“Nestlé is a strong company with global reach, exceptional demand generation and in-market capabilities. We have a diverse and strategically well-positioned product portfolio. Our iconic brands and innovative products connect with people every day, at every stage of their lives. These strengths give us a unique advantage and position us to win in the marketplace. We will now invest further in our brands and growth platforms to unlock the full potential of our products for our consumers and our customers,” said Laurent Freixe, Nestlé CEO. “Our action plan will also improve the way we operate, making us more efficient, responsive and agile. This will allow us to deliver value for all our stakeholders. I am confident that we can deliver superior, sustainable and profitable growth and gain market share, while transforming Nestlé for long-term success.”

Nestlé’s action plan is designed to allow the company to drive category growth and improve market share performance. Actions will include targeted investments in winning brands and growth platforms, more focused innovation activities to drive greater impact, and systematically addressing underperformers. Nestlé will step up investment in advertising and marketing to support growth. The necessary resources will be generated through cost savings and growth leverage.

In addition to the ongoing programs, Nestlé aims to deliver incremental cost savings of at least CHF 2.5 billion by the end of 2027 through key initiatives across procurement, commercial investments and structural costs. The company will also accelerate its digital transformation to be a real time, end-to-end connected enterprise, powered by data and artificial intelligence. It is additionally ensuring that sustainability is embedded into its activities.

As part of the action plan to drive operational performance and unlock potential, Nestlé’s water and premium beverages activities will become a global standalone business under the leadership of Muriel Lienau, head of Nestlé Waters Europe, as of 1 January 2025. The new management will evaluate the strategy for this business. This will include exploring partnership opportunities to enable Nestlé’s iconic brands and growth platforms to achieve their full potential.

Nestlé’s strategy includes accelerating its categories through expanding existing strengths, such as expanding its most successful brands and increasing exposure to growing channels. Within coffee, targeted growth areas include out-of-home coffee, ready-to-drink coffee, and cold coffee concentrates.

Nestlé said its action plan will allow the company “to deliver superior, sustainable and profitable growth.” In the medium term, organic sales growth is expected to be at 4% plus in a normal operating environment, with an underlying operating profit margin of 17.0% plus.

Nestlé confirmed 2024 guidance, with organic sales growth of around 2%, underlying trading operating profit margin of around 17.0% and underlying EPS broadly flat in constant currency. Looking ahead to 2025, Nestlé expects an improvement in organic sales growth compared to 2024, with the underlying trading operating profit margin anticipated to be moderately lower than the 2024 guidance.

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This round of updates primarily clarifies and formalises existing practices. Key changes include revised competitor registration procedures and updates to the selection of green coffee provided. Formalised processes have been introduced for measuring coffee colour, using personal notes and hearing protection, and grinding coffee. Competitors are now required to specify the ratio and quantities used in their blend, with penalties introduced for late submissions or incomplete information to emphasize its importance in coffee evaluation. The evaluation process has been expanded to allow more than five descriptors for certain attributes, with adjustments made to how some examples are categorised. Additionally, the appeals and complaints process at both Competition Body and World-level events has been streamlined, now requiring submissions via an online form.

Updates to the rules & regulations are overseen by the WCC Competitions Strategic Committee. The rules documents, summaries of changes, scoresheets, and new appeals form are now available on the new website for the World Coffee Championships: wcc.coffee/rulesregulations.

The 2025 World Coffee Championships this season include:

• Houston World Coffee Championships
o 25-27 April at the Specialty Coffee Expo in Houston, TX, USA
o Featuring the World Coffee Roasting Championship

• Jakarta World Coffee Championships
o 15-17 May at World of Coffee in Jakarta, Indonesia
o Featuring the World Brewers Cup

• Geneva World Coffee Championships
o 26-28 June at World of Coffee in Geneva, Switzerland
o Featuring the World Latte Art, World Coffee in Good Spirits, World Cup Tasters,
and Cezve/Ibrik Championships

• Milan World Coffee Championships
o 17-21 October at HostMilano in Milan, Italy
o Featuring the 25th World Barista Championship

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 Zone Latin America (LATAM) and Zone North America (NA) will merge to form Zone Americas (AMS), which will be led by Steve Presley. He will relocate to Nestlé’s headquarters in Vevey, Switzerland.
 Zone Greater China Region (GCR) will become part of Zone Asia, Oceania and Africa (AOA), under the leadership of Remy Ejel. David Zhang will step down from the Executive Board and will remain Chairman and CEO of the Greater China Region.
 Zone Europe (EUR) will continue to be led by Guillaume Le Cunff and remains unchanged.

Laurent Freixe, Nestlé CEO, said, “A leaner Executive Board structure and close collaboration of the leadership team at the headquarters will increase simplicity, speed up decision-making and strengthen the momentum behind global initiatives. We will continue to build on the strengths of our Market Heads to ensure consistent in-market execution across the Group.” Pursuant to the reducing the Executive Board, Freixe announced:

 Bernard Meunier has decided to step down from the Executive Board on 31 March 2025, and will lead strategic projects for the Group. David Rennie, currently head of Nestlé Coffee Brands will succeed Bernard Meunier as the head of Strategic Business Units (SBUs) and Marketing and Sales. Nestlé Coffee Brands, with the exception of Nespresso, will be integrated into the SBU organisation.
 Nespresso is led by Philipp Navratil. He will join the Executive Board and now report directly to Nestlé CEO Freixe. Philipp Navratil is known for his ability to inspire and motivate people. He has extensive global experience across various roles and a profound understanding of Nestlé.
 Nestlé Health Science will continue to be led by Anna Mohl.
 Antonia Wanner, who leads the Sustainability Unit, will now report directly to Freixe without holding a position on the Executive Board.

Starting in 2025, Nestlé’s reporting will comprise five segments: Zone AMS, Zone AOA, Zone EUR, Nestlé Health Science and Nespresso. The company will also continue to voluntarily report sales performance each quarter for North America and for Latin America within Zone AMS and for Greater China within Zone AOA.

Freixe added, “With these organisational changes, all the leaders of key units driving our performance and our transformation will now report directly to me. This is crucial, as we sharpen our focus on consumers and customers and restore investment in our brands and in innovation to expand market share and accelerate our performance. Going forward, we are also placing a greater emphasis on Nestlé’s digital transformation into a real-time, end-to-end connected, data- and AI-powered organisation. I am confident these changes will optimally position Nestlé for future success.”

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Mark Schneider, CEO, has decided to relinquish his roles as CEO and member of the Board of Directors. Over his eight years with the company, he has actively shaped the company’s portfolio, in line with Nestlé’s strategy and with a focus on high-growth categories like coffee, pet care and nutritional health products.

Laurent Freixe joined Nestlé in France in 1986. Since then, he has continuously progressed within the company, assuming various positions of increasing responsibility across different businesses, markets and Zones. He successfully managed Zone Europe during the financial and economic crisis, from 2008 until 2014. He then took over as CEO of Zone Americas, where he accelerated growth. Following the creation of Nestlé’s new Zone structure in 2022, Laurent Freixe was named CEO Zone Latin America, where he has been successfully leading through challenging conditions.

Laurent Freixe has been a member of the Executive Board for 16 years and, as such, has played an important role in strengthening the strategic direction of the company and its portfolio. With his profound understanding of Nestlé’s culture and values, he has led several global corporate initiatives to improve productivity, increase operational efficiency, simplify processes and drive innovation. Additionally, Laurent Freixe is committed to developing future leaders and talents, as evidenced by his active role in the Nestlé Leadership and Training Programs as well as the Nestlé Needs YOUth initiative, which promotes youth employment.

“The Board of Directors is delighted to announce the appointment of Laurent as the new CEO. I have known Laurent for a long time and highly regard him as a talented leader with strategic acumen, extensive in-market experience and expertise as well as a deep understanding of markets and consumers. He has demonstrated his ability to deliver results in challenging market conditions,” said Paul Bulcke, chairman of the board. “Laurent’s curiosity fuels his passion for innovation and positive change. Laurent is the perfect fit for Nestlé at this time. Under his leadership, Nestlé will further strengthen its position as a dependable, reliable company through consistent and sustainable value creation.”

Bulcke added, “I would also like to express our gratitude to Mark for his significant contributions to Nestlé and for his outstanding, steady leadership in turbulent times. Mark has been instrumental in the great progress we have made on our sustainability agenda. We extend our best wishes to him in all his professional and personal endeavours.”

Commenting on his appointment, Laurent Freixe said, “I am privileged to have been given the opportunity to continue building and strengthening Nestlé, and I am excited to take on this responsibility. There will always be challenges, but we have unparalleled strengths, such as iconic brands and products, an unmatched global presence, leading innovation and execution capabilities, and above all, exceptional people and teams. We can strategically position Nestlé to lead and win everywhere we operate.”

Mark Schneider commented on his tenure, noting, “Leading Nestlé for the past 8 years has been an honour for me. I am grateful for what we have achieved, having transformed Nestlé into a future-proofed, innovative and sustainable business. I would like to thank the entire Nestlé community for what we have accomplished together and wish Laurent all the best in his new role.”

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Situated on the shores of Europe’s largest alpine lake, Geneva stands as the ideal location for hosting, not only for its beauty but also for its strategic position at the heart of Europe. With excellent transportation infrastructure, world-class convention facilities and its role as an international hub, Geneva offers exceptional accessibility for attendees from all corners of the globe. Moreover, Geneva has historical ties to the coffee trade, being a key player in the global coffee market with the presence of major trading companies as well as espresso machine manufacturers. This connection not only underscores the city’s vibrant commercial ecosystem but also provides a unique opportunity to highlight the coffee industry’s significance within the tradeshow’s diverse array of exhibits and discussions.

With a long history of café culture dating back to the 17^th century, Switzerland’s blend of European cultures combined with Geneva’s international population make for a diverse café scene supporting innovation, trade and travellers. Palexpo is one of Switzerland’s largest international conference and exhibition centers and an ideal venue given its proximity to Geneva International Airport and for its reputation as a meeting place for economic, sporting and cultural events. From 26 to 28 June Palexpo will be the setting for exclusive World of Coffee show features and learning opportunities including Roaster Villages, SCA Lecture Series, Workshops, an expanded exhibition space, the Best New Product and Coffee Design Awards, an extensive calendar of community and social events, the SCA Community Lounge, and so much more. A full schedule and programme of show features and events will be confirmed and announced over the coming year.

“Geneva is the perfect host for World of Coffee 2025, offering a vibrant, forward-thinking environment,” said Yannis Apostolopoulos, CEO of the Specialty Coffee Association.

“Switzerland’s relationship with coffee began with the grand European coffee houses of the 17^th century and continues today with thriving food and beverage, hospitality, and technology industries shaping the entire coffee value chain. As a city known for its innovation and global connectivity, Geneva provides an ideal platform for driving advancements in the specialty coffee industry. World of Coffee Geneva will harness the city’s rich resources and strategic position to foster groundbreaking ideas and collaborations, ultimately making coffee better for everyone involved.”

Designed to be the coffee professional’s one stop shop for everything they need to succeed in the coffee industry, World of Coffee is a coffee value chain all-inclusive event. Prospective exhibitors and sponsors are encouraged to register their interest by contacting the team on worldofcoffee.org/contact.

Dr Frank Neuhausen, general manager of long-time Host Sponsor and exhibitor, BWT water+more states “BWT water+more, water partner of the barista community, is delighted to once again join the event as Host Sponsor at World of Coffee 2025 in Geneva. We are looking forward to meeting all partners along the coffee chain, supporting all exhibitors on site with our water solutions for coffee and showing all visitors how our professional water optimisation supports their efforts to make the perfect cup of coffee. Coffee is our passion, and truly great coffee needs the best water.”

Attendees, media, and prospective volunteers are encouraged to learn more and stay up to date by signing up for the World of Coffee newsletter on worldofcoffee.org.

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Through the Global Coffee Alliance, Nestlé and Starbucks bring to market a wide range of products, including Starbucks capsules for the Nespresso and Nescafé Dolce Gusto systems, whole bean, roast and ground and premium instant Starbucks coffees, K-Cup pods and creamers in the at-home category and in foodservice channels.

Nestlé has expanded the Starbucks on-the-go business globally and recently launched a range of ready-to-drink coffee beverages across Southeast Asia and Oceania. It has significantly strengthened its coffee business in North America. In 2022, the Starbucks business generated USD 1.6 billion in incremental sales for Nestlé.

The two companies have expanded the reach of Starbucks branded premium products to nearly 80 markets worldwide, and to-date, more than 14 billion cups are brewed at home and served through foodservice channels.

The alliance builds on the experience and capabilities of both Nestlé and Starbucks. Together, the companies have developed new, innovative products and have introduced the brand to new formats and markets, leveraging both organisations’ product knowledge and Nestlé’s distribution footprint.

“We are proud of the work we have achieved together,” said Mark Schneider, CEO, Nestlé S.A. “Nestlé and Starbucks are deeply committed to growing this business. The results show that. The outstanding collaboration between the two teams is based on common shared values and a commitment to deliver exceptional coffee that is responsibly and sustainably sourced. I look forward to taking our partnership to new heights.”

Laxman Narasimhan, CEO, Starbucks Coffee Company, said, “The formation of the Global Coffee Alliance has allowed both companies to focus on their core strengths, which has proven to be highly successful over the past five years. We are confident that there remains enormous opportunity for the Starbucks brand in this segment and only expect this business to continue to grow and reach more consumers through the alliance.”

The two companies will continue to strengthen the business and expand the Starbucks brand by seeking to create new coffee moments. They aim to capture new opportunities with cold and seasonal coffees – two categories driven mainly by young consumers. They will grow out-of-home programs and solutions, and they will continue to innovate and bring new coffee experiences to consumers.

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AmFiber Performance Paper is a recyclable, high barrier, paper-based packaging that was initially introduced in 2022 for snacks and confectionery offering high-barrier protection against oxygen and moisture, with excellent performance on brand owners’ packing machines.

In addition to expanding its application to new product categories, Amcor has invested in manufacturing capacity to meet growing demand for this kind of paper packaging. The company has integrated a state-of-the-art production line in its Amcor Flexibles Alzira plant in Spain, in support of Amcor’s global businesses. The production line is equipped to provide both cold- and heat-seal AmFiber packaging, delivering airtight seals to guarantee the proper product protection through the supply chain and along the full shelf life.

The advanced equipment at the Alzira plant – along with the team’s extensive experience in barrier technology, printing, and sealing processes – make it one of Amcor’s Centers of Excellence for flexible paper-based packaging.

“AmFiber Performance Paper offers brands the best of both worlds,” said Ilya Syshchikov, vice president, global product management AmFiber. “From a technical point of view, it delivers high barrier and excellent machinability. From an environmental point of view, it’s PVDC-free, available in FSC-certified paper, and recyclable in most European countries. In fact, independent recycling tests conducted by organisations such as Aticelca and PTS, have demonstrated an impressive material recovery rate during the recycling process.”

He added, “We have many exciting projects in our R&D pipeline for paper, and this expansion into culinary and beverage packaging is another important milestone toward developing recyclable paper packaging for all the segments we serve.”

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To meet this demand, Nestlé Professional has been increasing its range of plant-based dairy alternatives for food service professionals, leveraging Nestlé’s global R&D expertise on plant-based innovation. It is also sharing that expertise with baristas and other out-of-home providers with a series of webinars led by the team of Nestlé Professional.

New additions

A focus of recent out of home launches has been in Asia; a Nestlé Barista plant-based coconut drink was launched in Thailand earlier this year, primarily for use in cold beverages to meet consumer tastes there.

In China, Nestlé has launched two new plant-based dairy alternatives in the past year – one pea- and one oat-based – under the Nestlé Barista brand. The drinks were developed by baristas and can be used in hot and cold coffee and tea applications that meet local tastes.

Furthermore, a barista-focused dairy alternative made with peas was launched under the Nestlé Barista brand and launched in South Korea, Taiwan, and Singapore.

In Latin America, the Nature’s Heart Barista plant-based oat drink was launched in Brazil at the end of 2022 for hot and cold applications. The beverage is easy to steam and pour – making it perfect for latte art.

The Nature’s Heart brand also rolled out a powdered plant-based creamer based on rice, designed for Nescafé automatic machines. This new product enables customers with self-service machines to be able to offer plant-based drinks to their consumers as well.

As Manuel Aleman, global category lead coffee ingredients & plant-based beverages at Nestlé Professional, explained, “The trend towards more plant-based options remains, with around 40% of consumers around the world already moving to a diet with less or no animal products. Taste is key for people to choose and stay in the category, especially flexitarians who are an important target group for dairy alternatives in out of home.”

In addition to the recently launched out-of-home offerings, Nestlé has a strong and growing portfolio of plant-based alternatives to dairy that people can use at home. A recent addition in the retail space are the oat and fava plant-based beverages which were launched in the US under the natural bliss brand.

R&D capabilities for dairy alternatives

With wide-ranging innovation expertise in both dairy products and alternatives to dairy, Nestlé is equipped to deliver relevant solutions for out-of-home use across different countries.

Zenon Mandralis, head of R&D for Nestlé Professional said, “Our goal is to offer baristas and our customers plant-based alternatives that are very easy to froth, making the perfect latte or cappuccinos. Our scientists, product developers and baristas work together to ensure that the products are also great-tasting and nutritious, with the right foam texture, mouthfeel, and appearance.”

This work is primarily driven by R&D experts at Nestlé’s largest research and development center for milk and milk alternatives in Konolfingen, Switzerland. The center collaborates closely with the Nestlé Professional R&D team in Orbe, Switzerland to ensure that the products are adapted for use in professional machines at cafés, bars and restaurants worldwide. Through Nestlé’s regional innovation centers, including in China, the products are further tailored to local taste preferences, beverage menu variety, and dietary needs.

Plant-based expertise for food service professionals

Nestlé Professional shares its experience with food service customers in regular webinars. In its latest iteration, it will be sharing Nestlé Professional know-how and insights on plant-based beverage dairy alternatives at a live ‘Plant-Based and So Good’ webinar via Zoom on 7 June, 2023.

Register for the webinar here.

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

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

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

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

Executive director of the ICO, Vanúsia Nogueira, said:

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

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

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

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

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Speaking at the inauguration, Paul Bulcke, Nestlé chairman, said: “We have nurtured direct relationships with generations of farmers around the world. To continue providing people with tasty, nutritious and affordable foods, we need to transition together to a more sustainable food system. The new institute will strengthen our expertise and use our global network to support farming communities and protect our planet.”

With global food systems under pressure, there is an urgent need to accelerate new approaches that ensure a sustainable food supply for a growing world population while contributing to farmer livelihoods.

At the new institute, Nestlé experts screen and develop solutions in key focus areas such as plant science, agricultural systems and dairy livestock.

It builds on the company’s existing plant science expertise in coffee and cocoa. Over many years, Nestlé plant scientists have been contributing to Nestlé’s sustainable cocoa and coffee sourcing plans – the Nestlé Cocoa Plan and Nescafé Plan (pdf, 9Mb) – including the recent discovery of more disease and drought-resistant coffee varieties.

Nestlé is now strengthening this expertise and expanding it to further crops, including pulses and grains. The institute is also working with farmers to trial regenerative agriculture practices to improve soil health and encourage biodiversity. In addition, experts explore novel approaches in dairy farming that have potential to reduce greenhouse gas emissions in the areas of cow feed and manure management.

Jeroen Dijkman, head of Nestlé Institute of Agricultural Sciences, said: “Our goal is to identify the most promising solutions to promote the production of nutritious raw materials while minimising their environmental impact. We take a holistic approach and look at several factors including impact on yield, carbon footprint, food safety and cost, as well as the viability of scale-up.”

As part of Nestlé’s global R&D network, the institute collaborates closely with external partners including farmers, universities, research organizations, startups and industry partners to assess and develop science-based solutions. The new institute reaffirms the company’s commitment to strengthening Switzerland’s unique innovation ecosystem.

Speaking at the official opening, Valérie Dittli, state councilor of the Swiss Canton of Vaud, said: “The new institute is strengthening the Canton of Vaud as a center of excellence for research and education in agriculture and nutrition. It also contributes to the efforts that are underway to support farmers in the face of climate change. Agriculture is at the core of quality nutrition and in the Canton of Vaud we can count on an innovative ecosystem that brings together partners including agricultural professionals, schools for higher education and private research centers such as the one from Nestlé.”

In addition to its new facilities at Nestlé Research in Switzerland, the institute incorporates an existing plant science research unit in France, and farms based in Ecuador, Côte d’Ivoire and Thailand, as well as partnerships with research farms.

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Today, 15% of coffee in the world is drunk cold, with the majority of this consumed by younger people, especially Generation Z. In line with this trend, there is rising demand for products that allow people to recreate café-style cold coffee experiences in the home.

Nescafé Ice Roast is launching in China this month, with Mexico to follow. Working closely with Nestlé’s coffee business and its markets, experts at Nestlé’s coffee R&D center in Orbe Switzerland, crafted this new product from bean to cup.

Starting with 100% Robusta coffee beans, grown and produced sustainably, Nestlé’s teams tailored the roasting profile for a lightly roasted soluble coffee without harsh or bitter notes. They optimised the extraction process for a refreshing taste and clear appearance in the cup and perfected the coffee granule structure, so it dissolves quickly and easily.

Damien Tissot, head of Nestlé’s Product Technology Center Coffee in Orbe, Switzerland, said: “With Ice Roast, we’ve created a light-medium roast that’s ideal to drink cold, with a smooth texture and cocoa notes that unlocks new sensory territory. By applying an innovative mindset, our teams have created a new sensory experience in cold coffee.”

Donald Howat, global category lead for Nescafé, said: “Cold coffee is hot, with a new generation of coffee drinkers entering the category through cold. We’re really excited by this launch, because Ice Roast gives them the opportunity to enjoy an even better cup of cold coffee at home and recreate their favorite drinks.”

Other recent launches include Nescafé Black Roast, Nestlé’s most intense coffee ever, and Nescafé Roastery Collection, a super-premium soluble coffee. Currently sold in Nigeria, Nescafé Malty is an accessible 3-in-1 blend that balances Nescafé coffee with millet malt, for a rich, creamy blend suited to local tastes.

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The announcement is a marker for the positive impact Nespresso has made in the coffee industry and beyond since the brand was founded in 1986. Key contributing elements include its unique approach to coffee sourcing – through the Nespresso AAA Sustainable Quality Program, designed in partnership with the Rainforest Alliance – its strategic alliance with Fairtrade, and the brand’s global recycling scheme for its aluminium capsules.

Guillaume Le Cunff, Nespresso CEO, said: “B Corp certification reflects a 30-year Nespresso commitment to sustainability, transparency and responsible business. We are immensely proud to be joining a community of like minds who share our belief that profit and purpose go hand-in-hand. This certification brings added value for our customers and affirms to Nespresso fans that their favourite coffee brand is doing business the right way.

“Most importantly, B Corp certification inspires us to do more. It strengthens our commitment to our vision that every cup of Nespresso coffee has a positive impact on the world.”

Jonathan Normand, B Lab Switzerland founder, said: “The B Corp process is a rigorous and independent assessment of a company’s impact on people and planet, from its carbon footprint to the way it empowers its employees. Achieving the B Corp certification is a key milestone in the improvement and collective action journey, and Nespresso is rigorously engaged to make it happen with the B Corp community.

“I congratulate Nespresso on its certification and hope that this will have a knock-on effect that will lead its value chain to join the B Corp movement. As a movement designed for system change, we are happy to support them on their path to accelerate and foster an inclusive, equitable and regenerative economy.”

Nespresso will add the B Corp logo to Nespresso products and communications to help spread the word about the movement, educate consumers, and help them make more sustainable choices in their purchasing decisions.

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The Covid-19 pandemic is taking a heavy toll on all of us. Our daily life has been upside down, routines shacked up and most of us noticed our spirit and moods affected. It is not surprising that in these challenging times, we cling to our daily treats and a cup of Joe has never been so important.

“In this ‘new normal’ period, one of the four key functionalities for coffee consumer is the search for mental wellbeing rather than immunity booster. The pandemic is a major additional burden on global mental health,” wrote Matthew Barry, senior beverages consultant with London-based global market intelligence firm, Euromonitor International, in a 2021 calming beverages report. “Calming as a functionality is surging in importance, as consumer stress levels have been rising significantly around the world. Yet the rates of caffeine consumption are rising, and consumers show little willingness to cut back, despite some negative health consequence related to caffeine.” To deal with this side effects, he said consumers will want to blend their caffeine with something calming whether in a single beverage or to be consumed later in the day when caffeine consumption is used to relax or promote good sleep. “R&D in calming beverages remain a critical area of innovation, with a focus on anxiety-relieving beverages.”

With the pandemic still surging, consumers are looking for ways to aid mental wellbeing as much as physical wellbeing. As such, the popularity of functional coffee continues to grow.

But the equation of coffee and mental health is far from simple. Dr Géraldine Coppin, a senior researcher and lecturer in affective psychology at the University of Geneva and at the Swiss Center for Affective Sciences, noted, “While a large body of research has reviewed the physiological effects of coffee consumption, only few studies have considered the potential relationships between coffee consumption, mood and emotion. Although the effect of coffee intake on mood and emotion is difficult to study, as coffee drinking is part of an ingrained daily ritual for many, there is convincing evidence that a moderate intake of coffee improves alertness and attention and is associated with increased feelings of pleasantness and reduced feelings of anxiety.”

She said that when studying the effects of coffee, researchers must be conscious of the fact that disrupting the daily routine, particularly at the start of the day, may affect mood and emotion, irrespective of coffee consumption’s physiological effects. Likewise, the expectation of consuming caffeine has been shown to affect mood and emotion, even if no caffeine has actually been drunk. “The mechanisms behind the observed effects are likely to include a role for caffeine but also for other compounds present in coffee, including polyphenols, although further research is required in this area,” said Dr Coppin.

Mushroom coffee has many added benefits but consumer awareness is low.

Another scientific advocate of coffee intake and reduced risk of depression is Dr Giuseppe Grosso, a research fellow at the Integrated Cancer Registry, Azienda Ospedaliera Universitaria Policlinico Vittorio Emanuele, Italy, and a senior collaborator at NNEdPro Global Centre for Nutrition and Health, St John’s Innovation Centre, Cambridge, England. In a 2016 report for ISIC (Institute for Scientific Information on Coffee) “Coffee, tea, caffeine and risk of depression: a systematic review and dose-response meta-analysis of observational studies” (Mol Nut Food Res, 60(1):223–2), he stated, “We have researched on the impact of coffee and caffeine consumption on the particular health condition depression. While current research of an association is limited, a systematic review of observational studies does suggest that the risk of developing depression decreases with moderate intake of coffee (equivalent to approximately three to five cups a day).”

Furthermore, the effect of coffee may be modulated by compounds in coffee other than caffeine. Dr Grosso explained that other mechanisms may also be associated with a reduced risk of depression. “Dopamine, for example, is a neurotransmitter that helps to control the brain’s reward and pleasure centers and also helps to regulate emotion.”

Exploring added functionalities

All very well but rather than mitigating or removing caffeine from their brew, today, consumers are looking at additional functionalities. What is proven scientifically is that one of the best-known active compounds of coffee is caffeine. A mild central nervous stimulant, this substance is associated with increased alertness. Following the European Food Safety Authority (EFSA), a cause-and-effect relationship has been established between a 75mg serving of caffeine and both increased attention and alertness. Several robust studies are in progress, as health allegations are very arduous to prove. Currently, there are several popular functional coffees on the market.

Bullet coffee is coffee with added MCT oil grass-fed butter or ghee. It has gained popularity through claims that it gives long-lasting energy, boosts concentration and keeps you satisfied longer. Because of the fats or oils in it, it is much higher in calories than a simple cup of coffee, which could increase the energy level. The combined ingredients take longer to digest in the body, giving then a feeling of being fuller for longer. At the present one finds limited supports for the claim that it provides long lasting energy, boosts concentration or appetite suppressant. More research is needed in this area. But fats such as coconut oil and butter are rich in saturated fatty acids, which the body converts into cholesterol. This is opposite to the dietary guidelines advising a move towards unsaturated fats.

Vitamin Coffee claims to naturally support sustained energy, muscle repair, bone health and better moods, among other benefits.

Mushroom coffee is a blend of ground coffee with powdered fungus. It claims to have half the amount of caffeine and double the effects of coffee. What is demonstrated is that mushrooms provide a range of nutrients including potassium and selenium. It is supposed to increase alertness and boost immunity and cardiovascular function. Some experts suggest it may be the caffeine in the coffee that gives the energy boosting effect, and not mushroom extract.

When compared with roasted, green coffee beans have limited aroma and flavour. However, experts suggest the unroasted beans can aid numerous health conditions, primarily due to the presence of chlorogenic acids. These might have a positive effect on glucose and lipid metabolism cardiovascular disease, type 2 diabetes, and metabolic syndrome. Found in both green and roasted coffee beans, the levels of antioxidants are higher in green coffee.

Natural functional ingredients

When looking at innovative ingredients and adaptogens, we are entering troubled waters. What exactly are adaptogens? A buzzword in the wellness world, they are popping up everywhere but still no industry formal definition on what they are. They can be classified as nontoxic herbal pharmaceuticals, which claim to help us better cope with (or increase our resistance to) mental or physical stress, improve physical and mental performance, and possibly support the immune system.

“These herbs and roots have been used for centuries in Chinese and Ayurvedic healing traditions, but they’re having a renaissance today. Each one claims to do something a little different, but overall adaptogens help your body handle stress. They’re meant to bring us back to the middle,” said Dr Brenda Powell, co-medical director of the Center for Integrative and Lifestyle Medicine at the Cleveland Clinic’s Wellness Institute, in a 2018 article by Jamie Ducharme in Time magazine, “What Are Adaptogens and Why Are People Taking Them?”

Turmeric, for example, is the latest super food – or super spice – that is being added to a variety of items, including coffee. It has been used in India for thousands of years as both a spice and medicinal herb. Science has started to back up traditional claims that turmeric contains compounds called curcuminoids that have medicinal properties. The most important curcuminoid is curcumin, which is the main active ingredient in turmeric. It has powerful anti-inflammatory effects and is a strong antioxidant. Turmeric has reportedly shown promise in treating a variety of ailments ranging from arthritis to psoriasis to Alzheimer’s and cancer.

Ashwagandha, also known as Indian ginseng and winter cherry, is an ancient medicinal herb claiming multiple health benefits as an anxiety and stress reliever, fighting depression, and boosting fertility and testosterone in men. It comes in a powder and one to two teaspoons can be added into a daily coffee.

Cardamom has also been used in Ayurvedic medicine for thousands of years. A spice commonly added to coffee (in the powder form) in the Middle East, cardamom gives coffee a spiced flavour similar to ginger (they’re in the same family) and is packed with nutrients. A two-tablespoon serving has just 36 calories, is loaded with fiber, essential minerals, and claims to be cancer-fighting.

Rhodiola is a herb that grows in the cold, mountainous regions of Europe and Asia. The functional ingredients come from its roots. It claims to stimulate cognitive functions in situations of stress, fatigue, anxiety, and depression.

Peet’s Coffee ‘golden lattes’ – espresso-blended beverages with turmeric – launched in 2021 in both hot and cold.

Holy basil is commonly known in the Hindi language as Tulsi. A quite revered medicinal herb, Holy basil is a plant that has violet flowers and blossoms. Medicinal preparations are made from the leaves, stems, and seeds of the plant. Holy basil is often used for cooking Thai dishes and its spicy flavour has influenced the common name “hot basil.” Some advocates say that adding it to coffee reduces any jitters often associated with caffeine and removes the edge from caffeine. With milk, it almost has sort of a chai-like vibe.

Elderberry is a fruit that grows in small clusters and is of deep purple colour. It is packed with antioxidants and many vitamins, which is partly why it is so popular and desired as a health supplement. It claims to aid in inflammation and depression, but immunity booster is its most common use.

L-theanine is an amino acid that occurs naturally in tea leaves and is used in Asian medicine to treat medical and mental health problems. L-theanine is supposed to increase brain levels of serotonin, GABA, and dopamine. Promising studies talk of beneficial effects on memory, learning, and cognitive function as well as for treatment of OCD, bipolar disorder, panic disorder, and schizophrenia. Pure green tea contains both caffeine and L-theanine, but L-theanine can be added in usual coffee as a supplement, according to “L-Theanine for Different Mental Health Problems,” by James Lake, MD (Integrative Mental Health Care in Psychology Today, August 2019).

Finally, in the United States in particular, CDB (cannabidiol) extracts in coffee are taking an increasing share of the supplement for functional coffee. “We’re seeing new and exciting trends in the CBD space, which we’re fortunate to be able to react to quickly. With a sharp focus on wellbeing seen around the world, an increasing number of people are looking for new and innovative products with ingredients they know and trust,” said Mark Elfenbein, chief revenue officer of Austin, Texas-based ingredient supplier, Socati, a wholly owned subsidiary of Yooma Wellness Inc.

With new formulations, Socati is already working with several leading consumer brands to create new and unique products which will soon be available to customers. “But, today in the spotlight for mental health benefit is CBG, or cannabigerol,” said Elfenbein. “This is a minor cannabinoid since its cannabis availability is typically at very low levels — usually less than one per cent. But it plays a significant part as a precursor to other cannabinoids, CBG has popularly earned the name ‘mother of cannabinoids’.”

Bulletproof pioneered ‘bullet coffee’ – coffee with MCT oil, grass-fed butter or ghee – claiming it boosts energy and concentration.

If CBG research is still in its early stages when it comes to mental health issues, there is already some medical support for the usage of CBG oil for certain mental disorders. For those who don’t seek any treatment, CBG could provide them with some anxiety relief. Effects might or might not be like the effects of prescription medications, but CBG has none of the addictive and dangerous side-effects commonly associated. CBG can help with heart conditions, high blood pressure, depression, and even suicidal thoughts. These health allegations still need more scientific evidence but the US CDB industry is expecting FDA to rule on the topic this year.

“The global pandemic has made consumers aware that wellness is a vital concern. In the coming years, consumers will be looking for more products and services that offer mental and emotional health benefits,” said Alex Beckett, global food and drink analyst with London-based global market intelligence firm, Mintel, adding that new formulations and emotionally appealing multi-sensory products will allow food and beverage brands to differentiate themselves in the competitive world of mental and emotional health products. “We anticipate that innovative food and beverage formulations will help consumers learn how food can impact their mental and emotional health, sparking new interest in psychologically-based approaches to healthy eating.”

• Dominique Huret has been a journalist in the beverage and packaging sectors since 2005. She writes in French, English and Dutch for several press groups. She is the co-founder of Cape Decision consultancy based in Brussels, Belgium. She can be reached at dominique@capedecision.com.

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The internal and external teams have full access to Nestlé’s state-of-the-art infrastructure and unmatched science, technology and business expertise. Using early trends, differentiating technologies and scientific discoveries as sources of inspiration, the teams develop innovative product solutions in a six-month immersive ‘idea to shop’ programme.

They can consult with Nestlé’s R&D experts from around the world such as food technologists, nutritionists, regulatory and food safety experts, designers and packaging experts. Each team also receives hands-on support from dedicated innovation coaches and mentoring from Nestlé’s senior management.

“We give internal and external entrepreneurs full access to all the expertise and infrastructure they need to translate their idea into a product – from analytical labs, experimental kitchens, to prototyping and production facilities – and we help them test their innovations in real-market conditions,” says Tom Wagner, head of the Nestlé R+D Accelerator programme.

Today, Nestlé’s global R+D Accelerator network consists of 12 sites in eight different countries. Each Accelerator is located at a Nestlé R&D site and focuses on a specific product category or region. For example, Nestlé has Accelerators at its R&D centres for dairy, nutrition, coffee, confectionery or food products. Regional Accelerators in China, India, US, ASEAN and Sub-Saharan Africa work with local start-ups and students to develop innovations relevant to their regions.

The newly inaugurated site that is embedded at Nestlé’s research facilities in Lausanne accelerates the translation of fundamental science into cross-category innovations. It is the industry’s largest Accelerator, covering a 4000 m² surface with a variety of co-working stations, prototyping kitchens and mini-production facilities. It can host up to ten teams simultaneously. Located at the heart of the Swiss Food & Nutrition Valley, teams have access to a sophisticated innovation ecosystem in the area of food and nutrition.

“At our R+D Accelerators we combine the creativity and entrepreneurship of students, start-ups and intrapreneurs with Nestlé’s extensive scientific and technological expertise. The initiative creates learning opportunities for both internal and external talents, builds competencies and fosters an entrepreneurial culture across our sites. It is great to see the passion and excitement of the teams as they go from an idea to a test launch in just a few months, overcoming many different challenges along the way!”, says Stefan Palzer, Nestlé chief technology officer.

Since 2019, 165 participants have participated in the R+D Accelerator programme and almost 80 products have been tested in 18 countries.

To learn more about the Accelerator, visit: rdaccelerator.nestle.com.

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Emmi Caffè Latte, one of the leading ready-to-drink iced coffee brands in Europe, has started to incorporate chemically recycled polypropylene into its packaging. The cups are produced by Greiner Packaging and the chemically recycled material comes from Borealis, one of the world’s leading providers of advanced and circular polyolefin solutions based in Vienna, Austria.

Emmi, Switzerland’s largest milk processor is committed to climate protection and the circular economy. The dairy company has the stated goal to make all of its packaging 100% recyclable and is committed to various measures to promote circularity such as packaging that contains at least 30% recyclate by 2027. Focusing on recyclable packaging and the use of recycled materials, Emmi is taking a first step with its successful Emmi Caffè Latte, brand.

From September 2021, Emmi’s successful brand of chilled coffee drinks, Emmi Caffè Latte, will use at least 100 tonnes of plastic based on the recycled material each year. Chemical recycling renews plastic back to plastic creating recycled materials with a level of purity equivalent to fossil-fuel based PP and hence, fit for protective, food-safe and other demanding applications. In this way, Emmi is utilising difficult to recycle feedstock preventing plastic waste that would be likely landfilled or incinerated. In the future, depending on the availability of suitable material, the amount of recycled plastic in Emmi Caffè Latte, packaging is to be further increased.

The new technology to recover the polypropylene is currently still in its infancy, where Greiner Packaging and Borealis are leading the way. Only limited quantities of chemically recycled polypropylene are currently available, and Emmi is one of only a few food manufacturers to have secured a share of the chemically recycled polypropylene plastic through its early commitment and long-standing collaboration with the development companies.

“It takes joint efforts by food and packaging manufacturers to reduce waste and make measurable progress in the circular economy,” says Bendicht Zaugg, who is responsible for Sustainable Packaging at Emmi.

“We have had a long and rewarding partnership with both Emmi and Borealis,” says Greiner Packaging key account manager Vincenzo Crescenza. “This achievement is in line with our stated goal to work towards achieving a circular economy. Our strategy is to develop innovative products, develop new service partnerships and business models, and pioneer materials partnerships.”

“Borealis looks forward to a world without plastic waste,” says Trevor Davis, head of marketing, Consumer Products at Borealis. “The chemically recycled polypropylene used in this new Emmi Caffè Latte, cup is manufactured with Borealis Borcycle C portfolio of transformational chemical recycling solutions, giving polyolefin-based, post-consumer waste another life. It offers all-round benefits enabling the transition to a circular polyolefin industry whilst creating virgin quality plastic products. By staying true to our EverMinds ambition of accelerating action on circularity, together with our valuable partners along the whole value chain such as Emmi and Greiner Packaging, we are reinventing for a more sustainable living.”

The chemically recycled material used for Emmi Caffè Latte, cup consists entirely and solely of ISCC (International Sustainability & Carbon Certification) material, on a mass balance basis. Mass balance is a methodology that makes it possible to track the amount and sustainability characteristics of circular and/or bio-based content in the value chain and through each step of the process. This provides transparency ultimately also to the consumers, enabling them to know that the product they are buying is based on this renewable material.

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Nearly 60 billion coffee pods are produced annually and the Global Coffee Pods and Capsules market is projected to grow at a CAGR of 7.72%. Of those, only about 29% of coffee pods are properly recycled, and that is where UK brand Halo Coffee stepped into the picture.

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The monthly average of the ICO composite indicator rose by 4.6% to 114.74 US cents/lb in December 2020. The daily composite indicator fell to a low of 110.35 US cents/lb on 9 December before climbing back up to 116.98 on 17 December. The daily price remained at a similar level for the remainder of the month until reaching a high of 119.21 US cents/lb on 31 December. Prices in December were supported by sustained demand as evidenced by a continued drawdown in green coffee stocks in large importing countries, such as the USA, as well as the depreciation of the US dollar. Additionally, while exports from Brazil have surged due to the sizeable 2020-21 crop, this was partially offset by a decline in shipments from other Arabica producers, reducing the downward pressure on prices.

Prices for all Arabica group indicators rose in December 2020. The average price for Colombian Milds rose by 5.7% to 170.44 US cents/lb, which is the highest monthly average since November 2016 when it averaged 177.85 US cents/lb. After declining in October and November 2020, the average price for Other Milds rose by 4.7% to 157.81 US cents/lb. As a result, the differential between Colombia Milds and Other Milds rose by 20.5% to 12.63 US cents/lb, which is the largest difference since June 2012 when it reached 15.98 US cents/lb. The average price for Brazilian Naturals grew by 8% to 114.96 US cents/lb, while Robusta prices averaged 72.04 US cents/lb, 0.5% lower than in November 2020. The average arbitrage in November, as measured on the New York and London futures markets, rose by 17.8% to 62.05 US cents/lb. Stocks of certified Arabica increased by 8.6% to 1.52 million bags in December 2020, which is the third consecutive month of increase. Certified Robusta stocks amounted to 2.31 million bags, 3.1% higher than in November 2020. The volatility of the ICO composite indicator price increased by 1.9 percentage points to 8.4% as the volatility for all Arabica indicators increased, while the volatility for Robusta prices was 6.1%, unchanged from November 2020. The volatility for Colombian Milds rose by 2.4 percentage points to 8.6%, for Other Milds by 2.2 percentage points to 9.2%. and for Brazilian Naturals by 2.8 percentage points to 12.2% in December 2020.

Global exports in November 2020 reached 10.15 million bags, which represents an increase of 5.7% compared to November 2019. Robusta shipments totalled 3.31 million bags, 10.7% lower than in November 2019 when they reached a record 3.7 million bags. Shipments of Arabica rose by 16% to 6.84 million bags. Brazilian Naturals saw the largest increase, growing 29.9% to 4.21 million bags, reflecting the on-year Arabica crop from Brazil. Colombian Milds increased by 3.6% to 1.32 million bags, as exports from Colombia grew by 8.8% to 1.26 million bags despite lower production in November 2020 compared to November 2019. However, shipments of Other Milds fell by 5.1% to 1.3 million bags as exports from Honduras dropped 48% to 55,500 bags. In the first two months of coffee year 2020-21, total exports were 6.5% higher at 20.2 million bags, compared to 18.97 million bags for the same period last year. Shipments for all groups declined except Brazilian Naturals, which rose by 23.1% to 8.31 million bags. Exports of Colombian Milds decreased by 4.5% to 2.48 million bags, Other Milds fell by 5% to 2.75 million bags, and Robusta declined by 1% to 6.66 million bags. This growth came primarily from shipments of green Arabica, which reached 12.56 million bags, 11.9% higher than the first two months of coffee year 2019-20. Green Robusta exports increased by 1.1% to 5.79 million bags.

In contrast, exports of roasted coffee from producing countries fell by 5.5% to 103,800 bags, and shipments of soluble coffee decreased by 8.2% to 1.75 million bags. Imports from all origins by ICO importing Members and the United States, decreased by 2.8% to 10.58 million bags in September 2020. In coffee year 2019-20, their total imports declined by 4.5% to 129.98 million bags. Imports by the EU in coffee year 2019-20 fell by 2.6% to 78.32 million bags with Brazil, Vietnam and intra-EU trade as the main origins. Imports by the USA declined by 10% to 28.36 million bags, and Brazil, Colombia and Vietnam were the main source. Japan’s imports decreased by 10% to 7.34 million bags with Brazil, Vietnam and Colombia as the top three origins. Imports by the Russian Federation grew by 7.6% to 6.22 million bags, while those of the United Kingdom declined by 13.4% to 5 million bags. Imports by Switzerland, Norway and Tunisia increased by 9% to 3.41 million bags, 0.4% to 802,400 bags and 6.2% to 527,000 bags, respectively.

Green coffee imports by ICO Members and the USA decreased by 5.4% to 95.98 million bags in coffee year 2019-20 while roasted imports declined by 3.7% to 19.6 million bags. However, imports of soluble coffee increased by 1% to 14.41 million bags. Although roasted coffee imports declined for most ICO Members and the USA, Switzerland’s roasted coffee imports rose by 9.6% to 257,000 bags with Italy, Germany and the Netherlands as the main origins. In contrast, soluble imports rose for the USA and all ICO Members except the EU and the United Kingdom. Soluble imports by the EU fell by 2.2% to 7.73 million bags while those of the UK decreased by 7.4% to 1.14 million bags. Re-exports by ICO importing Members and the United States, increased by 8.3% to 4.31 million bags in September 2020. In coffee year 2019-20, their total re-exports rose by 0.4% to 46.93 million bags. Re-exports by the EU in coffee year 2019-20 fell by 0.3% to 38.56 million bags, while those of the USA by declined 6% to 2.66 million bags. Re-exports from the United Kingdom fell by 24.6% to 1.45 million bags. However, re-exports by all other ICO importing Members increased. Japan’s re-exports more than doubled to 309,700 bags due to strong growth in soluble re-exports, particularly to the Russian Federation, Japan, and China. Re-exports from Norway grew by 46.3% to 20,700 bags on increased shipments to the EU, notably Denmark, Sweden, and the United Kingdom. The Russian Federation’s re-exports rose by 45.7% to 1.59 million bags as both roasted and soluble shipments increased. The main destinations for the Russian Federations’ roasted re-exports were Belarus, the Ukraine, and Georgia and for soluble re-exports were Belarus, Kazakhstan, and Uzbekistan. Re-exports from Switzerland increased by 14% to 2.34 million bags with much of the growth from re-exports of roasted coffee to France, USA and Germany as well as newer markets like the Republic of Korea and Indonesia. Tunisia’s re-exports grew by 6.1% to 157 bags.

In coffee year 2019-20, re-exports of roasted coffee from the ICO importing members and the USA decreased by 0.1% to 22.54 million bags as increases in re-exports of soluble coffee offset declines in roasted coffee. The EU’s re-exports of roasted coffee decreased by 1.2% to 18.35 million bags, while those of the USA fell by 3.9% to 1.61 million bags. However, Switzerland’s re-exports of roasted coffee rose by 14.8% to 1.82 million bags. Re-exports of soluble coffee increased by 0.7% to 11.93 million bags. Soluble re-exports from the EU rose by 0.6% to 8.5 million bags, and those from the Russian Federation grew by 35.5% to 1.28 million bags. However, re-exports from the United Kingdom fell by 32.4% to 813,000 bags.

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In June 2020, the ICO composite indicator averaged 99.05 US cents/lb, 5.2% lower than in May. This is the first time since October 2019 that the ICO composite indicator has fallen below 100 cents/lb and the third consecutive month of decrease. The daily price of the ICO composite indicator spent more than half of the month below 100 US cents/lb, ranging between a low of 96.79 US cents/lb on 25 June and 101.27 US cents/lb on 8 June. Despite strong exports in the first half of the coffee year, the ongoing bearish outlook for demand, as global economic growth was further revised downwards in June by the International Monetary Fund, and expectations for a large harvest in Brazil put downward pressure on prices in June.

All Arabica group indicators trended downwards in June 2020, but prices for Robusta averaged 64.62 US cents/lb, 0.1% higher than in May 2020. Prices for Brazilian Naturals fell by 9% to 92.56 US cents/lb, as harvesting of Brazil’s on-year Arabica crop is well underway with minimal impact so far from covid-19. Additionally, shipments from the second largest exporter of Brazilian Naturals, Ethiopia, have remained strong in the last five months, signalling ample supply. Colombian Milds fell by 5% to 147.16 US cents/lb, and Other Milds by 5.6% to 141.52 US cents/lb. As a result, the differential between Colombian Milds and Other Milds increased by 10.2% to 5.64 US cents/lb.

The New York Arabica futures market fell by 7.5% to an average of 99.50 US cents/lb in June 2020 while the London Robusta futures market rose by 0.2% to 54.77 US cents/lb. As a result, the spread between Arabica and Robusta coffees, as measured on the New York and London futures markets, fell to 44.73 US cents/lb, which is 15.4% lower than in May. Certified Arabica stocks decreased by 5.6% month-on-month to 1.9 million bags in May 2020, which is the fifth consecutive month of decline. Certified Robusta stocks decreased for the fourth consecutive month, reaching 2.02 million bags in June, 7.3% lower than in May. The volatility of the ICO composite indicator decreased by 1.6 percentage points to 6.1% over the past month. The volatility of all group indicators fell in June 2020. Other Milds decreased by 2.8 percentage points to 5.8%, Colombian Milds by 2 percentage points to 5.6% and Brazilian Naturals by 1.6 percentage points to 8.7%. The Robusta group indicator volatility was 6.6%, a decrease of 0.2 percentage points from May 2020.

Global shipments in May 2020 fell by 14.6% to 10.49 million bags, as exports from all coffee groups decreased. However, this volume is the third highest on record for the month of May and follows unusually high shipments last year. Exports of Arabica decreased by 19.7% to 6.43 million bags. Shipments of Colombian Milds fell by 13.4% to 999,000 bags. This is due largely to a decline of 13.1% to 894,000 bags for exports from Colombia. Compared with May 2019, shipments of Other Milds decreased by 14.4% to 2.61 million as volumes fell for the five largest exporters of this type of coffee, notably Honduras where exports declined by 20.9% to 730,000 bags. Exports of Brazilian Naturals decreased by 25.7% to 2.82 million bags. Brazil’s green Arabica shipments fell by 27.3% to 2.2 million bags, reflecting the biennial downturn of its 2019/20 crop. However, Ethiopia’s exports rose by 7.8% to 381,000 bags.

Exports in the first eight months of coffee year 2019/20 reached 83.8 million bags, down by 4.7% from the 87.96 million bags registered in the same period in 2018/19. In October 2019 to May 2020, exports of Colombian Milds fell by 7.9% to 9.33 million bags, Other Milds by 7.4% to 16.58 million bags, and Brazilian Naturals by 9.6% to 26.23 million bags. In contrast, shipments of Robusta increased by 2.5% to 31.67 million bags in the first eight months of coffee year 2019/20.

Imports by ICO importing Members and the United States, which on average account for around 75% of global imports, increased by 5.1% to 11.76 million bags in March 2020 of which 8.25 million bags originated from exporting countries. In the first six months of coffee year 2019/20, imports by ICO importing Members and the United States decreased by 3.7% to 64.22 million bags. Imports by the EU in October 2019 to March 2020 fell by 2.9% to 41.6 million bags, and those of the United States decreased by 8.2% to 13.75 million bags. Imports by Japan declined by 8.3% to 3.6 million bags, Tunisia by 6.2% to 265,000 bags, and Norway by 0.5% to 363,000 bags. In contrast, imports by the Russian Federation grew by 8% to 2.99 million bags, while those of Switzerland increased by 7.8% to 1.65 million bags.

Brazil was the largest source of coffee imports by the European Union, accounting for 20% of its imports in October 2019 to March 2020. This was followed by Vietnam (13.8%), Colombia (3.9%), Honduras (3.8%) and Uganda (3.2%). Imports from Brazil and Vietnam decreased by 6.7% to 8.32 million bags and by 10.4% to 5.74 million bags, respectively. However, imports from Colombia grew by 0.3% to 1.63 million bags, from Honduras by 20.7% to 1.57 million bags and from Uganda by 7.6% to 1.35 million bags. Around 70% of the EU’s imports are green coffee, particularly for those originating from producing countries, while soluble coffee accounts for around 10% of its imports. In the first half of coffee year 2019-20, Brazil, India, and Vietnam were significant sources of soluble coffee, representing 5.4%, 4.7% and 3.5% of the EU’s total soluble imports, respectively.

Imports from Brazil and Colombia accounted for 53.6% of imports by the United States in the first six months of coffee year 2019/20. Vietnam represented 9.1%, Mexico 4.9% and Peru 4.1% of US imports. Imports from Brazil decreased by 2.7% to 4.21 million bags, from Colombia by 10.3% to 3.15 million bags, and from Vietnam by 18.5% to 1.25 million bags. Shipments from Mexico amounted to 672,000 bags, 21.5% lower than in October 2018 to March 2019, while shipments from Peru fell by 27.3% to 558,000 bags.

The top five largest sources of imports of soluble coffee came from Brazil, Mexico, Colombia, India, and Spain, which accounted for 87.8% of the total. Among the five largest origins for roasted coffee, Canada, Italy, and Switzerland represented 71.8% while Mexico and Colombia represented 10.8% and 7.3%, respectively.

Like the European Union and the United States, Brazil, Vietnam, and Colombia were the main origins for Japan’s imports in the first half of coffee year 2019-20, accounting for 30.7%, 25.1%, and 15.3%, respectively. Ethiopia and Indonesia, representing 7% and 6.2% of Japan’s imports, were the next two largest suppliers. Imports from Brazil fell by 27.2% to 1.1 million bags and from Indonesia by 21.3% to 223,000 bags. However, imports from Vietnam grew by 12.9% to 904,000 bags, from Colombia by 14.4% to 551,000 bags, and from Ethiopia by 6.8% to 252,000 bags. Nearly 90% of Japan’s imports consist of green coffee, while soluble coffee accounts for around 9% of total imports. Brazil, Vietnam, and Colombia accounted for near 75% of total soluble imports. Brazil’s shipments of soluble coffee to Japan rose by 5.4% to 145,000 bags and Colombia by 20.5% to 28,000 bags while Vietnam’s fell by 14.7% to 68,000 bags.

For more information, visit: www.ico.org.

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