MBA in Finance from The Wharton School of The University of Pennsylvania.

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Nathalie Roos was previously head of L’Oréal’s Professional Products division and prior to that CEO of Germany for the Group. She held senior roles at Mars for nearly 20 years. She is also currently a non-executive director of Pret-a-Manger and Bel Group, the French healthy dairy and fruit snack manufacturer.

Complementing Nathalie’s experience, Pierre Laubies joins as Chair of the Board of ekaterra. Pierre brings 30 years of leadership experience at Mars, Campbell Soup Company, and more recently as CEO of Jacobs Douwe Egberts and Coty. He continues to advise as a Member of the Board at Philips Domestic Appliances and Groupe Panzani.

The appointment of Nathalie Roos and Pierre Laubies marks the beginning of an exciting new phase of ekaterra’s development as an independent business. ekaterra is the world’s leading global tea business with annual revenues of approximately €2 billion and a portfolio of more than 30 brands, including Lipton which is sold in more than 100 countries as well as PG Tips in the UK and TAZO in the US. The popularity of tea continues to grow, as health-conscious consumers seek out new products and drive interest in alternative and fruit teas. Amongst its younger brands, Pukka and T2 lead the industry as B-Corp certified companies.

Reflecting on her excitement to lead ekaterra, Nathalie Roos said: “Tea holds an extraordinary role in societies around the world, steeped in tradition, culture and community spirit. It also has an incredible power to evolve and always be relevant to the times. ekaterra’s future will embody these elements too, alongside ambitious plans to become a leader in sustainable tea production, in farming and distribution methods, and also as a supporter of the communities in which we operate. Tea is an exciting growth category. As consumers seek out the health benefits of antioxidant rich teas, they are also passionate about supporting businesses that are committed to improving the natural environment and supporting their employees.”

CVC and ekaterra’s leadership team thank outgoing CEO John Davison for his significant contribution to the business. Handing the baton to Nathalie Roos, John Davison stated: “I am proud of the ekaterra team who have achieved several milestones carving out the business from Unilever and establishing it as an independent company and carve out the business from Unilever. I am confident ekaterra will flourish and wish Nathalie and the team every success in accelerating ekaterra’s momentum to grow a world of wellbeing in the tea category.”

Pierre Laubies, Chair of ekaterra said, “I am delighted that Nathalie has accepted the opportunity to become CEO of ekaterra. She has precisely the right blend of skills for the role, with her strong commercial background, her ability to develop great teams and a passion for building consumer brands and delivering growth. Working alongside Nathalie, we have the opportunity to grow our world leading tea business committed to reaching the highest sustainability goals.”

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Unleashed’s Product Lead Time Index used data from its inventory management software to track how product fulfilment has changed since the start of the pandemic.

According to the index, tea and coffee businesses were the leading sub-sector in slashing its lead times since the most challenging phase of the pandemic, dropping by 61.9% between 2020/21 and 2021/22; reducing lead times from an average of 8.5 days to 3.2.

It was one of the most affected sectors during the peak of the pandemic, with average delivery lead times in 2020/2021 growing by 46.5% since before the pandemic struck.

The analysis of more than 2,500 businesses and 25 different sub-sectors including textiles, IT and plastics shows which ones experienced the most severe shortages during the Covid-19 crisis – and which recovered fastest as it subsided.

The sub sectors with the biggest reduction in lead times since the height of the pandemic are:

Lead time is defined as the amount of time between when a purchase order is placed to replenish products and when the order is received in the warehouse. These times can vary between suppliers, where typically the more suppliers involved in the chain, the longer the lead time is likely to be.

Commenting on the findings, Stephen Jones, regional manager UK & EMEA at Unleashed, said:

“Global supply chains are complex, and while the market has been more uncertain than usual, our data suggests that suppliers are working hard to build resilience. In fact, for many, the crises have only strengthened their resolve. Given how much lead times have dropped in some sub-sectors, their efforts are clearly paying off.

“Keeping a tight rein on inventory is essential at any time but particularly during periods of disruption. When product lead times are fluctuating, the right technology can quickly show you the actual vs expected lead times which allows you to manage customer expectations, or look for alternative suppliers who can deliver faster.”

Ben Vear, general manager (EMEA) at coffee company Minor Figures, adds:

“Part of the reason behind these figures is likely to be down to more businesses across the food and beverage industry moving towards a just in case model of stock control and this has been key to cutting lead times over the past couple of years despite the obvious challenges.

“We’re holding additional stock, we work to quite a tight tunnel of inventory that we want to keep in stock, and that might be four to six weeks, but when your performance needle is constantly moving, it’s really tough to get a read on what four to six weeks of stock actually looks like. “

For more information about the research, visit https://www.unleashedsoftware.com/blog/revealed-the-sectors-cutting-product-lead-times-fastest.

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The survey launched in December 2021 ran through February 2022. For every completed response, a contribution was donated to 1% for the Planet, an international organisation whose members contribute at least one percent of their annual sales to environmental causes.

The results of the survey have been tabulated and the report is now available. The survey yielded interesting results in terms of sustainability concerns among respondents within the tea industry.

Access the full report here and here.

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The global coffee industry has been extremely active in implementing sustainability initiatives from farm to consumer, and in promoting these efforts. The global tea industry, while just as passionate and committed, has been less conspicuous about highlighting its sustainability endeavours. So, in December 2021 T&CTJ announced that we were collaborating with Firsd Tea to create what we believe was the ‘first of its kind’ tea survey to gauge sustainability perceptions of the tea industry among business leaders in the tea, coffee, cocoa, and wine sectors. 

The survey launched in December 2021 ran through February 2022. For every completed response, a contribution was donated to 1% for the Planet, an international organisation whose members contribute at least one percent of their annual sales to environmental causes. 

The results of the survey have been tabulated and the report is now available. The survey revealed some interesting aspects in terms of sustainability concerns among respondents within the tea industry. For example, most respondents believe incremental progress has been made in sustainability in the last 10 years. They also predict a similar improvement trajectory in the next 10 years. However, there is overwhelming concern about climate’s potential impact on the tea industry, with 80% of respondents expressing worry about the effects of climate change on their business operations. Furthermore, respondents considered the tea industry (93%) more sensitive to climate change than the coffee (82%), wine (65%), and cocoa (63%) industries. 

T&CTJ will be publishing a three-part report based on the results of the survey, beginning with our July/August issue. The first article will focus on the skew toward climate concerns, while the second story will discuss where the concern for human welfare stands. The final installment will detail the disparity between certification preference/valuing and purchase decisions versus sustainability. 

Access the full report here and 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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Brambati SpA

Image: Brambati

Brambati has always invested in the development of new technologies to improve the efficiency of its plants. In the last decade Brambati has been investing in the research and development of increasingly high-performance emission abatement systems that can meet the most restrictive requirements.

In addition to the after burner system, Brambati has different types of catalytic converters, both metallic (which guarantees mechanical strength) and ceramic, to be used depending on the required abatement levels on volatile organic substances (VOS), carbon monoxide (CO), nitrogen oxides (NOx) and aldehydes.

Thanks to what is described above, Brambati can guarantee to maintain abatement levels below even the most restrictive requirements applied in Italy, the EU and generally in more than thirty countries worldwide where these systems are in use.

Abatement efficiency levels on VOS and CO can be as high as 98 percent, while keeping NOx concentration levels below 100 mg/Ncm. This is even when roasting very dark roasting profiles (dark roast).

The catalytic plates are modular and their small size, compared to the market standard, allows for easy removal and handling of the plates.

Last, but not least, the catalytic converter is already active from 300°C, allowing the use of afterburners of reduced size and power, guaranteeing a less expensive investment and some of the lowest energy consumption levels ever.

It is also because of the emission guarantees that Brambati is actively collaborating with the most globally significant coffee companies.

Brambati SpA

Headquarters: Codevilla (PV), Italy

Web: brambati.it

WOC location: H3-K12

Café de Colombia

Image: Cafe de Colombia

Café de Colombia is the brand the Colombian Coffee Growers Federation (FNC) created to promote 100% washed Arabica coffees both in the industry and among consumers as a high-quality product. Since its creation, the FNC has worked as a non-profit organisation and gained global recognition as one of the largest NGOs thanks to its work representing more than 540,000 Colombia coffee growing families that produce the richest coffee in the world.

Café de Colombia

Headquarters: Bogotà, Colombia

Web: https://www.cafedecolombia.com/particulares/?lang=en; https://www.youtube.com/watch?v=of63dd2XP9w

WOC location: MS-E02

Colombini

Image: Colombini

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 order of 40-80 tons, depending on fineness of ground coffee.

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

The ANGEL is also useful for laboratories in order to achieve results very similar to our industrial grinders.

All the ANGEL grinders are equipped with a cooling system by ventilation.

Seven different versions can be provided, and the package vibrator will soon be available as an option. The prices of the various versions are all similar. The main difference between the grinders is the power supply because 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 RT special are equipped with an automatic cleaning system that keep the exhaust duct clean.

For more information contact info@colombini.srl or visit our website www.colombini.srl

Colombini srl

Headquarters: Settimo Torinese (TO), Italy

Web: www.colombini.srl;

https://www.colombini.srl/en/colombini-angel-en/

WOC location: MS-F12

Lilla Roasters

Image: Lilla Roaster

With a tradition of focus on new technologies, and a commitment to serve customers’ needs, Lilla offers a wide range of roasters with different technologies.

Based on that, Lilla developed the 4G technology, for our OPUS model.

What does 4G do to roasting? It provides Absolute Heat Transfer Control.

How? The operator plots the desired bean temperature for the roast. The roaster adjusts all roasting parameters automatically to achieve the plotted bean temperature curve. The machine changes the parameters to match the desired set up, compensating for moisture and batch size variations.

The roaster automatically checks ‘Set up X versus Roasting’. If they don´t match, the roaster changes the parameters to make them to match, guaranteeing perfect roasting accuracy! So, if you want roasting consistency, 4G is the KEY!

This is only possible because any Lilla Roaster uses Full Convection Heat Transfer system, not a single percent of heat transfer used is under Conduction.

Not only that, the Lilla OPUS 4G series is also the only drum roaster in the market that has Fluidized Bed air volume capacity, meaning much more air when compared to any drum roaster available. This ensures lower losses along the roasting process.

That´s why this model is ideal for roasting companies ranging from R&G to Instant Coffee. Low roasting losses mean greater savings.

Lilla Roasters

Headquarters: São Paulo, Brazil

Email: exportmanager@lilla.com.br

Web: www.lilla.com.br

WOC location: F55

Olam Specialty Coffee

Image: Olam Specialty Coffee

At this year’s World of Coffee event, Olam Specialty Coffee is celebrating the launch of their new European web shop. Roasters will have an opportunity to register for the B2B eCommerce platform and explore their full green coffee offering online. The website launched in Europe in late March but has been expertly serving coffee roasting businesses in North America for nearly 10 years.

Also new for 2022, Olam Specialty Coffee is joined by innovative producers from Colombia, El Salvador and India to showcase their top lots of the season, alongside the team’s seasonal highlights from East Africa and Central America.

With import offices in Europe and the USA and sourcing teams on the ground in a multitude of coffee origins, Olam Specialty Coffee is a truly global collective which seeks to connect roasters with exceptional green coffees from around the world. Their team is brought together by a love of good coffee and a desire to create shared growth throughout the coffee value chain in a measurable, sustainable way.

Olam Specialty Coffee Europe

Headquarters: Liverpool, England

UK Website: uk.olamspecialtycoffee.com

EU Website: eu.olamspecialtycoffee.com

WOC location: R49

Toper Roasters

Image: Toper Roaster

The most important problem of the world is climate change. As the Toper team, we attach great importance to this issue. We want to offer a cleaner world to future generations.

We know that the sensitivity of our customers around the world is in this direction. That’s why we produced our new machine, Cafemino Bio. The feature of Cafemino Bio is that it is designed to require zero emissions, environmentally friendly and low energy requirements. Together with our new generation systems, we offer our customers a more reliable and cleaner world. In addition, our Cafemino Bio coffee roasting machine, with its fully automatic system, offers ease of use to customers.

As the Toper team, our priority in our new generation coffee roasting machines will be both easy use for our customers and protecting our world.

Toper Roasters

Headquarters: Izmir, Turkey

Web: www.toper.com

Email: info@toper.com

WOC location: H3-K04

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“Up to $300 million [will be available to support] a new Organic Transition Initiative to provide comprehensive support for farmers to transition to organic production. Organic production provides producers with the ability to demand a premium in the marketplace and thus take home a greater share of the food dollar; there can also be climate and environmental benefits. This initiative will deliver wrap-around technical assistance, including farmer-to-farmer mentoring; provide direct support through conservation financial assistance and additional crop insurance assistance and support market development projects in targeted markets.” 

In response, the Organic Trade Association (OTA) issued the following statement: 

“Organic has grown from a niche industry to a $63 billion plus market – but for the industry to continue meeting demand and providing economic opportunity to U.S. farmers, production must be scaled up,” says Organic Trade Association CEO and executive director Tom Chapman. “USDA’s new Organic Transition Initiative will jumpstart that growth by making the organic transition process more accessible and impactful; particularly for beginning and socially disadvantaged farmers and ranchers, who experience unique challenges to accessing resources and support programs. This historic investment in food production, which increases options for American farmers to ‘adopt practices that are both good for their businesses and the climate,’ is a significant win for our industry.” 

The new transition program will include core components for which OTA has consistently advocated: organic-specific technical assistance, market development, and updates to USDA farm programs for conservation, crop insurance, and certification cost-share programs. Trade association members emphasized the importance of these critical components in listening sessions and working groups that took place over the course of the last year, culminating in an in-person transition listening session with USDA at Organic Week 2022.

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Going forward, the private sector and civil society will participate as Affiliate Members in key discussions and decisions on the sustainable future of global coffee affairs with 75 coffee producing and importing nations, ICO Member Governments. The goal of the 2022 International Coffee Agreement (ICA) is to find new ways to improve conditions in an over USD $300 billion a year industry that provides a livelihood for millions of people from farmers to baristas across the world. Indeed, coffee farmers have suffered much in the wake of a 2019 coffee pricing crisis, extreme weather including droughts, flooding, frosts and blight, resulting in crop losses and prompting many to quit a business that had been in their family for generations. Smallholders, who only have less than one or two hectares of land each to produce coffee, for example, are the most vulnerable with incomes of just USD $500 a year.

The chair of the International Coffee Council (ICC), H.E. Ambassador Iván Romero-Martínez of Honduras, stressed that with the approval of the new ICA, the ICC marked a new era for the ICO, its members, the global coffee sector and for millions of coffee farmers whose work, every day, allow us to taste a wonderful coffee. He further pointed out that ICO members showed the world that the coffee sector is strong and united as ICO reaffirms itself as the centre of the ‘coffee diplomacy’, committed to making the coffee value chain more sustainable, inclusive, and resilient.

“We are entering a new era of cooperation with the private sector thanks to the landmark International Coffee Agreement 2022,” said Vanusia Nogueira, who joined in May as the ICO’s first female executive director. “The arrival of the world’s biggest high-street names and manufacturers as well as smallholders means that the whole coffee value chain can now address the biggest challenges facing the global sector in a way that is fair for all,” she added.

The new ICA goes beyond the traditional divide between exporting and importing members as all members are committed to working together to address the increasing challenges of the coffee industry. The private sector and government entities will coordinate strategies to address more efficiently those challenges. This will benefit producers across 50 countries as coffee growers and their associations will be able to raise their concerns directly with retailers and manufacturers.

Moreover, the new ICA gives a clear and firm mandate to the ICO Secretariat to assist members in putting together coffee sector development projects and mobilising resources in areas such as pest and disease control, climate change adaptation among other mitigating strategies. This comes at a time when expanding demand for coffee will contribute to maintaining a balance between supply and demand, supporting fair market prices.

“The industry has changed dramatically in the last 30 years in terms of governance and value distribution between producing and consumer nations. We can now come together and put a bigger emphasis on the development of the global circular coffee economy. Ultimately, we want to create a brighter future for millions of coffee farmers by adhering to the United Nations’ Sustainability Development Goals and work for more transparency, quality and fair pricing for billions of consumers. The new agreement is a huge step in this direction,” said Nogueira.

The new ICA represents a fresh mandate for the ICO. It is the seventh of its kind since 1962 after the first International Coffee Agreement at the United Nations in New York defined coffee export quotas. The 2022 ICA has come a long way since then, now that the ICO can bring all parties to the table for the first time and tackle challenges through international private and public cooperation, involving its member governments, which represent 93% of world coffee production and 63% of world consumption. Today, the world drinks more than two billion cups of coffee a day.

“The new agreement is an effective instrument to paving the way to a more unified front, establishing a consensus and shared vision on how to best implement and promote actions by governments and the private sector, while also engaging all key coffee-related institutions, NGOs, international and financial institutions plus other development partners, research bodies and academia,” said Nogueira, who previously represented Brazil, the world’s biggest coffee producer, in global coffee affairs as the executive director of the Brazilian Specialty Coffee Association.

While the ICO will not change its intergovernmental nature, as part of the Agreement, the current Coffee Public-Private Task Force has been integrated into the ICO as the Coffee Public-Private Working Party. On top of this, the Private Sector Consultative Board will be transformed into the Board of Affiliate Members, creating a new institutional framework and leading to the non-government affiliation since 1963 when the ICO was established in London.

The ICA’s key points also redefine the ICO’s internal voting system and members’ contributions to better reflect the transformation in the global coffee chain over the last 30 years, accounting for distortions between producing (exporting) and consumer (importing) countries as well as Arabica versus Robusta coffee-producing nations. The change in membership contributions to the administrative budget will increase the financial sustainability of the Organization and its capacity to carry out its mandate.

In terms of production, the world produces 4.18 million tonnes of Robusta coffee, or 69.67 million 60-kg bags a year, and 6.07 million tonnes of Arabica, or 101.16 million 60-kg bags, annually as of 2020. This is up from 1.74 million tonnes of Robusta and 4.34 million tonnes for Arabica coffee in 1991.

For more information, visit: ico.org.

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With TAZO being the unconventional tea brand that breaks through the ordinary, they have teamed up with Deepti Vempati – who challenged the status quo to find her unique love story – to launch #TAZOSummerBucketList. Their curated summer bucket list will help tea lovers break up beverage boredom and bring some spontaneity into their days.

Through TAZO and Deepti’s Instagram channels, consumers will be able to access curated summer activities to choose from based on their mood and enter to win free TAZO Ready to Drink Iced Teas – along with a grand prize of their choice from Ticketmaster, West Elm, ClassPass, or Airbnb. The giveaway will run from 10 June (National Iced Tea Day) until 21 June.

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“Chicago is a coffee city, and we’re so proud to be opening our second location at O’Hare after more than 18 years in business. We can’t wait to invite travellers and visitors from all around the world to experience all the wonderful coffee and midwestern kindness Chicago is known for,” says Tony Dreyfuss, co-founder and President of Metropolis Coffee Company. “Our friendship and partnership with father-daughter duo Sulaiman and Farhana Rahim, is incredibly special. We’ve known each other and worked closely together for more than 10 years, and we really couldn’t imagine working with anyone else on something as vitally important as this.”

Metropolis’ has been partnered with Sulaiman Rahim, owner and managing partner at Midway Restaurant Development, Ltd., for ten years, however, as Sulaiman’s business grew, so did his daughter’s ambitions to one day operate her own ACDBE enterprise. Today, Farhana’s 15-year dedication to learning the family business paid off, as her independent venture as President of her company, Fresh Creations, has earned its first contract with Metropolis Coffee’s second location at O’Hare airport.

“To say that I’m proud of my daughter is an understatement, as she has dedicated her professional life to learning the ins-and-outs of this business and is now making it her own. It’s a beautiful thing to witness and be a part of,” says Sulaiman Rahim. “I couldn’t be happier for Farhana’s first contract as an independent business owner to be with Metropolis Coffee; both companies are in great hands.”

Midway Restaurant Development has several other local brands in its portfolio, including Goddess and Grocer, and Garrett’s Popcorn that serve travellers quality meals, drinks, and snacks at O’Hare.

“I’m honoured to work with Metropolis’ independent café as their certified ACDBE partner and look forward to working hand-in-hand with my father and Tony in the years to come,” says Farhana Rahim, president of Fresh Creations. “Our goal is to showcase Metropolis as the “gateway to Chicago coffee” to people from around the world, while also highlighting other local food and beverage brands along the way.”

Travelers through O’Hare who are unfamiliar with Metropolis Coffee Company, will be pleased to learn that it has been named “National Roaster of the Year” by Roast Magazine; “Back-to-Back Gold Medal Winner” of the Good Food Awards by the Good Food Foundation; one of the most “Essential Chicago Coffee Shops,” by EATER Chicago; and “One of the World’s Nine Finest Coffees,” by Saveur Magazine; making it the ideal “introductory taste” of Chicago’s coffee scene for global travellers.

Visitors to Metropolis Coffee’s second O’Hare location can anticipate classic and specialty coffees, as well as handcrafted drinks, seasonal offerings, and locally created bites from Chicagoland food partners such as Bennison’s Bakery, Sugar And Spice, Middle East Bakery, and Defloured: A Gluten Free Bakery. Additionally, the independent cafe will offer online ordering through Toast, as well as Grab Technology, and At Your Gate – programs which allow travellers the option order their café items online and have them conveniently delivered to their respective gates.

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It’s been three years since the roasting community have gathered in-person for Coffee Roasters Guild Retreat and its return is welcomed by the community. Retreat attendees can look forward to lectures, workshops, cuppings, the Roasting Tent, the Team Challenge, and more.

Brand new for this year, the Retreat offers a U.S. Roasting Championship preparation workshop!
Baylee Engberg, managing director at #shestheroaster and Head Roaster & QC Analyst at Caffe Vita
shares, “Coffee Roasters Guild Retreat is returning! Not only is Retreat my favourite coffee event, but arguably the most beneficial for roasters and tasters alike. Whether you’re looking to learn to roast from scratch, form stronger community connections, taste the coffee lexicon, try your hand at a new machine, or simply just win the competition— this event is for you. Retreat is summer camp for coffee professionals.”

David Myers, chair of the Coffee Roasters Guild, shares his excitement, “We’re back! It’s time once again to get ready for Coffee Roasters Guild Retreat. We have a great line-up of classes and lectures this year. We’ll have our first ever Competition Roasting Prep class and some new content on espresso roasting and blending and the return of the Maillard Marshmallow Roasting Competition. We hope you can join us for a weekend of fun, education and camaraderie.“

Registration is now open with early bird pricing available from 29 July. More information
available at CRG Retreat.

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Fortunately for the coffee industry, this change does not appear to be stopping anytime soon either. In response to this shift in behaviour and interest in coffee, OnePulse decided to ask 400 consumers from its United States Pulser community what they really think about the latest coffee trends. 

Below are the top seven insights OnePulse discovered from its coffee trend Pulses, selected from hundreds of results uncovered with OnePulse’s consumer opinion platform. Some of the responses are expected, and some are surprising (such as banning long, complicated custom orders) … 

The OnePulse survey found that US consumers really are asking for bizarre coffee concoctions dreamed up by social media stars: 

• 34% have ordered a custom coffee drink because they heard about it on social media; 
• 67% of those who have ordered these ‘social media’ drinks say were worth the hype; 
• 56% would support coffee chains that implemented a ban on long, custom coffee orders. 

And while taste is the leading motivator – coffee drinkers overwhelmingly purchase drinks because of its taste – how a coffee drink looks is becoming more important. The survey found that: 

• 98% of drinkers that have never ordered a custom coffee because social media prefers taste over looks; 

• 26% of drinkers have ordered a custom coffee because social media prefers looks over taste; 
• 37% believe social media is doing more harm than good to the coffee industry. 

Although US consumers like to stick with coffee classics, they are open-minded. Per the survey: 

• 28% say their go-to drink is a regular cup of coffee, followed by a latte at 13% and a mocha at 12%; 
• 65% say roast/taste is what influences their coffee buying behavior the most; only 32% say brand is the most influential factor; 

• 33% haven’t ordered a custom coffee drink before because they haven’t found something worth trying. 

Although consumers are willing to try new coffee drinks, there appears to be a gap between ‘trendy’ coffee drinks and what US consumers have actually tried. For example:
 

• 56% have never had a Dalgona coffee [whipped instant coffee with hot or cold milk] but are interested in trying it after learning more about it; 
• 51% have never had a Snapchill Coffee but are interested in trying it after learning more about it [Snapchill Coffees are ready-to-drink, canned, coffees from Elemental Beverage Company, which are made using a process of ‘snap-chilling’ the coffee to immediately cool the coffee before canning.]; 
• 32% have never had a sparkling Americano or ‘half-caff’ but are interested in trying it after learning more about it. 

The popularity of RTD is not waning! Nearly 45% of Americans who have tried ready-to-drink (RTD) coffee purchase it at least once per week, furthermore:
 

• Iced mochas (39%) and iced lattes (36%) are the two most popular RTD coffee categories; 
• 21% rate RTD coffee as “better” or “much better” than freshly brewed coffee; 
• Only 13% have never tried RTD coffee before. 

Awareness of ‘hard coffee’, that is coffee and alcohol paired together, remains low – 64% of Americans have never had it – many are interested in doing so and liked the ‘spiked’ coffee after trying it:
 

• Irish cream (41%), Kahlua (31%) and Vodka (24%) with coffee are the most tried combinations; 
• 28% are “very interested” or “interested” in trying hard coffee after learning more about it; 

• 77% say they liked hard coffee drinks after trying them. 

The topic of sustainability remains a questionable area as many consumers are still unsure of what sustainability/sustainable actually means or what it is. It is wonderful to learn that most consumers surveyed understand ‘single origin’ but, unfortunately, there is less awareness with sustainability. They seem to know sustainability is associated with eco-friendly and fair-trade practices, but per the OnePulse survey: 

• 53% are ‘very interested’ or ‘interested’ in learning more about sustainable coffee; 

• 31% say they drink coffee labelled ‘sustainable’ while 27% say they are unsure if they do; 
• 51% would pay more for a cup of coffee based on country of origin, similar to how a glass of wine is priced. 

Well, whether it is a caffe mocha, a PSL latte, a flat white, a single origin from Rwanda or a plain, black drip coffee, they all further the coffee industry so happy sipping! 

• 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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