Additional new partners include: British Coffee Association, Catholic Relief Services, Cafinco, Swiss Coffee Alliance, Gorilla Conservation Coffee, Eko Café Etico, San Martin Regional Government, Peru; Castellon Coffee Group, Cafexport and Oikocredit.

“It’s great to have these partners join the Sustainable Coffee Challenge and commit to work collaboratively to make coffee the world’s first sustainable agricultural product,” says Bambi Semroc, vice president, Sustainable Markets & Strategy for the Center for Environmental Leadership in Business. “We are encouraged by their commitments and investments and look forward to working together to scale these across the sector.”

The Sustainable Coffee Challenge, conceived by Conservation International and Starbucks and launched during the Paris climate meetings in 2015, is uniting players from across the coffee industry – growers, traders, roasters, retailers, governments and NGOs. It works to stimulate greater demand for sustainable coffee while forming partnerships to find and scale up programs promoting improved livelihoods, nature conservation and a continued supply of coffee.

The Sustainable Coffee Challenge engages in collaborative efforts with its partners across four networks to achieve its mission: scaling up sustainable sourcing; farm renovation and rehabilitation; improved labor practices and supply and mapping and monitoring of coffee and forests.

Conservation International uses science, policy and partnerships to protect the nature that people rely on for food, fresh water and livelihoods. Founded in 1987, Arlington, Virginia-based Conservation International works in more than 30 countries on six continents to ensure a healthy, prosperous planet that supports us all. Learn more about Conservation International.

The Sustainable Coffee Challenge convenes, unites and urges the coffee sector and conservation partners across the industry to spur the actions and investments necessary to make coffee the first sustainable agriculture product in the world. The Challenge is committed to stimulating demand for sustainable coffee across the value chain, from the policymaking level to the final consumer. By encouraging demand for sustainable coffee, it leads to investments that enable the transition to a sustainable production and ensuring the coffee we drink is a sustainable product.

For more information about Conservation International and the Sustainable Coffee Challenge, visit: www.conservation.org.

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World Coffee Research (WCR) is bringing its expertise in coffee agricultural R&D to the Maximizing Opportunities in Coffee and Cacao in the Americas (MOCCA) Project.

MOCCA is a five-year, $36.4 million initiative funded by the U.S. Department of Agriculture to build the agricultural sectors of coffee and cacao in five countries – El Salvador, Guatemala, Nicaragua, Honduras and Peru. The project’s lead implementation partner is  international nonprofit TechnoServe.

“This is the perfect project for WCR,” says Dr. Kraig Kraft, WCR’s global programs director. “It provides us the resources to deepen our engagement in Central America and Peru.  In this project, we will establish 140 more Global Coffee Monitoring Program plots in farmers’ fields; we will work with Promecafe and the respective national coffee institutes to train breeders on how to use new molecular breeding tools; we will develop a coffee nursery professionalisation tool to help get the best varieties out to farmers. It is an ambitious project, but we are assembling a great team, and we are looking forward to getting started.”

“When WCR began in 2012, Central America was our main focus,” says WCR’s CEO Tim Schilling, “and so it’s nice to be able to work alongside TechnoServe on such a technical project in this region. We’re thrilled to provide the research element of this partnership.”

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PJ’s Nitro Cold Brew Coffee infuses nitrogen gas into its classic cold brew, creating a creamy, stout-like effect—with zero calories. The canned nitro coffee is available in two flavors: Original Cold Brew Coffee and Southern Pecan.

“We’ve been serving our unique nitro-infused cold brew recipe on tap inside the original PJ’s location on Maple Street in New Orleans since it reopened this fall—and people love it,” said Felton Jones, PJ’s roastmaster. “We knew our flavor profile was something special, and we’re now excited to offer it to all our PJ’s customers.”

PJ’s Nitro Cold Brew Coffee is made with PJ’s Viennese Blend—100% Direct Trade beans from Finca Terrerito in Honduras and Agua Fresca in Nicaragua—before being infused with nitrogen for a smooth texture.

“A lot of people enjoy an iced coffee but may not want the extra calories from milk or cream. The nitro cold brew is a great option for those looking for their coffee-fix on-the-go, while trying to stay healthy,” said Peter Boylan, president of PJ’s parent company Ballard Brands.

PJ’s Original Cold Brew Iced Coffee is brewed daily using a special cold-drip process that protects the flavor and strength of the beans, while producing a coffee that is 2/3 less acidic—a process and technique pioneered by the PJ’s founder and used for more than 30 years.

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Scott Markham founded London-based Rokit Pods after realising there needed to be a simpler way of making healthy coffee-alternatives at both home and in the office. “Making my cup of matcha the traditional way every day was always a huge task,” he says. “It began by avoiding breathing too heavy whilst scooping the powder to not create the matcha cloud, and then I had to whisk like crazy. I thought there has to be an easier way…our Nespresso machine sitting there in the corner caught my eye, and I found the answer!”

That’s when Scott and his co-founder and wife, Bev, made it their mission to create an easy, good-for-you organic “cuppa something,” using existing coffee machines.

Rokit Pods’ current line up includes:

• Matcha Green Tea – This full-bodied, earthy, hearty and organic matcha green tea is made from high-quality, fine ground, powdered green tea to create a delicate fragrant drink.

• Yerba Mate – This organic, soft and distinctive tasting drink is made from the dried leaves of an evergreen holly native to South America. Sharing this drink from a traditional gourd is a sign of friendship and bonding and often becomes a social event.

• Ultimate Coffee – This warming and unique organic coffee blend is made using natural and organic extracts of Panax ginseng, Goji berry and Maca.

Since its inception, Rokit has made huge strides, and the packaging redesign is only step one of their long-term plans. The PepsiCo Nutrition Greenhouse program selected Rokit for the class of 2018. Each brand chosen receives a grant to accelerate the business and work alongside PepsiCo’s specialized mentors across all business development.

Markham notes that the redesign enhances the packaging’s visual presence across the board. “And now that we have the new branding, the PepsiCo programme is really supporting and helping us move forward and focus on obtaining sustainable growth with their resources, expertise, access and knowledge of the relevant marketplaces,” he says.

Looking toward a bright future, Markham anticipates introducing new flavours to Rokit’s current line up and making the pods more readily available in the UK market as well as globally. Rokit has also set its sights on transitioning to fully compostable pods in an effort to minimize its carbon footprint.

Rokit Pods are available at Whole Foods UK, boutiques around the greater London area and Amazon. MSRP for the Matcha Green Tea, Yerba Mate and Ultimate Coffee is £7.99 per 10-pack and £13.99 per 20-pack.

For more information, visit: https://rokitpods.com/

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The Blue Patch Business Awards champion outstanding small brands and SME (small and medium-sized enterprises), support the local economy and promote sustainable businesses across the British Isles. The awards recognise high quality design as well as genuine, innovative and sustainable approaches to ethical business.

Guy Wilmot, the owner of Bird & Wild was awarded the Blue Patch’s Global Impact Award which is for businesses based in the British Isles that work with international communities, creating ethical partnerships with good supply chain management.

The RSPB (Royal Society for the Protection of Birds) teamed up with Bird and Wild only a year ago to offer a truly ethical and environmentally friendly shade-grown coffee that is triple certified as Bird Friendly, Organic and Fairtrade.

Rebecca Porter, the RSPB’s product & licensing manager said: “Guy is very passionate about his bird-friendly coffee, as are we! It is shade grown which means it grows more slowly, requires less water and/ or the need to use any invasive fertilisers or pesticides. This in turn supports greater biodiversity and ensures that the forest in which it’s grown sustains a healthy ecosystem…it also tastes great!”

Guy Wilmot, CEO of Bird & Wild Coffee said: “We’re simply thrilled to win the Global Impact Award. Coffee is the second most traded commodity in the world and most of us drink it every day, but without thinking of the consequences. The Sustainable Business Awards are a big deal for us as its broadens our platform to communicate about why organic, shade grown and bird friendly certification are so crucial about protecting coffee origin ecosystems and, at the same time, helping protect nature at home in the UK through our partnership with the RSPB.”

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“This new structure will be the culmination of a long and thoughtful process to simplify our organization so that it can best service our increasingly licensed store market strategy while continuing to embed our mission and values in how we operate every day,” explains Martin Brok, president, Europe, Middle East and Africa, Starbucks.

Starbucks opened its first Paris store in 2004 on the iconic Boulevard des Capucines. Subsequently, the brand came to the Netherlands, Belgium and Luxemburg between 2008 and 2016, creating more than 3,100 jobs at more than 260 stores across the four countries.

As part of the restructuring, Seattle, Washington-based Starbucks Coffee Company intends to fully license Starbucks operations in France, the Netherlands, Belgium and Luxemburg to its longstanding strategic partner Alsea, SAB de CV, the largest independent chain restaurant operator in Latin America.

Under this proposal, which is subject to relevant local laws, and discussions with relevant employee representatives, Alsea will have the rights to operate and develop Starbucks stores in these markets, building on Starbucks regional growth agenda that drives value through strategic licensed relationships. At the same time, the company would introduce a new support structure in its head office in London, England to better serve an increasingly licensed strategy.

“We’re very pleased to build on our 16-year history with Alsea, a long-term strategic partner to Starbucks, with the intention to license our business operations in France, the Netherlands, Belgium and Luxemburg,” says John Culver, group president, Starbucks International, channel development and global coffee & tea. “These strategic moves would enable us to further accelerate growth across these markets as we position Starbucks for long-term success moving forward.”

The long-standing strategic business partnership between Starbucks and Alsea began in 2002, when together they opened Mexico City’s first Starbucks store. Today, Alsea operates more than 900 Starbucks stores in Argentina, Chile, Colombia, Mexico and Uruguay, employing more than 11,500 partners (employees) across the five markets. At the close of this transaction, Alsea would expand its relationship with Starbucks outside of Latin America to Europe and would partner with Starbucks in nine markets globally.

“Through the years, we have learned how to successfully bring the Starbucks experience to diverse consumers in several countries; we have a deep understanding of the company’s values as well as the critical relationship between barista and customer which results in the unique and powerful connection that makes Starbucks a preferred brand. We plan to do the same in these geographies leveraging the talent and scale that we have built in the region. We look forward to finalizing our discussions and working in close partnership with the European team to bring long-term profitable growth” says Renzo Casillo, managing director of Alsea.

Starbucks opened its first store in Europe 20 years ago, and it has since grown in partnership with strategic licensees to more than 3,200 stores in 43 markets across Europe, the Middle East and Africa. Recently, the company opened a Starbucks Reserve Roastery in Milan, elevating the customer experience and serving as a pipeline of innovation for core stores. This is part of the company’s ongoing evaluation of a healthy store portfolio with the aim to scale successful programmes across the whole of the EMEA estate.

For more information, visit www.starbucks.com.

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Super Coffee, a functional ready-to-drink (RTD) coffee with 10g of protein, 5g of MCT Oil, 0g of sugar, 80 calories and 150 ml of caffeine, was originally created in brother Jordan’s dorm room at Philadelphia University in 2015 under the brand name Sunniva, which means “gift from the sun.” The student athlete wanted a healthier alternative to the bottled coffee and energy drinks loaded with sugar and artificial ingredients.

As they geared up for a national launch, the DeCicco brothers realized they needed to take their original vision and figure out a way to grow it. They tapped brand development and design firm Tigre, which guided them in developing a strategy for the business based on their passion and their authentic beliefs, which included: identifying their target consumer, creating messaging to translate their beliefs internally and externally, and expanding the product line. The core message, “Change Your Energy, Change Your World,” came out of this strategy.

The DeCicco brothers decided to rename the brand, Kitu, referencing both ‘key to life’ and a nod to the Keto-type diet and the company, Kitu Life. Following the rebrand, the next step was to redesign the Super Coffee line. “We needed to clearly communicate the proposition, point of difference and benefits in a consumer friendly ‘digestible’ format,” says Tammy Vaserstein, creative principle, Tigre. “We did this through the use of colour and a strong communication hierarchy that stands out on shelf and in someone’s hand.” The original wave lines evolved into a bold stripe, reminiscent of an athlete’s jersey or a flag, providing a sense of identity and performance. When viewed standing together on shelf, they create an upward motion, further communicating positive energy.

The evolutionary design retains the white background that helps the RTD coffees to stand out on a crowded and dark shelf. The wave lines are also evident in the new Kitu brandmark, designed to communicate smooth energy and to serve as a badge or seal of approval identifying ‘better for you energy’ products. “It’s incredibly important, especially for an emerging brand, that the design is ‘noticed’ when someone is carrying it – this badge identifies them as part of a team,” notes Vaserstein. A tear off label around the cap also includes the ‘Positive Energy’ message.

The shelf-stable Super Coffee line features four 12-oz RTD coffees (maple hazelnut, vanilla bean, cream black, smooth mocha) in plastic bottles with shrink wrap.

Primarily targeted to male, ‘Ath-lifers,’ who live a healthy and active life style and approach life with an athlete’s mindset; sense of drive, passion, teamwork, the rebrand is also designed to appeal to a secondary audience of men and women ages 18 – 40.

“Our goal with Kitu is to be America’s healthy energy alternative to all of the sugary options that exist today. While our original packaging did a good job of articulating the functional benefits of the product, it didn’t tell the story of what the brand stands for,” says Jim DeCicco, CEO, Kitu Life. “Tigre was able to take three years of brand building and communicate it succinctly in an attractive visual design and a messaging hierarchy that captures our culture in a concise platform,” DeCicco adds.

A sub brand of Super Creamers is also being introduced in flavours: Original, Vanilla and Hazelnut in 32-oz format. Super Creamers allow anybody to enhance their coffee, tea, or smoothie experience with zero sugar, lactose-free protein, and healthy fats from coconut oil.

Super Coffee and now Super Creamer is sold in grocery stores, convenience stores and fitness locations such as Wegmans and Fairway in the Northeast US. To drive trial, the company plans large-scale field marketing and in-store sampling.

Kitu Life Inc was founded in 2015 by Jordan, Jake and Jim DeCicco. The DeCicco brothers were each collegiate athletes with a passion for nutrition and wellness. Today, the New York City-based company has 17 full time employees and has secured several million in seed funding from private investors. Kitu is poised to raise its Series A round of funding in Q4 of 2018.

For more information visit www.kitulife.com.

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Thirst may be the first reason a consumer reaches for a beverage, but it’s the packaging that may seal the deal at the point of purchase. Increasingly, beverage manufacturers are looking to captivate customers with packaging that offers some form of personal resonance.

Whether referencing a lifestyle choice, a fond memory or an important goal, a beverage label that can connect with consumers on a deeper level has the power to stick. Consider packaging that aims to motivate workouts, sparks memories of a favourite vacation or reinforces the value of a healthy lifestyle — prompting engagement in the product experience before the consumer even twists off a cap, pulls a tab or pops a lid.

Given the growth of the market, it’s no wonder manufacturers are in a race to capture the hearts, minds and loyalty of consumers. Currently worth USD $30.1 billion, the beverage packaging industry in the United States is expected to experience 4.5 percent growth in the next decade, according to the 2018 Beverage Trends in Packaging and Processing Operations by PMMI, The Association for Packaging and Processing Technologies. In today’s competitive landscape for beverage products, more brands may take bolder steps to amplify the essence of what’s inside on the outside — particularly utilizing the power of print effects. Today’s consumers will likely not reach for a drink when they simply feel thirsty, but instead when they feel understood.

Tugging at the Heartstrings

Choosing a career path, moving to a new city or buying a home — these are all decisions highly dictated by emotion. But what about beverages? Can a person have an emotional reaction to a drink on a store shelf, and can this connection really influence their decision to purchase the product?

The answer may be “yes” as consumers continue to choose beverage products that feel familiar or strike a certain chord of nostalgia. Consider the “Share a Coke” campaign from the Coca-Cola Company, which created a way to literally attract consumers by calling their names. For Coca-Cola, which had long established its foothold in the carbonated beverage sector, this campaign strengthened customer loyalty and created buzz around the brand.

Creating this kind of label variety was no small feat, even for such a major brand, but advancements in printing technologies made the campaign possible. According to an article on Label & Narrow Web’s website, to run labels that pulled from a list of about 250 names, Coca-Cola tapped a domestic label and packaging converter company, which coordinated with printers equipped with HP Indigo digital printing technology to get the job done. With this technology, the varied labels could be done on short runs and still reflect high-quality printing.

On an international scale, South Africa-based magazine Packaging & Print Media reported that Coca-Cola repeated this collaboration with converters and partner printers to create thousands of names in multiple languages. Some international printers utilized flexographic printing as opposed to digital printing, so careful colour matching was done in order to achieve the same “Coke Red” shade across different types of printers.

Some brands have found a way to speak to customers less directly, but still with intimacy or a level of personalization that can be hard to beat. Whiskey brands Jack Daniels and Johnnie Walker are actively pursuing different segments of the market and looking to expand their reach with a range of tailored products. Jack Daniel’s Gentleman Jack whiskey aims to reach a segment of the market that associates fine whiskey with a premium sipping experience.

According to PMMI’s report, unique packaging is what premium brands use to differentiate themselves from value brands, so mid-tier brands are now using packaging to emulate the look of top-shelf brands. With its Gentleman Jack edition that features a metalized label resembling a stamped silver plate, Jack Daniels is attempting to appeal to consumers who value finer, more original details over a traditional paper label. Some craft spirits are taking premium package printing a step further by turning to technologies that use tinted glass and other tactile labels, allowing for a more sophisticated, expensive look.

Johnnie Walker recently created “Jane Walker,” a special-edition iteration of their Black Label product, to appeal to the female demographic typically not considered a whiskey-drinking group. To substantiate the message, Johnnie Walker is donating proceeds of each bottle of the Jane Walker Edition sold to organizations supporting women’s progress.

Packaging for the Health- and Eco-Conscious

Personalization may not be the only key to sales. With an equally large demand for products that support healthy, active and clean lifestyles, more beverage manufacturers are producing drinks that come in smaller cans or bottles with fewer calories. The dainty servings not only meet demands for lower-calorie, lower-sugar products, but also reinforce the idea of portion control in a departure from decades of oversized servings.

In this era of clean labelling, consumers are also looking for natural and additive-free drinks, however, this type of beverage comes with its share of challenges for manufacturers and processers. Many of the more organic or natural beverages, like juices, are non-homogenous and become separated when standing still on the shelf. To avoid possible negative reactions from customers, brands are using shrink wraps to hide the inner contents of a bottle.

The push for clean labelling has also spurred some changes along the production line, with manufacturers having to add agitation equipment or adapt filling machinery to handle the different behaviours of more natural beverages.

For the athletes shopping in the beverage aisle, the extra aid that sports drinks promise can offer a massive appeal. Some brands have introduced a way to target different types of athletes, taking customization to a new level. Gatorade, for example, developed a product line that provides multiple drinks to be consumed at specific stages in a workout. If this product line speaks to a particular athlete’s established routine, Gatorade may have just increased a customer’s purchase from only one drink to three — right at the point of sale.

On top of nutrition, brands can also gain selling power in sustainability. By offering an eco-friendly product that can claim it creates less waste, a brand is able to connect with growing consumer concern for the environment. One way that manufacturers are addressing this shift is by using digital printing, which in general is considered more cost-effective and environmentally friendly for the short runs that occur with label variation. Digital printers, like the HP Indigo technology used for the “Share a Coke” campaign, have been recognized for their eco-friendly benefits of reducing energy and supplies in each round of printing.

Some beverage manufacturers are also going green by utilizing eco-friendly materials like vegetable oil-based inks or water-based inks, which can be used in conjunction with digital printing technologies. These inks not only dry quickly and deliver a high-quality print, but also minimize the release of volatile organic compounds (VOCs) that are usually heavily present in traditional solvent-based inks. UV inks offer similar benefits in that they “cure” at rapid rates and release minimal VOCs, and they also allow for high-quality digital direct printing on glass or PET bottles.

Advances in Printing Propel Brands

The beverage variety that we see on the shelves today can be tied to the growth of technologies that enhance the flexibility of lines, speeding and simplifying changeover between different product runs. With increasing consumer demand for a wide selection of beverages, manufacturers require the ability to swap labels out and change production over many more times than they likely had to in the past. Changeovers that used to happen only once a day or week now may happen three times in one shift in order to generate the masses of personalized or targeted products customers crave.

To achieve this rapid changeover, many manufacturers have turned to digital printing, which allows for labels to be diverse and to be prepared and quickly applied. With this technology, generating a graphic for a label is a more efficient process and can be done in a more immediate timeframe, reducing costly downtime. The speed of this equipment also coincides with the need for products to be delivered to the store in as fresh of a state as possible. Packagers can generate digitally printed labels closer to the time of production; ensuring consumers receive beverages that did not spend months in storage before shipment.

The prevalence of digital printing systems is a result of the technology becoming more accessible every day. At a price point that doesn’t break the bank, the adoption of digital printing is an easier choice to swallow. Now that the technology can be used for shorter runs of products like 30,000 units, it is arguably becoming a more difficult decision to stick with traditional printing technology.

Beyond digital printing, technologies that create larger and bolder imagery are taking hold. Shrink sleeve technology is being used more on cans and bottles, according to PMMI’s report. For example, a craft brewer might place a shrink sleeve over an entire six-pack. This style of package printing facilitates easier packaging line changeover and is helpful for companies that produce a variety of beverage types or flavours in the same can shape.

Yet, some brands prefer paperboard over shrink sleeves, because paperboard can retain its imagery and shape after being opened, whereas shrink sleeves become ripped, distorted and likely discarded at the first use. In many cases, the brand may choose paperboard as the outer packaging in the hopes that a consumer will keep the container in the refrigerator or on the counter. Regardless of the choice in material, either option provides a brand the added benefit of more images, more information and the chance to tell a greater story about the product.

‘Niche’ is the Key to Market Growth

The importance of differentiation in the beverage industry is perhaps best witnessed in the bottled water market, where, arguably, the same liquid is being portrayed as an entirely different product depending on the customer toward whom it is being marketed. Brands design packaging and labelling elements to match their target demographic, and these elements become differentiators that can justify a product’s shelf space.

For example, Evian and Fiji waters present themselves as clean, natural waters that are sourced from exotic locales around the globe. Their use of clear bottles that reveal an inside label showing striking landscapes along with declarations of purity help communicate this message. Meanwhile, waters like Core, Essentia and Smartwater sell themselves as waters that boost physical and cognitive health and ‘go the extra mile.’ Then there are brands like Vitaminwater and La Croix, which are still considered ‘waters’ despite adding flavours and/or carbonation to their products to appeal to those seeking something just a little different from regular water.

Convenience and Innovation

But the trend for finding a niche falls across all beverage sectors, where companies clamor to be different and stand out during selection. Sometimes that niche can be found by offering reliable convenience, such as a Capri-Sun pouch with a straw, or sports drinks with flip-top caps. Other times, it can stem from an original packaging innovation, such as beer giant Coors’ Coors Light label featuring thermo inks that react to temperature changes. This label conveys information that the beer has reached the perfect chilled temperature and is ready to drink, and it also offers an interactive feature that is simply fun for the customer.

This type of ‘cool’ can graphic is a more recent development, as metal packaging graphics have traditionally improved at slower rates than paper labels. Improvements like thermo inks, light-responsive, glossy, matte and tactile inks are all a result of better coating technologies, PMMI’s report states. Overhauls in can printing quality and capabilities have also occurred over the last five years, with dots per inch (DPI) increasing from 120 to 130 and high-definition separation work, platemaking and printmaking all improving.

Still, while utilizing emerging technologies and finding the right niche is crucial to operations, manufacturers must also focus on staying relevant. Claiming ownership over a unique space in the market is only sustainable for as long as the brand is willing to adapt and adjust to consumer concerns and lifestyles. Beverage brands that hone in on their product’s differentiator but can continuously transform its appearance are likely to quench customer demands for decades to come.

Tom Egan is vice president, industry services, PMMI (The Association for Packaging and Processing Technologies). PMMI represents more than 800 North American manufacturers and suppliers of equipment, components and materials as well as providers of related equipment and services to the packaging and processing industry.

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Leaning on the company’s long-standing commitment to flavour, quality and creativity, the brand’s new look centres around bright colours and bold ingredient imagery representative of key tasting notes. Nami Yamamoto, CEO of Stash Tea, notes that the aim of the rebrand was to rethink not just how the packaging looks on store shelves, but how to better communicate Stash’s long-standing core values to the consumer.

“Giving the ingredients center stage emphasizes our commitment to using only natural, healthy ingredients to create delicious and unique flavours,” says Yamamoto. “As we evolve as a brand, our hope is that we continue to excite consumers to explore the incredible world of tea that inspires us every day.

One challenge of the brand refresh was bringing Stash’s 46-year heritage into today’s modern market. The existing compass rose logo was streamlined and adorned with tea leaves to establish a sharp new visual identity while maintaining the brand’s adventurous and worldly spirit. The compass is meant to inspire consumers to look to their daily cup of tea to help them find their “true North” and a sense of balance in today’s busy world. The new packaging is continuing to roll out to tea aisles across the country.

The past year also marks two new certifications acquired by the company – Project Non-GMO Verification for all tea bag blends and B Corp Certification – both of which reflect the brand’s commitment to integrity and transparency.

As a B Corp Certified company, Stash cements its dedication to positive change and thoughtful business actions by continuing to pursue green packaging, ethical sourcing, employee well-being, and community involvement to amplify impact both globally and at a local level. B Corp Certification requires a holistic review of a business’s social and environmental performance, and as a B Corporation, Stash must meet higher standards of accountability and transparency than traditional private companies.

With a commitment to eco-responsible materials and manufacturing, renewable energy, and strict product verification and quality control processes, Stash is part of a global community of companies leading with purpose and redefining success in business.

“Attaining B Corp status wasn’t an arbitrary decision,” says Yamamoto. “We pursued this certification because it completely connects to our commitment of transparency and sustainability, and everything that we are and aspire to be as a brand.”

Stash Tea is available at grocery stores throughout the United States and Canada, and online at stashtea.com.

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“We intend to disrupt the USD $5 billion ready-to-drink tea market by introducing organic products specifically created to meet growing consumer demand for heathy, good-for-you, great-tasting drinks,” says Roy G Warren, CEO of Gratitude Health, Inc. “Our tea tastes better and is healthier than the over-brewed, sugar-saturated offering generally available to American consumers. We are excited to have completed our inaugural production run and our team is moving quickly to arrange distribution for our ready-to-drink teas to retailers.”

Warren founded Gratitude Health this year. The Palm Beach Gardens, Florida-based company produces beverages that promote and support healthy aging. All Gratitude Tea flavours have an average of 417 mgs of polyphenols per bottle (in a recent study, the Journal of Nutrition reported that greater than 650 mgs per day is demonstrably effective.) Polyphenols are the phytonutrients found in vegetables and plants, which are very rich in antioxidants and have proven to be great fighters of free-radicals, which cause numerous diseases.

The new Gratitude Heath RTD teas feature unique packaging delivered to consumers in a 15-oz, mason-jar-like bottle designed to be “upcyclable” or repurposed. Each feature one of five debossed pieces of art displaying five elements: the sun, the moon, the ocean, the earth and love. Each design is unveiled by the consumer when the beverage label is peeled off. The designs are covered at random, are not flavour specific and are intended to be a surprise value-add to the customer’s drinking experience. The bottle foot-print fits in all store refrigerated display racks and automobile cupholders.

“Glass is the most ecofriendly container in the world and our bottle is potentially more so because people may just want to keep it,” said Andy Schamisso president and COO of Gratitude Health, Inc. “We anticipate some upcycling, some artistic customer creations, some useful re-use and repurposing and some love from what we believe is a welcome change to the typical presentations on the shelf today.”

For more information, email: info@organicgratitude.com.

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As I watched the tea bags remain in both cups, I thought about how plastic in tea bags has become quite an issue this year, but more so in the United Kingdom than in North America. In its 2018 Tea Report, Tetley revealed that one in five consumers are drinking more tea than they did a year ago. According to the UK Tea and Infusions Association, British consumers drink 60.2 billion cups of tea every year, 96% of which are brewed using tea bags. Many of the most popular British tea-bag brands reportedly use a sealing plastic called polypropylene to fasten the tea bags and retain their shape.

The subject of plastic-free packaging for food and beverages has become of greater interest to British consumers following Sir David Attenborough’s program, Blue Planet II, a 2017 British nature documentary series on marine life that showed how much plastic is in the world’s oceans and seas, and the damage it is causing (its predecessor, Blue Planet, debuted in 2001).

“There has been a wave of interest from both the consumers and the press in plastic free, with many companies scrambling to become plastic free by 2020,” said Andy Byron, sales and trade marketing executive for Brentford, England-based Teapigs, in “Demand for Plastic Free Tea Bags Affects Packaging Changes,” by Anne-Marie Hardie, which appears in the July/August 2018 issue of Tea & Coffee Trade Journal.

The concern surrounding the harm that plastic is doing to the planet is real (I’m sure most of us have seen videos of turtles, dolphins and fish ensnared in the plastic rings found on six-packs of soda cans). However, whether plastic in tea bags is negatively affecting our health, remains to be seen. Some say the UK is over-reacting as the amount of plastic traditionally used in tea bags is minimal. The main components of tea bags are constructed of natural fibers – the plastic is used to thermally seal the bag – and filter papers adhere to all food regulations. “The concern over plastic in teabags is completely unfounded. Tea has never posed a health risk to consumers. Tea is a healthy beverage and messages like this do a great disservice to a product that does us good,” Shabnam Weber, the new president of the Tea and Herbal Association of Canada, told T&CTJ in a Q&A that appears in the September issue.

In her presentation, World Tea Trends, at Tea & Coffee World Cup, Jane Pettigrew, well-known author, tea expert and the director of studies at the UK Tea Academy, said that for some time now pyramid gauze tea bags have been available and have been promoted as ‘bio-degradable.’ However, she explained that, they are not “unless they are treated at very high temperatures. So, these do not break down in garden composters or council landfill sites.”

Many companies are now promoting PLA for cups and for tea papers. PLA – polylactide or polylactic acid – is a resin made from the carbon stored in plants by photosynthesis in the form of dextrose sugar. (The carbon and other elements in these sugars are then used to make a biopolymer through a process of fermentation and separation. The resulting resin is called PLA.) Pettigrew explained that although companies that use PLA claim it’s biodegradable — it apparently is not.

Quoting Biosphere Plastic, Pettigrew said, “PLA is not biodegradable, it is degradable. Enzymes which hydrolyze PLA are not available in the environment except on very rare occasions.”

She concluded by saying, “I’m afraid it’s still a case of ‘watch this space’ when it comes to biodegradable materials for take away cups and tea bags.”

I agree that it is a case of ‘watch this space.’ It seems that for now, at least, we will all have to wait to see what happens next when it comes to plastic-free tea bag solutions.

The post Plastic Free Tea Bags Remain a Concern, But Are the Solutions Really Socially Responsible? appeared first on Tea & Coffee Trade Journal.

“Simply put, sustainable coffee, served sustainably is our aspiration,” says Kevin Johnson, president and CEO of Starbucks. “We know that designing and building green stores is not only responsible, it is cost effective as well. The energy and passion of our green apron partners has inspired us to find ways to operate a greener store that will generate even greater cost savings while reducing impact.”

Announced during The Global Climate Action Summit in San Francisco, California, the “Starbucks Greener Stores” framework is anticipated to save the company an incremental USD $50 million in utilities over the next 10 years. This builds on Starbucks utility cost-savings attributable to Greener Store practices, which over the last 10-years equates to approximately $30 million in saved annual operating costs.

This commitment will further enable and empower more than 330,000 Starbucks partners globally to be informed and engaged in sustainability, adding to a burgeoning group of partner advocates through Partners for Sustainability and the Greener Apron voluntary certification program with Arizona State University.

Starbucks Greener Stores framework will be co-developed by experts including World Wildlife Fund (WWF) and will be audited and verified by SCS Global Services, a third-party verification organization that also oversees Starbucks Coffee and Farmer Equity (CAFE) Practices. This framework will be open-sourced to enable other retailers to engage in this initiative.

“This framework represents the next step in how Starbucks is approaching environmental stewardship, looking holistically at stores and their role in helping to ensure the future health of our natural resources,” says Erin Simon, director of R&D at World Wildlife Fund, US “When companies step up and demonstrate leadership, other businesses often follow with commitments of their own, driving further positive impacts.”

Starbucks has been committed to the development and implementation of scalable green building and operations for more than a decade. In 2001, Starbucks joined with the US Green Building Council (USGBC) to develop the LEED for Retail program, and in 2005, Starbucks opened its first LEED-certified store. Today, Starbucks operates more than 1,500 LEED-certified stores globally across 20 countries – including all 50 states and Puerto Rico – more than any other retailer in the world.

Starbucks investment in a sustainable future continues with the announcement of a green building framework that exceeds construction and design to address long-term, eco-conscious operation. Built on a foundation of the LEED certification program and sustainable operations, the Starbucks Greener Stores framework will offer a comprehensive model and broad environmental scope that is universal in design, but most relevant to the retail industry.

With performance-based standards that incorporate design and extend throughout the life of a store, Starbucks Greener Stores will focus on:

• ENERGY EFFICIENCY & WATER STEWARDSHIP: Deploying technologies and practices that ultimately deliver 30% water savings and 25% avoided energy over historic store design practices.
• RENEWABLE ENERGY: Powering stores by 100% renewable energy through investments in country-specific solar and wind projects.
• HEALTHY ENVIRONMENT: Designing and operating stores to create a comfortable experience that promotes wellness for partners and customers, including lighting, noise, air quality and temperature.
• RESPONSIBLE MATERIALS: Ensuring materials and products for stores are responsibly and sustainably sourced.
• WASTE DIVERSION: Designing and operating stores to reduce waste.
• ENGAGEMENT: Inspiring a culture of sustainability and empowering partners to act, be informed, and engage in sustainability issues and practices.

The announcement builds on Starbucks 30-year track record of focusing on sustainability across all aspects of its business, including: achieving 99% ethically-sourced coffee; committing to eliminate single-use plastic straws globally by 2020; pledging $10 million to develop and help bring to market, a fully recyclable and compostable hot cup; establishing a 5p paper cup charge across all 950 stores in Great Britain to promote reusability; and purchasing renewable energy, currently covering more than 60% of its electricity usage globally, and 100% of Starbucks company-operated stores in the US and Canada; among several other initiatives.

For companies interested in the Starbucks Greener Stores framework, contact Globalsocialimpact@starbucks.com for more information.

The post Starbucks Commits to Building & Operating Greener Stores Globally appeared first on Tea & Coffee Trade Journal.

With all of us looking for convenient ways to nurture our bodies in ways that make us more resilient to the stresses of today’s demanding lifestyles, and with digestive health being one of the top functional benefits driving growth in the marketplace, Bigelow Tea has added two new creations to its 2018 tea line up:

• Bigelow Matcha Green Tea with Turmeric – an earthy blend of matcha, green tea and turmeric with a peppery finish;
• Bigelow Ginger Peach Turmeric Herbal Tea – an invigorating blend of ginger and peach with a spicy kick.

“While all tea is inherently healthy, with today’s growing awareness for mindful eating and the need to live as healthy a lifestyle as we can, we created these beautiful and flavourful products to support our bodies naturally, in gentle ways with ingredients you know and trust,” says Cindi Bigelow, president and CEO of the Fairfield, Connecticut-based family-owned company.

The company’s earlier 2018 product launches included:

• Bigelow Green Tea with Ginger Plus Probiotics – probiotics in a blend of delicate green tea, hint of ginger and sweet spices;
• Bigelow Lavender Chamomile Plus Probiotics Herbal Tea – probiotics with relaxing lavender, soothing chamomile and notes of honey.

Bigelow’s new Matcha Green Tea with Turmeric and Ginger Peach Turmeric Herbal Tea are in stores nationwide and are available online at bigelowtea.com. Packaged in 18-count boxes, the average MSRP is USD $3.19.

The post Bigelow Adds Turmeric & Matcha to 2018 Tea Line Up appeared first on Tea & Coffee Trade Journal.

The beverage segment most on trend for “multicultural inspiration” is tea, according to the Rockville, Maryland-based market research firm’s US Beverage Market Outlook 2018, which was released earlier this month. “Teas are a beverage category in which the appeal of foreign ingredients plays a role,” says David Sprinkle, research director for Packaged Facts.

Sprinkle explains that US tea consumers are currently enjoying the many varieties of tea such as matcha, moringa and sencha, which have long been staples of Japanese and other Asian cultures. “In the US, these are marketed as individual types and used as components in tea beverages that have additionally flavoured with fruits and spices. Each of these teas also are favoured for their widely recognized health benefits, which is attractive to today’s consumers who are trending away from surgery soft drinks and juices,” he says.

In the State of the US Tea Industry 2017-18 report, Peter F Goggi, president of the New York-based Tea Association of the USA, writes, “Consumer interest sparked by tea’s healthfulness, variety, availability and sustainability, will hold steady, if not grow throughout 2018.”

Given these trends, Packaged Facts has outlined three international teas and a processing method to watch in the coming years that will likely drive growth in the US tea market from USD $8 billion in 2017 to $10 billion by 2022:

• Matcha Tea – matcha is a highly nutritional form of green tea with high concentrations of potassium, magnesium, vitamins A and C, and fiber as well as high levels of L-theanine, an amino acid that is said to have a calming effect on consumers, despite having substantial amounts of caffeine. L-theanine offers health benefits in terms of strengthening the immune system as well as providing an energy boost. While matcha has been available in the US for a number of years in select markets, it has now entered the mainstream market. Evidencing this, Unilever introduced its first home-brewed matcha teas to its Pure Leaf line of hot and iced tea products in 2017.
• Moringa Tea – with origins rooted in India, moringa is a tea made from the leaves of the moringa oleifera tree that is rich in antioxidants. Benefits attributed to moringa include increased energy and rapid recovery after exercise, mental and emotional balance, and healthy blood sugar levels. Ready-to-drink (RTD) moringa teas are limited, but there are many companies offering moringa teas for brewing. Packaged Facts notes that one of these companies is Terrasoul Superfoods, which has a goal of making nutrient-dense foods more affordable and accessible to consumers.
• Sencha Tea – sencha is a variety of green tea that is still relatively new to the US market (according to Packaged Facts, it is considered the most popular tea in Japan where it originates). Sencha, reported to contain more antioxidants than matcha, is available in leaf and powder form, as loose tea and in tea bags. Currently, most of the brands sold in the US are imports from Japan, but there are US companies offering sencha, as well.
• Mizudashi (Cold Pressed Tea Process) – the US is an iced tea-drinking nation and the cold-brewing process – which has found immense success with coffee – has begun spreading to the tea category. As with coffee, the cold-brewing process results in a smoother and less bitter beverage. Furthermore, cold brewing is said to better preserve the health benefits of the tea than preparing it through a hot-brewing method. In March 2017, ITO EN North America, the US division of the Tokyo, Japan-based company, launched a lineup of ice-steeped, cold brew RTD teas in the US. The beverages leverage authentic Japanese cold brew processes, ice-steeping the tea to bring out the smooth, naturally mellow sweetness of green and black teas. They are available in retailers such as Whole Foods Market, Sprouts Farmers Market, Wegmans, and online at Amazon.com.

Companies looking to enter or raise their profile within the competitive and crowded US tea market, might want to explore opportunities within one of these key areas.

The post Multiculturalism in the US to Fuel Interest in New Tea Varieties appeared first on Tea & Coffee Trade Journal.

Bigelow Green Tea with Ginger Plus Probiotics combines probiotics with delicate green tea, a zesty hint of ginger and sweet spices. Bigelow Lavender Chamomile Plus Probiotics Herbal Tea blends probiotics with the relaxing lavender, soothing chamomile and subtle notes of honey. The Original Bigelow Lemon Ginger Plus Probiotics Herbal Tea brings together probiotics with a gentle mingling of lemongrass, lemon verbena and warm ginger.

“The idea of adding probiotics to hot tea seemed counter intuitive at first” recalls Cindi Bigelow, president and CEO of family-owned Bigelow Tea. “It had never been done. But based on consumer interest in probiotics and our passion for tea, we were determined to create a flavourful and delicious product that would deliver enough active probiotics — in a tea bag!”

Master tea blenders at Bigelow Tea have developed flavourful blends that combine Ganeden BC30 Probiotics (Bacillus coagulans GBI-30, 6086), with premium quality, all-natural ingredients. Designed to support and add value every day to a regular healthy lifestyle, these soothing teas can be enjoyed anytime throughout the day, morning, noon and night.

“While all tea is inherently healthy, with today’s growing awareness for mindful eating and the need to live as healthy a lifestyle as we can, we created these beautiful and flavourful products to support our bodies naturally, in gentle ways with ingredients you know and trust,” says [Cindi] Bigelow. “Like all Bigelow teas, they are made with exceptional care by Bigelow family tea blenders here in the USA.

Green Tea with Ginger Plus Probiotics, Lavender Chamomile Plus Probiotics Herbal Tea and Lemon Ginger Plus Probiotics Herbal Tea Teas are available in 18-count boxes at grocery stores nationwide and online at bigelowtea.com. The MSRP is USD $3.19.

Based in Fairfield, Connecticut and 100% family owned, the Bigelow Tea Company produces two billion tea bags annually, including more than 130 varieties of flavoured, traditional, green, organic, herbal, decaffeinated and wellness teas – including its flagship specialty tea flavour, “Constant Comment.”

For more information, visit: bigelowtea.com.

The post Bigelow Expands Probiotics Tea Line appeared first on Tea & Coffee Trade Journal.

The new matcha LOVE tea bag flavours are Turmeric + Yuzu, Blueberry + Lavender and Peach + Cinnamon, joining the existing flavours of Lemon Verbena + Peppermint, Apple + Ginger and Traditional. Each box contains 10 premium tea bags. The blends are all made with matcha, ground tea leaves and loose-leaf tea.

The Matcha LOVE line features 100% Japanese matcha products and includes ready-to-drink teas, ceremonial and culinary matcha powders, offering convenient easy to prepare matcha drinks. The matcha powder, made from whole leaf green tea can be enjoyed anywhere, anytime without the fuss of a traditional preparation. In travel or at home, steeped, poured or shaken- the matcha LOVE teas are ideal for the modern and active lifestyle.

“We wanted to offer easy options for consumers to enjoy delicious matcha that can easily be integrated into their busy lifestyle” says Rona Tison, executive vice president of corporate relations for ITO EN North America. “Our Matcha LOVE takes the stress out of preparation, which helps [tea drinkers] to stay grounded with a sense of calm and clarity.”

Matcha LOVE, is the creation of ITO EN North America, a line of green tea powders and beverages made from vibrant and flavorful whole-leaf Japanese green tea. A modern take on an ancient ritual, matcha LOVE products deliver a balanced flow of clean energy without the crash to help you stay grounded and present with a sense of clarity and mindfulness. The Matcha LOVE line includes ceremonial and culinary powders, ready-to-drink matcha shots and iced teas, all products harness the nutrient-dense and full vitality of the entire green tea leaf. Matcha is naturally abundant in antioxidants, free-radical fighting catechins, amino acids and vitamins A and C. Matcha LOVE products are available at natural food stores and specialty supermarkets nationwide and at ITO EN brand retail stores and online at www.itoen.com and matchlove.com.

ITO EN North America Inc, a subsidiary of ITO EN Ltd, based in Tokyo, Japan, is a green tea beverage company dedicated to creating authentic products that embody the company’s five principles of Natural, Healthy, Safe, Well-designed and Delicious. ITO EN is specifically known for its TEAS’ TEA, Oi Ocha, ITO EN Shots and matcha LOVE brands.

To learn more about ITO EN, visit www.itoen.com.

The post ITO EN Expands New Matcha LOVE Tea Bag Flavours appeared first on Tea & Coffee Trade Journal.

As the demand for cold brews, lattes and bubble teas increases, it is safe to say that the world is in the midst of something of a tea revolution. “Tea is not just tea anymore,” said Louise Cheadle, tea taster and co-founder of Teapigs. “The average tea drinker now wants more than a ‘milk with two sugars’ kind of experience – they know more about tea, they expect better quality and are happy to pay a bit more for it.” And that’s where Teapigs steps in.

The Tata Global Beverages-owned tea brand was founded in 2006 by former Tetley employees Cheadle and Nick Kilby. As a tea taster for over 15 years, Cheadle had travelled the world sourcing tea. And while she discovered “all sorts of wonderful teas” in different parts of the world, she returned home only to realise how unvarying and static the UK market was. “Tea was predominantly black tea in a dusty paper bag. To experience quality tea, you’d have to go to a fancy London food hall or hotel for afternoon tea.” She added that herbal infusions were in limited availability in the mainstream market, not that great tasting and consequently not that popular.

“We were a nation of tea drinkers who had gotten stuck in a very average tea rut,” Cheadle lamented. “Nick and I wanted to change all that. So, we started Teapigs with a mission to make real, quality tea accessible to everyone.” The company now operates from two offices, one in Brentford, England and the other in Brooklyn, New York.

Simplicity is Key

The unique brand name was concocted to leave an imprint in consumers’ minds whilst reflecting the founders’ greed for great tea as self-proclaimed ‘tea pigs.’ However, the company’s propensity to think outside the box didn’t stop there. The decision to adopt the term ‘tea temples’ in place of the traditional terms of ‘pyramid tea bags’ or ‘tea sachets’ also reflects Teapigs’ eccentricity as a brand. Cheadle noted, “There was a phrase we’d heard around the time we started Teapigs that ‘a tea worthy of worship goes in a tea temple’ and from there our tea temple was born. The other option was a pouch…but that just sounds odd!”

Simplicity is key for Teapigs. With a current portfolio of less than 50 different tea varieties, the aim is to avoid overwhelming the consumer with too many choices, Cheadle said. “With our tea knowledge we have carefully selected what we believe is a cross-section of the finest teas to make the tea drinker’s selection that much easier.” Furthermore, the brand currently operates in 35 countries with its biggest markets currently listed as the United States and China.

Consumers’ Shifting Preferences

The company owes much of its success to the recent shift in mainstream consumption habits. “There is a global trend towards drinking better-quality tea, but different countries are at various stages on that journey,” Cheadle affirmed. There has a been a particular change in consumers’ beverage preferences in the company’s country of origin, the United Kingdom. British consumer preferences now match the Teapigs original ethos more closely than they did ten years ago, with tea drinkers now demanding better-quality teas.

There is also a growing interest in brews that offer health benefits. “Demand for healthy green and herbal teas is growing [in the UK]. All our teas are healthy, but we’ve noticed that more and more people are asking specifically about the benefits,” Cheadle revealed. As a result, the company launched a range of feel-good teas in February 2017 featuring ingredients such as ginger, beetroot, apple and coconut. “These are not ‘healthy teas’ that are consumed whilst holding your nose — we use real, top-quality ingredients. These teas both taste and do good.”

However, in terms of other leading markets such as China, for example, loose-leaf green teas still dominate consumers’ preferences. The functional teas, which offer specific health benefits, and are favoured by the Brits, are much more of a slow burner amongst Chinese tea drinkers.

Plastic-Free Certification

At the start of this year, the UK Tea and Infusions Association announced that the UK consumes 60.2 billion cups of tea every year, 96 percent of which are brewed using a tea bag. It was also revealed that most popular British tea-bag brands use a sealing plastic called polypropylene to fasten the tea bags and retain their shape. However, Teapigs has been recognised as one of the few tea brands that manufactures plastic-free biodegradable tea bags.

Teapigs was also the first tea brand to be awarded with the Plastic Free Trust Mark by A Plastic Planet in May. Cheadle said, “Our tea temples and the string attached are made from corn starch, a natural carbohydrate extracted from corn. The label on the end of the string is made from simple, old-fashioned paper. Even the ink on the label is vegetable-based, and everything is sealed with heat – so no glue! As a result, our tea temples are fully plastic-free.” Designed to be featured on the front of the packs, the company hopes that the Trust Mark will encourage consumers to make well-informed plastic-free choices.

Teapigs’ packaging is also made from FSC (Forest Stewardship Council) certified paper board. This assures consumers that the forests from which the wood is originally sourced are sustainably managed. According to Cheadle, the cartons are also reusable, recyclable and biodegradable. And the ink used on the cartons is vegetable-based. “We use clear inner bags inside our cartons to keep the tea temples fresh and have recently invested in switching over to a material called Natureflex. These bags are fully compostable and are made from renewable wood pulp which is great. As for the other products in the range, our metal tins of tea are made from tin plate and aluminium. They are reusable and can be recycled in your home recycling bin.”

And while the subject of plastic-free packaging for food and beverages may not be a pressing priority on a global scale as of right now, Cheadle noted that the strong British interest in the subject matter can be attributed largely to Sir David Attenborough. “We’ve really got to thank the great Sir David Attenborough and the recent Blue Planet programme for bringing this topic even further into the public eye. He’s a real national treasure!”

Ethical Sourcing

As further evidence of its worldwide presence, Teapigs sources its teas and herbal infusions from a variety of countries including Rwanda, Taiwan, China, and India. The brand maintains its commitment towards ethical sourcing and as such, Teapigs has been a member of The Ethical Tea Partnership since July 2017. The not-for-profit organisation works to improve tea sustainability, the livelihoods of smallholder farmers and tea workers, as well as the environment in which the tea is produced.

Moreover, Teapigs’ everyday brew blend holds a Rainforest Alliance certification. “We’re working with the Rainforest Alliance to get our black tea estates certified so you can see the little green frog on loads more of our packs,” Cheadle shared. “We’re also members of the Sustainable Restaurant Association and we’re proud to be an accredited Living Wage Employer.”

Teapigs also donates a percentage of its everyday brew sales to The Point Foundation, a charity that operates in the communities where the brand sources its tea. “The Point Foundation runs a disability programme in collaboration with the Gallagher Trust where they manage houses that provide specialist care and accommodation for disabled children and young adults. Teapigs fully funds one of the houses – Teapigs House – home to seven people with disabilities. Our donations also go towards the upkeep of other houses,” Cheadle said.

It would appear that the brand has plenty of innovations up its sleeve, including new flavours, new formats and new collaborations. Although Cheadle was tight lipped regarding specific details, she was sure to mention that consumers should keep an eye on Teapigs’ packaging formats in the near future.

As the trends of green teas and healthy beverages continue to gain momentum across the globe, Teapigs will definitely benefit from the current ‘tea revolution.’ And the company’s dream of becoming the “number one gourmet tea company, not just in the UK, but the world over,” may just become a reality, sooner rather than later.

Sharanjit Aujla is the digital editor at Bell Publishing. She may be reached at: sharan@bellpublishing.com.

The post Teapigs Is One Steep Ahead of the Crowd appeared first on Tea & Coffee Trade Journal.

Coffee brands are rapidly consolidating, with moves in 2018 that are reshaping the coffee landscape from roasting through consumer product distribution. Rabobank senior analyst for beverages, James Watson, sees the current market as a buy or be bought environment, with significant pressure on companies with 1-3 percent retail share. “If a [potential buyer] was interested and you’re not selling now, you will miss the boat. With only so many strategic buyers, there is pressure to sell early,” commented Watson.

There is also pressure on smaller roasters and brands from their competition. Watson noted, “If you’re a small player, it’s a fragmented market and competition is your size. They get bought, and you’ll be surrounded by giants.”

Farmer Brothers has been actively acquiring companies since 2016, first with China Mist tea, followed by West Coast Coffee and Boyd’s Coffee in 2017. “There’s a degree of investment needed to level up,” said David Robson, Farmer Brothers chief financial officer. “It’s harder for smaller players to compete, either they put in a lot more investment or be purchased.”

Savvy consumers are more educated to the nuances of coffee’s attributes, like flavours from origin-specific terroir, and to the variety of ways coffee can be prepared hot or cold at home or in a retail setting. They expect choice and quality. “Several years ago we leaned into the expectation that the market will get bigger and more sophisticated,” Robson commented. Farmer Brothers’ new headquarters in Northlake, Texas doubles its capacity to 200 million pounds of coffee per year.

Efficiency of scale is one of the main benefits large buyers offer to the smaller brands they acquire.

“What we bring to the table from an efficiency standpoint is this large capacity,” said Robson. “Acquisitions like Boyd’s work really well because we both have large national accounts, they have a direct to store delivery model like we do, and this continues cost effectiveness.”

Coffee experienced its artisan craft revolution in what is often described as “third wave” and “fourth wave” trends towards single origin offerings, transparent traceability, agricultural changes in varietal cultivation and processing, and a hands-on approach to roasting, packing and brewing in small, custom batches. For this craft segment to grow and serve the customers it draws, smaller players can take advantage of the cost-effective structures already in place by larger companies. This consolidation pathway closely mimics the transformation of craft beer’s recent trajectory.

Following Beer’s Path

“We see the beer segment as an example because it is consolidated so thoroughly,” noted Watson. He also highlighted the overlap between Anheuser-Busch InBev (ABI), the largest global beer brewing portfolio, and JAB Holding Company, one of the largest global coffee brand owners. In the last several years, and in just the United States, Luxembourg-based JAB has acquired Peet’s Coffee (Emeryville, California), Caribou Coffee (Minneapolis, Minnesota), Stumptown Coffee (Portland, Oregon), Intelligentsia Coffee (Chicago, Illinois), Keurig Green Mountain (Waterbury, Vermont) and Dr Pepper Snapple (Plano, Texas).

“ABI partners are also partners in JAB. Money is coming into JAB from ABI, and their philosophies are very similar. The comparison between coffee and beer is the ability to create value by consolidation,” said Watson.

Dodie Butler, director of mergers and acquisitions for Farmer Brothers, echoes this. “Coffee is similar to beer in that craft brands are regional, and they can be consolidated by larger players quickly.” Acquisition also includes the added value of expertise. “We found West Coast Coffee’s go-to-market model attractive. It’s synergistic and we can learn from them.”

RTD Coffee Replaces Soft Drinks

Coffee’s consolidation maneuvres parallel those taken in the past decade by beer, but the products sold by these new global brand owners will compete with soft drinks’ share of the market. “Keurig Dr Pepper is JAB’s biggest acquisition yet, blurring the line between coffee and soft drinks in general,” Watson explained. “Another risk to small coffee players is potential entry from large soft drink players.”

Consumers are moving away from sugar-heavy drinks like sodas and juice products towards healthier beverages with fewer calories and more plant-based ingredients. RTD coffee is well positioned to respond to consumer demand for grab-and-go cold drinks with reduced sugar content and natural ingredients. “Market data shows demand for healthy drinks is growing. Tea, coffee and water fit into that,” observed Farmer Brother’s Robson. “Everyone consuming those products are in their 20s.”

Swiss multinational Nestlé AG’s 2017 acquisition of Austin, Texas-based Chameleon Cold Brew and subsequent acquisition of Oakland, California-based Blue Bottle in 2017 supports the growth of premium RTD coffee. Watson noted, “Coffee is now a soft drink. Coffee companies have to ask, ‘Do you know how to have a branded cold drink on a grocery shelf?’”

Independent Expertise

La Colombe has successfully placed branded cold coffee drinks on grocery shelves, specifically with its canned Draft Latte products. This was accomplished through a new partnership rather than a merger or acquisition.

Hamdi Ulukaya, founder and CEO of Chobani yogurt, based in Norwich, New York, became Philadelphia, Pennsylvania-based La Colombe’s sole investor and majority owner, along with founders Todd Carmichael and JP Ilberti, in 2015. The press release announcing this change stated, “La Colombe is also developing plans to improve every segment of the coffee industry with high-quality offerings, including ground-breaking ready-to-drink, single serve, retail, e-commerce, and packaged coffee.”

Since that statement, RTD has emerged as the most transformed of those coffee segments, with cold brews, sparkling coffees, and coffee with milk beverages hitting the market aggressively, packed in glass, plastic bottles, cans, boxes, and pouches. Ulukaya’s investment came with his expertise in the single-serve cold dairy category, a space that overlaps with RTD three-in-one coffee’s growing popularity.

Changes in Distribution Patterns

La Colombe was able to use Ulukaya’s expertise and investment to adapt its distribution system to a new category of coffee products. The need for streamlined distribution is crucial to the viability of consolidated coffee, across cold RTD and roasted coffee channels.

Looking at soft drinks’ recent changes to anticipate coffee’s moves, Watson said that Coca-Cola went through a national refranchising. “National brands like Coke need coordinated national networks to distribute their brands. Giant national brands need giant national partners,” he explained. “It is hard to ask a retailer like Walmart to work with ten national distributors, so a coordinated roll out with a single partner makes it more feasible for new coffee products to be carried at national retailers.”

Farmer Brothers operates a channel-based direct to store delivery approach. “Customers demand to work with experts,” said Robson. “There’s a difference between selling to casinos versus convenience stores versus college campuses.” As coffee transforms from being a hot beverage brewed at home, in the workplace, or in a café setting, into a hot or cold beverage for any time of day, the networks for delivering coffee must update as well, something large global coffee companies have the infrastructure and capital to carry out.

“Coffee is consumed throughout the day,” noted Robson. “We are adding more cold brew, RTD, and iced drinks in a way that is easy for restaurant providers to serve. Coffee is one of the few areas where we are not driving down to the lowest price point. Customers have more sophisticated palates and are indifferent to a USD $0.25 price increase because they want to enjoy the product.”

Consolidated Outlook

As coffee enters new retail spaces, smaller roasters feel pressured to innovate beyond legacy operations. “For a traditional coffee roaster wholesaling to food service with some brands on the grocery shelf but no expertise in RTD, it might be difficult to do without a partner moving forward,” Watson concluded.

Watson’s comment came just days before Nestlé and Starbucks Coffee, based in Seattle, Washington, announced their partnership, an agreement that affords Nestlé the rights to market, sell and distribute Starbucks products across its channels. Starbucks’ press release referred to an “Alliance to leverage the complementary strengths, scale and sophistication of two of the world’s most recognized and respected consumer brands.”

Commenting on the partnership, Michael Schaefer, global lead, food & beverage at Euromonitor International, said, “For Nestlé, the deal represents a sea change in strategy – the company has long resisted allowing outside brands access to its Nespresso and Dolce Gusto pod platforms. While “Nespresso-compatible” products have existed in some markets for years, an official Starbucks partnership is something else altogether, with the Swiss company now devoting considerable resources to marketing an outside brand. With Starbucks coffee shops serving as a powerful brand driver in key emerging markets, this move allows access to an important and growing consumer base.”

To grow at a competitive pace, coffee roasters and retailers are seeing that they need to acquire new skill sets and modalities at a pace that demands partnering with other established companies.

Impacts along the Chain

While brands acquired and sold in the current flurry of consolidation maintain a bullish outlook on the overall growth of the coffee market, coffee producers and intermediaries are more reserved.

The financial pressure exerted on green coffee exporters and importers by consolidated buyers further strains producers at origin. By extending credit terms to up to a full year, green coffee traders have less liquidity to invest back in buying from producers. As climate change threatens producing regions and coffee agriculture requires more strategic investments to remain viable, the limited flexibility of the first buyers of green coffee threatens the economics of production.

The other potential direction the situation could take, however, is positive. With consolidated purchasing power, global coffee brand owners could source certified coffees and make investments in sustainable production at a scale that has previously been impossible.

Finally, in the consumer space, another question remains: can brands once synonymous with small-batch craftsmanship and local artisans retain their customer loyalty as they are folded into global coffee portfolios? The success of all coffee brands depends on consumers’ trust in the products.

The same consumers who demand healthier beverages are also those who demand ethical verifications. As coffee becomes less fragmented, these newly powerful brands will need to proceed wisely if their coffee products are to remain the continued RTD, any-time-of-day beverages of choice for discerning demographics of today’s newest coffee drinkers.

Rachel Northrop has been covering coffee for T&CTJ since 2012, while she lived in Latin America’s coffee lands writing When Coffee Speaks. She is based in Brooklyn, NY. She may be reached at northrop.rachel@gmail.com.

The post Coffee M&As Accelerate & Show No Signs of Yielding appeared first on Tea & Coffee Trade Journal.

The premium and ultra-premium beverage segments have experienced robust growth in recent years with none more so than in the non-alcoholic ready-to-drink (RTD) area. Because of increasing consumer demand, packaging for RTD beverages is expected to grow at about 40 percent or more over the 2018 to 2028 period, according to the 2018 Beverage Trends in Packaging and Processing Operations Report from PMMI, The Association for Packaging and Processing Technologies.

Demand is exceptionally high for teas made from actual tea leaves, with consumers believing this type of tea is more desirable than concentrate. From a processing and packaging standpoint, actual tea-leaf teas require new equipment and processes that some large beverage companies can’t accommodate due to space constraints. As a result, co-packers receive much of the new beverage tea production and are building not only new lines but entire new facilities to handle this volume. Smaller beverage companies face challenges in getting the materials and the production time they require at co-packers due to a lack of capacity or availability at North American companies. These companies seek overseas co-packers to fulfill their needs.

The growth of tea from tea leaves also mirrors the trend towards clean labelling seen in many other food and beverage segments. Consumers want healthy ingredients that they recognize on a label, versus additives and preservatives they can’t pronounce. This causes some difficulty for packagers, however, as many additives are specifically used to make beverage processing and packaging easier.

Removing these ingredients leaves production lines in need of adjustment with new equipment or different processes. For example, anti-foaming agents are often used to reduce foaming during the filling process or to help keep beverages homogeneous. Removing these agents may mean that filling machinery must be adapted to slow down filling time for each bottle, and new agitation equipment must be installed to minimize separation.

The increasing desire for natural and organic products has driven the increased use of glass bottles and cartons — two containers with a healthier and environmentally friendly image among most consumers. Consumers are increasingly aware of the environmental impact of beverage packaging, especially in secondary plastic ring packaging, which is traditionally used to hold six- or twelve-packs of cans or bottles together. Currently, paperboard cartons often replace plastic ring packaging. Many respondents in PMMI’s report believe traditional plastic ring packaging will be phased out entirely in five to seven years and replaced with new photodegradable packaging.

Photodegradable HDPE plastic ring packaging is available and degrades in direct sunlight over a one- to two-month period. Smaller beverage makers of premium teas with beneficial ingredients, such as turmeric and ginger, and fermented products, like kombucha, are expected to be the early adopters of this new material. Large beverage manufacturers, on the other hand, are not expected to adopt this new material until the marketplace proves it will accept it and will likely wait two to three years before utilizing this technology.

Pack Expo International, which takes place 14-17 October in Chicago, Illinois, will offer RTD beverage packaging innovation, technology and education. To learn more or register, visit packexpointernational.com.

Sean Riley is senior director, media and industry communications at PMMI, The Association for Packaging and Processing Technologies.

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“I am excited to share the tea lifestyle with Nashville by offering everything from fresh, healthy, hand-crafted tea drinks to some of my favourite teas from around the world. We have an inspiring collection of tea books and a wide selection of tea wares from rare to everyday,” says Scarborough. “Tea leads everyone on a different journey and I am honoured to provide a platform to facilitate that journey for new tea drinkers and connoisseurs alike.”

Offering limited indoor and outdoor seating, Firepot’s new space is a combination of modern and rustic elements with white walls and natural light. Firepot Tea Bar will also feature tea ware, mugs and canisters crafted by local creatives from Salt Ceramics and Handmade Studios. In addition to a tea counter, the location includes a retail component, where Firepot’s entire collection of loose leaf teas, tea sachets, matcha and chai and tea pots, books and wares will be available for purchase.

Aligning with the opening of the Tea Bar, Firepot unveiled its latest collection of teas, the Masters & Pioneers Collection. Each tea in the new elevated line of loose leaf teas is seasonally selected from some of the world’s most innovative tea makers.

Using her knowledge of global cultures and tea traditions, Scarborough has carefully curated the menu of vegan, artisanal tea drinks including a Vegan Matcha Latte made with organic matcha, maple syrup, house-made sprouted nut milk and cardamom; Bowl of Soul, featuring turmeric, fresh ginger, vanilla, cinnamon, house-made nut milk and local honey; and Spring Detox, green iced tea with activated charcoal, fresh pressed lemon and ginger juice, cayenne, and maple syrup. The menu also features a variety of sparkling teas available on tap, as well as traditional and seasonal tea favourites.

In addition to the grab-and-go drinks, light bites will be available for guests to enjoy, including chocolate and matcha Bliss Balls. Like all nut milks on the menu, the energy balls will be made in house and will feature apoptogenic herbs like He Shou Wu and ashwagandha.

Firepot Tea Bar is open Monday through Sunday, from 10am to 6pm.

Firepot Nomadic Teas was founded with the purpose of connecting tea lovers with tea growers and improving the lives of both, and that philosophy that will carry over to the first brick-and-mortar location as well. The company supports organic and ethical trade practices and donates a portion of all sales to ROAR Collaborative, a project founded by Scarborough that supports women leading wildlife conservation efforts in tea origin regions like India and Asia. ROAR provides support for women to allow women to support their families and communities and avoid falling prey to sex trafficking.

For more information, visit www.firepot.com.

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