The study, part of a large-scale effort to provide customers with sensory data on the ever-growing Chinese beverage market, looks at what is inside milk tea and identifies individual elements that make up the perfect, consumer-preferred milk tea in different regions. With these findings, FrieslandCampina customers have access to data on key elements to combine, at the appropriate intensities, to create the perfect milk tea for their local consumers.

As the world’s leading hot drinks market, specifically when it comes to tea, the importance of the Chinese market cannot be overstated. The driver of that market’s continued growth is the rise of consumer disposable income. This demand is unlikely to slow down, with China’s projected market size for the coming few years estimated at well over $10 billion.

FrieslandCampina’s research points to several findings to help customers create the perfect milk tea, especially as tastes differ in different regions.

For example, in the Chengdu region, consumers show a preference for an intense, sweeter milk taste, however, the current offerings in the market typically consist of a medium milk and sweetness intensity, presenting a clear gap in the market.

Across greater China, black tea is the standard tea base for milk teas, yet some regions prefer green tea, or another type.

Other elements such as the right mouthfeel also make a difference.

FrieslandCampina Kievit’s portfolio for greater China includes ingredients that tap into these consumer preferences, examples include the Kievit classic creamer, which Chinese customers have used for nearly fifteen years. Another is the Vana®-Lata FM870, which addresses the clean label trend and the Vana®-Blanca M480, which includes a caramel flavour.

Research combined with Kievit’s unique ingredients enables customers to create the perfect Chengdu, Guangzhou and Taiwanese milk teas, among others.

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2018’s trend for floral flavors inspired Copper Cow to create a quality organic option. The coffee contains no artificial flavoring as the dried lavender is ground into the coffee itself, creating natural and intense aromatics. The Lavender Latte comes in a box set of 5 featuring Copper Cow’s natural condensed milk ($17 for 5 pack).

Copper Cow uses Vietnamese-grown beans to create an easy pour-over style coffee. It features a compostable pour-over filter filled with dark-roast Vietnamese coffee that fits snugly over most glasses and mugs, without the need for a coffee maker. The addition of hot water yields a strong, nutty brew, and kits contain a packet of sweetened condensed milk to enable consumer to make the coffee to their taste.

California-based Copper Cow Coffee was founded by Debbie Wei Mullin, who set out to elevate one of her family’s favorite past times: Vietnamese coffee. She went searching for natural, socially sustainable, specialty Vietnamese coffee and discovered the brewing technique of single serving pour over bags.

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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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Made from the waste of sugar cane crop, the cup will naturally break down at room temperature and will fully decompose within one year. This is by far the greenest and best alternative to the traditional plastic lined cup and plastic lid, served by many other coffee retailers that take decades to break down. The launch will help reduce the estimated 2.5 billion coffee cups sent to waste entering landfill every year and will help save countless amounts of trees.

Commenting on the launch, Alistair McCallum-Toppin, co-founder and managing director of AMT Coffee says, “It has taken years of research and development to source a fully bio compostable coffee cup and lid. Thanks to new green focused technology and our demand for change, we are delighted to introduce our new 100% bio-compostable coffee cups and lids across all AMT Coffee bars, which are made from sugar cane waste which is a natural plant-based material, and which will decompose within one year.”

The new bio-compostable cups and lids are hitting AMT’s coffee bars in time for the holiday season. “Although it has the usual festive message, this year we wanted to make a serious statement about the importance of making the change for our blue planet and all that depend on it. We only hope the others will follow,” says McCallum-Toppin.

The new cup was designed by McCallum-Toppin together with AMT’s in-house creative team. The ‘Let’s make the change’ Christmas message is inspired by the ocean, marine life and all who rely on it.

AMT Coffee Limited, is an independent, quality and customer-driven business founded in 1993. An ethically-focused company, AMT was the first national, independent UK coffee brand to move to Fairtrade coffee in 2004, and for over 10 years has served its pure double shot Fairtrade coffee exclusively with organic milk. AMT can be found in train stations, airports and hospitals. The company started life trading from a cart on the streets of Oxford. Two decades later, AMT has over 50 coffee bars across the UK and Ireland.

For more information or to contact AMT Coffee visit www.amtcoffee.co.uk.

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“It’s the most wonderful time of the year and we wanted to get the entire family into the holiday spirit by offering flavours they love that are reminiscent of the season,” says Sam Ferreira, president of Gloria Jean’s Retail Food Group USA, based in Santa Fe, California. “Our new menu items have arrived just in time for winter with festive options for both non-coffee drinkers and caffeine-lovers! We invite all Gloria Jean’s fans to stop by while shopping this holiday season, on their way to work or just because, to enjoy these delicious new creations they can’t find anywhere else.”

Available for a limited time, Gloria Jean’s Coffee’s winter seasonal menu items include:
Holiday Beverages:
o Jack Frost “Latte” – Made with silky-textured steamed milk, Santa’s Cookies & Milk powder, almond syrup and ground cinnamon, topped with whipped cream and blue sanding sugar.
o Sleigh Ride Cookie Mocha – Specially made using silky-textured steamed milk, perfectly extracted espresso, GJC chocolate mint syrup and GJC white hot chocolate powder, then topped with whipped cream, crushed Starbrite Peppermints and Oreo cookie crumbles.
o Jack Frost Un-Coffee Chiller – A caffeine-free treat featuring an icy blend of GJC’s Santa’s Cookies & Milk powder, ice-cold milk, almond syrup and ground cinnamon, topped with whipped cream and blue sanding sugar. (Guests can enjoy this beverage with a shot of espresso, for an additional charge.)
o Sleigh Ride Cookie Chiller – An icy blend of the brand’s signature cappuccino base, GJC white chocolate powder, Starbrite Peppermints and Oreo cookie crumbles, topped with whipped cream, Starbrite Peppermints and Oreo cookie crumbles.

Whole Beans: All seasonal whole beans are available in 12-oz bags for purchase in-store and online.
o Egg Nog – A blend of whole beans featuring flavours of sweet cream, nutmeg and warm holiday spices, with a hint of vanilla.
o Winter Wonderland – Gloria Jean’s signature winter flavoured whole bean reminiscent of sugar cookies and caramel, lightly spiced with cinnamon.
o Christmas Morning – Enjoy the sentiments of the season with this full-roasted blend, infused with surprisingly sweet undertones and an enticing, smooth finish.
o Holiday Cheer – For an instant warm and cozy feeling, try this medium-blend featuring the flavours of buttered rum with a hint of cinnamon. Also available in decaf.
o Mocha Merrimint – The perfect balance of cool mint and rich dark chocolate. Also available in decaf.
o Cinnamon Hazelnut – Features a blend of cinnamon and hazelnut.
o Jamaican Blue Mountain – Velvety smooth and well balanced, with a silky mouthfeel and subtle notes of nutty spice. A true rarity in specialized coffee. MSRP is USD $74.99 (per 12-oz bag).
o Hawaiian Kona – Gloria Jean’s Hawaiian Kona are 100% Kona beans, no blends, and feature notes of chocolate and caramel. MSRP is USD $59.99 (per 12-oz bag).

Available through 6 January 2019, the Jack Frost Un-Coffee Chiller & “Latte” and Sleigh Ride Cookie Chiller & Mocha, along with this season’s whole bean offerings, will be featured on Gloria Jean’s menu at all nearly 60 locations in the US alongside an assortment of chillers, mochas, lattes, hot cocoa, baked goods and pastries, whole beans, and retail merchandise. For the full menu, locations and the complete list of whole beans available for purchase, visit www.gloriajeans.com.

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Christmas Strawberry Cake Milk
Japan – Strawberry Christmas cake is one Japan’s most beloved holiday traditions, made with fluffy sponge cake, whipped cream and strawberries. Starbucks new holiday beverage is inspired by the sweet confection, made with steamed milk, strawberry compote and white mocha syrup, finished with whipped cream, strawberry topping and crushed biscuit. Also available as a Frappuccino-blended beverage.

Snowy Cheese-Flavoured Latte
China – A new holiday beverage made with baked cheese-flavoured sauce blended into classic espresso and topped with light whipped cream, blueberry-flavoured sprinkles and star-shaped crisps.

Toffee Nut Crunch Latte
China, Asia Pacific, Latin America and Europe – Shots of rich espresso join the flavours of buttery toffee nut and subtle notes of toasted nuts in the Toffee Nut Crunch Latte. The crescendo is a whipped cream peak sprinkled in a crunchy toffee nut topping. Sip it hot or have it blended with ice for a cool and cozy treat.

Christmas Dessert Latte
China – Inspired by the traditional British Christmas pudding, Christmas Dessert-flavoured Latte combines steamed milk, espresso and Christmas pudding flavoured sauce that’s finished with whipped cream, a drizzle of caramel sauce and mixed fruit sprinkle.

Cranberry White Chocolate Mocha
Latin America – Back by popular demand, Cranberry White Chocolate Mocha, Starbucks signature espresso is combined with freshly steamed milk and luscious white chocolate, then topped with whipped cream, a tart cranberry drizzle and crystallized cranberry sugar.

Duo Cocoa Mocha
Asia Pacific – Chocolate meets coffee with the new Duo Cocoa Mocha, made with silky swirls of dark and white chocolate fancifully combined with rich espresso. Finished with whipped cream, half drizzled in mocha and the other half dressed up with a dash of crunchy cocoa nibs. Available hot, iced and as a Frappuccino-blended beverage.

Speculoos Latte
Asia Pacific – Spice cookies, called speculoos in Belgium, are a winter favourite in Europe. It’s also the inspiration for this new beverage, where caramelly sweet goodness and fragrant warm spice dance with bold espresso. The beverage is topped with whipped cream, caramel drizzle and spice cookies for added crunch. Available hot, iced and as a Frappuccino-blended beverage. Also known as Caramel Cinnamon Cookie Latte in some markets.

Dark Cherry Mocha
Latin America and the Caribbean – Espresso with bittersweet mocha sauce, dark cherry-flavoured syrup and steamed milk. Topped with sweetened whipped cream.

Toasted White Chocolate Mocha
United States and the Caribbean – Made with rich espresso, steamed milk and flavours of caramelized white chocolate topped with whipped cream and candied cranberry sugar.

Chestnut Praline Latte
United States and Canada, Latin America – A blend of fresh espresso and flavours of caramelized chestnuts with freshly steamed milk, topped with whipped cream and spiced praline crumbs.

Caramel Brulee Latte
United States and Canada, Latin America – This holiday beverage features a combination of smooth espresso, velvety steamed milk and a caramel brulée sauce. It is then topped with whipped cream and a caramel brulée topping. This beverage is sure to be a returning Christmas favourite in our markets. Also available iced or as a Frappuccino-blended beverage.

Gingerbread Latte
United States, Europe, Middle East and Africa – For the ultimate drink to get you into the festive spirit, the Gingerbread Latte has everything you need. Topped with a gingerbread whipped cream and crunchy wafer, the sweet and delicately spicy gingerbread flavours mingle with espresso and steamed milk. It is finished with a touch of ground nutmeg.

Eggnog Latte
United States, United Kingdom – The return of the Eggnog Latte is celebrated by fans around the world. Made by combining Starbucks espresso with creamy, steamed eggnog and served with a dusting of ground nutmeg, it gets everyone in the mood of the season.

Peppermint Mocha
United States and Canada – A holiday classic made with Starbucks signature espresso and steamed milk sweetened with flavours of chocolate and peppermint, all topped off with whipped cream and chocolate curls.

Hazelnut Mocha
Argentina and Uruguay – This local favourite features luxurious bittersweet chocolate infused with a delicious hazelnut flavour, combined with espresso and steamed milk. Finished with whipped cream and classic mocha drizzle, this delectable warm beverage has been a new holiday classic in Argentina and Uruguay for the past couple of years. Available hot, iced and as a Frappuccino-blended beverage.

Christmas Brulee Latte
Europe, Middle East and Africa – A seasonal take on the traditional crème brulée – creamy eggnog milk is steamed with a rich crème brulée sauce and mixed with fresh espresso, then finished with a few shakes of Christmas Brulée sprinkles.

Salted Caramel Brownie Hot Chocolate
Europe, Middle East and Africa – Steamed milk and mocha sauce are combined with salted caramel sauce for this holiday treat. The beverage is topped with a salted caramel brownie whipped cream and finished with a blend of brownie crumbles and salted caramel brittle for that perfect balance between sweet and salty.

Flat White with Cinnamon Spice
Europe, Middle East and Africa – A subtle hint of cardamom, vanilla and cinnamon spice is mixed with Starbucks espresso for a Flat White with a sophisticated twist (can also be ordered as a latte). Cinnamon spice sugar is steamed into milk and poured over espresso, for a festive spark with a morning coffee.

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The Mintel Group projects that the market will reach around $18 billion by 2023. Ready-to-drink (RTD) remains a fast-growing category due to continued innovation coming from a variety of brands and broad consumer appeal. In fact, 2017 saw the greatest number of RTD coffee launches, and over half of those RTD coffee launches were cold brew. Another plus for the coffee market, the London-based global intelligence firm finds that RTD is an “also” beverage. That is, it is not the first coffee beverage, it’s an “add on.”

Starbucks introduced bottled Frappuccinos in 1996 with Pepsico. “It was not the first RTD coffee product, but it was really the first mainstream one,” said Caleb Bryant, senior beverages analyst, Mintel, who presented during the National Coffee Association (US) webinar, “What’s Brewing in RTD Coffee 2018?” He noted that the market did not really start expanding until the mid-2000s, with an explosion in coffee innovation coming in the mid-2010s.

RTD coffee appeals to a wide range of consumers, which is contributing to its growth. There has been an increase in cold coffee consumption by Gen Xers, but the primary consumers are young people. Bryant said younger consumers enter the coffee market through cold, flavourful coffee drinks. Data shows Generation Z or the iGen is starting to drink coffee at a younger age — even younger than millennials. “Younger consumers’ coffee preferences will change as they grow older,” he explained, so, it’s important for brands to target these consumers early and establish brand loyalty but follow them through their coffee lifestyle.

On a side note, according to Mintel, foodservice-brand RTD coffees such as coffee shop RTDs (Peet’s Coffee, Starbucks, McCafé, Stumptown, etc) are the most frequently purchased.

The future for RTD coffee remains strong as there are occasions for RTD coffees to break into new whitespaces. “Consumers are primarily buying RTD coffees for refreshment and as a treat (cold so refreshing on a hot day, a treat because they’re flavoured),” said Bryant. “Marketers can try to position them as a snack and as hydration.”

Cold brew remains a key area of opportunity as Mintel reports that 16% of respondents prefer cold brew to other iced coffee beverages. Beverage blurring is affecting all categories, including coffee –especially cold brew – and these “hybrid” drinks satisfy unique occasions. “Most have lower caffeine content than regular RTD coffees and are often sparkling,” said Bryant offering Blue Island Coffee’s Organic Kombucha Maca Cold Brew Espresso as an example along with Keeper’s Citrus Sparkling Coffee, Rise Brewing Co’s Nitro Blood Orange Cold Brew, Stumptown’s Honey Lemon Cold Brew Coffee, and Upfruit’s Ginger Hibiscus Sparkling Coffee.

Of course, for consumers, taste is still the leading indicator of quality. RTD drinkers are interested in unique flavour experiences. “Vanilla, chocolate and hazelnut are still the most popular but there are opportunities to engage third-wave consumers,” said Bryant. He pointed to alcohol as a flavour noting that alcohol flavours are an alternative to overly sweet coffees. Examples include Starbucks Gin Barrel Aged Cold Brew and Dark Matter Coffee’s Barrel Aged Series. He added that coffee mocktails may also provide inspiration for flavour innovation.

Floral flavours are trending in alcoholic and non-alcoholic categories and can be used in coffee beverages as well, such as a rose or lavender latte.

Bryant shared that RTD coffee brands can also appeal to third-wave consumers through feel-good claims. RTD coffees that focus on sustainability, are environmentally friendly, engage in ethical sourcing, “give back,” are organic (Chameleon Organic Cold Brew Coffee with Organic Whole Milk is an example), are Fairtrade and/or Rainforest Alliance-certified or non-GMO, will attract third-wave coffee drinkers.

Functional RTD coffee is yet another opportunity for brands, which can differentiate themselves through health claims. Consumers are looking for coffees that offer a multitude of functional benefits such as anti-oxidants, anti-inflammatory, low sugar, added protein, added probiotics, promoting brain health, as well as low caffeine and high caffeine. “There is a disconnect as many consumers are interested in RTD coffees that help them relax but many also want high caffeine,” said Bryant. Examples include Stok Espresso Creamed Protein Coffee, High Brew Cold Brew + Protein Coffee, Coffee Blenders Lean Weight Wellness Cold Brew, and Wond’er Fuel Coconut Oil Cold Brew Coffee.

RTD coffee drinkers crave innovation and there are many new areas where RTD coffee brands can find inspiration and innovate — and innovation leads to increased consumption, and in turn, increased revenues and market growth.

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The Peet’s Coffee 2018 Holiday Blend is crafted with fine coffees from around the world. Each sip is warmly spiced with notes of citrus and Mayan chocolate for a deeply roasted, flavourful cup.

“Stout bodied, deeply roasted, and joyously flavourful, our Holiday Blend is the most ardently awaited coffee of the year,” says Doug Welsh, Peet’s roastmaster and vice president of coffee. “This year we selected southern Ethiopian coffee for its citrusy perfume, the sublimely syrupy and tobacco-spiced Sumatra of the Batak region, and the Mayan chocolate delights of Guatemala from the small farms of San Martín Jilotepeque.”

Available 1 November until 8 January 2019, and while supplies last, the Annual Holiday Blend can be purchased at participating Peet’s coffeebar locations and online at www.peets.com, as well as grocery stores nationwide. Prices vary by channel.

The 2018 Etoile is a unique single-origin light roast, also offered only for the holiday season. Sourced from Jimma in Ethiopia, the coffee features full flavour notes of brilliant citrus and potent spice. At USD $18.00 per pound, Etoile is only available at participating Peet’s coffeebar locations while supplies last through 8 January 2019.

The Peet’s coffeebar lineup will include one new beverage alongside returning seasonal favourites that are available, while supplies last (between 1 November and 8 January 2019): Dark Chocolate Orange Mocha (USD $4.75 – $6.05) — hand-pulled espresso and freshly steamed milk blended with decadent chocolate, unsweetened Dutch cocoa, and sweet citrus topped with a dollop of whipped cream and a dusting of cocoa.

“The flavours and ingredients that cue joyfully nostalgic memories are at the core of our 2018 holiday handcrafted beverages,” says Patrick Main, senior R&D manager, Peet’s Coffee, based in Emeryville, California. “We all know that feeling of a scent or taste that immediately transports us to a special time or place. And we hope our fans enjoy our take on the indulgent and comforting trimmings of the season.”

Returning favourites include:

• Holiday Spice Latte (USD $4.40 – $5.70): hand-pulled espresso, freshly steamed milk, and an aromatic mixture of holiday baking spices that delivers cozy notes of cinnamon, ginger, cloves, and nutmeg.
• Peppermint Mocha ($4.50 – $5.80): hand-pulled espresso infused with chocolate sauce and the fragrant flavour of peppermint, topped with a cloud of whipped cream.
• Eggnog Latte ($4.10 – $5.40): hand-pulled espresso steamed with real, authentic eggnog.
• Pumpkin Latte ($3.90-$5.20): hand-pulled espresso and steamed milk meet the indulgent richness of pumpkin pie, topped with a sprinkling of baking spices.

For more information, visit: www.peets.com.

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The RTD coffee category has exploded recently, with canned espressos and bottled lattes lining the shelves as consumers prioritise convenience, but are still looking for the same taste and experience they would get from a barista-made beverage.

Try as they might, these drinks often fail to replicate the frothy top created in a cafe, however Nescafé claim its Cold Whipped Lattes achieve the sought-after effect.

Available in coffee and french vanilla flavour, it uses a ‘unique coffee production method’ to deliver the frothy latte expected from a cafe. The label recommends shaking the bottle about 10 times to get the desired texture.

Nescafé is also jumping on the functional beverage category with the Coffee Protein Smoothies, which are marketed as a meal replacement option available in banana and mocha varieties.

The smoothies are dairy-free and each bottle contains 15g of plant-based protein with oats, almond milk and almond butter, meaning they are available to a wider consumer market.

Both the Cold Whipped Lattes and Coffee Protein Smoothies launch on January 1 2019.

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It is the new normal to see packages of roasted coffee touting the connections between farmer and barista. These now-familiar claims, when made by the new wave of specialty roasteries and coffee shops in Central America’s producing countries, take on a different meaning as coffee farmers and their families open businesses that directly serve consumers in the same places where fine coffees are grown.

Guatemala Embraces A New Sector

At the end of August, Promecafé (Cooperative Regional Program for Technological Development and Modernization of Coffee Production) held the first regional workshop on Promotion of Domestic Consumption at its headquarters in Antigua, Guatemala. A few weeks later, Guatemala’s two-time barista champion, David Solano, who is also a coffee farmer, opened the second location of his specialty coffee destination Café 12 Onzas in Guatemala City. These two events, institutional and entrepreneurial, are indicative of the greater trend unfolding across Central America: the best beans are not automatically earmarked for export.

“Local consumption has increased with a double-digit volume in the past six years,” said Nico Hammond of exporter Unitrade Coffee, based in Guatemala City, who supplies local retailer &Café. “This has been driven mainly by local coffee shop companies, which are emerging from curiosity and growth mainly of the consumer in Guatemala City.” There is more potential than ever in retaining the value – both for the grower – and the consumer of specialty coffee close to home.

Honduras Plants for Specialty

Honduras is Central America’s leader in production volume. “Only Brazil and Colombia produce more coffee in the Americas,” said Angel Hernandez, owner of Becapeña, SA farms, dry mill, and export in Peña Blanca, Honduras. London-based International Coffee Organization (ICO) data supports this claim, with Honduras’ production rising from 4.33 million 60kg bags in crop year 2010-11 to 8.34 million bags in 2016-17. Parallel to this increase in production volumes has been the increase in domestic consumption of Honduran coffee, particularly that of specialty coffee served in cafés and retail settings with a focus on service and quality.

“A clear example of the growing interest in the last five years is the city of Santa Rosa de Copan that has around of 60,000 inhabitants and has more than 25 specialty coffee shops,” observed Katia Duke of Casa Ixchel, a café in Copan Ruinas serving coffee from her family’s nearby farm, Finca San Isidro. The same qualities of coffee destined for cafés in Taiwan, such as Natural processed microlots sorted by Arabica variety, also appear on the menus of Honduras’ specialty outlets.

“The producers who supply Becapeña have been planting Geisha, Catuai and other specialty varieties,” shared Hernandez. “They are still recovering from la roya several years ago.” As Honduras’ producers renovated their farms following the coffee leaf rust’s devastation, they planted varieties most sought by international specialty buyers and then, with the strengthening of Honduras’ own specialty market, can deliver those same specialty coffees to local roasters and retailers.

As the C market price continues to hover around a dollar, negatively impacting prices even for the rarest coffees, there is more incentive for specialty coffee to remain closer to where it was grown. “Today, one doesn’t have to sell at the low prices the market has been at,” said Hernandez. “People are starting to enjoy the great coffee we grow.”

El Salvador’s Steady Climb

Much of the increase in instance and consumer popularity of specialty coffee in Central America is thanks to the success of national and international barista competitions, which showcase to local drinkers their countries’ exceptional coffees. Staffing cafés with talented baristas trained to render specialty coffee in its most theatrical and delicious final form is a challenge across the United States, Europe and Australia. The skill of barismo, as the role of barista is known in Spanish, solidified itself as an attractive line of employment by first entering public attention in Central America at the level of international acclaim. There is none of the North American stigma of wage-worker attached to barista jobs in Central America –barista positions began as and remain roles associated with talent, expertise and global possibility.

“Around eight years ago we started to see better quality coffee in the Salvadoran market with the opening of few shops, such as Viva Espresso and Ben’s Coffee.” Anny Ruth is a pioneer of specialty coffee in El Salvador, advocating for fellow female producers and managing operations at Loma La Gloria farm and mill in El Boqueron, San Salvador. “In 2008, we had the first Barista Competition and in 2011 Alejandro Mendez from Viva Espresso won the national competition and the world competition in Colombia, becoming the first world barista champion from a producing country.”

Viva Espresso is owned by the Pacas family, who are also producers and exporters, demonstrating that the suppliers of specialty coffees are often the first to realize the potential of their products domestically. National organizations are not far behind. “The Consejo Salvadoreno del Café helped as the organizer of [barista competition] events as well as educating the consumer and increasing the awareness of how a good coffee tastes,” noted Anny Ruth. A delegation from the Consejo Salvadoreno also participated in Promecafé’s Regional Domestic Coffee Workshop.

Rural Development in Nicaragua

In late April, political violence diverted labour and resources from farms to protests and responses in urban centres. Amid the turmoil, farmers harvested and shipped their crops, and the nation’s fledgling specialty coffee businesses continued to serve locally grown, roasted and prepared coffee.

In Nicaragua, the establishment of specialty coffee shops has been led by women and by organizations taking collaborative approaches to sustainable rural business, planning for long-term economic development and cooperative success rather than establishing and propagating a brand, as private specialty coffee businesses modelled after North American or European ones have tended to do.

The Community Agroecology Network (CAN) is an organization based in Santa Cruz, California.  In 2011, they began collaborating with the Union de Cooperativas Agropecuarias Augusto Cesar Sandino San Ramon (UCA San Ramon) to end seasonal hunger among small coffee farmers. “The project was developed using our method of participatory action research. Communities take part with researchers,” said Carmen Cortez, associate director for CAN, on how members of the UCA San Ramon determined which diversified income strategies for women producers could reduce dependency on export coffee, strengthen gender equity and ultimately reduce hunger. “Going through the process of monitoring and reflecting, researchers accompany participants by providing additional resources to complement knowledge at the local scale. Coffee cooperatives and researchers are equally interested in what combinations of diversification are resilient,” noted Cortez.

Diversification within crops planted on the farm and within the coffee chain are two applications of the same concept. Research complemented the UCA San Ramon’s launch of Caféteria Monte Grande in San Ramon, Matagalpa, a coffee shop run by the cooperatives’ women farmers serving a mix of patrons from both the emerging agritourism in the region and the town’s residents, and serving as diversified income opportunities for women producers. CAN supported the purchase of the espresso machine and established a revolving loan that the women collectively make decisions about how to invest in the coffee shop.

More than 20 women run the coffee shop that serves the beans they grow, and sources produce for smoothies and snacks from women’s home gardens, another diversification strategy that emerged from the project to end seasonal hunger. Offering espresso drinks and milk drinks, rather than just traditional filtered coffee, positions the shop as specialty coffee, but the entrepreneurial women behind the business are shaping it on their terms. This holistic approach is a continuation of the same philosophy that guides their methods of coffee production. “Agroecology is not a precise recipe for how things should be done,” explained Cortez. “Instead, agroecology focuses on processes for how communities can figure out things together.” Agroecological principles guide practices on integrating shade systems into farms for climate resilience and those same principles foster economic resilience through building local coffee retail businesses.

Fine Dining, Fine Coffee in Costa Rica

Franco restaurant and café is one of the businesses ushering in a new wave of specialty eateries and cafés in San Jose with a focus on quality, craft and local ingredients.

Only a few hours drive from the mountains of Tarrazu where the coffee was grown, Franco serves those beans using the same calibre of equipment and service found in specialty cafés worldwide. The company’s motto is “simple and neighbourly,” reminding that only in producing countries can coffee truly be grown by one’s neighbours. “We are a producing country, so we should have the best here too,” said Carlos Montero of Finca La Pastora in San Marcos de Tarrazu, of his coffee being sold at Franco. “Customers in San Jose have high expectations.”

Panama’s Baristas Lead the Change

Benjamin Roque is Panama’s 2018 barista champion, and as such the de facto national ambassador for his country’s coffee both at home and abroad. “There are many Panamanians who still do not know how popular our coffee is globally. As soon as people try it they are surprised at the different flavours found in specialty coffee.” There is now a dedicated group of local aficionados who now ask for their cup of coffee by processing style or farm where it was grown.

After competing in the World Barista Championship in the Netherlands in June, Roque returned home with a greater understanding specialty coffee as an industry. “It was not just about representing Panama on a world stage. I can share what I learned with my fellow baristas in Panama so we can all improve the work we do.”

After representing Panama to the world, Roque has the job of representing the world to Panama. Now, when he is behind the bar serving customers at Kotowa Coffee House in Panama City or educating staff as barista trainer at Kotowa’s shops, he not only talks knowledgeably about the production, roasting and brewing processes behind the cup, he speaks authoritatively about how coffee is served around the world, giving life to the direct trade, farm-to-cup taglines that further differentiate specialty coffee served at origin.

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 was based in Brooklyn, NY but has recently relocated to Miami, Florida. She may be reached at northrop.rachel@gmail.com.

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1. Today, four in five (79%) adults drink coffee at home.
2. Drunk by 62% of adults, instant coffee is the nation’s number one coffee drunk at home, followed by ground coffee (24%) and coffee pods (15%).
3. However, as many as one in five (20%) say they would be embarrassed to serve instant coffee to their guests. But it is the nation’s young (aged 16-34) who are Britain’s top coffee snobs, 31% of whom would be embarrassed to serve a cup of instant coffee.
4. 32% of coffee drinkers say they are interested in making cold brew coffee at home, rising to 53% of 16-34-year-olds.
5. Almost half (46%) admit they find it difficult to get going in the morning without a cup of coffee.
6. A third (32%) of British coffee drinkers add sugar to their coffee, while 68% add milk or cream to their cup and 5% add a flavoured syrup.
7. The high streets may be lined with coffee shops, but 71% of coffee drinkers believe takeaway coffee cups are bad for the environment. Opting for a more environmentally-friendly approach to their brew, three in ten (30%) coffee drinkers take a thermos/flask to drink on the go.
8. Keeping with sustainability, 83% of coffee drinkers would like coffee packaging to be fully recyclable, but just 41% of coffee launches in 2017 carried an environmentally-friendly packaging claim. A further 45% of coffee drinkers are interested in reusable coffee pods that they can fill with their own coffee.
9. While caffeinated coffee is most popular, 20% of coffee drinkers have decaffeinated coffee in their diet. Overall, 18% of Brits worry about being too reliant on caffeine, while 46% say it’s difficult to know how much caffeine is safe to drink.
10. A quarter (26%) of coffee drinkers say they drink coffee before a workout to boost their exercise performance and 46% believe drinking coffee has its health benefits.

Anita Winter, Mintel research analyst, said: “The British have become a country of coffee drinkers. While instant coffee is the nation’s most favoured variety, the popularity of artisan coffee shops has helped some coffee drinkers, especially younger ones, to regard themselves as coffee connoisseurs. Many consumers are even ashamed to give their guests the instant version, perhaps because they believe that some instant coffee is cheaper and therefore inferior.

“Cold brew has enjoyed an increasing profile in coffee shops, so much so that many Brits are considering making it at home. Brands can make the most of this by highlighting specific coffee variants that are particularly suitable for making cold brew and increase new usage opportunities.”

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“Once the cold brew phenomenon moved beyond coffee and into tea, we started getting requests,” says Colleen Norwine, Cooper Tea executive director of sales and marketing. “Everyone loved the taste of cold brewed tea and wanted to capitalize on the higher price point it commands; but there wasn’t a practical way for high-volume restaurants to serve it. We’re excited to be the first to provide a solution.”

BW Cooper’s Cold Brew Tea Concentrate (CBTC) offers operators a simple way to add cold brew tea to the menu without burdening staff with a time-consuming preparation process. The commercial concentrate requires no onsite brewing or extracting equipment. Cooper Tea steeps the tea for hours in cold water at their Colorado microbrewery. This time-intensive process removes bitterness and produces a “cold brewed tea” with a superior, uniquely smooth and refreshing taste profile. Restaurants can create signature and seasonal flavours by adding flavour syrups, fresh fruit or botanicals.

For easy storage, the concentrates are packed in shelf-stable, 32oz miniature milk jugs. Each “mini-jug” of concentrate makes three gallons of cold brew tea when mixed with water. Batches of tea can be made based on demand — one gallon, two gallons or a full three-gallon batch. This reduces the amount of stale tea thrown out, conserves water and improves environmental sustainability in local communities.

The product is USDA-certified organic and has just two ingredients: organic black tea and water. International Tea Master and company founder Barry W Cooper selected the organic black tea used in the proprietary blend. Cooper has over 50 years of experience cupping, blending and brewing teas.

Specializing in premium teas for the foodservice channel since 2003, Boulder County, Colorado-based Cooper Tea Company is known for its signature BW Cooper’s Iced Brew Teas, and Third Street and Pixie Mate micro-brewed chai and tea concentrates.

For more information, visit: CooperTea.com.

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Protein Blended Cold Brew is made with slow-steeped Starbucks Cold Brew, alternative milk and plant-based proteins for a non-dairy beverage that’s a good source of protein. This beverage is inspired by the popularity of cold brew coffee and a growing interest in plant-based proteins. Starbucks Cold Brew continues to be a favourite since joining the cold coffee menu in 2015. Additions to this platform include Nitro DRAFT Cold Brew, Cold Foam Cold Brew and Protein Blended Cold Brew.

Starbucks baristas craft the Almond Protein Blended Cold Brew beverage by blending Starbucks Cold Brew with almond milk, plant-based protein, almond butter, Banana Date Fruit Blend and ice. A grande Almond Protein Blended Cold Brew has 270 calories, 12 grams of plant-based protein and retails for approximately USD $5.95.

Starbucks baristas craft the Cacao Protein Blended Cold Brew beverage by blending Starbucks Cold Brew with coconut milk, plant-based protein, cacao powder, Banana Date Fruit Blend and ice. Cacao Protein Blended Cold Brew has 10 grams of plant-based protein.

With more than 170,000 ways to customize beverages at Starbucks stores, customers can create a favourite drink that fits their lifestyle, even with the new Protein Blended Cold Brews (additional cost may apply), such as adding a whole banana in place of Banana Date Fruit Blend, adding an extra packet of plant-based protein to double the amount in the cup, adding an extra shot or two of Starbucks Espresso Roast, or even adding a shot of decaf Starbucks Espresso Roast in place of Starbucks Cold Brew.

Protein Blended Cold Brew is available while supplies last at Starbucks cafés nationwide. For more information, visit: www.starbucks.com.

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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.

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The partnership launched in tandem with the opening of Café Wolseley, Corbin & King’s first venture outside London, and the introduction of a new ‘Best of British Afternoon Tea’ menu mid-July at The Wolseley, Piccadilly. The offering includes handmade scones, pastries and sandwiches alongside a carefully curated selection of authentic teas, for £29.75 per person. Customers will be able to choose from Afternoon Blend, English Breakfast, Earl Grey, Darjeeling, Assam, Jasmine Bud and Yunnan Green – all of which have been sourced directly from small, traditional gardens where tea bushes have grown for hundreds of years.

The Tea Caddy Collection will soon be available to purchase from The Wolseley Shop at Bicester Village, online and at The Wolseley on Piccadilly. The range offers biodegradable pyramid teabags inside unique tea caddies designed with an elegant Chinoiserie motif, evocative of the interior of The Wolseley itself. This selection of teas will feature the following:

• Assam – a rich and full-bodied black tea with a unique malty taste from the historic tea plantations of Northern India’s Brahmaputra Valley. It is best enjoyed with a dash of milk for a brisk start to the day.
• Yunnan Green – a light and refreshing tea from the high mountains of Yunnan in South West China. Sweet notes of fresh pea-shoots and nuts leave a mild and delicate aftertaste.
• Jasmine Bud – a fragrant tea, combining smooth green tea leaves with the sweetest notes of jasmine blossom grown in the sunny hills of Southern China. A refreshing drink for any time of day – light, bright and with heady aromatic notes.

The Wolseley Shop’s Tea Caddy Selection in partnership with Canton Tea will be available to purchase from mid-July online (www.thewolseley.com) for £14.95 per caddy (20 pyramid tea bags).

Founded in 2007 by Jennifer Wood, Canton Tea promotes positive, ethical practice in the tea trade and holds education, sustainability and alliance at the heart of its proposition. Canton Tea seeks out the best artisan teas and buys fresh tea each season, direct from small, traditional gardens. The brand has established direct relationships with the farmers where the leaves are handpicked and handcrafted to tease out the sweetest notes and the most complex flavours. Canton Tea’s range, which is made up of 33 teas, with the addition of six to eight limited editions at any given time, is served in exclusive hotels and restaurants in the UK including: Petersham Nurseries, Soho House, Pollen Street Social, The Mandarin Oriental, Hotel Café Royal, China Tang at The Dorchester, and The Waterside Inn. For more information on Canton Tea, visit: www.cantontea.com.

The Wolseley is an all-day café-restaurant in the grand European tradition, serving a wide-ranging menu of European classics (including Afternoon Tea) from early in the morning through to midnight. Visit www.thewolseley.com for more information.

Café Wolseley at Bicester Village is Corbin & King’s first venture outside London. Taking reference from the London flagship, Café Wolseley combines a classic all-day grand café-restaurant offer, along with a takeaway counter and a shop. Visit www.cafewolseley.com for more information.

Corbin & King is run by the restaurateurs Chris Corbin and Jeremy King, who have been partners in business for over 35 years. Together, the pair have created some of the most iconic and highly-regarded establishments in London, such as The Wolseley, The Delaunay, Zédel, Colbert, Fischer’s, The Beaumont Hotel and Bellanger. Café Wolseley becomes the eighth opening for the group and their first venture outside London.

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The Peet’s True Iced Espresso line features dark roast single-origin Colombian coffee, which provides a deep roasted sweetness so minimal sugar and calories are needed for a pure coffee indulgence.

“Iced espressos in Peet’s coffee bars are incredibly popular, representing over 40% of our cold coffee sales,” says Gretchen Koch, director of marketing and innovation at Emeryville, California-based Peet’s Coffee’s Coldcraft division. “After the success of bottling our signature cold brew, we are excited to introduce a premium RTD iced espresso that can be enjoyed anywhere. It was not easy to craft a canned shelf-stable coffee that is worthy of Alfred Peet’s name. We focused on sourcing high-quality, clean ingredients and fine-tuning the production method to ensure a creamy coffee experience on par with the iced espresso beverages handcrafted by Peet’s baristas,” she says. “By using better ingredients, our Peet’s True Iced Espresso has 25% fewer calories per ounce and forty percent less sugar per ounce than the category leader, making it the perfect coffee for on the go.”

Peet’s True Iced Espresso joins an existing portfolio of RTD beverages from Coldcraft, the Peet’s business unit dedicated to the innovation, production, and delivery of RTD and keg craft beverages.

The following flavours are between 100 and 130 calories, feature hormone-free milk and pure cane sugar that range from 10 to 17 grams, and come in 8-fluid-ounce cans with a suggested retail price of USD $2.99:

• Black and White: A lightly sweetened creamy latte.
• Vanilla Latte: Smooth blend of espresso, milk and vanilla.
• Caramel Macchiato: Rich, buttery caramel and velvety milk meet an intense shot of espresso.
• Mocha: A melding of bold espresso, milk and Dutch-processed cocoa.

Peet’s True Espresso is available in grocery locations throughout the United States, such as Kroger, Albertson’s and Safeway beginning this week. The line is also available on Peets.com. Peet’s True Espresso will roll out to additional grocery retailers throughout summer 2018.

For more information, visit www.peets.com.

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“People love both the flavour and the colour,” says Alicia Binion from Starbucks research and development (R&D), who created the new beverage. “It’s bright and vivid, something you would want to take a picture of to share with friends.”

The new Mango Dragonfruit Refreshers joins the permanent Starbucks menu alongside other Refreshers beverages including Strawberry Acai, Very Berry Hibiscus Starbucks Refreshers beverage, Pink Drink, and Violet Drink. The beverage is available at participating Starbucks stores in the US and Canada starting today (19 June). A grande (16-ounce) beverage is under 100 calories.

“Even the name dragonfruit sounds magical,” Binion says. “It’s one of those up-and-coming flavours. The red-fleshed fruit is less common and helps make this drink so fun and unique.”

Customers can also enjoy a creamier version of the beverage by requesting coconut milk instead of water. Called “Dragon Drink,” it features creamy swirls of coconut milk mingling with the fruity mango and dragonfruit flavours.

This summer, Starbucks customers are encouraged to share photos of their favourite afternoon pick-me-up on Instagram using the hashtag #AfternoonMade for the new Mango Dragonfruit Starbucks Refreshers beverage or other delicious, handcrafted cold drinks. Each Friday beginning 13 July, select user-generated photos tagged with #AfternoonMade will be featured on Starbucks Instagram stories. To find your favourite afternoon-inspired beverage, visit Starbucks Afternoon Made menu.

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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.

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Duncan Moir, vice president channel development and foodservice, Starbucks EMEA, says, “The strength of our relationship with Arla Foods over the past seven years has seen our RTD business grow by an average of 40% per year across EMEA.

“This new licensing agreement signals our commitment to continue to work together to grow the business within the ready-to-drink sector, and we are proud to be working alongside Arla Foods.”

Commenting on the agreement, Hanne Søndergaard, executive vice president and CMO at Arla Foods, says, “We are proud to take another step in our partnership with Starbucks, bringing great tasting Starbucks ready-to-drink coffee beverages to consumers across Europe and the Middle East while adding value to our farmers’ milk.

“The partnership combines Arla’s extensive experience in manufacturing dairy beverages and our widespread distribution network with Starbucks unique coffee expertise. Consumers in the EMEA region have welcomed the great taste and premium nature of the beverages, and we remain committed to working closely with Starbucks on developing and growing the category in the future.”

Opportunities within milk-based beverages is an important focus area in Arla’s Good Growth 2020 strategy.

“It is our ambition to be a leading provider of milk-based beverages in Northern Europe, The Middle East, Asia and Northern Africa in 2020 and the new strategic licensing agreement makes the Starbucks partnership a vital part of delivering on this target and we believe that innovation is the key to future success. Our recent launches of new Starbucks Double Shot products are a great example of our joint commitment to innovation and to consumers,” Søndergaard concludes.

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