With corporations beginning to grasp that sustainability and corporate social responsibility (CSR) are important to customers and for the long term future of businesses, company claims of achievements and action plans are everywhere, alongside, of course, accusations of greenwashing. Which is why it is increasingly important for businesses to have certifications against their claims, to enlist consumer and stakeholder trust. Whether it be Fairtrade, Rainforest Alliance, organic, B Corp, non-GMO or vegan, consumers and company partners are looking for the certification labels, especially within the tea and coffee industry.

Certifications are notably prolific in the tea and coffee value chains. With 17 percent of tea, globally, certified Fairtrade, organic or Rainforest Alliance, and 25 percent of global coffee certified by these or similar schemes, according to Ethical Consumer (ethicalconsumer.org). This may be due to the fact that many tea- and coffee-producing areas are in developing countries, as well as the way in which both products are marketed to consumers; the origin of the tea and coffee is often one of its main selling points and helps the consumers build a narrative of the product before deciding to make the purchase. By instilling this focus and painting a picture of where the tea or coffee grew and was farmed, it is natural for consumers to want to imagine it with fair working conditions, nature friendly processes and beneficial to its local area, socially and environmentally. Amanda Archila, executive director, Fairtrade America, explained, “Coffee and tea are two critical commodities for Fairtrade. Globally in 2021, Fairtrade worked with 872,916 coffee farmers, and 400,402 tea farmers and workers. Premiums earned across coffee and tea amounted to over USD $102 million. We partner with traders, roasters, brands, and retailers around the world to ensure Fairtrade is easily accessible to consumers.”

As one of the biggest players in the tea and coffee certification field, Fairtrade as an organisation facilitates equitable and sustainable trading for producers in developing countries, working with co-operatives, businesses and governments. It does this by enforcing a Fairtrade Minimum Price for when the market price drops, as a safety net for producers, as well as an additional fixed Premium payment to be paid on top of the market price, to be invested in producers’ local communities.

It is an organisation and certification that is seeing a lot of growth; “The number of certified tea farmers in the Fairtrade system has been gradually increasing over the past few years: up to 347,000 in 2021 compared with 319,500 in 2019, in diverse origins,” commented Amy Collis, senior sustainable sourcing manager, Fairtrade Foundation.

Archila added that recognition among consumers has also increased: “Since 2019, recognition of the Fairtrade label has jumped by 118 percent among US shoppers,” demonstrating the building consumer interest in certified products. Archila continued, “Gen-Z shoppers showed the highest increase in recognition of the Fairtrade label among all age groups: 18-24 year olds who recognised the mark jumped by 121 percent, from 33 percent in 2021 to 73 percent in 2023. And millennial shoppers (25-34) are the most frequent purchasers of Fairtrade products.”

Archila agreed that “in the broader world of sustainability products, consumer awareness is definitely in the mainstream. Eighty-six percent of shoppers recalled seeing a sustainability or ethical label on a product while shopping. We also see this consumer connection to sustainable and ethical products growing stronger in the future.”

While the Fairtrade certification is seeing growth worldwide, Collis explained that the UK is currently the biggest market for Fairtrade tea, holding a share of 62 percent of Fairtrade tea sold globally. Collis said this was due to strong commitments from retail partners, “with Marks & Spencer, Waitrose and Co-op all having a 100 percent Fairtrade commitment on tea and coffee.”

Image: Kloth & Köhnken

Duncan Gray, head roaster and managing director, Bay Coffee Roasters, a west Wales, UK -based roastery, explained why the Fairtrade certification is important to his company: “Fairtrade is often far more than paying a good price to the farmer and also their workers, many of the Fairtrade cooperatives that we have worked with have community initiatives providing training and education for the families, health care and often other improvements to the local area.”

Consumers embrace organic

Bay Coffee Roasters’ other major certification that it champions, is organic, which often goes hand in hand with Fairtrade, with “over 50 percent of Fairtrade farmers [choosing] to go organic: tea, coffee, chocolate, bananas and cotton are among the products carrying dual Fairtrade and organic certification,” said Collis, as they both call for sustainable farming practices. “The nature of organic farming where farmers cannot rely on chemicals means that they generally have to care for their land, respecting its bio diversity and farming in a more sustainable way. Organic certification means that the farmers have to keep to their word,” said Gray. With organic farming, the emphasis is on techniques such as crop rotation, biological crop protection, green manuring and composting, and different regions have their own organic certifications, such as the EU and USDA Organic.

As discussed in ‘The Balance of Organic’ feature in the Tea & Coffee Trade Journal October 2023 issue, the organic market is seeing growth, with the tea market holding a value of USD $1.24 billion as of 2023, with a CAGR of 8 percent through 2033, while the organic coffee market estimates are even higher with a CAGR of 12.5 percent until 2028, according to market research companies FMI and Mordor Intelligence. Organic products are not only perceived as better for the environment and for the producers by the consumer, but they are also believed to be healthier, with less chemicals needed to grow and process them.

Gray added that they even have some customers who will buy only organic coffee, and whether that be for sustainability, ethical or health reasons, it is clear it is something that is important to many customers, or at a minimum regarded highly and as a bonus to their purchases.

Organic tea is something that it is ingrained in Kloth & Köhnken’s (K&K) identity, explained Sandra Nikolei, tea department/corporate social responsibility at K&K; “Organic farming can result in a better taste of a product as the plant grows slowly compared to most conventional products.”

Nikolei added that they are seeing much interest from their customers for organic products, but also for Rainforest Alliance-certified products. Rainforest Alliance, an even bigger scheme than Fairtrade and which now includes the UTZ label, is another non-profit organisation that promotes responsible business practices and strives to improve producer livelihoods and communities, especially in the face of the climate crisis. It does not do this with fixed pricing structures, but rather through policing production.

Image: Rainforest Alliance

“As we approach 2030 – a year experts mark as the potential point of no return – we must respond with unparalleled speed and scale to shift the course of sustainability transformation,” said Rainforest Alliance CEO, Santiago Gowland, “The hard truth is that the old sustainability models are good but not good enough.” The Rainforest Alliance certification has been going for 35 years, and, as of December 2022, has since achieved sustainability projects and certified farmers in 58 countries, worked with over 6,000 companies, and made Rainforest Alliance certified products available in 190 countries.

B Corp on the rise

Another major certification that is rising to the forefront of the tea and coffee industry, indeed most consumer industries as a whole, is B Corp. For a company to achieve B Corp certification, it must be verified by the ‘B Lab’ organisation, to “meet high standards of social and environmental performance, transparency and accountability,” B Lab explained. There are B Labs across the world, including UK Australia, East Africa, Europe, and North and South America, with 6,800 B Corp certified companies across 89 countries and 161 industries.

Duncan Gray that becoming a B-Corp is next on Bay Coffee’s agenda to achieve, joining the many tea and coffee companies certified as B Corps, such as Nespresso, Pact Coffee, English Tea Shop, Bigelow, and Pukka Herbs to name a few.

The cost of certifications

Many companies, including Bay Coffee and K&K, hold multiple certifications, particularly if they have a strong international presence as different certifications are more popular in different regions. K&K for one, lists Fairtrade, Fair Trade USA, Bio EU (organic), Bio Suisse organic, USDA Organic, Rainforest Alliance, FairBioTea, and kosher, among theirs.

Different certifications cover different areas and demand different requirements from companies, so perhaps the more the better, it could be argued. There is such a variety of certifications available, many much smaller than the ones listed here, and it comes down to a company’s specific operational practices, locations, and community needs as to what certifications will have the largest impact on its environmental and social undertakings. However, it is the big names such as Fairtrade, Rainforest Alliance, organic, and B Corp that seem to be major drivers of consumer and customer interest and purchases.

Image: Bay Coffee Roasters

But there are also a lot of conversations around certifications in relation to pricing and verification. Consumers realise that they will likely pay more for certified products than they do for those without certifications. “For a pound bag of coffee, shoppers said they were willing to pay a price premium of up to 35 percent more for certified coffee over uncertified. Nearly four in five consumers said they were willing to pay more for a product to ensure that producers received a fair price,” explained Archila.

While it is understandable that there must be additional costs to ensure the producer is receiving a fair price, it does mean the more price sensitive consumer may struggle to choose the ethical option when making their purchasing decisions. This allows the mass produced and possibly unethically sourced tea and coffee companies to keep a sizeable share of the market. Collis detailed that “Fairtrade-certified organisations sell only around 4 percent of their tea on Fairtrade terms – this means they don’t benefit from being certified to the extent that they could. When shoppers choose Fairtrade tea, tea producers can sell more of their product on Fairtrade terms.”

So, while there is growing demand for certified products, and a certain amount of consumer willingness to pay extra for them, there may not be enough for producers to justify the additional expense if it is not being bought from them at the certified price.

Certifications are costly for the producer as well as sometimes for the consumer. “Significant commitment is needed from producers to achieve and maintain compliance with the Fairtrade Standards: but it isn’t always feasible for producers who are facing other challenges, such as rising costs of inputs, low market prices and the effects of climate change,” said Collis. Likewise with organic, there is a conversion phase where anything grown cannot be sold under the organic title with the benefits that come with it, until the transition is complete, and no compensation is offered for the expense or yield loss.

K&K is proud of its certifications and recognises their value, but also their limitations; “Certifications are necessary to help to make the world a better place. But often they are too cost intensive and too difficult to implement, for farmers, small businesses and for start-ups. They should be less complicated and should focus on an easy way to make changes. Imposing the same requirements on everyone in this world and origin is, from our point of view, unfortunately very European and unidimensional. It should be more individually adaptable. Many certificates are too bureaucratic and rigid,” explained Nikolei.

Therefore, while they are an important mark of credibility and of good intentions to inform consumers, having certifications is not the only nor final step to sustainability and ethical business practices. “Certification can only ever form part of a company’s sustainability efforts,” articulated Collis, they do not “replace the duties of state or business actors with respect to human rights or sustainability.”

• Kathryn Brand is an associate editor on T&CTJ, while still writing for several of Bell’s other magazines. She joined Bell Publishing as an editorial assistant at the beginning of 2022 after graduating from the University of East Anglia with a degree in English Literature and Creative Writing. She may be reached at: kathryn@bellpublishing.com.

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The Fairtrade-Satelligence partnership and expansion plan will also support producer organisations – representing more than one million coffee and cocoa farmers cultivating 2.5 million hectares – to meet the European Union Deforestation Regulation requirements so they can maintain access to important markets in Europe and beyond.

“This partnership focuses on an increasingly important area of trade: access to risk management data, which defines what cocoa and coffee can enter the EU market,” said Jon Walker, senior advisor for Cocoa at Fairtrade International. “Whoever has the data has the key to market access. Many large buyers have their own monitoring systems that cover the cooperatives they buy from, but they don’t necessarily share what they see with the cooperatives themselves. Inequalities in trading relationships will only widen if producer organisations are reliant on their trade partners for access to this important data. This partnership enables producer organisations and their smallholder members to have access to the data and act on risks identified.”

Producer organisations are key partners in gathering this information, and contributing to risk assessments and mitigation and prevention efforts. By equipping cooperatives with data about the farms where their cocoa and coffee is produced, they can make informed business decisions as well as offer this value to their trade partners.

Building on a set of cocoa cooperatives that tested geolocation and monitoring functionality in Côte d’Ivoire and Ghana last year, the new three-year partnership aims to include all Fairtrade certified cocoa and coffee producer organisations by 2025.

“Our collective goal is that farmers have the data they need to move forward in a changing regulatory environment, which ultimately contributes to their sustainability as businesses and communities,” said Arisbe Mendoza, director of global impact for Fairtrade International. “The partnership provides a proven satellite monitoring system combined with technical support from Fairtrade to interpret and manage the data on an ongoing basis. This is an important step in our journey to bring more transparency to supply chains.”

Producer organisations provide geolocation data for each of their members’ farm plots. Satelligence’s platform verifies this geolocation data to ensure data quality. Second, the system detects any deforestation activity within members’ boundaries, and whether or not farms are located in protected areas. It also flags deforestation near the farm, an important piece of information that contributes to cooperatives’ risk assessments. Finally, the system generates reports that cooperatives can use themselves, and provide to their customers or potential customers.

“We strive for a more inclusive and sustainable future by giving smallholders the most advanced tools to empower and encourage them,” said Niels Wielaard, CEO at Satelligence. “We are proud to partner with Fairtrade, making sure we help prevent further marginalisation of farmers by unlocking access to markets with proof that their goods are deforestation-free. Many companies are still unprepared for EU Deforestation Regulation, but Fairtrade cooperatives will be ahead of the curve. It is a big task but it can be done. We hope the world will invest more in smallholders, in particular in supporting those doing the right thing in vulnerable, high deforestation-risk regions.”

The Fairtrade Cocoa Standard aligns with the EU Deforestation Regulation requirements, including that farms above four hectares in size or in high-risk areas must use polygon mapping, while smaller farms and farms in low-risk areas can use single geolocation points. Importantly, Fairtrade also requires traders to support producer organisations from which they buy in their deforestation monitoring and prevention efforts, whether through material or financial support. The Fairtrade Coffee Standard is being reviewed to include similar requirements, scheduled to be decided on by the Fairtrade Standards Committee in late 2023.

The scale-up of deforestation monitoring capacity is part of Fairtrade’s efforts to raise awareness about the importance of farmers and workers having more power as trade partners and in negotiations about regulations that affect their livelihoods.

Losing access to core markets, such as the European Union, would be devastating to smallholder coffee and cocoa farmers who mostly rely on these products for their livelihoods. If the economic realities of smallholder farmers are not taken into account, the legislation could lead to unintended consequences, such as a rise in illegal land use by farmers forced to find other sources of income. This would ultimately undermine sustainability, forest preservation, and the very intention of deforestation regulations.

“Deforestation legislation is an essential step, but the effects on smallholders are still unknown,” explained Walker. “The European Commission urgently needs to step up coordinated efforts to assess country-by-country readiness and impacts on covered sectors, in close collaboration with local stakeholders. It is worth noting that while technology such as satellite imaging continues to improve monitoring, the causes of deforestation are multi-dimensional, including poor legislation and governance, limited available economic opportunities, and poverty. Improving farmers’ livelihoods on the way to living incomes must be part of the approach to ensuring healthy forests and sustainable communities.”

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The ANSI/PMMI B155.1-2023 standard has undergone a meticulous revision, guided by a panel of industry experts convened by standard developer, PMMI, to address evolving safety concerns, technological advancements, and changing operational landscapes. The development committee includes new contributors providing deep insights from machine builders, consumer packaged goods companies, and technology suppliers.

“By introducing these comprehensive updates, the ANSI/PMMI B155.1-2023 standard sets a new benchmark for safety in the packaging and processing machinery industry,” said Tom Egan, vice president, industry services, PMMI. “This revised standard reaffirms the commitment of PMMI to the safety and well-being of industry professionals, ensuring that technological advancements go hand-in-hand with the highest levels of safety.”’

“Safety is critical to all operators. With an evolving work landscape, having industry standards that are rigorously evaluated on a consistent basis allows us to stay vigilant in mitigating risk,” commented John Uber, head of product compliance for PMMI member company, Mettler Toledo.

The standard guides packaging and processing machinery suppliers and users through a formal, documented risk assessment process designed to ensure that reasonably foreseeable hazards are identified, and corresponding risks are reduced to an acceptable level.

A few key highlights of the standard’s updates include:

• Refined Responsibilities: The revised text explicitly outlines the responsibilities of machinery suppliers, users, modifiers, purchasers of used machinery, and other stakeholders, fostering a safer working environment through increased accountability. The update addresses machinery-as-a-service, or MaaS, including equipment loaned or provided by a third party and located in a user facility, as well as mobile platforms, robots used for logistics, cleaning, and more.
• Introduction of Co-Packer / Co-Manufacturer Concepts: The new edition introduces the concept of co-packers and co-manufacturers, delineating their associated responsibilities within the framework of safety regulations.
• Updated Legacy Machinery Requirements: The responsibilities for existing (legacy) machinery have been updated and clarified to ensure that older equipment is brought in line with the latest safety standards in a practical, cost-effective, and appropriate way.
• Clarified Scope: The scope of the standard has been clarified to provide a more precise understanding of its applicability, reducing ambiguity, and allowing for improved implementation.
• Remote / Tele-Operation Enhancements: With the advancement of remote operations, the standard now offers improved information and guidelines for safely operating machinery through remote means.
• Reorganised Clauses 4 and 5: The standard now features a restructured layout for enhanced clarity and ease of reference, streamlining the reading experience for professionals in the field.
• Whole Body Access Requirements: The standard now includes comprehensive requirements for situations where whole body access is applicable, safeguarding operators from potential hazards.

The first version of this standard was approved by the PMMI membership on 27 September 1972. It was approved by ANSI on 6 August 1973. The standard has been reviewed and revised with subsequent approvals by the ANSI Board of Standards Review in 1979, 1986, 1994, 2000, 2006, 2011, and 2016.

The ANSI/PMMI B155.1-2023 standard will be available for purchase through the ANSI webstore.

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

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

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

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

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

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

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

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

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

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

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

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

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

The impact is vague

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

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

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

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

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

What does this mean for your coffee business?

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

How did we get here?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Simultaneously, it is launching a multi-stakeholder Innovation for Impact Initiative, aimed at building consensus between industry and producers around a more scalable, higher-impact Fair Trade Certified programme.

Fair Trade USA’s announcement follows a comprehensive stakeholder consultation over the last three months. Through surveys and direct interviews, Fair Trade USA engaged over 500 roasters, importers, and retailers and nearly 400 producer organisations.

“Through our recent listening tour, we heard clearly from stakeholders that to grow our impact for farmers, workers, companies, and consumers, we need to innovate and renew the Fair Trade coffee model. The time is now,” said Paul Rice, founder & CEO, Fair Trade USA.

To guide and support the Innovation for Impact Initiative, Fair Trade USA is creating a diverse, global Coffee Impact Advisory Board. Rüdiger Meyer, the founder and former CEO of FLOCERT, will be board chair. Other distinguished members include Lindsey Bolger, former SVP and managing director of Keurig Trading; Carlos Vargas, general manager of CoopeTarrazú, the largest fair trade coffee cooperative in Costa Rica; and Guido Fernandez, EVP of the Colombian Coffee Federation. The rest of the board will be formally announced in the next few weeks.

An independent organisation with a 25-year track record of market- and movement-building, Fair Trade USA is not required to follow pricing set by Fairtrade International (FLO). Its past adherence to their minimum price and premium was purely voluntary.

Rice founded Fair Trade USA after returning from 11 years in Nicaragua, where he organised and ran the country’s first Fair Trade coffee cooperative. Over its 25-year history, Fair Trade USA has partnered with more than 1,700 companies across dozens of product categories. Over 65% of US consumers now recognise its Fair Trade Certified label. Cumulatively, the organisation has generated more than $1 billion in financial impact for farmers and workers worldwide.

As background, on 30 March 2023, Fairtrade International (FLO) announced it will raise its coffee minimum price and organic differential, effective 1 August 2023.  To ensure that its stakeholders were properly engaged and heard, Fair Trade USA conducted its own stakeholder consultation that began in April and ran through June 2023, leading to the decisions being announced today. Fair Trade USA will publish a full report on the findings of its consultation in the coming weeks.

“Fair Trade USA has a track record of innovation and real impact in farming communities around the world,” said Meyer. “Its global stakeholder community is poised to co-create the next phase of the Fair Trade Certified model to generate even greater value for participants in the global coffee trade.”

“I’ve been organising coffee farmers and leading coffee cooperatives for more than 40 years,” said Vargas. “I am eager to contribute my perspective as Fair Trade USA innovates to address needs more effectively and generate much more economic benefits for the farmers.”

Little will change in the months ahead for importers, roasters, and retailers currently working with Fair Trade USA. Minimum price, social premium, and organic differential all will remain the same. Authorised producers and cooperatives also will remain the same. New guidance on contracting and reporting will be issued in the coming weeks, but changes are expected to be minor. The Fair Trade USA team will continue to support its 500+ coffee industry partners through the transition.

For more information about Fair Trade USA, visit the website.

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GCP has recognised 4C and the Rainforest Alliance Sustainable Agriculture Standard as equivalent to the Coffee SR Code, 3rd party assurance, and ECOM’s SMS Verified, Enveritas’ Enveritas Green and Sucafina’s IMPACT as equivalent to the Coffee SR Code, 2nd party assurance. The number of sustainability schemes fully recognised by GCP now amounts to 19, further expanding the critical mass to advance and accelerate coffee sustainability.

Sector alignment for coffee sustainability

Since GCP released the Equivalence Mechanism (EM) 2.0 in November last year – a process which saw the tool being strengthened with stricter sustainability and operational criteria – schemes have been aligning their systems to become equivalent to the Coffee SR Code. This code is a sector-wide reference on the foundations of sustainability in economic, social and environmental dimensions for green coffee production and primary processing worldwide. GCP’s Equivalence Mechanism also entails assessment against a set of operational criteria that ensures a credible and effective system for implementation and includes governance, standard-setting, assurance, data and claims requirements.

According to Annette Pensel, GCP executive director, the Global Coffee Platform “applauds the action by these GCP Members to step up and align their sustainability schemes through the Coffee SR Code and GCP Equivalence Mechanism.”

“This commitment to the use of a common language and the increasing openness to transparency is a critical feature to understand, advance and accelerate coffee sustainability.”

For the assessment of the sustainability schemes, GCP partnered with the International Trade Centre, which, as GCP implementation partner, assessed the schemes against the principles and practices of the Coffee SR Code and the operational criteria of the EM 2.0 ensuring the integrity of the recognition process.

List of sustainability schemes recognised by GCP

3rd party assurance: 

• 4C
• Certifica Minas
• Fairtrade
• Rainforest Alliance Sustainable Agriculture Standard
• Starbucks’ C.A.F.E. Practices

2nd party assurance: 

• ECOM’ SMS Verified
• Enveritas ‘ Enveritas Gold and Enveritas Green
• Exportadora de Café Guaxupé’s Guaxupé Planet
• LDC’s Responsible Sourcing Program Advanced
• Mercon’s LIFT
• Nespresso AAA
• Neumann’s NKG BLOOM and NKG Verified
• ofi’s AtSource Entry Verified and AtSource Plus
• Sucafina’s IMPACT
• Volcafe’s Volcafe Verified and Volcafe Excellence

All sustainability schemes recognised by GCP are eligible for roasters and retailers to be included in the annual GCP Collective Reporting on Sustainable Coffee Purchases, another way companies are aligning and increasing transparency to advance coffee sustainability globally.

The Equivalence Mechanism, together with the Coffee SR Code and the GCP Collective Reporting on Sustainable Coffee Purchases, are connected assets developed by GCP to offer a common language on the foundations for coffee sustainability and promote the supply and demand of coffee produced following at least baseline sustainability principles.

The summary report of the 2022 Collective Reporting on Sustainable Coffee Purchases will be published late August and discussed during a global webinar on 12 September 2023.

This is the second round of sustainability schemes that GCP announces as equivalent to the Coffee SR Code. By October 2023, all schemes that have been recognised against previous versions of the EM, will need to have been assessed under the GCP Equivalence Mechanism 2.0. Until then, all sustainability schemes listed are fully recognised by GCP.

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The country’s tea industry had also been affected by many factors, the most serious being the sharp decrease in tea production. Experts say that the main cause of the decline was the sudden ban on all agrochemicals including fertilisers from April to November 2021, decided by the then President Rajapaksa, who abruptly declared that the whole country would go organic without any preparation. Furthermore, soon after the ban was lifted, the price of imported fertilisers surged 20 to 30 times due to the Russia-Ukraine war, followed by the drastic depreciation of the SLR in the foreign exchange market. Consequently, the Sri Lanka’s annual tea production in 2022 was 251,499 metric tonnes (mt), a decrease of 16% from 299,488 mt in 2021, the lowest since 1995 when the yearly crop was 245,900 mt (Source: the Sri Lanka Tea Board).

“The year-on-year decline continued till January 2023, however, this February the crop increased to 18,715 mt from 18,163 mt last year. So, I expect from March the situation will improve, and positive growth from April onwards. Because now fertilisers are going into tea fields, as the price is coming down. Compared to conditions in early 2021, the price of fertilisers is still ten times, and the application is about 50% to 60%, but it is much better than last year. So, we predict the total tea production this year will be 270,000 to 280, 000 mt,” said Niraj De Mel, chairman of the Sri Lanka Tea Board (SLTB).

Fuel imports and supply in the country are also improving. The fuel situation is still tough but much better than the chaotic period in the first half of 2022. Similarly, electricity charges have soared three to four times, a heavy burden for not only private tea factories but also for households. However, the year-long rolling power cuts ended on 15 February this year.

“There are many challenges we face, both domestically and globally. In recent years, the Ceylon tea industry has been disrupted by the fertiliser ban, climate change, high inflation and rising input costs, as well as political issues. Internationally, the Russian-Ukrainian conflict, Iranian sanctions, global inflation, shipping and logistics problems, fluctuation in exchange rate and tea prices in the world market, have all had an impact,” explained Anil Cooke, managing director and CEO, Asia Siyaka Commodities PLC, adding that an oversupply of black tea, particularly from India and Kenya, has become a significant factor.

However, he noted that fertiliser availability has improved remarkably and costs for tea growers are falling. Furthermore, “freight rates have declined and we can ship our teas faster as more containers are available. The digital tea auction, which we switched to in April 2020, is [still] working well. So, I am optimistic that we will have a better second half in 2023”, said Cooke.

Apart from the economic turmoil in the country, De Mel expressed his concern about changes in weather patterns in tea planting districts, which might be an effect of global climate change. Tea quality seasons in this island nation are influenced by the two monsoons; the north-east monsoon from January to March which improves the quality in the western area, and the south-west monsoon from July to mid-September enhances the characteristic flavour in the Uva Province in the eastern region, especially the Uva seasonal tea, which is renowned for its exotic menthol-like flavour. However, the essential dry spell with cold nights, which is crucial for quality tea manufacture, has become unstable, and intermittent rainy days in the Uva season disturb the concentration of flavory components in the green leaf. “We cannot combat the weather or nature, but now some solutions are being sought with the latest studies and experiments at the Tea Research Institute. I’d like to see Sri Lanka coming back to what we were reputed for in the past,” De Mel said.

Despite the pandemic and economic and political difficulties, all projects to improve plantation workers’ welfare are continuing. Since 1992 when the majority of state-owned plantations were privatised with the formation of 23 Regional Plantation Companies (RPCs), the overall standard of life in plantations including housing, medical care, education, sanitation and so on, have considerably progressed. During the Covid outbreak, the estates provided face masks and hand sanitisers, measured body temperature of everyone three times a day, prepared patient wards for separation, and administered three vaccinations to 100 percent of plantation residents. “Therefore, I believe few suffered from the disease and no death was directly caused by Covid-19 in the plantation sector,” said Roshan Rajadurai, managing director of three RPCs; Talawakelle, Kelani Valley and Horana Plantations, belonging to the Hayleys Group.

Tea, rubber and coconuts plantations in the country have more than 100 years of history, and are now facing a severe shortage of workers, as younger generations tend to look for a better life in the big cities. “We cannot or shouldn’t stop the outflow of workers,” said Rajadurai. However, for a short period of time under the nation-wide lockdowns or curfews, many returned to the plantations and the RPCs offered them work and full support. For the sustainable future of plantations, the RPCs have gradually introduced the so-called ‘Revenue Share Model of Work’, in which workers can control their working hours, operations, and are paid based on their own output. In this model, workers are more independent, self-supervised, and earn nearly twice as much as in fully fixed routine work. “We have to change the 150-year-old plantation system to new models to meet the requirement of the times. The revenue share model is very efficient and the only method that can ensure the continuity of tea industry of Sri Lanka,” Rajadurai shared confidently.

• Yumi Nakatsugawa is a freelance writer specialising in food and restaurant management. While freelancing, she developed a love of black tea as well as tea-producing countries and tea people. Based in Japan, Yumi may be reached at: ym_n@nifty.com.

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The Rainforest Alliance has set out its new vision for accelerating action to address the climate emergency, biodiversity loss, systemic poverty, and human rights issues in its 2022 Annual Report.

Priority landscapes: Discover more about the Rainforest Alliance’s efforts to drive sustainability transformation in Cameroon, Guatemala, Kenya, Mexico, Indonesia, and beyond. Learn about the launch and recognition of LandScale, a tool that measures, evaluates, and communicates the performance of sustainable landscapes.

Certification and beyond: Explore crop-specific facts and figures and delve into the Rainforest Alliance’s work beyond certification, including advocacy around the EU Deforestation Regulation (EUDR). Discover new tools such as the Regenerative Coffee Scorecard, which offers farmers and companies guidance on their transition to regenerative agriculture.

The Rainforest Alliance’s 2030 vision: Dive into the Rainforest Alliance’s forward-looking vision that emphasises the need to transform our food system through regenerative agriculture in the world’s most critical tropical landscapes. It aims to drive systemic change—all while placing rural communities at the heart of the solution.

• 58 countries with certified farms and projects; 6,000+ company partners 
• Four million farmers and workers following the Rainforest Alliance Sustainable Agriculture Standard 
• Six million+ hectares of farmland certified against our sustainability standards globally 
• 87 projects to improve livelihoods and protect nature; 18 new projects started in 2022 
• 54,000+ products with the Rainforest Alliance Certified seal or UTZ label available 

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Recently, some green coffee importers have undergone surprise audits by inspectors with the US Food & Drug Administration (FDA), checking for compliance with relatively new food safety standards associated with the import of green coffee. The audits – which are being performed under the FDA’s Foreign Supplier Verification Program (FSVP) – can be a big wakeup call for some importers, with some being caught completely off-guard by the new requirements and others who thought they were in good standing, but learned too late they had gaps in their compliance. In some circumstances, importers who had all the proper systems and documentation in place found that the company representative charged with furnishing information to the inspector was unable to adequately communicate critical details supporting their compliance.

These and other lapses in compliance can cause major disruptions for a coffee importer: an inspector could issue Form 483 citations, product could be delayed or seized at the US port of entry, or worse — the importer could receive fines and jail time.

With these concerns in mind, it is important that all actors in the green coffee supply chain be fully knowledgeable of FDA’s new import requirements related to food safety; create the proper compliance tools, records, and operational systems; and be able to communicate the information clearly and effectively.

Before examining compliance requirements, it is important to understand the path green coffee follows from tree to import — and why the FDA created food safety rules for foreign suppliers to cover risks that may affect green coffee along that journey.

Why has FDA created food safety rules for foreign suppliers to begin with? To fully answer this question, we must start at the beginning of the supply chain: the coffee farm.

Coffee is commercially grown in over 70 producing countries globally. Once the coffee cherry is harvested from its tree, it will often get processed at a community co-op or mill, resulting in a cleaned and dried green coffee bean. The green coffee beans are often then bagged and shipped to a warehouse where it is prepared for export. At any point during this process, coffee beans may get blended with coffee from dozens or even hundreds of other farms — making coffee what is known as a co-mingled commodity.

At port, the coffee is then loaded into metal shipping containers, sometimes fumigated, and, if heading stateside, shipped to a US-based port. The coffee must pass through US Customs prior to being transported to warehouses, changing hands between brokers, importers, and eventually, roasters.

Green coffee changes hands multiple times with numerous parties between the time of its harvest at the coffee farm and the time it reaches a roaster. Every actor should be following Good Agricultural Practices (GAPs), Good Manufacturing Practices (GMPs), and Good Handling Practices (GHP). These can be summed up to be basic, commonsense hygienic and sanitation steps that a food processor must follow to guarantee the safety and wholesomeness of a food product. Failure to comply with these standards can put a business in trouble with the FDA.

Until recently, the FDA was very limited in what food safety standards it could apply to foreign suppliers of agricultural commodities and finished foods to the US market. With a co-mingled commodity like green coffee, the complexities and difficult traceability make enforcing some standards virtually impossible. For this and other reasons, the FDA issued the Foreign Supplier Verification Program (FSVP) as a component of the US Food Safety Modernization Act (FSMA).

At a macro level, FSMA was signed into law in 2011 and with the aim of ensuring the safety of the US food supply by shifting from a reactive response model to one of proactive prevention of contamination. In turn, FSVP, a sub-section of FSMA, allows regulators the opportunity to establish similar, prevention-based food safety standards for both domestically produced and imported foods.

FSVP was also designed to allow for flexibility in its framework, allowing companies to more easily apply FDA’s rules to their own business operations. The green coffee industry is fortunate in that green coffee is roasted prior to consumption, which reduces food safety risks considerably compared to many other food products.

To help green coffee importers understand FSVP compliance, the National Coffee Association is producing an FSVP Toolkit. The Toolkit, which will be released this summer, will take importers step-by-step through the various FSVP rules and regulations as they apply to green coffee and will provide a sample FSVP-compliant plan with green coffee examples.

The NCA will also be revamping and relaunching its Model Food Safety Plan Template for Green Coffee. A complete food safety plan is an essential element of a compliant FSVP plan.

• Mark Corey, PhD, joined the National Coffee Association (NCA) of the USA as director of scientific and government affairs in 2018. Previously, he worked in R&D roles in the coffee industry for ten years and was volunteer chairperson of the NCA’s Scientific Leadership Council for five years.

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“This targeted co-funding by our membership kick-starts our work, catalysing transformational change around living income, climate adaptation and sustainability for over one million coffee farmers around the world,” announced GCP executive director, Annette Pensel. “Today, we celebrate the commitment of JDE Peet’s, Melitta Group, Mother Parkers’ Coffee & Tea, Nescafé, Nespresso, ofi (olam food ingredients), Rabobank and Westrock Coffee Company. These companies are taking collective action to the next level to propel coffee sustainability.”

GCP 2.0’s farmer-centric approach entails focused local collective actions in coffee producing countries together with local stakeholders, complemented with a global drive to increase sustainable sourcing.

Sharing responsibility

Despite many years of efforts and certain sustainability advancements, the sector is still facing profound challenges to sustainability. More than half of coffee farmers around the globe are challenged by poverty, and coffee supply is threatened by climate change and increasing regulatory requirements.

“To unlock coffee’s potential as both an engine of socio-economic growth and nature-based solution to climate change, we urgently need transformational change with strategic action and bold investments within supply chains and, importantly, beyond it. Durable change comes only with focused solutions that are owned by coffee growers themselves, supported by public, private and NGO partners.”

Collective action locally and globally

“GCP has demonstrated that change beyond supply chains is possible when GCP Member companies work with our NGO and government partners through collective action,” says GCP board chair, Carlos Brando. “This pre-competitive collaboration is crucial to generating adequate level of investment and change. No one company can be effective by itself. Collective action is essential to not just ensuring compliance but also accelerating measurable sustainability at scale.

“We are grateful that these GCP Members have stepped forward with this initial round of co-funding. This will lay the groundwork to bring ambitious solutions to over one million coffee smallholders.”

The combined $1.5 million investment enables GCP to grow, attracting new talent and further revenue, including public co-funding that is key to accelerate the first six entrepreneurial country programmes to investment-ready levels and support the development of aligned measurement in the form of GCP Country Reports.

“While achieving transformational change on farmers prosperity for one million coffee farmers seems like an ambitious goal, today marks an exciting first milestone for GCP and an indication that we can transform the industry together,” said Pensel.

For more information click 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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As the world’s foremost hub for culture, quality of life, sustainability, and the arts, Copenhagen’s distinguished reputation extends to its specialty coffee culture. The city’s progressive approach to business, technology, design, and trade further amplifies its standing as a global leader, making it an ideal destination for coffee enthusiasts and professionals to gather at Europe’s premier coffee trade show.

Speaking about bringing World of Coffee to Denmark in 2024, SCA CEO Yannis Apostolopoulos says: “The destination for Europe’s premier coffee trade show in 2024 is the dynamic capital city of Copenhagen, Denmark. A global leader in culture, quality of life, sustainability, and the arts, the Danish capital is also renowned for its refined specialty coffee culture and approach to business, technology, design and trade.” He adds; “World of Coffee Copenhagen joins two other recently announced destinations in the World of Coffee 2024 portfolio: Dubai, United Arab Emirates in January, 2024 and Busan, Korea in May, 2024 and contributing to World of Coffee’s global reach and accessibility.”

Speaking on behalf of the city of Copenhagen, Denmark, Bettina Reventlow-Mourier, deputy convention director, Copenhagen Convention Bureau says: “As one of the most coffee consuming capitals in the world, we are very excited about welcoming World of Coffee and the World Coffee Championships to Copenhagen next year. Coffee has long been an integral part of life in Denmark, and just like our gastro experiences, there is a strong focus on sustainable innovation amongst the many world-class coffee shops, baristas, and roasts that constitute Copenhagen’s flourishing coffee scene. We can’t wait for the many delegates to get a taste of our city and hopefully be inspired during their stay.”

And on behalf of the venue, Bella Center Copenhagen, Gemma Strutt, director of congress & large events adds “At Bella Center Copenhagen, we pride ourselves on Hosting Moments That Matter, so we are delighted to welcome World of Coffee in 2024, bringing the Specialty Coffee industry together. Coffee is a core part of our Responsible Hospitality culture, and Copenhagen will provide the perfect inspirational destination to meet and network.”

Prospective exhibitors are encouraged to register their interest in booking a booth on the World of Coffee Copenhagen show floor by submitting the contact form located at worldofcoffee.org/contact.

Attendee registration is set to open in early 2024.

BWT water+more Official Host Sponsor of World of Coffee 2024 in Copenhagen

SCA is also proud to announce the official Host Sponsor of World of Coffee 2024 Copenhagen: BWT water+more. Marking the continued partnership between SCA, World of Coffee, and BWT water+more, Dr. Frank Neuhausen, general manager of BWT water+more states:

“World of Coffee Copenhagen 2024: a fantastic city with a great coffee community! As Host Sponsor for World of Coffee 2024, we proudly continue our support for the Specialty Coffee Association and all people working within the coffee community.

We will once again provide the best water on site for all exhibitors.As a water optimisation specialist operating internationally, we at BWT water+more have an overview of water quality and supply worldwide and we gladly support the global coffee community with knowledge and practice proven solutions.”

Show Features: Copenhagen World Coffee Championships

The World Coffee Championships (WCCs) are annual events that are the culmination of local and regional qualifiers, hosted by sanctioned Competition Bodies around the globe. An expected 96competitors will be vying for the title of world champion across three skills-based competitions.

World Latte Art Championship.

This competition highlights artistic expression while challenging the barista in an on-demand performance. Baristas are judged based on visual attributes, creativity, identical patterns in the pairs, contrast in patterns, and overall performance.

World Coffee in Good Spirits Championship

This competition promotes innovative beverage recipes that showcase coffee and spirits, and highlights the barista/barkeeper’s mixology skills.

World Coffee Roasting Championship

Competitors are evaluated on their performance developing a roasting profile that best accentuates the desirable characteristics of that coffee,matching that profile,and on the ultimate cup quality of coffees roasted.

Join in person or on the live stream and learn more at wcc.coffee.

To learn more and enquire about available sponsorship positions and booth availability, email the team on sponsorship@sca.coffee

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The country has been a Member of the Agreement since 1964, which aims to promote exchange and cooperation between consumer and producer countries. During the renegotiation of the ICA 2007, due to expire in February 2024, Stefanie Küng of Switzerland chaired the Working Group on the Future of the Agreement which enabled the drafting and approval of the new ICA 2022. Aligned with the UN Sustainable Development Goals and maintaining its intergovernmental nature, the new Agreement is characterised by streamlined and more effective governance, a fairer distribution of contributions that reflects the actual value distribution in the coffee global value chain, and stronger cooperation with and integration of the private sector and civil society. What’s more, it gives a clear mandate to the ICO Secretariat to assist Members to mobilise resources in order to realise their coffee sectors’ full potential and act sustainably.

Switzerland forms an integral part of the global coffee landscape. With an average of US$2.2 bn in net trade, Swiss companies are heavily involved in the international coffee market and Swiss coffee roasters play a leading economic role internationally. Around 10% of the world’s coffee export value is attributed to Switzerland, with its citizens enjoying 16.2 million cups every day.

The ratification of the ICA 2022 will further contribute to the sustainable development of the coffee sector at a national and global level by benefiting and involving all actors in the value chain. This includes not only coffee exporting and importing countries, but also coffee farmers, the industry, civil society, and development and financial partners, all of whom contribute towards the overall transformation of the sector.

The ICA remains one of the most significant international economic agreements ever negotiated and has a vital and immediate impact on the lives of millions of people worldwide, and an indirect effect on hundreds of millions more, influencing the political and economic future of many countries. The new ICA 2022 will address the challenges facing the sector through the multilateral channel rather than country-to-country negotiations, strengthening the key role played by the Organization as the centre of “coffee diplomacy” and reaffirming the ICO and its Coffee Public-Private Task Force as the main forum for multi-stakeholder discussions on coffee-related issues at the public and private levels.

Executive director of the ICO, Vanúsia Nogueira, said:

“Many countries have already signed the ICA 2022 and now Switzerland has shown that with strong political commitment the parliamentary process of ratification can be completed promptly and efficiently. In order to enter into force definitively, signatory governments holding at least two-thirds of the votes of the exporting Members and at least two-thirds of the votes of the importing Members must have deposited instruments of ratification, acceptance or approval.

“Because of the importance of coffee in world trade and its great social, economic and political significance to so many countries, we have a duty to shape this area of international cooperation and regulation with regard to the global sector. Thanks to Switzerland, we can inaugurate a new era for the ICO and provide an important precedent for future collective efforts in the international economic and commodity field.”

Markus Leitner, Ambassador of Switzerland to the United Kingdom, said:

“Thanks to innovative technologies in the roasting, processing and capsulating of coffee, Switzerland is a leading trading and exporting hub for coffee. We are convinced that the new ICA 2022 represents a strong instrument to promote sustainability in the coffee industry, while ensuring cooperation between governments, the private sector and civil society.”

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Background: evaluation and vision

In 2020, for the first time in its history, the SCA began a project to evaluate the performance of the SCA
cupping system, last updated in 2004. Results of a large user survey, including over 1,600 cuppers worldwide, made it clear that a revision was necessary. The 2004 cupping system, while a significant step forward in identifying a coffee’s valued sensory attributes at the time, unintentionally obscured key information about what makes a coffee valuable by reducing its description to a single score. The results of the user survey, in addition to a thorough literature review, guided the revision process and the creation of a holistic system to assess coffee’s value.

In 2021, driven by its sustainability agenda emphasising equitable value distribution throughout the supply chain, the SCA began work on a set of evolved and expanded tools that would create a way to measure and facilitate value assessment and distribution. Additionally, these tools would provide all market actors – including producers and processors – a more holistic and transparent assessment of a coffee, allowing them to find the best possible markets for their products. All of these elements have come together, forming a new way to assess a coffee’s value through the SCA Coffee Value Assessment.

The SCA Coffee Value Assessment

Currently in its Beta version, with some assessments still in research and development, the SCA Coffee Value Assessment allows coffee experts to inventory the valuable attributes of a coffee, according to the SCA’s definition of specialty coffee. Across four separate assessment types, users can record information about physical, sensory, and extrinsic attributes. The 2004 cupping system previously combined some of these different assessment types, but this new approach enables cuppers to evaluate and record a coffee’s sensorial attributes in the descriptive assessment and their “impression of quality” in the affective assessment. By separating these two assessments – the objective description of a coffee’s flavour profile from the taster’s impression of quality – the Coffee Value Assessment reflects best practice in sensory and consumer science, making it compatible with scientific research for the first time.

The physical and extrinsic assessments, outlined in the Coffee Value Assessment Protocol (in beta), are still in research and development. The physical assessment will be an evolution of the SCA’s Grading Protocol, which serves as the industry standard method for evaluating and grading green washed arabica coffee, based on integral research projects organised by the Coffee Science Foundation and supported through key partnerships. A user study, soliciting feedback on an alpha-version of the Extrinsic Assessment form is expected to launch mid-2023.

Upcoming activities

There are many opportunities to interact with the new assessment system at the upcoming 2023 Re:co Symposium,19-20 April, and the Specialty Coffee Expo, 21-23 April, both in Portland, Oregon. At Re:co Symposium, SCA CEO Yannis Apostolopoulos will formally introduce the beta version of the SCA Coffee Value Assessment and an early adopter programme designed to help the SCA refine the system’s protocol and forms, through both community feedback and scientific research, before moving through its standards development procedure.

“We are excited to release the beta-version of the Coffee Value Assessment,” says Yannis Apostolopoulos, “and to take this opportunity to announce an early-adopter programme, a key feedback and support mechanism that will help us to achieve the vision we’ve outlined for the new system. This new holistic understanding of value, in addition to the assessments’ compatibility with scientific research, will create more robust, transparent records of what is valued and by whom, on a large scale, allowing us to create a more accessible value discovery tool.” Re:co participants will also have the opportunity to engage with the form in a series of seminars, which outline the development process, key elements, and the use of the new forms.

Attendees at Specialty Coffee Expo will have opportunities to learn more about the Coffee Value Assessment across five different lectures, three workshops, and a dedicated day in the cupping exchange. View the SCA Coffee Value Assessment activations taking place at Expo at coffeeexpo.org/value-assessment.

Additional opportunities to learn more, beta-test the forms, or take part in the forthcoming Early Adopter
program can be found at sca.coffee/value-assessment.

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The USD $225 billion US coffee sector and more than 1.6 million US jobs rely on coffee supplies from around the world. Coffee growers in Hawaii and Puerto Rico that supply the lucrative specialty coffee market in the US, as well as growers in low-income countries, are particularly vulnerable to pests and disease. The CPHIAA will accelerate agricultural research to help overcome these challenges while maintaining flavour and quality.

“More Americans (66 per cent of adults) drink coffee each day more than any other beverage,” said William “Bill” Murray, president and CEO of the NCA. “As agricultural research and development plays a key role in the future of America’s favourite beverage, the NCA urges Congress to advance legislation that prioritises coffee as a key contributor to Americans’ daily lives, farmers’ livelihoods, and the US economy.”

“From Kona to Maui to Mayaguez, coffee is woven into our island cultures and drives over $500 million in benefits to our communities,” said Suzanne Shriner, administrator of SHAC. “Hawaiian growers have been devastated by diseases such as leaf rust, which arrived in 2020 and cut crop yields in half after causing $1 billion in damages globally and forcing farm workers, particularly in Central America, to abandon farms and even migrate. This bill focuses needed research attention on our biggest problems, while helping our small farmers stay in business.”

Legislators are seeking to include the CPHIAA in the 2023 Farm Bill to amend a programme established in the 1990 Farm Bill that focused exclusively on the coffee berry borer pest. The bill authorises the USDA to fund research on coffee diseases and pests broadly. “The existing Coffee Plant Health Initiative Act does two things: first, it says ‘coffee plant health’ is a priority of the industry, therefore ‘should’ receive support, but it limits that directive to supporting research on coffee berry borer,” said Hanna Neuschwander, strategy and communications director, World Coffee Research told T&CTJ. “The amendment, which is what we’re talking about here, maintains the coffee plant health priority, but broadens the mandate to cover all coffee diseases/pests, not only coffee berry borer.” In effect, she said, “the bill authorises Congress to fund this work, but it doesn’t allocate money to it, that is a separate process.”

Chris Manfredi, executive director of the HCA explained that “this important legislation will help Hawaii target resources toward the most immediate threats to our coffee. By also anticipating

future threats, it will enable researchers to quickly pivot as they emerge and ensure the survival of one of Hawaii’s most important crops.”

“CPHIAA will enable much-needed research at a time when coffee is under severe strain. Public research aligned with industry needs is critical to securing the future of coffee,” said Vern Long, CEO of World Coffee Research.

The USDA focuses on programs/projects that impact US farmers, so projects typically either involve Hawaii and Puerto Rico coffee farmers and/or US university researchers. However, Neuschwander shared that there is the potential for any funding of research to benefit farmers globally. “For example, a current research program funded by USDA’s FFAR program is working on sequencing the coffee rust genome. This is US public funding helping deliver a critical global public good that will advance other countries’ ability to tackle rust.”

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In line with the Task Force Roadmap 2020-2030, members of the ICO Coffee Public-Private Task Force (CPPTF) have committed to jointly implementing activities to close the living income gap to reach prosperity for target producers in at least 50% of the ICO Member coffee-producing countries by 2030. To that end, the Roadmap foresees establishing living income benchmarks in 80% of ICO Member producing countries by 2025.

Therefore, the Living Income Benchmark studies are designed to support the governments of the target coffee-producing countries to better identify the most effective strategies and activities to improve prosperity of their coffee sector. The studies will inform investment plans, developed in collaboration with private sector and civil society stakeholders, to advance a prosperous coffee sector for all actors. Ultimately, the studies form an essential step in reaching a sustainable and prosperous future for coffee producers and the sector as a whole.

To achieve the studies, NewForesight uses a proxy benchmark methodology – formally recognised through the IDH Living Income Benchmark Recognition process – based on the Anker principles, while adding a distinct complementary value. Throughout this process, the team will closely collaborate with the regional coffee platforms mentioned above and national government representatives of each country.

The living income benchmark will be an important input for the other Technical Workstreams of the Coffee Public-Private Task Force, which focus on: market transparency, market policies & institutions, resilient coffee landscapes, and sector coordination & inclusion of women and youth. By identifying synergies and complementary activities between the workstreams, a comprehensive response to the challenges facing the coffee sector is being established.

Partners quotes:

“Recent studies showed that the average earnings of small-scale farmers in the coffee industry would not reach what is needed to ensure a basic and decent standard of living, even less for a prosperous livelihood. Therefore, defining a living income benchmark, measuring income gaps, and developing effective strategies to close these gaps is key to consider when engaging on living income. As a sector-wide platform aiming at shifting the coffee sector towards a prosperous income for coffee farmers, the ICO Coffee Public-Private Task Force aims to facilitate strong government and sector-level action on living income and to develop living income strategies that will benefit the most vulnerable farmers, representing an effective pathway to greater environmental, social and gender inclusivity. More than ever, we should champion innovative and system-level change processes involving both business and government to address this essential issue, which is crucial to ensure the sustainability of the global coffee sector.” – Vanúsia Nogueira, executive director of the International Coffee Organization (ICO)

“PROMECAFE’s members are well aware of the environmental and social benefits that the coffee producers provide their countries and the global community. However, if the sector is not economical viable and resilient, and cannot allow for all farmers to earn a living income and achieve prosperity, these benefits will be lost. To achieve this the entire coffee sector must work together. For this reason, we are collaborating with the ICO’s Coffee Private Public Task Force to identify what the income gaps are and using this fact-based approach to collectively work together at the national, regional and international level, to close those gaps” – Ing. René León Gómez, Executive Secretary PROMECAFE

“As a consultancy we are committed to market-driven sustainability and driving sustainable transitions. The ICO, with its members of the CPPTF, has made a bold commitment towards a living and prosperous income of coffee producers, and we are proud to support the group over the coming year developing living income benchmarks, assessing the income gaps, and providing strategic advice on how to jointly move forward towards a better future for coffee farmers, and the sector as a whole.” – Daniel Viviers-Rasmussen, principal consultant & Domain Lead, NewForesight Consultancy.

“Living Income Analysis is an effective, credible tool to identify what producers, in particular smallholders, need for a decent standard of living on the pathway to prosperity. Its real value is in framing and informing collective action to achieve income improvements to close income gaps. For this reason, the work of the ICO’s CPPTF is an exciting and unique opportunity to work at scale throughout this globally important sector and use Living and Prosperous Income as a tool to support achieving an economically and environmentally resilient coffee sector.”- Chris Wunderlich, co-facilitator of ICO’s Living and Prosperous Income Work Stream and director, Agrofuturo Global.

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Russian tea and coffee industry association Roschaicoffee forecasted a 5% to 7% drop in consumption in 2022. This is described as a technical correction, not comparable to a 30% slump in demand during the first lockdowns imposed in the country to slow down the spread of Covid-19 in the first half of 2020. So far, coffee roasters across the country have managed to maintain business as usual. 

In August, the Russian Agricultural Ministry ensured Russians that no shortage of coffee or tea on the domestic market was anticipated. It was said that almost all supplies of raw tea and coffee came from countries deemed as friendly. The largest tea suppliers to Russia are Kenya, Sri Lanka, China, and Vietnam, while in coffee it is Vietnam, Brazil, Italy, and Indonesia. Except for Italy, these countries have not joined the Western sanctions imposed against Russia over its invasion of Ukraine. 

However, the Russian government’s optimism is not entirely justified. Between April and May, Russian imports of raw tea and coffee were halved compared to the year-ago period. Ramaz Chanturia, general director of the Roschaicoffee, attributed these dynamics to the logistics crunch, as the majority of product batches from Asia and Latin America were passing through European port hubs. However, the world’s leading cargo carriers have refused to call the Russian ports, and the Russian vessels are banned from calling the European ports. 

Russian companies are struggling to rebuild the logistics chain redirecting supplies to Iranian and Chinese ports, Chanturia disclosed, expressing confidence that the problems would be eventually solved. Still, there are signs that even so, the new logistics schemes are associated with extremely high costs and extended delivery times. Local market players warned that, on average, it takes 90 days for a shipment to be delivered to Russia, compared to the usual 35 to 40 days. 

In 2022, tea and coffee jumped in price in retail in Russia by 30% to 60%. Russian retailers attribute the upward price rally to problems with package and logistics. However, the rise in costs is still partly downplayed by the strong ruble. Most forecasts expect the Russian currency to weaken substantially in 2023, so the Russian market will likely be braced for another upward price rally. 

Western Business is Fleeing 

Since 24 February, over 1,000 companies have withdrawn from Russia, as estimated by Yale University. This list includes the largest tea and coffee companies and keeps growing. In August, Rotterdam-based tea company Ekaterra announced plans to leave the Russian market. The company, which owns some of the most popular tea brands in Russia, such as Lipton and Brooke Bond, promised to suspend production in the country by the end of the year. 

Russian newspaper Kommersant reported that the Unilever factory in St Petersburg where Ekaterra products are packed, may be shut down permanently. 

However, the Russian government threatened foreign businesses suspending operations in the country with forced nationalisation of their production assets. The strategy called to prevent an outbreak of unemployment means that by simply setting the production facilities offline, the owners could eventually lose them. This has already happened with the Renault plant, nationalised by Moscow authorities in May to revive the production of an old Soviet brand. 

In this background, most companies severing their ties with the Russian market prefer to sell their production assets to Russian investors, providing they manage to find any. Thus, in August, Laurens Spethmann Holding AG & Co, owner of the Milford brand, sold its Russian division to local management. A similar step was made by Tchibo, which sold the Russian business to the general director of Tchibo CIS, Mikhail Kovalevsky. Beginning in 2023, Tchibo CIS must stop using any brands and labels related to Tchibo. 

A Delayed Effect 

Under the pressure of unprecedented Western sanctions, the Russian economy has not crumbled, and things seemingly remain normal from the outside. However, it would be wrong to say that the sanctions are not working. 

Russia may face a longer and deeper recession as the impact of US and European sanctions spreads, handicapping sectors that the country has relied on for years to power its economy, Bloomberg reported in early September, citing an internal report by the Russian government. 

The report paints a dark, gloomy picture of a deep and protracted recession, expanding sanctions, a drop in exports and a lack of critical imports. Furthermore, the Russian budget would lose the lion’s share of its revenue from selling oil and gas — a backbone of the Russian economy for the past few decades. The Russian economy could return to the 2021 level only around 2030 or even later. Mass immigration of the most skilled workers coupled with the demographic crisis would also take a toll. 

The crisis is expected to cause slow but steady degradation of the Russian economy, affecting all segments of the consumer markets without exception. The Russian population’s falling purchaser power will gradually change consumer habits, as customers would be forced to switch to lower quality, cheaper alternatives, avoid unnecessary purchases and start counting calories. The Russian tea and coffee markets will likely shrink in the years ahead. 

In addition, there are huge concerns over the future of the Russian tea and coffee factories. Russia produces nearly 85% of consumed tea and coffee domestically, but all factories run predominantly on Western equipment and technologies. Importing equipment and spare parts into the country is a tricky task right now. This factor already hurts several other industries. 

The Russian government has introduced a parallel import scheme to help the economy face this challenge so that the necessary goods and equipment could be imported through third companies, including in neutral countries like Turkey and China. However, this tool has not proved worthy so far. All in all, the future of the Russian tea and coffee industries look exceptionally challenging and highly unpredictable. 

• Formerly based in Russia, and now living in Georgia, Vladislav Vorotnikov is a multimedia B2B freelance journalist writing about the tea and coffee industry. 

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“We’re honored to partner with Cup of Excellence and the Alliance for Coffee Excellence as their new technology services partner. Our goal is to support COE and ACE as they expand their auction and event services to better scale their market access and financial impact for coffee producers. M-Cultivo is thrilled to build an evolved, scaled model for various auction types that not only provides more opportunities for quality discovery and direct-trade relationships, but will provide a more streamlined user experience for buyers. We look forward to working alongside and enhancing the auction experience for all stakeholders in the auction process,” said David Paparelli, founder and CEO of M-Cultivo. 

With features including an integrated payment option for buyers and a robust back-end lot management for in-country organizations and producers, the auction platform will support increased financial reward and better margins for producers while creating efficiencies in the auction process, logistics and sample set management.  

The new platform will offer a check-out process on winning bids with multiple payment options including credit card and wire transfer. Credit card fees will be passed on to the buyer to avoid extra costs for producers. Shipping options will also be expanded and managed directly at check out allowing buyers to select options including: air-freight, consolidated air-freight, ocean freight, and self-managed. Information about the winning coffee and photos of the producers will be displayed by each lot. Bidders will also enjoy customizable auto-bidding by choosing increment levels and maximum bids. Lastly, there will be an on-demand support chat and resource center. 

“This work and partnership with MCultivo in building a platform together to meet the needs of our principle partners, the coffee producers whom we serve, is vital to our mission. As a non-profit, we feel this work with a group committed to enriching farmer livelihoods is key to our strategic plan for the future,” said Darrin Daniel, executive director, Alliance for Coffee Excellence and Cup of Excellence.  

Along with the new auction platform, the organizations – which launched a Brazil Select Marketplace pilot program in late 2021 – will also focus on other technology services to better forge direct-trade relationships. Following the pilot program in Brazil, an Ethiopia Select Marketplace will feature over 80 individual farmers, dramatically increasing the market reach and securing higher premiums for producers who entered the CoE program. This direct–to-roaster marketplace for coffee vetted by Ethiopia National Jurists will run from 8 August to 15 September, 2022. 

For more information about the new auction platform and marketplace, please visit http://mcultivo.com/. To register for an auction, please visit https://allianceforcoffeeexcellence.org/.

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