Starting Wednesday, 27 November 2024, and running through to Cyber Monday on 2 December, Costa Coffee is offering customers the chance to enjoy up to £15 free when purchasing a gift card or eGift online during this period.

Customers who purchase a £20 – £39 gift card or eGift will receive an additional £5 FREE to spend in any Costa Coffee store nationwide. The offer extends to higher-value gift cards too:

• £40 – £59 gift cards/eGifts: Get an additional £10 FREE
• £60+ gift cards/eGifts: Receive a generous £15 FREE

To take advantage of this offer, simply visit gifting.costa.co.uk to purchase a gift card/eGift card to receive a free festive bonus.

It’s the ideal way to treat a loved one, say thank you to a friend or colleague, or even spoil yourself, especially with Costa Coffee’s limited-edition festive range of food and drinks are now available in stores such as the new Caramel Nutcracker drinks range, the new Berry Red Velvet Mini Loaf, or the Brie and Cranberry Toastie.

Don’t miss out – this limited-time Black Friday offer starts Wednesday, 27 November 2024 and ends on Monday, 2 December 2024.

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The Global Ventures group was established in 2019 primarily to oversee the company’s ownership of Costa, innocent and Dogadan, as well as the company’s investment in Monster Beverage Corp.

“As we look to our next chapter of growth, we have evaluated how to best set ourselves up for future success with these growth areas, and we believe now is the right time to have them work more directly with our operating units,” said Coca-Cola president and CFO John Murphy.

The following changes take effect 1 Jan 2025:
• Costa will remain a stand-alone business and will report to the Europe OU. Costa is based in London, and the majority of the company’s retail and Express outlets are located in the United Kingdom and elsewhere in Europe. Costa’s ready-to-drink businesses outside of Europe will report through local operating units.
• Dogadan, a Türkiye-based tea business that was founded in 1975 and in recent years has closely collaborated with the Costa business, will report into Costa’s retail business in Europe. Dogadan has been part of Coca-Cola since 2007.
• Innocent, a 25-year-old, London-based maker of juices and smoothies, will report to the Europe operating unit. Coca-Cola has had an ownership stake in innocent since 2009. Innocent drinks are sold across Europe.
• Oversight of Coca-Cola’s investment in Monster will move to Murphy, while the respective geographies will be responsible for the underlying operations results.

Global Ventures is currently a separate operating segment. Global Ventures will be sunset as part of the reorganization, and the company will issue financials for 2022 through 2024 to reflect the changes. The recast data will be available publicly in early 2025.

The Coca-Cola Company reported on 23 October that net revenues declined 1% to USD $11.9 billion, and organic revenues (non-GAAP) grew 9% for its fiscal 2024 third quarter. Operating margin, which includes items impacting comparability, was 21.2% versus 27.4% in the prior year, while comparable operating margin (non-GAAP) was 30.7% versus 29.7% in the prior year. Coffee declined 6%, primarily due to the performance of Costa® coffee in the United Kingdom. Tea grew 7%, driven by growth in Asia Pacific, Latin America and Europe, Middle East and Africa.

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Having launched last month across UK flights, all international easyJet customers can now enjoy selected Costa Coffee drinks across all 1,184 easyJet routes to 170 destinations in 35 countries.

To celebrate the launch, Costa Coffee’s master of coffee, Gennaro Pelliccia, surprised holidaymakers onboard an easyJet flight from London Gatwick to Rome with a special coffee experience at 30,000 feet.

Passengers were treated to complimentary goodie bags and a selection of beverages from Costa Coffee’s newly launched inflight range, from a Salted Caramel Latte to a frothy Cappuccino, which has been developed in collaboration with easyJet.

Excitement brewed onboard as Gennaro – renowned for his unmatched expertise and passion for coffee – shared his secrets and stories behind crafting the perfect cup of Costa Coffee

Gennaro Pelliccia, commented, “It was an absolute pleasure to bring the Costa Coffee experience to life in the sky. Sharing a perfect cup of coffee with passengers as they embarked on their trip to Rome was a dream come true. Our Italian heritage continues to inspire us every day to reimagine new coffee experiences for coffee fans all around the world. Collaborating with easyJet allows us to make every journey – even in the air – just that little bit more special.”

Russell Braterman, in flight retail director for easyJet, said, “We are always looking for ways to enhance the onboard experience for our millions of customers and bring them more of the choices they want when they fly with us, so we are delighted to launch this new range with Costa Coffee onboard all our flights, which makes a fantastic addition to our popular EAT DRINK range onboard.”

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Customers will be able to pick up free Podback bags from baristas in all 133 Costa Coffee stores located within Tesco stores across the UK, and nine Costa Coffee stores in the Swindon area, then take back their full bags for recycling. In addition, Podback-branded recycling points have been installed in the participating Tesco stores to make it even easier to spot opportunities to recycle pods. The scheme accepts both plastic and aluminium pods from any Podback member brands, including Costa Coffee pods for Nespresso, Tassimo and NESCAFE Dolce Gusto machines. The list of locations that the drop-off points will be installed are also now on Podback’s website here.

The rollout of the new recycling points began in August, building on Costa Coffee’s existing in-house pod recycling scheme. Together, Podback and Costa Coffee will aim to collect more pods for recycling through specialist facilities, where the different materials they are made from can be separated to enable them to be recycled.

This trial marks the latest step in Costa Coffee’s efforts to provide recycling options for packaging items that can’t easily be recycled at home or kerbside. Back in 2018, the brand worked with Valpak, an environmental solutions and resource management company, to establish the UK’s National Cup Recycling Scheme, which helped fund cup recycling infrastructure across the country. The scheme, now supported by many of the UK’s other major coffee brands, highlights the importance of collaboration in advancing new recycling solutions. Now, Costa Coffee will become the first UK coffee chain to collaborate with Podback to introduce customer-facing pod recycling points.

Rick Hindley, executive director of Podback, said: “This trial gives Podback customers the opportunity to drop off their used pods at local Costa Coffee stores, a response to customer feedback telling us people want a choice of ways to recycle that fit with their daily lives. We are excited to be working with Costa Coffee and Tesco to make this a reality in more than 140 locations across the country. We are sure Podback customers will welcome the new service, and hope that it is the first step to rolling out more drop-off locations throughout the UK.”

Liz Higgins, head of sustainability at Costa Coffee, said: “We are always looking for new ways to make it easier for our customers to recycle our packaging. Through this trial with Podback, in-store drop-off points will offer coffee pod users the chance to conveniently recycle their pods with us – whether they are Costa branded or not. The new front-of-house recycling units will be supported by increased messaging in store, which we hope will act as a reminder to customers when visiting our participating stores. The trial will allow us to gather valuable customer feedback and insights, which we will use to enhance our future recycling solutions for pods, cups, and other packaging materials.”

Catherine David, director behaviour change and business programmes WRAP, said: “The trial with Costa Coffee is a fantastic way to normalise and simplify recycling coffee pods. Due to their multiple component materials, these pods must be sent to a specialist recycling facility. Now, customers can easily drop them off in any participating Costa Coffee store. Making recycling simple is key to success, and capturing trickier items like pods at scale is an important step forward.”

Through the Podback scheme, used aluminium and plastic pods are recycled in the UK. Aluminium pods are recycled in Cheshire and used in the manufacture of beverage cans and car components. Plastic pods are recycled in Yorkshire and used in the manufacture of a range of items, including packaging crates and building products. The used coffee grounds are processed by anaerobic digestion facilities, producing renewable energy (biogas) and soil improver.

The locations of all drop off points will also be added to the Recycle Now Recycling Locator (managed by WRAP) – the UK’s only postcode-based search tool for people to find out what they can recycle at home, or at nearby locations.

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Total sales are above pre-pandemic levels, however, weakened consumer confidence, high inflation and lower foot traffic at traditional prime locations have contributed to slowed growth and increased uncertainty, and yet the appeal of the coffee shop culture endures. Allegra World Coffee Portal’s Project Café UK 2024 shows the UK branded coffee shop market achieved 9.2% sales growth to reach £5.3 billion over the last 12 months. The total market grew 3.6% by outlets to reach 10,199 stores.

Project Café UK also revealed that outlet growth has slowed as operators exercise caution, noting that operators are increasingly assessing underperforming sites — 25% of branded coffee businesses saw net reductions in their outlet portfolios over the last 12 months, with 29% not opening any net new outlets amid heightened industry caution. Costa Coffee remains the UK’s largest branded coffee chain, holding a 26% share of the market with 2,677 stores, after closing a net 17 sites over the last 12 months. Overall outlet growth was led by Greggs and Starbucks, which opened 73% of the 353 net new stores added to the market during the period.

Coffee shops may be weathering the difficulties but challenges remain as the cost-of-living crisis (which is affecting economies globally) continues to squeeze UK consumer disposable incomes. Project Café UK identified a negative impact on regular coffee shop visitation over the last 12 months. Amid sustained high product, labour, energy and property costs, branded coffee chains have increased coffee prices by an average of around 9% over the last 12 months (the average price of a 12oz latte rose 8.7% to reach £3.51), resulting in average spend falling 4% year-on-year, with consumers either more likely to only purchase a beverage or spend less overall on food items.

The research finds that many operators are diversifying retail and product strategies to broaden their market appeal. For example, in a bid to attract the ever-important Gen Z consumer, Costa Coffee became the first major UK branded coffee chain in the UK to offer bubble tea in 2023 and has also launched a new hot milkshake range.

Project Café UK further reported that Costa, Starbucks and Tim Hortons all grew their drive-thru presence over the last 12 months to collectively hold a 93% share of the 801-site UK drive-thru coffee market. In the food-focused segment, Greggs met its target to open circa 150 stores per year with a significant coffee offering and the chain is now trialling iced coffee at selected locations. Pret A Manger has doubled down on its in-store subscription with a 20% food discount to subscribers and has sought to cater to families by introducing a new children’s menu.

Although an improving economic outlook for 2024 is predicted, subdued growth is expected. UK inflation has more than halved over the last 12 months and high street trading conditions are likely to improve further following the Bank of England’s anticipated base rate decrease — its first since March 2020. However, World Coffee Portal reports that fierce competition in an increasingly crowded market is likely to constrain operator growth, forecasts the UK total branded coffee shop market will exceed 10,500 outlets by January 2025.

Commenting on the report, Allegra World Coffee Portal founder and CEO, Jeffrey Young said, “Despite some very strong economic headwinds, squeezed consumer spend and trading uncertainty, the UK coffee shop market – and especially branded coffee chain segment – has remained very resilient. Having achieved two decades of consistent growth only interrupted by the Covid era, we’re now looking at trading patterns well above pre-pandemic levels.” He added that “a very bright future awaits for the UK coffee shop market as operators invest in innovation through technology, capture the hearts and minds of the next generation with new product categories, including iced beverages, and focus on delivering high-quality, value-for-money experiences.”

Meanwhile, a new report from SumUp, the leading global fintech company, revealed the best cities in the UK for independent coffee shop businesses to thrive. It’s no surprise that in recent years, there has been a bigger spotlight placed on independent businesses, as consumers become more conscious of supporting their local communities.

SumUp’s research explains that the cities on its list have “buzzing independent shopping scenes, and each one boasts a range of unique boutiques, bookshops, and homeware stores. These cities are among some of the best to establish yourself as an independent business owner, and they provide the perfect environment in which you can thrive and grow.”

The research named Bristol as the top city in the UK for independent coffee shop businesses, followed by Sheffield and London. The study ranked 80 cities across the UK, taking into consideration the number of independent coffee shops in each location and their average review score.

According to SumUp, “it’s no surprise that Bristol tops the list as the best city for fostering and thriving as an independent coffee shop business. The city boasts an impressively high score of 1.26 for the number of independent coffee shop businesses the city hosts, home to 79 independent coffee shops.” Additionally, Bristol records the highest rated coffee shops on average within the coffee sector, with an average coffee shop rating of 4.64 stars.

While having less coffee shops than London, likely due to scale and population, SumUp stated that Bristol’s coffee shops perform better than those in the capital, on average, as London’s independent cafés hold an average review score of 4.43.

Sheffield, is another strong contender for independent coffee shops, per SumUp, ranking it as the second best UK city for independent coffee spots. The northern city has slightly more independent roasters than Bristol, and just ranks by just 0.01 points when it comes to average reviews.

Rounding out the top ten cities in the UK for independent coffee shop businesses, according to SumUp are: York, Glasglow, Dublin, Edinburgh, Salford, Gloucester and Newry.

For the full Project Café UK, click here. For more information on The best UK cities for independent businesses study, click here.

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

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Mexico eyes becoming one of the leading players in the global coffee market, which will take place by increasing both domestic consumption and exports.

Despite a tough economic environment, the demand for coffee and its consumption in Mexico remains strong, which is also leading to the growth of its local production.

According to the Mexican Ministry of Agriculture and Development (SADER), coffee is a strategic crop in Mexico — its production currently employs more than 500,000 producers from 15 states and 480 municipalities. In total, 94.1 percent of its coffee production is located in five provinces: Chiapas, Veracruz, Puebla, Oaxaca and Guerrero. More than 92 percent of the coffee supply comes from small producers, who grow coffee on less than two hectares.

SADER figures indicate that Chiapas is the main producing state, contributing 41.3 percent followed by Veracruz with 24.4 percent, and Oaxaca with 8.2 percent. Coffee currently represents 0.66 percent of Mexico’s national agricultural GDP (gross domestic product) and 1.34 percent of the overall production of agro-industrial goods in the country. Still, this is just the beginning, as state plans include creating conditions to increase both coffee production and consumption within the next several years.

In accordance with Mexico’s National Agricultural Planning, it is estimated that in 2030, national consumption will increase from 0.80 to 0.94 million tonnes, and that national production will expand from 0.82 to 4.7 million tonnes. Exports should also grow, which will allow Mexico to re-enter the ranks of the world’s top-ten largest coffee producers and exporters. It currently stands in eleventh place.

As for coffee retail sector, according to data presented during Expo Café 2023, the coffee industry’s main event in Mexico, the coffee sector grew by 5 percent in 2023. That was mainly due to local consumption jumping from 230,000 tonnes in 2020 to 311,000 tonnes in 2022, an increase of 37 percent. In 2023 the consumption exceeded 320,000 tonnes.

In addition to more than 500,000 producers, Mexico’s coffee sector consists of more than 75,500 coffee shops, the number of which is constantly growing.

According to analysts’ predictions, there could more than 80,000 cafeterias by the end Q1 2024, with annual growth between 5 percent and 7 percent in terms of new units, capable of employing more than 377,000 Mexicans (averaging five people per cafeteria).

In general, coffee shops are presently one of the most profitable businesses in Mexico, which attracts many domestic and foreign entrepreneurs.

Most coffee shops are concentrated in the country’s four largest cities – Mexico City (the capital), Jalisco, Guanajuato and Puebla – which all together make up about 45 percent of those establishments throughout Mexico.

Producers under pressure

Mexico is currently ranked as the ninth biggest coffee-producing country in the world (in terms of land) with the harvested area of 646,00 hectares (ha) and with a production of about 987,000 tonnes.

However, experts of the Mexican Institute of Ecology, Inecol, have recently warned that despite its coffee sector maintaining generally good results the past few years, the current tough economic situation in Mexico has put a serious pressure on Mexico’s coffee farmers, some of which may declare bankruptcy in the short-term, which is mainly due to low incomes (earning 75 percent below the national minimum wage), the lack of state support, and climate change.

Coffee shops such as Cafe Negro in the city of Coyoacan, continue to open around Mexico. Image: Mexplora

Analysts report that coffee yields in Mexico are among the lowest in Latin America (five to seven quintals per ha), which led to the country dropping from once being the fourth largest coffee producer in the world to the eleventh.

Multinationals show interest

Most independent analysts believe that despite the existing challenges, Mexico’s coffee and tea sectors recorded generally good results last year and have prospects for further growth in 2024.

According to Alberto Trueba, research & data analyst at Euromonitor International, in the case of coffee, in 2023 there was a 2 percent volume growth in the retail category on a year-on-year basis. “In general, [locals] are becoming more cautious in their spending habits. However, the desire for a delightful cup of coffee persists. Currently, more and more local people prefer to consume more coffee at home, while seeking new flavours or experiences with each cup.”

Historically, the Mexican coffee sector has been within the sphere of interests of global players. In recent years, many of them have significantly strengthened their positions in the local market, planning further expansion.

One such company is Nestlé, which remains one of the leading players in the Mexican coffee sector, providing active support to local farmers through the various local programmes, such as Nescafé Plan 2030. There are 80,000 Mexican producers who are part of the Nescafé supply chain. Through its Nescafé Plan 2030, Nestlé has been cooperating with academic and research institutions to establish better coffee plants, training for producers, and technical assistance.

Nestlé opened a new Nescafé factory in Veracruz Mexico in 2022, making Mexico Nestlé’s main coffee producer globally. Image: Nestlé

Nestlé is the number one buyer of coffee in Mexico, buying 30 percent of the national production from more than 80,000 producers. In addition, the company recently launched a number of new products across different categories such as Dolce Gusto coffee capsules with Starbucks Vanilla Madagascar and White Mocha flavours. Nescafé also introduced Nescafé Ice, a variant of its flagship product, which is the first instant coffee in Mexico designed for cold preparation.

However, Nestlé is not the only global player that is actively expanding in the Mexican market. Another is The Coca-Cola Company’s Costa Coffee, which recently introduced its new coffee machine to the market. This machine offers a level of beverage personalisation akin to what a barista would provide.

Tea: small but growing

In case of tea, in Mexico and Latin America, tea consumption has increased continuously over the last ten years, but even so, there are few people who consume this drink regularly, so the opportunities for growth and development in the industry are enormous. A significant part of local needs in tea is met by imports.

According to data from Mexico’s food title, TheFoodTech, Mexico’s annual tea imports vary from 1,200 to 1,400 tonnes, making it the second largest tea importer in Latin America, behind only Chile. The Mexican tea market is estimated at USD $79.3 million, with the possibility of reaching $98 million by 2026. The leading brands are those that are sold by large retailers. The main players are La Pastora, with 20.1 percent of the market; McCormick, with 19.4 percent; and Therbal, with 18.2 percent.

While tea consumption in Mexico is growing, it is still small as there is no tea culture in the country. Mexicans consume 12 grams of tea a year, the equivalent of six cups. By comparison, in Turkey, the country that drinks the most tea, consumption per person per year is around 3 kilograms, per Euromonitor International.

Trueba noted that there was a 0.3 percent volume growth in retail in 2023, exceeding the figures from 2022. “In terms of value, there was a 1.3 percent growth, also higher than in 2022. The slight growth of the tea category can be attributed to various factors, including health trends observed since the Covid-19 pandemic.”

Euromonitor International’s Voice of the Industry: Food and Nutrition Survey in 2023 found that 65 percent of the food and beverage companies in Mexico consider the use of natural ingredients, less processed ingredients, and additives with additional functionalities to be very or extremely influential in the coming years. This trend has significantly impacted the entire category, with particular emphasis on green tea, which experienced the highest growth in both value and volume in 2023.

Similar to the coffee category, people are increasingly consuming tea at home. Despite many individuals returning to their pre-pandemic routines of full-time work and school, they also seek to spend more time at home with family or alone,” said Trueba. “According to our Voice of the Consumer: Lifestyles Survey in 2023, 28 percent of Mexican consumers seek to spend more time taking care of themselves, often aligning with the consumption of indulgent products. This has driven the consumption of tea at home, replicating drinks from the foodservice channel.”

The importance of e-commerce

Euromonitor and other interviewed experts also anticipate e-commerce playing a supporting role in coffee and tea growth due to its inherent advantages and convenience.

Success will also depend on effective brand positioning, given the inclination of coffee and tea consumers to remain loyal to their preferred brand and their minimal tendency to switch to more affordable alternatives, driven by the paramount importance placed on taste. Consequently, social media will continue to play a pivotal role in brand-positioning campaigns.

Coffee grown in Mexico’s Oaxaca region. Image: Primera Coffee

Euromonitor also expects social media to be instrumental in promoting premium products, such as Dolce Gusto’s coffee capsules designed for cappuccino with lactose-free milk. The upward trajectory of this trend is expected to endure in the coming years, driven by the growing influence of social media in the Mexican market and its facilitation of enhancing the positioning of new or existing products.

Most analysts believe Mexico’s coffee market will continue growing in 2024, driven mainly by new product launches that focus on indulgence and convenience. The introduction of Nescafé ICE, the first instant coffee for cold preparation, and Dolce Gusto Frappé coffee capsules for homemade frappés, are part of this trend.

Regarding the tea sector, Euromonitor reports that growth will also be observed both in value and volume terms, with a 2.2 percent increase in both cases, surpassing the figures seen in 2023. These growth projections are supported by the relaunch of existing products or the introduction of new ones, where functional ingredients will play a significant role.

Health trends will continue to drive growth in the category, as tea is perceived as a healthy beverage. Brands such as Lagg’s emphasise the benefits of their wellness line on packaging, highlighting infusions like Sleeping Time and Gastro Plus.

Moreover, the growth of the category is expected to be supported by several brands promoting tea consumption in various social scenarios, emphasising an experiential aspect beyond the act of drinking tea. For instance, Twinings underscores in its advertising campaigns that its products can be consumed hot, cold, or as mocktails.

• Eugene Gerden is an international freelance writer, who specialises in covering the global coffee, tea and agricultural industries. He works for several industry titles and may be reached at gerden.eug@gmail.com.

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Since 2012, JDE Peet’s has offered Costa Coffee-branded single-serve coffee pods for the Tassimo brewer system. Combining Costa Coffee’s unique premium coffee shop appeal in Great Britain to JDE Peet’s in-home espresso-based technology and go-to-market will elevate single-serve offerings for both companies.

JDE Peet’s recently launched the L’OR Barista coffee brewer system in the UK – a unique proposition capable of accommodating a wide range of coffee drinks. With this new collaboration, JDE Peet’s will be able to offer consumers a wider range of choices through an extended brand portfolio and drive category value with its customer partners.

The manufacture, distribution, and sale of other coffee products in the Costa Coffee portfolio, such as instant coffee, whole beans, and roast and ground, will remain with Costa Coffee and are not covered by the new partnership.

Fabien Simon, CEO of JDE Peet’s, commented, “We are excited to expand our collaboration with Costa Coffee. By extending the range of products offered under the L’OR Barista aluminium capsule system, we can offer coffee enthusiasts in Great Britain a wider selection of high-quality, single-serve choices at home. This important collaboration underscores our commitment to premiumisation through our unique coffee brewer technology as we serve more cups globally.”

Philippe Schaillee, CEO of Costa Coffee, commented, “We’re delighted to be growing our collaboration with JDE Peet’s. Our ambition is to lead the coffee sector by innovating and creating new experiences for consumers, whether that’s in a Costa Coffee store, away-from-home through our Costa Express and Proud to Serve coffee solutions, or at-home through our fantastic range of capsules, instant coffee, whole beans, and roast and ground. We’re confident that we’ll be able to unlock further growth and more people will be able to enjoy their favourite Costa coffee both on-the-go and at home.”

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Despite 68% of Brits stating that their households enjoy the same ‘traditional’ Christmas meal, new research reveals that this isn’t the case at all, with younger and older generations having very different views about Christmas food, treats and even baubles!

When it comes to Christmas dinners, Gen Z are the least likely to want a traditional roast turkey, similar to millennials who are also hoping to rid of the turkey and enjoy a meat alternative this Christmas. Gen Z are also loathers of Brussels sprouts, while two-thirds of older generations want them at their perfect Christmas lunch only a quarter of Gen Z would be happy to have them on their plates. This is a similar case when it comes to cheese boards, with Gen Z being half as likely to have one than any other generation.

The survey of 2,000 Brits, commissioned by Costa Coffee, also highlighted that when it comes to desserts, Gen Z is 48% more likely to want Sticky Toffee Pudding as part of the Christmas day than mince pies and 70% more likely than Yule log. Costa Coffee also polled its 420K followers about their festive frights and fancies, and almost half (45%) voted for Sticky Toffee Pudding as their favourite festive treat, gingerbread biscuits came in second place with 35% of votes with less than a quarter (20%) voting for Christmas Pudding and almost half (46%) stating that Christmas Pudding is the thing they look forward to at Christmas.

Along with their desire to stir up their Christmas meals, Gen Z also has different preferences when it comes to Christmas drinks, with one-in-four wanting to sip on an iced coffee on Christmas day, which drops to one-in-five for eggnog or Irish cream.

Samantha Jardine, product developer at Costa Coffee, said: “It’s no surprise that Gen Z want to twist up their Christmas Day treats with deserts like Sticky Toffee pudding. With its sticky and sweet toffee flavour, the desert is one that’s been loved for generations and it’s great to see that it’s not going anywhere with Gen Z becoming the new advocates for one of the nation’s most treasured deserts.”

 Looking for inspiration to twist up your Christmas? Follow Samantha’s top tips this festive season:

1. Love them or hate them, Brussel sprouts are commonly found on Christmas tables across the nation. Not a fan? Try sprucing them up by drizzling them in maple or toffee syrup.
2. Christmas treats don’t need to be saved for Christmas day alone. Favourite festive deserts, like Sticky Toffee, can be enjoyed ahead of Christmas dinner this year at Costa Coffee, with a festive menu which includes a festive Sticky Toffee latte layered with sticky toffee flavoured sauce, topped with a light whip, drizzled with sauce & sprinkled with a bronze shimmer dust. An ideal festive treat!
3. Glazed carrots with a twist are a surefire way to spruce up Christmas lunch. Try glazing with sweet brown sugar and roasting so you enjoy delicious, caramelised edges and sticky toffee-like glaze!
4. Stir up your coffee on Christmas morning by adding a drizzle or sprinkle of something sweet like sticky toffee sauce or pair it with a sweet treat like a Sticky Toffee Loaf cake, also available on Costa Coffee’s festive menu!
5. Twist down the dial on your winter beverages and mix up traditions by enjoying an Iced Coffee or Iced Tea this festive season – a perfect refresher after wrapping last minute gifts by a warm fireplace.

Sticky Toffee Pudding is loved across the nation, being ranked the UK’s favourite dessert last year[ii], so it was only right that Costa Coffee transformed the classic pudding into a beverage this Christmas. The tasty new Sticky Toffee Latte and new Sticky Toffee Iced Latte have joined the coffee chain’s festive menu, providing coffee lovers – both hot and cold, with a new Christmas favourite. Both drinks feature a yummy sticky toffee flavoured sauce, topped with Light Whip, and drizzled with even more sauce, finished with a sprinkling of bronze shimmery, angel-like dust. Along with a Sticky Toffee beverage, customers can also tuck into a comforting slice of Costa Coffee’s new Sticky Toffee Loaf Cake, a toffee flavoured sponge cake which is topped with caramel frosting, caramel drizzle, and indulgent fudge pieces.  The ideal treat, for every generation.

Beyond the dining table, Gen Z have a desire to twist up their festive décor by bringing back old school decorations being more likely to go for outdoor ornaments (they’re a third more likely to have outdoor ornaments or outdoor Christmas lights than other gens on average); almost twice as likely as any other generation to go for fake snow and almost five times more likely to than baby boomers. They’re also fans of fake Christmas trees (75%), and Christmas music playlists (59%), in contrast to the boomer generation’s higher preferences for fairy lights (80%).

When it comes to Christmas activities it could be argued that Gen Z are the most philanthropic generation, with 50% more likely to volunteer around Christmas than any other generation. They’re also twice as likely to go for a festive run or workout compared to millennials who prefer to go to the pub (29%), go carolling (13%), and play board games (55%).

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Costa Coffee has revealed its uplifted Cornhill store in Dorchester, UK. The refreshed Costa Coffee experience at the Cornhill store introduces new features that are yet to be seen in its high street stores. 

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Costa Coffee has unveiled its uplifted New George Street store in Plymouth, UK, which re-opened on 29 November 2023. Giving customers a new way to Costa by the Sundial, the uplifted store introduces a range of new features that are yet to be seen in its town centre stores.  

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Costa Coffee has launched its new autumn food and drink menu, which includes the return of its Maple Hazel range.

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Coffee grew 5%, primarily driven by the strong performance of Costa® coffee in the United Kingdom and China. Tea grew 1%, primarily driven by growth in Latin America, partially offset by a decline in doğadan® in Türkiye. North America unit case volume declined 1%, as growth in sparkling flavours and juice, value-added dairy and plant-based beverages was more than offset by declines in water, sports, coffee and tea as well as Trademark Coca-Cola®.

Net revenues grew 6% to USD $12.0 billion, and organic revenues (non-GAAP) grew 11%. Revenue performance included 10% growth in price/mix and 1% growth in concentrate sales. Concentrate sales were 1 point ahead of unit case volume, largely due to the timing of concentrate shipments.

Operating margin was 20.1% versus 20.7% in the prior year, while comparable operating margin (non-GAAP) was 31.6% versus 30.7% in the prior year. Operating margin decline was primarily driven by items impacting comparability and currency headwinds. Comparable operating margin (non-GAAP) expansion was primarily driven by strong topline growth and the impact of refranchising bottling operations, partially offset by an increase in marketing investments and higher operating costs versus the prior year, as well as currency headwinds.

EPS (earning per share) grew 34% to $0.59, and comparable EPS (non-GAAP) grew 11% to $0.78. Comparable EPS (non-GAAP) performance included the impact of a 6-point currency headwind.

In terms of market share, Coca-Cola gained value share in total nonalcoholic ready-to-drink (NARTD) beverages.

Cash flow from operations was $4.6 billion year-to-date, an increase of $83 million versus the prior year, driven by strong business performance and working capital initiatives, partially offset by the transition tax payment made during the second quarter. Free cash flow (non-GAAP) was $4.0 billion year-to-date, a decline of $45 million versus the prior year.

“I am encouraged that our all-weather strategy, working together with our bottling partners, has delivered strong second quarter results,” said James Quincey, chairman and CEO of Atlanta, Georgia-based The Coca-Cola Company. “We are executing efficiently and effectively on a local level, while maintaining flexibility on a global level. The strength of our first half results and the resiliency of our business gives us the confidence to raise our 2023 guidance.”

To support the company’s goal to reduce carbon emissions by 25% by 2030, against a 2015 baseline, The Coca-Cola Company and eight leading global bottling partners created a first-of-its-kind sustainability-focused $137.7 million venture capital fund in partnership with Greycroft, a seed-to-growth venture capital firm. The fund aligns with the company’s networked approach to sustainability and has the potential to help advance solutions across its global value chain by investing in sustainability-focused companies at the point of commercialisation. Reducing the Coca-Cola system’s carbon footprint is a top priority for the fund, so it will initially prioritise five key areas with the most potential impact: packaging, heating and cooling, facility decarbonisation, distribution and supply chain.

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The tea and coffee markets in Greece are steadily developing this year despite traditional economic problems of the country caused by high debts and soaring energy costs. In general, drinking coffee is a strong modern Greek tradition, with 95 percent of Greek consumers buying coffee. 

The lifting of pandemic restrictions has provided an impetus for growth for many segments of the Greek national economy and industrial sectors, including tea and coffee, however, a number of serious problems, along with the ongoing hostilities in Ukraine, continues to put a serious pressure on the industry, preventing its more active growth. 

According to global market research firm Euromonitor International, price hikes are currently the main factor that impacted hot drinks sales in Greece. 

Ilaria Abagnale, a senior consultant at Euromonitor, said that coffee manufacturers being unable to absorb costs (and therefore passing on via higher retailing prices to consumers) combined with disposable incomes decreasing has created a significant demand challenge. She said this has negatively affected consumption, since decreasing disposable incomes and higher prices are forcing consumers to cut back on their purchases. 

“Discounting activities have been increasingly being used by retailers as companies seek ways to prevent losses. For example, more companies are introducing economy ranges to appeal to cash-strapped customers,” said Abagnale. “Thanks to these activities, volume sales recorded a mitigate decline for overall hot drinks, as consumers are choosing to migrate to cheaper products rather than avoiding them altogether. However, coffee and tea registered a 0.2 percent and 0.7 percent growth respectively.” 

Greece is attractive to coffee chains 

In the meantime, major global players have been interested in the Greek coffee and tea markets. One of them is Coca-Cola HBC, which in recent years has significantly strenghthened its position in Greece’s coffee market. 

Athina Popof, coffee, premium spirits and snacks director, Coca-Cola HBC Greece & Cyprus, told T&CTJ that the company has distributed the Costa Coffee at-home range, which includes five different propositions of roasted and ground espresso and seven different varieties of espresso capsules. 

“Through our distribution network, we are serving Costa Coffee in independent cafés all over Greece. We are also addressing new channel opportunities with our own close system and capsule solutions,” Popof said. “In 2022, we strengthened our proposition with the launch of Caffè Vergnano, which offers authentic Italian espresso, in Greece, following an exclusive distribution agreement with the family-owned Italian coffee company.” Headquartered in Santena, Italy, Caffè Vergnano is one of the oldest coffee roasters in Italy with roots dating back to 1882. 

Popof noted that it is a super-premium and high-quality coffee that represents Italian heritage and authenticity at its best. “Caffè Vergnano’s products focus exclusively on the HoReCa (hotel, restaurant and café) channel, targeting premium customers. It matches perfectly with our strategic priority to create value and support our customers in this sector.” 

Furthermore, Popof shared that the two brands are highly complementary, which enables Coca-Cola HBC to address an even wider range of consumer tastes and segments. “Caffè Vergnano allow us to recruit consumers loyal to the Italian coffee taste, while Costa continues to be our mass premium global coffee proposition with broad consumer appeal across multiple platforms.” 

“Our focus in 2023 and beyond is to continue building distribution and appeal in these two great coffee propositions. Together with our partners, it is our passion to respond to all our customer and consumer needs with top quality coffee propositions for all occasions,” she explained. 

According to Popof, in general, in Greece, coffee is not just a product, it is part of the culture, and part of daily lives. She added this is also evident by the category growth both in HoReCa and in supermarkets in Greece. On a year-to-date basis, espresso coffee is growing by almost 10 percent, and this trend is expected to continue. 

Popof believes that modern coffee consumers are typically very well informed and have high standards. They are also diverse in their preferences. “This is why we have evolved our portfolio to offer two different brands, each with a unique proposition within the category.” 

Local player Kafea Terra is expanding its interests in Greece, with investments of EUR €6 million over the next two years and a 28 percent stake in the HoReCa market. Owned by local businessman, Yiannis Iosifidis, Kafea Terra, which produces Greek espresso under the Dimello brand and exclusively distributes illy coffee in Greece, is nearing €100 million in sales. 

Although it is estimated that coffee will show a decline in the Greek market in the next five years, Nikos Kougioumtzis, the commercial director of Kafea Terra, said in a press conference that the company plans to continue its expansion, particularly with its flagship Greek Dimello ground espresso, which now accounts for 20 percent in the Greek retail. 

Still, according to some Greek media reports, the ever-rising prices force Greeks to drink less coffee as well as tea. 

In general, the Greek coffee market is characterised by intense competition and saturation, especially in HoReCa segment (with, per Greek business paper, Capital, more than 70,000 bakeries, cafés, restaurants, and hotels throughout the country), which has forced some leading local players to expand in abroad. 

According to Greek Total Business magazine, in recent years many leading Greek coffee chains such as Coffee Lab, Mikel Coffee Company, Coffee Island, Grigoris and Coffee Berry have begun active foreign expansion. 

Economy options

In terms of coffee consumption, annually, at-home consumption is estimated at €300 million, while the out-of-home market reaches €3 billion in consumer prices. In volume terms, consumption hits 40,000 tonnes per year, 40 percent of which is consumed in restaurants and 60 percent at home and in workplaces. Per the Capital, the annual per capita consumption of coffee in Greece is estimated at 500 cups per year. 

According to the Hellenic Coffee Union, ground coffee in Greece accounts for 78 percent of sales, while 18 percent is capsule sales, which have shown growth in recent years. 

Euromonitor noted that given the strong price increases in the coffee category, more expensive segments (such as fresh ground coffee pods) slowed their growth. Since there aren’t many economy options, consumers switched to less expensive coffee categories such as standard fresh ground coffee. Likewise, the value growth in tea (which has been driven by premiumisation) slowed as fewer consumers can afford to purchase premium products on a regular basis. 

In response, retailers have undertaken major discounting activities and allocated more space to economy ranges. For instance, AB Vassilopoulos introduced a new private label coffee in 2022 under the name of Perla. The Perla range is comprised of fresh ground coffee pods (compatible with both Nespresso and Dolce Gusto machines) as well as filter coffee and espresso products. Domestic company, NutCo, introduced the Buon Gusto economy brand; compatible with Dolce Gusto coffee machines. 

Tea, a small market with potential 

Thanks to the healthy living trend and the strong marketing of the wellness and immunity-strengthening benefits of certain types of tea, these categories have attracted a lot of investment from both domestic and international players, leading to greater product variety, and grocery retailers are allocating more shelf space to such products. As such, visibility of herbal and green teas is growing and encouraging more people to purchase it. 

Caffeine-free infusion teas are particularly well-positioned to gain share in Greece as they do not compete with coffee – the most popular hot drink in the country. Instead, infusion teas are positioned to meet different consumption occasions, such as the evening time. The relaxation and sleep aid qualities of infusion teas make them more appealing to consumers and is stealing share from black tea. 

Over the forecast period, the consumption of tea is set to grow due to the expected persistence of the healthy living trend and the increase in product variety and availability. This has resulted in an increase in consumer awareness and attracted new consumers to the category, many of whom will continue to purchase tea in the coming years. Nevertheless, once dynamic, tea’s market penetration is low given the cost of living crisis and because there is not a strong tea drinking culture in Greece, consumers have reduced spending on non-essentials. 

Dimitris Siandris, COO of Lux, a Greek beverage company based in the city of Patras, speaking to Greek media, confirmed consumers’ shift to healthy tea options, including iced tea. “The past year was a pivotal year for businesses in the sector. We have witnessed a shift in the purchasing public to products with high nutritional value that harmonise with a balanced diet. The long-term confinement due to the pandemic and dealing with health issues created a completely different situation, to which we were called to respond in the best possible way”. 

Positive outlook ahead 

Euromonitor analysts believe Greece is set to remain a coffee dominant market when it comes to hot drinks and per capita consumption of this category will remain high. Coffee will remain the largest category in both the off-trade and on-trade channels. 

The share of fresh ground coffee is set to grow further at the expense of instant coffee. Most notably, Greek-style fresh ground coffee is anticipated to retain a loyal audience, with this already the largest category in terms of volume sales. Meanwhile, coffee pods appear to not yet have reached maturity and thus have plenty of space to grow. This category will continue to benefit from the strong increase in investment by leading players as well as the entry of new companies capitalising on this trend. 

Within the off-trade channel, value will perform better than volume across all hot drinks categories thanks to the continuing rise in average unit prices and the ongoing premiumisation trend. Although people in Greece will experience a decline in disposable incomes, this is set to affect volume sales more than value because it is higher-income consumers who purchase premium products, and they tend to be less affected by economic turbulence than lower-income consumers. Furthermore, consumers have become more demanding and are more likely to consume fewer items than to trade down to cheaper products. 

The ‘home barista’ trend (which gathered pace during the lockdown period of the pandemic) is set to remain relevant over the forecast period, with consumers expected to continue investing in premium coffee experiences at home. Whilst such experiences are more expensive than buying and preparing instant coffee, they remain less expensive than purchasing coffee through on-trade channels. As such, the decline in disposable incomes will drive some consumers towards premium at-home experiences whilst reducing the amount they spend out-of-home on foodservice. 

In case of tea, given that the consumer base of tea in Greece is largely comprised of higher income people, many of whom are health conscious, the decline in disposable incomes is not set to have a strong impact on tea-purchasing behaviour. Instead, such consumers are likely to prioritise quality over quantity, allowing premium brands to continue to gain share and add value to the category. 

Unfortunately, consumers must deal with escalating coffee prices because of a Special Consumption Tax on coffee in Greece.  

The president of the Hellenic Coffee Union, Yannos Benopoulos recently said in an interview with Greek media, that “not only does there exist a Special Consumption Tax on coffee, but it has been a constant request of the Hellenic Coffee Union in recent years to abolish it.” He added that “this specific tax measure burdens the operating costs of businesses as well as the price of the coffee that the consumer buys.” 

• Eugene Gerden is an international freelance writer, who specializes in covering global coffee, tea and agricultural industry. He worked for several industry titles and can be reached at gerden.eug@gmail.com. 

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“Philippe is an outstanding leader who comes to Costa with a deep background in business and a passion for building great brands,” said Evguenia “Jeny” Stoichkova, president of Global Ventures for The Coca-Cola Company. “We look forward to working with Philippe to expand on the plans we have developed to grow Costa, both in its home country of England and beyond.”

Schaillee began his career with the Sara Lee Group in Belgium in 1994, where he held various marketing roles. In 2000, he moved to the United States, where he was executive vice president of marketing for the coffee and tea businesses. He later became EVP of the beverages division.

In 2006, he was named EVP of the Breakfast, Snacking & Beverages division. In 2008, he was appointed SVP, chief marketing officer and executive committee member for all of the Sara Lee Group’s categories in the United States.

In 2012, Schaillee returned to Europe, where he joined Jacob Douwe Egberts (JDE) Group. He was named president of the Professional Coffee Division and served as a member of their executive committee.

Most recently, he has been a member of the executive committee at France-based Groupe SEB, which is a global market leader in cookware, small domestic appliances and professional coffee equipment, with brands that include WMF, Schaerer, All-Clad, Krups, Tefal and Rowenta.

“I have long admired Costa and appreciate the company’s deep history and heritage,” Schaillee said. “I am excited to join the great team at Costa and look forward to learning and growing the business with them.”

Schaillee is a graduate of Catholic University Leuven and holds an MBA from Vlerick Leuven Ghent Management School, both in Belgium.

Schaillee succeeds former Costa CEO Jill McDonald. He will report to Stoichkova and will be based in London.

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The trial goes live just a month after the UK’s biggest coffee shop chain committed to halving carbon emissions per coffee serving by 2030 and reaching Net Zero by 2040.

The trial will gather ‘real life’ consumer and store team member feedback of the new lids, including look and feel, following significant testing and development in controlled environments. The lids will also be trialed in select Costa Express machines this summer. If successful, Costa Coffee will roll out the new lids in early 2023.

The new fibre lids will be available across small, medium, and large takeaway cup sizes and has up to 50% lower carbon footprint than the current polystyrene plastic lids. As part of an ongoing effort to reduce its environmental impact, last year, Costa Coffee changed the lining of the inside of its takeaway cups to be plant-based plastic, rather than an oil-based plastic. The cups, now available nationwide, have a 26% lower carbon footprint than Costa Coffee’s previous takeaway cups when recycled. The trial of the new fibre lids will mean those consumers opting for a takeaway cup will be able to enjoy their favourite Costa coffee in 100% plant-based packaging.

Commenting on the announcement Costa Coffee’s global brand & sustainability director, Deb Caldow, said: “Last month we announced our global carbon reduction targets, committing to halving carbon emissions per coffee serving by 2030 and reaching Net Zero by 2040. Targets require action and today’s announcement is another positive step in the right direction, helping improve single use options for coffee fans.

“We are working simultaneously on three key areas within our packaging – Reuse, Reduce, Recycle. Our aim is to encourage consumers to adapt reuse regularly, through offering reusable ‘rent a cup’ schemes and by rewarding consumers through an enhanced loyalty scheme, rewarding those opting to reuse.

“However, we know we need to come at this from all angles – and constantly improving single-use material options, as well as maximising cup collection and recycling are all parallel priorities. Last year we launched takeaway cups made from 100% plant-based materials in major markets around the world and have plans to continue to improve the iconic Costa Coffee cup. We are now focusing on single-use lids, moving from polystyrene plastic lids to new fibre lids that are sustainably sourced, made from renewable material and are fully recyclable.

“We’re confident that the trial will show us that consumers are ready for the switch from plastic to fibre and that as the UK’s favourite and biggest coffee shop chain, we can make a huge difference in reducing the volume and impact of single-use, oil-based plastic, on the environment. We hope other brands will join us in giving consumers easy ways to make more sustainable choices when enjoying their daily coffee.”

Also leading on reuse, Costa Coffee recently extended its UK trial of a blockchain technology-powered reusable cup scheme, BURT (Borrow, Use, Reuse, Takeback), which allows consumers to borrow (‘rent’) a reusable cup to takeaway and return it on their next visit. They also relaunched their loyalty scheme last year with sustainability considerations at the forefront through the introduction of “Green Beans”. The scheme now rewards consumers with a free drink after only four purchases when using a reusable cup, compared to 8 purchases in a takeaway cup.

Finally, Costa Coffee’s 2030 target to halve emissions per serving of coffee have been approved by the Science Based Targets initiative (SBTi) – the internationally-recognised partnership between CDP, the United Nations Global Compact, World Resources Institute and the Worldwide Fund for Nature. Costa Coffee was also one of the first brands to sign up to the British Retail Consortium’s Climate Action Roadmap, continuing to lead and participate in external industry coalitions.

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GCI is an independent organisation representing coffee shop and food-to-go segments around the world. Together, members share a united industry voice and benefit from deep insight, thought leadership, strategic guidance and critical business intelligence.

Supported by World Coffee Portal’s 23-years’ industry expertise, GCI provides a platform for organisations to shape the future of the global hospitality industry and forge stronger business outcomes.

GCI’s mission

GCI’s mission is to provide an independent voice for every corner of the global coffee industry in shaping a sustainable and profitable future. Businesses will share best practice, inform key policy and generate new business opportunities across key areas including:
• Vision leadership
• Skills & career development
• Climate change & sustainability
• Technology advances
• Supply chain & logistics
• Consumer and societal trends affecting the coffee industry
• Fair, equal & best business practice
• Business risks
• Long-term Covid-19 impact

Adrian Cook, UK & Ireland chief operating officer, Costa Coffee said: “As we emerge stronger from the Covid-19 pandemic, we remain focused on adapting to new consumer trends, habits and expectations. Across our industry we see many growth opportunities and potential headwinds that require clear thinking and insight to help us continue to delight our consumers. As such, we’re excited to join the GCI, which will provide us with a wealth of insight and experience that we can use to serve even more cups of great coffee, to more people, more often.”

Commenting on the GCI’s mission to ensure businesses can thrive in a new era of hospitality excellence, Jeffrey Young, CEO and founder, Allegra Group said: “After nearly 25 years working in the coffee sector, I am proud to announce the launch of The Global Coffee Institute, in association with World Coffee Portal and some of the most progressive brands from our sector.

“In times of profound change and vast opportunity, never has it been so important for our industry to have access to independent, authoritative research and analysis, along with the sharing of industry knowledge for the benefit of our entire industry.”

Kamal Bengougam, group director of business development and marketing, Eversys, commented, “I was incredibly excited to hear about Jeffrey’s vision to create a united platform for the global
coffee and hospitality industry. Today, I am delighted the Global Coffee Institute has realised this vision and even more delighted that Eversys is an integral part of this bold new initiative.”

About GCI membership

GCI members benefit from World Coffee Portal’s global reach and international network of industry contacts. Members include key suppliers, major industry brands and leading coffee operators from around the world.

Supported by the 5THWAVE magazine and podcast media platforms, these organisations gain visibility and access to an influential industry network, and state-of-the-art business intelligence, to stay in tune and support the industry’s growth.

Leading brands can join the GCI at Foundation, Platinum or Standard membership. All members will receive support on how to maximise their opportunities and get the most out of their membership through our dedicated client services team.

For more information about how the Global Coffee Institute can benefit your business, contact:

Ruth Thompson, commercial director at rthompson@allegra.co.uk, or Hannah Heath, marketing manager at hheath@allegra.co.uk.

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As we hone into the sustainability conversation, the coffee industry has recognised that achieving net-zero is no longer enough. We need to expand beyond the practices that will keep the coffee industry where it is today, but instead, look at the actions that will transform the industry tomorrow. The coffee industry needs to become a circular economy. The Ellen Macarthur Foundation, based in Cowes, England, works to accelerate the transition to a circular economy by developing and promoting the idea and by collaborating with business, academia, policymakers, and institutions to mobilise systems solutions at scale, globally. It defines a circular economy as a system that stops waste from being produced in the first place. It requires the adoption of three practices: the elimination of waste and pollution, circulating products and materials (recycling, renewable resources), and regenerating nature.

“If we don’t reduce industrial energy consumption and industrial emissions, research shows we will only get a little more than halfway to net-zero by 2050, about 55 per cent of the way,” said Nabil Nasr, CEO, REMADE Institute, New York, New York. “A circular economy approach to how we manufacture and use everyday products can help us get all the way to net-zero.” Over the last five years, REMADE has fused on increasing the reuse, remanufacturing, recovery, and recycling of metals, plastics/polymer, fibres, and electronic waste.

The elimination of waste and pollutions

The global production of coffee currently creates a substantial amount of waste and pollution along the supply chain, from the pulp of the cascara hulls emitting carbon to the packaging overflowing the landfill.

“Buying behaviours have changed, and consumers expect more from their coffee. Coffee must be sustainable inside and out, starting with the way it is grown, sourced, staffed, manufactured, and more recently how it is packaged,” said Nerida Kelton, vice president, sustainability and save food, World Packaging Organization.

Renewable energy is an essential component of adopting a circular economy, however, a limited infrastructure is preventing this from occurring. For example, in the United States, only 17 percent of the electrical grid is renewable energy. Globally, this number is even more dismal, with only 11 percent of the world’s primary energy being renewable. Thankfully, positive shifts are occurring; in 2020, the renewable energy sector outpaced fossil fuels in the United Kingdom. Norway has the highest share of renewable energy in the world, and Brazil is a leader in biofuel and waste energy, accounting for 32 percent of their energy supply.

Coffee flowers can be used to make coffee tea. Image: Coffee Consulate

Since 2017 all of Dunstable, England-based Costa Coffee’s company-owned stores have been powered by renewable energy. Their roastery integrates renewable energy, including a 249kw solar PV system that provides power to the roaster, and an in-house, rainwater harvesting system. Today, the company is focused on further reducing its carbon footprint, including finding viable solutions for reusable coffee cups. This past November, the company changed their lining in their 95 percent wood fibre based takeaway cups to plant-based plastic, reducing the carbon footprint by an additional 26 percent.

Solutions, like the Bellwether Coffee zero-emission electric roaster, are helping provide cafes with a sustainable alternative to their traditional equipment. The electric roaster reduces the carbon footprint of the roast cycle by 87 percent. “We already see many coffee farmers creating circular economies within their own farming practices like using cascara to create compost,” said Grayson Caldwell, senior sustainability manager, Bellwether Coffee, Berkeley, California. “Coffee roasters have a responsibility to promote a circular economy as well.”

In December 2021, Bellwether Coffee announced its Roast Accelerator programme to help reduce the barriers to implementing a sustainable coffee roaster. The programme, which is currently available for marginalised San Francisco Bay area (Calif.) roasters, will provide a Bellwether roaster at zero upfront cost and a year of subsidised monthly roaster rent.

A broader approach to waste management

One of the challenges of developing a packaging design is ensuring that it is kept out of the landfill. Using recyclable or compostable materials is no longer enough; companies need to ensure that their products conform to the levies and regulations in the region. Alternatively, they can develop a closed-loop system that will help ensure that the packaging is repurposed.

The most well-known coffee by-product is cascara, the dried cherries from which the coffee beans have been removed. Image: Coffee Consulate

Single serve has long been a target for sustainability, which has resulted in several companies creating solutions that are either compostable or recyclable. One brand that has done precisely that is Nespresso. Lausanne, Switzerland-based Nespresso has developed regional partnerships to ensure its aluminium-based pods stay out of landfills. Currently, there are 100,000 Nespresso collection points spanning across fifty countries.

Developing these types of closed loop collection programmes will help ensure that the packaging is repurposed instead of placed in the landfill. Recently, Nespresso partnered with CurbCycle and iQ Recycle to trial a new programme in the Mosman, Newcastle and Willoughby regions in Australia. “The new Curby program sends residents in a trial region bright orange Curby bags, which are filled with the aluminium capsules and then placed into the regular recycling bin,” said Kelton. “The bags are then separated at the Materials Recovery Facility and sent to Nespresso to recycle.”

The most well-known coffee by-product is cascara, the dried cherries from which the coffee beans have been removed.

Cafes Novell, Barcelona, Spain, has also implemented several initiatives to contribute to the circular economy, including zero-waste packaging, partnering with Nespresso in its recyclable single serve programme, and committing to responsible sourcing. “Cafes Novell didn’t want to offer packaging that didn’t marry up with their sustainable goals,” said Kelton. “They identified the issue of capsules heading to the landfill and designed a compostable barrier for their pods and a recyclable carton board in 2019.” Cafes Novell’s most recent partnership is with Tree-Nation, Barcelona, Spain, where the company has committed to planting a tree in one of several reforestation projects with every purchase.

The use of mono-materials helps improve the overall recycling and composting rate of packaging, however, creating this for coffee has been a challenge. This is because coffee packaging needs to preserve the product, while also creating a barrier for gas and vapour.

Cyclpac, Melbourne, Australia, the 2022 WorldStar Packaging Award winner, addressed these challenges when they designed a recyclable, sustainable mono-material solution for coffee that offers barriers to oxygen and vapour. “Cyclpac have developed a packaging solution that could change traditional approaches in the coffee industry for good, replacing ‘mixed’ laminate packaging materials,” said Kelton. “The packaging is 90 percent LDPE [low-density polyethylene], has a technical barrier to gas and vapour, a mono structure lamination, BOPE [a transformative technology that enables the manufacture of all-polyethylene], seven-layer high barrier co-extrusion [an extrusion process used to obtain a product that combines two textures] with EVOH [ethylene vinyl alcohol], reverse or surface printed.” The material used is recyclable and compliant with the Australasian Recycling Labelling Program and the On-Pack Recycling Label in the United Kingdom.

Circulating products and materials at their highest value

One of the fundamental principles of a circular economy is the elimination of finite resources by either keeping existing products and materials in use or repurposing the raw materials into other formats.

Packaging is not the only by-product created by the industry, one of the largest sources of waste is the coffee grounds. To address this issue, cafés are creating programmes to divert this waste source, including internal composting programmes and repurposing the grounds into other materials.

“Coffee grounds have traditionally been seen as a ‘waste’ material. But now we can recycle these into sustainable composites for plastics (in fixtures like signage or countertops), or indeed into a natural flavour ingredient for foods and beverages,” said Jessica Folkerts, head of marketing, bio-bean Limited, Huntingdon, UK. For this upcycling to happen, bio-bean requires a clean supply stream of spent grounds. “Behaviour change is key here; whether it’s in the sourcing of more sustainable materials and ingredients or the ‘waste’ segregation and disposal of the by-products, it’s down to human behaviour to truly make a change.”

The Curby trial programme in Australia sends residents special bags for Nespresso aluminium capsules that can then be placed in regular bins.

Bio-bean, whose purpose is to create impactful, lasting change by innovating through coffee waste, recycles spent coffee grounds from businesses across the UK into a variety of sustainable bio-products. Their latest product, Inficaf, which launched this past July, has a range of applications, from plastics to automotive friction and cosmetics. A couple of the projects that Inficaf has been used in, include creating wall art in McDonald’s net-zero restaurant and a partnership with businesses in plastics compounding and moulding to create a reusable coffee cup.

In June 2021, Costa Coffee extended its partnership with bio-bean, which began in 2016, for an additional two years. Approximately 1500 Costa Coffee stores segregate their spent coffee grounds and send them to the bio-bean recycling facility.

Regenerating nature

In a circular economy, the focus expands beyond yield to look at regeneration, including protecting the local ecosystem through biodiversity and seeing soil as a living organism. “In agriculture, to create a circular economy you need to recognise the complexity and realise it’s different in every country,” said Andrea Illy, chairman, Illycaffè, SpA, Trieste, Italy.

Image: International Journal of Life Cycle Assessment (2021)

One of the challenges of integrating regenerative agriculture at the farm level, is developing a model that is truly scalable. To further understand this form of agriculture, Illycaffè is applying the principles of regenerative agriculture to two zero-emission plantations, one at the Jardines de Babilonia in Guatemala and the second at Kokkere which is in Ethiopia’s Ormia region. This includes planting trees, enriching the soil with organic matter to boost carbon efficiency, and boosting the biodiversity of the region to restore the ecosystem’s balance. Illy’s goal is to be able to turn these projects into scalable models. Illycaffè’s objective is to become carbon-free by 2033, which requires shifting its agriculture practices from ‘emitter’ to ‘sequestrator’.

Several key players in the industry including, Nestlé, Starbucks, Jacobs Douwe Egberts, and Unilever, have made substantial commitments to achieving net zero and investing in regenerative agriculture. Actions include detailed origin assessments, increasing biodiversity, a commitment to agroforestry and reducing carbon emissions.

The Ellen MacArthur Foundation emphasised that the circular economy is a system solution framework. For coffee, this involves looking at the entire supply chain and implementing solutions that are focused on regeneration, instead of extraction. It is a complex shift with many moving parts, however, the path towards a circular economy in coffee is slowly being paved.

• Anne-Marie Hardie is a freelance writer, professor and speaker based in Barrie, Ontario. She may be reached at: annemariehardie1@gmail.com.

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Starbucks, McDonald’s, Caffè Nero, Costa Coffee and Pret a Manger all have holiday drink menus, but some chains’ options contain double the sugar content of others. The findings, collated and analysed by the United Kingdom’s leading mail-order dental supplier, Kent Express, found that McDonald’s Hot Chocolate Deluxe has the lowest number of calories at 201 and 28 grams of sugar (and 6.5g fat) while Costa Coffee’s Black Forest Hot Chocolate & Cream, has 420 calories and 31.3 grams of sugar.

Caffè Nero’s Mint Choc Chip Hot Chocolate tops the leaderboard with the highest number of calories – 468 and sugar content, 63.5 grams – the equivalent of 15 sugar cubes. To burn off this calorific hot drink, Kent Express reports that a consumer would need to run for over 40 minutes on average or walk for 1.5 hours.

According to the NHS, more than 22.5g of total sugars per 100g is considered high and 18 out of the 20 drinks include 22.5g of sugar and over, with the Caffè Nero Mint Choc Chip Hot Chocolate three times over this value.

Chart source: Kent Express

Many coffee chains have released several new additions to their menus this year that take consumers’ growing desire to be healthier into consideration. So, for those consumers who ‘fancy a festive drink’ but are conscious of the sugar, the Costa Gingerbread Latte and Cream has the lowest amount of sugar (14g), while the McDonald’s Hot Chocolate Deluxe and Caffè Nero’s Salted Caramel Latte have the lowest number of calories.

Starbucks has launched the most extensive drinks menu, with eight options in total, including lattes, hot chocolates and frappuccinos, while McDonald’s has the fewest drinks options with a total of two.

Chris Moffatt, dental expert at Kent Express, said, “Everyone looks forward to letting their hair down at Christmas, but it’s good to make informed choices about what we eat and drink. Around one in three adults in the UK have signs of tooth decay, which can lead to more serious health problems. Many dental practices close over the Christmas period, so it can be hard to get a dental appointment.” He added that when indulging in a sugary drink, try to have it with a meal, use a straw, and drink some water straight afterwards. Brushing twice a day with fluoride toothpaste, flossing daily and keeping up to date with your regular dental check-ups is also essential.”

Registered nutritionist Dr Kawther Hashem, campaign lead at Action on Sugar, noted that sugar not only lacks nutritional benefits, but eating (or drinking) too much of it leads to weight gain and raises the risk of type 2 diabetes. “Sugar is also, without doubt, a huge factor in tooth decay. It is therefore shocking that so many coffee chains are still willfully putting their customers’ health at risk,” Hashem said, adding, “in our Festive Drinks Survey in December 2019, we found Caffè Nero’s Salted Caramel Hot Chocolate (Grande), made with skimmed milk, contained nearly 15 teaspoons of sugar (59.6g) and 503 calories. An average person would have to do 90 minutes on the cross trainer to work this energy off!”

The holiday drinks are limited seasonal offerings so do not let the Grinch grab your merry this season, but perhaps consume those festive drinks in moderation or customize them with lower or non-fat milk, less pumps of the sugary syrup, light whipped cream and skip the toppings!

Just a reminder that our tea sustainability survey is live and can be accessed here.

Best wishes for a happy and healthy holiday season!

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

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BURT – which stands for ‘Borrow, Use, Reuse, Take Back’ – builds on Costa Coffee’s work to improve the sustainability of its cups and packaging by utilising innovative digital technology, seeking to shift consumer behaviour towards reuse. The trial launched on 29 September 2021 across 14 stores in Glasgow, the home of COP26, and will last for six months.

Costa Coffee will be using the trial to gain feedback from customers and learn about uptake and behaviour towards reusable cups. It will then use its findings to optimise and develop a scheme that will roll out more widely across the UK in phases.

To participate in the trial, customers must set up an account to join the BURT scheme by scanning a QR code displayed in one of the 14 participating stores. By making a one-off £5 payment to join the scheme, customers can then scan the QR code on the base of a BURT cup, which links the cup to the customer’s account, via blockchain technology. They can then pay at the till as normal while a barista prepares their favourite handcrafted Costa coffee.

After enjoying their coffee on-the-go, customers can return the cup to a participating Costa Coffee store at a time that suits them, where it will be scanned back in by the team, delinked from their account, and hygienically machine-washed in store, ready for the next customer. Customers will be given a new BURT cup with each new order.

The trial is being run in partnership with the digital agency, Austella, on its innovative blockchain-powered Valari platform. It will not only reduce the number of single-use cups used but also make it easier for customers who may have forgotten their reusable cups to still be able to pick up their favourite Costa coffee on-the-go, without waste. It is also perfect for those preferring not to carry their own cup around each day.

The BURT cups are made from high-quality and durable stainless steel, making them long-lasting and easy to clean in Costa’s in-store dishwashers, and can hold 8oz (Mini), 12oz (Small) and 16oz (Medium) drinks. BURT cups also fit with Costa Express machines, giving customers even more chances to enjoy Costa coffee wherever they are.

Commenting on the trial, Neil Lake, managing director, Costa Coffee UK&I, said: “Our customers believe passionately in being able to make choices that help them do their bit to protect the environment. Our priority at Costa Coffee is to provide convenient, effective solutions while continuing to serve great tasting, perfectly crafted coffee. We are excited to be the first national coffee company to be offering a solution like BURT, to further incentivise the uptake of reusable cups in our stores.

Alongside our newly launched Costa Coffee Club offer of a free drink for every four drinks bought in a reusable cup, we hope this trial will show another way forward in helping to reduce waste whilst improving customer experience. It will also help us understand more about how the UK high street can lead the way in ensuring the long-term environmental sustainability of our planet.”

Commenting on the trial, Mark Cundle, CEO at Austella, said: “Austella is delighted to be working with Costa Coffee to launch the trial of BURT and believes passionately in the role blockchain technology can play in helping businesses reduce their environment impact and make it easier for consumers to make sustainable choices. One quick scan of a QR code and Costa customers will be able to enjoy their favourite coffee in a reusable cup, before dropping it back for the next customer to use, reducing single-use waste.”

This initiative also comes as Costa Coffee prepares to participate in a broader initiative this autumn, from Keep Scotland Beautiful with other key coffee retailers, and in partnership with Glasgow City Council, to increase reuse and recycling rates in-store.

Barry Fisher, CEO at Keep Scotland Beautiful, said: “Glasgow has been the focal point for a raft of work to address cup waste, via our Cup Movement in Glasgow campaign, so we are delighted to see this innovative trial taking place in the city. Effective reuse solutions are essential to reducing waste, changing the way that we consume, and addressing the climate emergency.  As the city prepares to host COP26, we look forward to supporting Costa with this initiative and stepping up consumer engagement with them and other retailers, working to facilitate the necessary transition towards more sustainable consumption.”

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The partnership will see InstaVolt’s state-of-the-art rapid chargers placed at new and existing stores, making it quick and easy for drivers to recharge their EVs while refuelling with their favourite Costa coffee.

These efforts will increase the accessibility of rapid charging technology, delivering charging speeds of up to 120kW to EV owners across the UK. InstaVolt’s ‘open charger’ model enables anyone who visits any participating Costa Coffee Drive-Thru site to use its charging points on a pay-as-you-go basis, boosting visibility and ease of charging – often seen as a stumbling block to the adoption of EVs amongst consumers.

Building on Costa Coffee’s existing network of 176 EV charging points at selected locations across the UK, the partnership will further drive the brand’s efforts to support consumers in reducing carbon emissions. Having become a founding signatory to the British Retail Consortium’s Climate Action Roadmap in 2020, the collaboration will also help Costa Coffee contribute to the retail sector’s ambition to achieve Net Zero by 2040 and support consumers as they try to live lower carbon lifestyles.

InstaVolt’s chief executive officer Adrian Keen said: “We are on a mission to offer InstaVolt rapid chargers across easily accessible and popular locations throughout the country. This partnership with Costa Coffee will further support in the ever-increasing drive towards EV adoption across the UK.

“One of the biggest barriers to customers making the switch to green clean vehicles is often a perceived lack of public car charge points. We are proud to be partnering with such a well known and loved brand to build out the charging network and deliver industry leading charging technology to brand new locations.

“Our work with Costa Coffee will support in achieving the Government’s goal of net-zero emissions by 2050 and offer additional peace of mind to drivers wanting to speedily recharge their cars batteries while they pick up their favourite coffee. EV charging needs to ‘slip in’ to customers everyday lives, and by partnering with Costa Coffee, we’re able to take additional steps towards combatting range anxiety in the UK.”

Costa Coffee UK&I property director, James Hamilton, said: “As the Nation’s Favourite Coffee Shop, we want to ensure we’re playing our part in enhancing our customers’ experience as they switch to more sustainable models of transport in that all important step to tackle climate change. As we continue to safely re-open our stores and deliver our ambitious UK&I growth plans, we are proud to partner with InstaVolt to embed charge points across multiple Drive-Thru locations, contributing to the UK’s ever-growing EV charging infrastructure.

“It’s exciting that in the time it takes for our consumers to order and enjoy their favourite Costa coffee, they can add an extra 100 miles in range and help our country reach its net-zero ambition.”

InstaVolt is one of the country’s leading EV charge point networks. The brand’s technology delivers rapid charge via a simple, contactless payment and doesn’t require a customer subscription. The 120kW charge points can add 220 miles of range in half an hour.

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