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Ceremonial to TikTok Trending: The Evolution of Matcha

Ines Coutinho — Thu, 17 Oct 2024 10:15:47 +0000

These days, a significant proportion of Western consumers will have heard of matcha, even if they have not tried it or know exactly what it is. And for many of these consumers, they will have spotted it on the
menu of a local café or coffee shop chain, or as the listed flavour in baked goods, ice cream or perhaps even in the tea aisle. While some may posit that the Westernisation of matcha is a blight on the traditions and rituals entwined in the beverage, most welcome the growth in its popularity, the expansion of its market and the sharing of a culture.

The Camellia sinensis plant, from which matcha originates, was first cultivated for use in tea in China in the 3rd century BCE, but it wasn’t until the 7th to 10th centuries that the practice of consuming the leaves in the form of matcha was first documented. Matcha, unlike the infusion process of its black and green tea sisters, is made by finely grinding the tea leaves into a powder that is mixed with hot water and consumed in its entirety. It is thought that a Japanese Buddhist monk brought matcha to Japan
sometime around the 12th century, where it was considered highly valuable and coveted and therefore necessitated a careful preparation method, and so its consumption and preparation developed into a spiritual practice by the 16th century, the whisking of powdered green tea into hot water a meditative ritual. Since matcha began as a rare and premium product, the ceremony of its preparation became
entrenched in its consumption. In modern day Japan, matcha tea ceremonies are still widely practiced, and while it is no longer reserved for the elite or ‘ruling class’, it is still deeply ritualistic with specific implements such as the bowl and bamboo whisk, and even particular whisking motions or patterns.
Meanwhile, elsewhere in Japan, the matcha latte has become extremely popular, commercialised
and readily available, and co-existing alongside its traditional consumption in the country.

Matcha Migrates West

Western countries have long since been discovering and adopting Japanese culture and cuisine, and matcha is no different, with it seeing a marked rise, particularly in the US. Future Market Insights (FMI) reports that the matcha market in 2023 was worth USD $2.7 billion and is expected to reach $7.1 billion by 2033 — a CAGR of 10.2 percent. FMI attributes this growth to the interest in its health benefits, use in skincare and culinary applications such as confectionery. The latter of which is driving
its popularity in the Indian market, according to Fact MR , while the health benefits are driving the market in the US.

Japanese tea company, Ippodo, was founded in 1717, “when the [matcha] tea ceremony had begun to be enjoyed by other elites like warrior families and high-class townsfolk,” said Tomoko Honda, head of global operations, Ippodo. In 2001,Ippodo began selling its matcha overseas as the number of international visitors to its Kyoto shop had begun to increase.

The growing interest in matcha was also noted by Germany-based tea supplier, Wollenhaupt, which had previously only been including matcha in its catalogue as a ‘marginal phenomenon’, said Marco Sinram, head of tea trading and sustainability, Wollenhaupt, but recognised that demand was developing ‘dynamically’, and therefore now offer three different types of matcha to its customers.

“Ten years ago, very few people had heard of matcha and now the market is absolutely exploding. So many new matcha brands have popped up in the last couple of years and you can find matcha on menus in more cafés and restaurants. The UK is now following in the steps of places like New York and Los Angeles with matcha bars popping up across the country,” said Katherine Swift, founder and CEO
of OMGTea, a UK-based specialist matcha green tea company.

One such place is Blank Street coffee chain, which began in Brooklyn, New York, in August 2020, and now has locations across New York; Boston, Massachusetts; Washington, DC; and in 2022 debuted in London. While Blank Street serves an array of café and coffee shop offerings, some of its most distinguishable and popular products are its matcha beverages.

When Blank Street launched in London in Summer 2022 ,matcha wasn’t a widely accessible drink. There were limited places to get matcha on the high street, but most of those places offered either expensive or low-quality matcha. We wanted to disrupt the market by launching exciting flavour combinations that made a niche category into one that is more fun and accessible for everyone,” explained Ignacio Llado, UK managing director at Blank Street. “In Spring of 2023 we launched our Blueberry Matcha, joining the classic Matcha Latte on our menu. This drink was the first of its kind in London, and […] immediately caused a huge buzz, with TikTok and word of mouth helping it to quickly climb to become a Blank Street best seller.”

Matcha’s vibrant green colour affords it a social-media-ready aesthetic for consumers, fuelling its popularity among influencers and the younger generation. Blank Street has recognised this in its marketing strategy, making use of clear cups and contrasting colours to bring its matcha drinks to life.

While many of the high-street iterations of matcha lattes and frappés may be heavy on sugar or cream, matcha itself is considered a remarkable health food, with this being another, perhaps the largest, draw to the product for consumers. “Matcha aligns well with overall wellness trends and appeals to those looking for more specific benefits such as a healthier alternative to coffee or energy drinks, detox,
increased antioxidant intake, weight management, etc,” said Swift.

A Healthy Shade of Green

The way in which the Camellia sinensis plant is grown in order to produce matcha, allows for the accumulation of catechins, (−)-epigallocatechin-3 -gallate (EGCG) in particular is most abundant in matcha. It is these catechins that provide high antioxidant properties and give matcha its reputation as a health drink. It has been found that “regular consumption of matcha may have a positive effect on both physical and mental health,” according to the report Health Benefits and Chemical Composition of Matcha and Green Tea : A Review by Joanna Kochman, Karolina Jakubczyk, Justyna Antoniewicz, Honorata Mruk, and Katarzyna Janda, published on PubMed Central.

It is the health benefits of these antioxidants found in matcha that encouraged Swift to establish OMGTea. She began researching its benefits after her mother was diagnosed with breast cancer, then both she and her mother began routinely drinking matcha green tea. Five years later, Swift launched OMGTea, and a year after that she founded The Healthy Life Foundation, a charity that funds research into age-related diseases, including cancer.

Swift emphasised, however, that the quality of the matcha consumed is essential to reaping its health
benefits. While matcha is generally considered a premium product, there are more affordable blends
available; these are the kind often used as ingredients in confectionery or desserts where the matcha taste need not be so refined. Matcha can be tested for its quality by examining the colour and texture, as well as the taste. She explained that they quality check their matcha regularly using the ‘finger/stroke test’, whereby matcha powder is placed on a white piece of paper and, using a finger, is pulled across the page to observe its colour and texture alongside others. The brighter the green colour, the higher quality the matcha, also the particle size of high-grade matcha ought to be between five and ten microns, as fine as baby powder, said Swift.

This essential colour and texture gauge all comes from the farming process, which has specific methods to ensure these attributes. “For around three weeks before harvest, shades are put over the tea fields to block out the sunlight, which increases the amount of flavourful, umami-rich components in the tea leaves. After the leaves are harvested in the beginning of May, the leaves are steamed, cooled and dried, baked, and sorted. […] The leaves are then ground with stone mills to produce the fine powder called matcha,” explained Honda. Shading the tea leaves is a traditional characteristic of matcha production, and is a method invented centuries ago in Kyoto, Uji, Japan, and is now widespread, she noted.

It is the shading that boosts the leaves nutrient levels, causing an overproduction of chlorophyll, contributing to its bright green colour, added Swift. The stone mills are also what produce the silky, fine texture of quality matcha, whereas lower grades are cut and blended using steel, which, she noted, reduces the flavour and bio availability of the matcha’s nutrients.

The location where the matcha is grown is also crucial to its quality and flavour. There are specific areas that are known for their matcha production, such Uji, Japan, “one of the most renowned regions for matcha growing in the world,” said Llado, and it is around this area that Wollenhaupt, Blank Street and Ippodo source their matcha. The region of Kagoshima, Japan, is also particularly suited to matcha production, benefitting from its volcanic soil and climate, commented Swift, and is where OMGTea sources its products.

Sustaining Production

With such specific regions and fastidious productions techniques, are matcha’s producers prepared to meet the surging global demand from the product, not just domestically in Japan, but as far away as the US and UK? Sinram explained that, while Wollenhaupt believes that the highest and most authentic quality of matcha can be found only in Japan, it is possible to source it from other producing countries,
depending on the requirements of the customer.

Meanwhile, Swift noted that in the Kagoshima region, practices are being undertaken to increase production in order to meet demand, “Farmers in Kagoshima have been adopting advanced agricultural techniques to enhance matcha. These innovations help increase yield and improve the quality of the tea leaves. Some tea farms are converting or expanding their fields specifically for the cultivation of tencha, the raw material used to make matcha. Local government initiatives and support for the tea industry have also played a role in encouraging the growth of matcha production in the region.”

Honda added that as global climates change, areas that are suitable for production are shifting and will continue to shift. “Areas where tea can be grown will likely change or expand as well, whether inside or outside of Japan. We are not sure what the future will bring, but it is key to plan for and adapt to changes.”

This growth in demand has created a broad market for matcha with varying requirements and uses. Where it has historically and traditionally been an exceptionally premium and ceremony-bound product, it is now a commercialised and accessible product for many consumers, posing the question of how far it can be removed from its origins and cultural significance? “While it’s great that matcha is going more mainstream, we want to make sure that it still feels special and comes with the holistic experience that has been central to Blank Street since we first launched,” noted Llado.

So where perhaps the ceremonial aspect of matcha may no longer be a necessity, it still can add something to the experience of consumers, if they engage with it, encouraging more mindful consumption, said Swift.

Honda added that, while consumers may not know of its ceremonial or spiritual origins, “during the tea ceremony and in Japanese society in general, when drinking matcha it is considered important to feel gratitude for the person who made the matcha for you and for those who produced it. We think it would be wonderful if that sentiment grew alongside the increasing popularity of matcha worldwide.” Therefore, its marketing is crucial, to not only offer consumers a brightly coloured health drink, but also a moment of reflection on both the beverage and the process that went into every sip.

Kathryn Brand is an associate editor with T&CTJ, while still writing for several of Bell’s
other magazines. She joined Bell Publishing at the beginning of 2022 after graduating from
the University of East Anglia with a degree in English Literature and Creative Writing.

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2nd International Coffee Convention Returns to Mannheim

Vanessa Facenda — Fri, 04 Oct 2024 16:30:36 +0000

The 2nd International Coffee Convention is set to take place 17-18 October in Mannheim, Germany bringing together leading experts and enthusiasts from the global coffee industry to discuss and shape the future of coffee. Dr Vanusia Nogueira, the executive director of the International Coffee Organisation, will deliver the keynote address.

The International Coffee Convention (ICC) was established in 2023 to address the pressing issues facing the coffee industry. The inaugural ICC identified these challenges and highlighted the opportunities within them, setting the stage for actionable solutions. While there were originally no plans to hold a second ICC so soon after the first, Dr Steffen Schwarz, founder of the ICC, said the overwhelming response and the need for continuity in tackling these challenges led to the organisation of the second ICC in 2024.

The ICC 2024 program, the theme of which is ‘Coffee in Transition’, is designed to tackle pressing issues in the coffee industry. Key sessions include:
1. Future Landscape of Multiple Coffee Species: Addressing species such as Robusta, Racemosa, and Stenophylla within the context of the Nagoya Protocol.
2. Land Use and Coffee Farming Systems: Exploring deforestation policies and innovations in coffee fermentation and processing technologies.
3. Advancements in Coffee Preparation and Business: Covering the journey from roasting to creating the perfect café crème.
4. Sustainable Utilisation of Coffee By-Products: Discussing challenges and opportunities in utilising coffee by-products sustainably.
5. Coffee and Health: Examining the nutritional impacts, benefits, and substantiating health claims of coffee.

The event will also include unique cupping sessions to explore rare coffee species:
• Rare Species Cup tasting
• Liberica Cup tasting

Additionally, there will be a live research project on sensory coffee preference testing, providing attendees with hands-on experience in evaluating coffee maturity and freshness. Among the key scientific presentations, the ICC will showcase a groundbreaking study on the impact of post-roast maturation on the sensory experience of coffee, offering new insights into how aging affects coffee flavour and quality.

The Kaldi Awards, which celebrate significant advancements and research in the coffee industry, will be presented during the convention, recognising outstanding contributions in various categories such as lifetime achievement, green coffee cultivation and processing, roasting, and preparation.

The International Coffee Convention is designed to be an unparalleled gathering for ‘anyone passionate about coffee’ — from farmers and roasters to traders and researchers. By fostering collaboration and sharing cutting-edge research, the convention aims to drive the industry towards a sustainable and innovative future.

For the full programme, visit: coffee-convention.com/Program/.

For more information and to register for the event, please visit: International Coffee Convention.

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Kalve Coffee set to see international expansion and production capabilities

Lily Blackmore — Thu, 18 Jul 2024 07:17:09 +0000

Latvian specialty coffee roaster and café operator, Kalve Coffee, is set to raise €1m ($1.1m) through an initial public offering (IPO) to support its international expansion and enhance production capabilities.

The company, which was established in 2019, is targeting the second half of 2024 for the IPO, intending to become more accessible globally.

Kalve Coffee has four café locations and a bakery in Riga, Latvia and a roastery in Jaunmārupe.

The funds from the IPO are earmarked for the opening of six new café-stores in Estonia and Lithuania by 2025, with plans to extend into other Baltic regions by 2026.

The IPO proceeds will also be used to optimise manufacturing processes and increase production capacity at the Jaunmārupe facility.

The Jaunmārupe facility, which opened in 2021, can produce 60,000kg of coffee monthly and supplies hotels, restaurants, and catering clients across Latvia, Poland, Estonia and Germany.

In addition to roasting coffee, Kalve Coffee is a distributor for Victoria Arduino and Nuova Simonelli coffee machines and Eureka grinders.

The company is also looking to expand its coffee machine rental and maintenance services.

Kalve Coffee reported a 38% increase in year-on-year sales growth in 2023, achieving a record €2.5m ($2.7m) in revenue.

The Baltic Times quoted Kalve Coffee co-founder and board member Gatis Zēmanis: “At the heart of any business is the ability to ensure a healthy cash flow, which we have been able to do. Since Kalve was founded, we have shown steady growth, increasing the company’s turnover from €0.35m to €2.49m in four years.

“This is a very positive trend and also good for the company, given that Kalve wants to address the lack of availability in the premium coffee market by providing customers with a unique specialty coffee experience.

“The fact that demand continues to grow is also evidenced by the volume of Kalve coffee sold, with almost 83 tonnes last year, an increase of 25% compared with 2022.”

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Strengthening the coffee community: collaborative roasting

Lily Blackmore — Thu, 04 Apr 2024 14:17:19 +0000

From producer to roaster, collaborative roasting spaces are strengthening the supply chain by helping make coffee more accessible and economical, while also providing the opportunity to experiment with new technology and equipment. By Anne-Marie Hardie

The coffee industry is well known for its strong collaborative community, where individuals gather to discuss opportunities and challenges, share successes, and brainstorm solutions. The concept of collaborative roasting takes this a step further, with roasters joining together to share both space and equipment. The creation of these spaces has helped to make coffee more accessible, while also becoming incubators for advancements in the industry, providing a space to explore new technology and equipment as the costs are shared amongst multiple members.

The Canadian Roasting Society (Montréal, Canada) has adopted the collaborative roasting model to propel the coffee industry forward in its local region. Established in 2018, partners Andrew Kyres and Scott Rao wanted to advance the coffee industry in their local community, including providing space and equipment. Today, they have created a modern roasting facility with a 5,000 square foot warehouse and the ability to store 75,000 pounds of coffee.

The space is open for individuals or companies to use their resources, including a custom-built Probat roasting machine, weighing, filling and sealing machines, reverse osmosis filtration systems, storage space for green coffee, coffee tasting and brew laboratory and access to qualified personnel and on-site data analysis. There is a pre-established fee, avoiding the high start-up costs that individuals in the industry.

Breaking down barriers

The standard process for collaborative roasting involves a founder making a significant capital investment and then sharing their resources with others in the coffee community for a pre-set fee.
Leonardo Azeredo, founder of Co-Roasting, based in France, was intrigued by the concept of this model but pondered if it could be done differently; specifically, if instead of renting a space and the equipment for roasters to use, there was equipment in his community that was currently not being maximised. In 2018, while Azeredo was completing his executive MBA, he began researching if this type of model would be possible. His research, which involved interviewing over 100 roasters in France, revealed that more than 80 percent said that they used their equipment only two days a week.

The collaborative roasting model proposed by Co-Roasting was centered around maximising the existing resources by developing a digital platform that could pair individuals seeking a roaster with owners of roasters that were not used to their total capacity. “If they want to be a host, it’s not only a matter of having equipment that is not being used to its full capacity, but also about having a willingness to share knowledge to help develop the competence of someone looking to get into the field,” said Azeredo. Specifically, he is seeking members who are aligned with the Co-Roasting community’s core values of integrity, respect, sharing, and empathy and are willing to share their equipment and become part of an entrepreneurship incubator.

Checking coffee beans during roasting at Cafés Muda. Images credit: Co-Roasting

“I strongly believe that people need to have accountability for their decisions, and if someone is looking to quickly start their business, collaborative roasting is a good way to start,” said Azeredo. “We can do things differently and continue to innovate with a collective intelligence; our vision is to create a full value chain of collaboration.”

This includes extending the collaborative model beyond the individuals who use the equipment and the hosts of the equipment to other key players in the industry, including equipment suppliers, software manufacturers, and producers. “Our vision is to create this kind of ecosystem, to help accelerate the process of being able to provide and give access to good coffee to the consumer.” Currently, Co-Roasting has close to 50 members, including users, hosts, producers, and equipment manufacturers, in France, Belgium and Brazil, and it plans to expand into other regions.

Building bridges

Could producer ownership be a new form of collaboration? On 22 February 2024, Paso Paso opened its doors, presenting the coffee community with a new version of collaboration involving producer investment. Bram De Hoog, the visionary of this concept, actively sought out producers from across the globe to develop a company centered around producers coming together to co-own a roastery and, in turn, empower producers to represent themselves in the European market.

“Each business has its complications, challenges, and the investments that it needs to succeed, but I could see some of our clients from the importer side opening up a coffee shop and expanding their roasting business from purchasing ten bags to 100 bags over the course of only a few years,” said De Hoog. “I just didn’t see the same potential for growth on the coffee producer side.” All participants, which currently includes five producers and De Hoog, are registered shareholders of the company based in Germany and are actively involved in making decisions and profit-sharing.

“I wanted to be very egalitarian and very straightforward – basically, if you invest money in the roastery, you will get shares in it, there’s no further complication to it,” said De Hoog. The roastery, which is based in Hannover, Germany, is currently being operated by De Hoog, while the producers, who reside in their respective countries, are involved in all company decisions, which includes committing to monthly meetings to discuss strategy and financing.

The producers, who are currently located in Costa Rica, El Salvador, Ethiopia and Nicaragua, each have unique limitations that they face within the coffee industry but jointly shared that they were seeking a solution that would actively make a difference in their lives. Part of the motivation for launching Paso Paso was to prove to the industry that the existing model can be changed; specifically, the industry should actively seek ways to increase producer involvement across the entire coffee chain.

De Hoog, who has extensive experience as a green coffee buyer, had previously established positive relationships with each producer involved in the project. He hand-picked the participating producers, who stood out for their dedication, passion, and open-mindedness to challenge the status quo.

“I was inspired by Bram because it really is a unique business model. It is very different from what we see out there and the normal way of selling coffee. We’re feeling like pioneers,” said Diego Baraona, coffee producer at Los Pirineos, El Salvador. “It’s kind of like a redistribution of power, giving a bit more to the producers and essentially starting to change the industry.”

The producers shared that one of the unexpected benefits of creating the company has been gaining insights from the different perspectives of each investor and then using these insights to make decisions about the company. “We are combining our knowledge in our specific fields and putting a team together that is going to make sure that this project will [move] forward,” said Daniela Vega, producer of Roble Negro, Costa Rica. “The business model is so different itself, [which makes it] attractive, [so] you want to participate and give your ideas to help the company grow because it’s your company as well.” Vega explained that she has felt a shift in the coffee industry as a whole as more individuals recognise the value producers provide to the industry and the necessity for increased economic acknowledgement.

Sorting coffee at Bette Buna farm in Ethiopia. Image credit: Hester Westerveld

The journey from concept to company launch has been a complex path. However, the producers have learned a lot about the industry and the logistics that come into play when developing a company with multiple owners from across the globe. “We’re showing already that you can make the impossible possible, and my only hope for the future is that this team will become even tighter,” said Hester Syoum Westerveld, coffee producer at Bette Buna in Ethiopia. “People talk about doing things differently and taking action, but we are actually just doing it and showing that it is possible. It has not been an easy process to start.”

Signing the paperwork, for example, required using embassies and notaries in respective countries or flying to Germany to complete all the documentation. De Hoog shared that he went to 13 separate banks before finding one that would agree to sign on with the company. However, all members persevered in transforming the company from concept to reality. They are now looking forward to a future where there are opportunities for producers to play a more active role in the industry.

“We’re able to break that supply chain and set it up differently. Our goal is to create stability for our producers and develop an integrated loop between what we are producing, what we are roasting, and what we are selling,” said De Hoog. [We] hope to grow the company so that, say, in five years from now, the roastery is buying all of the coffee from a producer and expanding the opportunity to others.”

The continued adoption of the collaborative roasting model will challenge the industry to break down traditional boundaries and continually reinvent how the market can share a good cup of coffee. Coffee has always been a collaborative industry, with players coming together to develop solutions that will help ensure that the industry is sustainable. The model of collaborative roasting is another piece of the puzzle providing current and future players with tools and resources to propel the industry forward.

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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JNP Coffee expands operations in Europe

Lily Blackmore — Fri, 15 Sep 2023 15:17:26 +0000

As of the beginning of September, JNP Coffee has new operations in Berlin, Germany. The expansion into Europe comes as the company unveils its 2023/2024 harvest. The company says the harvest is a symbol of its growing global footprint. For its European customers and those beyond, JNP Coffee is offering exclusive samples and the chance to reserve coffees.

The company’s latest Burundi coffee, Turihamwe, has proudly secured a 92 score in last week’s Coffee Review. This accolade is a testament to JNP Coffee’s commitment to quality and the rich terroir of Burundi, says the company. As it gears up for its new harvest, customers can sign up for exclusive pre-ship samples and experience Turihamwe alongside JNP’s other offerings, Bahire and Incuti.

JNP Coffee continues to champion the exceptional coffee offerings from Burundi, a nation where coffee plays a pivotal role, contributing to more than 80% of its exports. This year, delve into the intricacies of Burundi coffee, from its unique production and processing methods to the anticipated flavours of the 2023/24 harvest. The dedication of over 800,000 smallholder farmers ensures quality and distinctiveness. As the new harvest season approaches, Jeanine Niyonzima-Aroian, the founder of JNP Coffee, highlights in her latest blog the efforts to enhance coffee processing, the rise in popularity of natural Burundi coffees, and the initiatives to boost the coffee industry in Burundi.

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GaeaStar debuts its zero waste clay coffee cups in the US

Lily Blackmore — Wed, 05 Jul 2023 09:19:19 +0000

GaeaStar, the San Francisco and Berlin-based technology company creating ultra-thin clay containers to break our dependency on single-use plastic, has debuted its “drink to dust” technology in the United States, with applications for café coffee cups. Developed via high-speed additive manufacturing, or 3D printing, and made of three simple ingredients – clay, water, and salt – the cups and bowls are geoneutral, meaning they come from natural materials of the Earth and leave behind zero harmful waste. Users can discard the containers in the normal trash or smash them on the ground, and they simply turn to dust. Recycling is no longer necessary or required.

After generating over a million unit orders and even more product demand from its debut in Germany, GaeaStar has raised USD $6.5M in seed funding from Morningside Technology Ventures, at.inc/, Dart Labs Ventures, Sand Hill Angels, VSC Ventures and Climate Capital Ventures to bring its products to the United States, starting in San Francisco.

The world is currently creating more plastic waste than ever before. In 2021 alone, we generated over 40 million metric tons of plastic, yet only nine percent of all plastic ever made has been recycled. With GaeaStar, recycling is rendered obsolete.

Inspired by 5,000-year-old clay cups known as “Kuhlars,” GaeaStar presents a modern-day twist on the ancient Indian tradition of drinking from disposable clay cups that can be tossed — or smashed — on the ground without environmental harm. By combining this cultural practice with 21st-century technology, the company has created a viable fix for our single-use waste problem.

“Although many sustainable food and beverage containers are in the market, finding ones that are also exceptional products overall is a challenge. Our technology finally offers a solution that meets the convenience of being disposable without causing harm to the Earth while giving users a high-end experience,” said Sanjeev Mankotia, founder and CEO of GaeaStar. “It’s all based on the premise that the answer to ditching plastic is to create something that comes from and returns to the Earth in essentially the same form. Ultimately, we have the potential to scale our technology for generations to come without adding more harmful waste to our landfills and waterways.”

How it works

Unlike soggy paper straws or chemical-ridden plastic packaging, GaeaStar’s clay containers are ultra-thin yet 10x stronger than paper cups. The sourcing of the raw materials and delivery of the product is all done locally via a micro-factory model to limit the environmental footprint from start to finish.

Landing somewhere between single-use and reusable containers, these vessels can be taken home and safely used dozens of times with proper care while still having impact and guilt-free disposability.

Each container can be printed in an average of 30 seconds and, at scale, is cost comparable to single-use incumbents so businesses can move towards their sustainability goals in a cost-effective way.

“With the amount of single-use plastic piling up in our environment increasing, it’s obvious that recycling is not a functioning solution to plastic. Sanjeev and his team at GaeaStar have finally presented a realistic way of doing so without the need to drastically change human behavior while making it easy for us all to do our part in creating a future with less waste. Our team is humbled to join this journey and witness GaeaStar transform the market for plastic alternatives,” explains Sophie Lamparter, managing partner of DART Labs Ventures.

GaeaStar will begin distributing its coffee cups in the US through a pilot with California-based Verve Coffee Roasters. The collaboration will give Verve customers at select cafes a more eco-friendly option when ordering particular food and beverages, and allow GaeaStar to fine tune its original container prototype to meet the needs of Verve and other US businesses.

“Our mission is to, not only craft the future of coffee but, to protect its future – and that means being more intentional and sustainable with everything we do. Our customers are mindful about how their choices impact the planet and we think they’ll be thrilled about this more eco-friendly swap to enjoy their daily cup,” said Colby Barr, co-founder of Verve Coffee Roasters. “We’re honored by the opportunity to work with GaeaStar to help pioneer a more sustainable solution while maintaining the high-quality experience we seek to deliver with every customer interaction.”

To learn more, visit gaeastar.com.

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A virtual and sustainable future at interpack 2023

Lily Blackmore — Thu, 11 May 2023 16:08:16 +0000

This year’s interpack, which took place 4-10 May in Düsseldorf, Germany, was the first to be held in six years, and as a result, the show offered an array of trends and innovations within the packaging and processing industries, markedly more distinct and developed due to the longer gap, as well as of the industry- and culturally-altering effects of the Covid-19 pandemic. These main themes were that of digitalisation, automation and sustainability.

The first two were dramatically propelled forward because of the pandemic, as companies were forced to reimagine how they conducted business and how they could operate in safe and innovative ways. Rockwell Automation and tna solutions offered visitors to their stands the chance to experience their VR (virtual reality) technology. Rockwell Automations sat us down inside egg-shaped swivel chairs and placed a headset on us to talk through its Emulate3D digital twin software. You are transported to a factory floor with a range of production machinery, mirroring a real world set up. Customers can use this technology to trial machinery with their products before ordering, simulate how the equipment could work in their space and train employees on the systems without them even needing to be on the factory floor.

Similarly, tna’s entire presentation was in a virtual reality (or what they call Extended Reality or XR) scape, where we were guided by a virtual figure (that brought to mind the uncanny valley theory!) through its virtual factory, allowing customers, much like Rockwell, to commission, maintain and train workers on production lines. tna developed this technology during the Covid-19 lockdowns, as travel was dramatically restricted, as was in-person contact of any kind. A client of tna wanted to be able to remotely design production lines and test them with their product. This pressure encouraged companies like tna and Rockwell to rapidly develop what still seems like incredibly futuristic technology to enable connectivity and productivity despite such physical and logistical barriers.

Likewise with digitalisation, machine operators are now able to access and review production lines and equipment from a remote location, extracting and analysing the data to assess the machines efficiency and pre-empt any issues, so parts can be ordered, or maintenance can be scheduled ahead to reduce downtime and therefore increase productivity of a plant. With this knowledge, a machine can be relatively self-automated and switchover its own parts for format changes, as Sidel demonstrated with its new case packer at the show.

While Covid-related restrictions may have all but eased, workforce-related challenges are now driven by labour and skills shortages, particularly in Europe, and especially in the UK. The advancements in digitalisation but particularly VR technology can mitigate the disruption caused by this shortfall as workers need less training and experience as they can be talked through changeovers and maintenance by the virtual simulation. If the machine is automated, then it can also maintain or changeover itself, again requiring fewer or less trained workers on the factory floor.

With sustainability in mind, such developments can result in reduced travel necessities for customers in the design and development stages of machinery, as well as increased operating efficiency and reduced downtime, saving energy. Almost every company in attendance at interpack was eager to talk about sustainability, whether it be how their machinery is adapted to recyclable packaging materials, or how it is more energy efficient and therefore sustainable. Some made more tangible and impressive claims than others but all made claims, whether it be that they had reduced the plastic in their packaging by 10% or whether completely plastic free, as it is still such a buzz word that attracts every part of the supply chain.

Having not attended the interpack six years ago, it’s hard to say precisely how much automation, digitalisation and sustainability trends have developed or emerged since then. However much of the innovations felt in their relatively early stages, especially the VR, which was still only just being realised on a commercial level, so it will be interesting to see how much more widespread and developed these futuristic innovations will be in 2026.

Kathryn Brand, associate editor, Tea & Coffee Trade Journal.
Keep in touch via email: kathryn@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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IMA Coffee launches the SYNKRO high-speed capsule filling and sealing machine

Vanessa Facenda — Fri, 05 May 2023 17:00:20 +0000

IMA Coffee strives to answer the needs of the industry and develops top-quality solutions to enhance the performance of their customers. By following the trends closely and raising the technological level of the equipment, IMA enables customers to achieve their targets and respond to the market’s evolving demands. The latest example of IMA Coffee’s ability to innovate and push back the boundaries of capsule filling and sealing is called SYNKRO.

Flexibility, speed and a clean design concept
SYNKRO implements the latest technologies to deliver the following key benefits: high-speed performance, space-efficient design, unprecedented flexibility in handling all types of capsules, whatever they are made of.

Starting with the design, this machine is compact and offers easy access to operators for maintenance or cleaning operations. In particular, the pull-out dosing unit is quick to clean whenever necessary. The machine’s footprint is relatively small for the high processing speeds that are reached, ranging from 800 to 1200 ppm.

In terms of flexibility, there are many aspects which make SYNKRO probably the most versatile, high-speed capsule filling and sealing machine available today. Principally due to the magnetic shuttles operating independently of one another, SYNKRO will adapt to all needs. Bulk-fed, on trays or in stacks, whatever the material or size of the capsule, anything is possible.

The most significant aspect of the machine’s versatility depends on the different dwell times that are achieved at the different operating stations. This enables the customer to set perfect parameters according to the production scenario, adjusting each single operation and optimising the final product quality. For example, the sealing system parameters – time and pressure – can be changed according to the material to be sealed. Moreover, SYNKRO can be fitted with a variety of different sealing systems, allowing customers to select the most appropriate solution based on materials used and the product they are processing.

Automation and accurate processing
Cutting-edge automation technologies combined with the clean design of SYNKRO allow for non-stop production. Both semi- and fully automatic reel-feeding are possible. Pre-arranged to connect to loading systems via AMR (Autonomous Mobile Robot), the machine also features an automatic reel-splicing system.

SYNKRO also features an innovative dosing unit that implements pre-compression to compact the coffee during capsule filling for a homogeneous product; this guarantees consistent dosing throughout each batch. Accurate weight is an easy target to respect thanks also to the on-line weighing system which checks each capsule and feeds data back to the dosing unit if automatic adjustments are required. Additionally, the dosing unit’s off-set design minimises the distance between capsules for important savings on packaging material.

Exploit superior potential
SYNKRO has been developed to boost the capsule filling and sealing potential of companies looking to reach higher targets and exploit the variety of demands today’s market makes of coffee capsule producers. Independent magnetic shuttle transfer, synchronised processing which can be adjusted time after time, automation systems and innovative mechanisms to ensure reliably consistent quality, and a clean, modular design concept are all factors that make SYNKRO the superior solution.

SYNKRO will be on display at IMA Coffee’s booth at Interpack, Hall 17 in Düsseldorf, Germany 4-10 May.

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Private label brands enjoy rising popularity in Europe

Lily Blackmore — Mon, 09 May 2022 11:22:20 +0000

Private label coffee and tea products are quite well established in Western European retailers, but now their presence is growing in Eastern European retailers as well and moving beyond the ‘lowest price’ option with which they were once primarily known. By Vladislav Vorotnikov

Changing consumer habits and the development of grocery retailers are shaping up the private label segment of the tea and coffee market across Europe. The growth potential in this segment is yet to be exhausted, especially in the eastern part of the continent, where market players are now catching up with Western trends.

Over the past few years, private label coffee has been increasing its presence in the European market. Numerous European supermarket chains put their own brands on the shelves, such as Perla from Dutch supermarket Albert Heijn, E.Leclerc’s L’origine du goût in France, and Tesco Finest and Marks & Spencer in the United Kingdom.

Private label tea at Netherlands-based grocery store, Albert Heijn. Image: World Brand Design Society Website

Nowadays, it is believed that the share of the private label tea and coffee products is the highest among discounters, and they could drive growth in sales in Europe even further.

“Private label genesis and evolution are impossible without developed modern grocery retailers. Further penetration of discounters, especially in Eastern Europe, brings more space for private label moves and initiatives,” commented Julija Poliscuk, senior analyst of London-based market research company, Euromonitor International. “This is the main factor for healthy dynamics of retailers’ own brands across hot drinks. Channel shift transforms private label to comprehensive and trusted brands,” she added.

The entire European market is currently under an influence of the rising production costs, which affect all links in the production chain, and change consumer attitudes, Khansaa Ruiz, export manager of the Alicante-based coffee factory Burdet Coffee said. “There is a major crisis. Roasting factories are suffering at the moment because of the increase in coffee prices. We have been struggling to keep business going. The coffee prices have escalated tremendously due to the Covid-19, then due to the transport problems, and now due to the war. So, it’s a bit chaotic.”

“As for the private label coffee the trend is towards higher quality coffee, or at least this is our business, and we do see an increase here,” Ruiz said. She explained that there is a relatively high demand for new brands on the market. In general, many small businesses and people are looking for small business opportunities, and the market witnesses a very important increase in small businesses, including those wanting to create online websites to sell coffee.

“As for the quality of the coffee, we see that more and more a single-original coffee is being sold better. [This concerns] pure coffee, such as Colombian, Ethiopian, Guatemalan, Costa Rican, etc. People are starting to appreciate the meaning of good quality coffee,” she added.

Alberto Lusini, head of Northern Europe at Massimo Zanetti Beverage cited New York-based consultancy, Nielsen, estimating that private label share in the European coffee market is between 10 per cent and 25 per cent. “This data has had a relatively constant growth in past years. Private labels in the mass market and food service are no longer synonymous with entry-level pricing,” he explained.

The private label segment developed an important evolution in terms of innovation and improvement in quality, typical of the branded business, Lusini said, explaining that trade labels are answering the needs of consumers for additional transparency, and traceability, in case of single origins, and sustainability. “The increased sales of coffee beans is proof of a trend to bring the barista experience at home,” he added.

Poliscuk said that another reason why private label coffees are so popular is that there is more variety. “Most supermarkets offer several quality options and coffee from different origins. Many supermarkets have entered the premium segment and are expanding their range of certified coffee products. Retail sales of organic-certified private label brands are increasing. Examples of organic private label brands in Europe include REWE Bio in Germany, Carrefour Bio in France, and Waitrose Duchy Organic in the UK.

Covid-19 as a game-changer?

The coronavirus pandemic has reshaped the European grocery-retail landscape tremendously. With restaurants, cafés, and bars remaining largely closed in most countries during at least the first wave of the pandemic, consumers rushed to stock up on groceries.

The out-of-home coffee market was greatly affected during the Covid-19 crisis, said Utrecht, Netherlands-based consultancy ProFound-Advisers, in a post shared by the Dutch Centre for the Promotion of Imports from developing countries. Many coffee shops closed, and people worked and drank coffee at home instead. Coffee sales at supermarkets went up, which benefitted private label brands, and created a trend.

“Early in the Covid-19 pandemic, consumers around the world rushed to supermarkets to stock up on products. Retail sales went up a lot. Retailers also developed online sales and delivery solutions for consumers. This made supermarkets the main source of food and beverages during the pandemic,” the Dutch analysts added.

MZB says the demand for private label coffee is growing across Europe. Image: Massimo Zanetti Beverage

Lusini agreed, adding, “The Covid-19 pandemic and, even further the strong inflation on raw materials from Q4 2021, has pushed consumers towards private labels. In particular, the inflation driven by the strong price increases in green coffee has polarised the consumers towards entry-level prices on one side, and premium products on the other. Private labels could possibly take advantage of this.”

However, it is yet to be said that the Covid-19 pandemic has been a game-changer for the hot drinks market in Europe. Poliscuk explained that financial hardship caused by the pandemic forced consumers to re-think their spending, so value for money embodied in private label quickly became a priority, but that trend is primarily related to soft drinks. “Branded products remain important within hot drinks, due to their indulgence and rituality essence, in addition to the request for quality differentiation. Neither tea nor coffee of retailers’ owned brands did not gain share in 2020,” she added.

The European market is uneven

Private label hot drinks’ presence in Europe is not homogeneous and differs regionally and from country to country.

In 2021, almost 16 per cent of value sales of coffee and 14 per cent of tea in Western Europe were under retailers’ house labels. Meanwhile, in Eastern Europe this indicator does not reach 5 per cent for coffee and is 7 per cent for tea, Poliscuk said.

“The significantly stronger presence of private label in the Western part of Europe is explained with strongly developed chains of modern grocery retailers and already earned trust to own brands. Eastern Europe is only catching up with Hungary, Czech Republic, Poland, and Slovakia pursuing a Western model, with the strongest share of retailers’ brand overall and in hot drinks too,” Poliscuk noted, adding that these countries successfully adopted international – or developed their own – discount chains.

Single origin coffee is making its way into the private label segment. Image: Burdet Coffee

Different levels of development of store-owned brands define the way companies raise these products’ awareness. Thus, Eastern Europe usually puts the focus on low cost. More advanced chains enter the mode of portfolio expansion and product range broadening. Eastern Europe has already witnessed the evolution of basic needs’ satisfaction to catching up with expertise from brands they mimic, Poliscuk said.

Rising beyond the low-cost segment

As the popularity of private label products in Europe promises to gain traction in the coming years, this segment starts playing an increasingly important role for market players.

“We have a long-standing experience in private labels, both in mass market and food service. The management of private labels is part of our ongoing relationship with the trade at the global level and it represents one-fourth of our total turnover. We leverage our strong expertise in green coffee and the roasting capabilities of 18 plants located all over the world to support our PL clients,” Lusini said.

Poliscuk said that further projected penetration of modern grocery retailers and especially discounters will support the development of private labels across Europe with the highest dynamics in its Eastern part. “Private label in Western Europe is entering a new era where penetration of modern grocery and a developed omnichannel allow them to evolve towards something new and unique. Retailers’ own brands are ready to rise beyond low-cost, wide assortment and segmentation,” she said.

Currently, these brands target specific consumers’ needs and higher expectations with little or no sacrifice in terms of product quality. Poliscuk is confident that this will result in more private label coffee pods and fresh coffee beans with the underlined origin and technology of roasting, and private label tea will be able to offer more varieties and added value via functionality.

“As modern consumers are eager to buy sophisticated, premium organic or sustainable products, even price-sensitive private label [will be able to] enter the niches,” Poliscuk shared, adding, “It’s worth mentioning, that ever-continuing expansion of e-commerce with forms of dark stores and delivery services will draw new horizons for coffee and tea private label across Europe.”

Vladislav Vorotnikov is a Moscow-based multimedia B2B freelance journalist writing about the tea and coffee industry since 2012

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German coffee market reports growth

Sarah McRitchie — Tue, 26 Apr 2022 11:00:25 +0000

After a strong year in 2020, the German coffee market in 2021 reported renewed growth, according to the German Coffee Association. The per capita consumption rose from 168 to 169 litres. That corresponds to around 500 million more cups (compared to 2020), which were drunk across Germany last year.

Market for roasted coffee 2021: increase in food retail sales, pandemic-related decline out-of-home

The positive development in 2021 is primarily the result of increased sales of roasted coffee in the food retail sector. Working from home and lockdown caused the consumption of roasted coffee at home, with friends, family and acquaintances, to increase by 2.1% (plus 7,900 tons).

“We are a coffee nation. Coffee is crisis-proof and remains Germans’ favourite drink. In 2021, even more coffee was consumed than in previous years. The places of consumption have shifted further due to the pandemic,” says Holger Preibisch, CEO of the German Coffee Association.

In the second year of the pandemic, the decline in the out-of-home coffee market continued, but at a lower level than in 2020. The out-of-home segment lost 5.7% (minus 5,800 tons of roasted coffee) compared to the previous year. The greatest losses record (hotel) restaurants (minus 25%), cafes (minus 15%) and kiosks (minus 14%). Profits were shown by i.a. coffee shops (plus 25%), fast-food outlets/restaurants (plus 61 %) and bakeries (plus 3%).*

In total, the coffee market in 2021 (excluding the soluble coffee segment) showed an increase of 0.4% (plus 2,100 tons of roasted coffee), since the losses out-of-home were more than compensated by the growth of the coffee consumption at home.

Roasted coffee consumption at home: “whole bean” biggest growth driver

In 2021 growth drivers for coffee preparation at home were whole beans. They’re primarily used for preparation with fully automatic coffee machines or portafilter machines. The segment grew by 11.1% and achieved a market share of 41%. This brings “whole beans” closer to R&G coffee. This remained Germans’ favourite – with a market share of 47%.

“Today, every third household in Germany has a fully automatic coffee machine. Distribution grew by around 20% from 2019 to 2021.** Lockdown and working from home led to increased coffee consumption and the purchase of new coffee machines,” says Preibisch. “The pandemic is therefore a motivator for fresh and uncomplicated enjoyment with the push of a button.“

The coffee preparation with pads and capsules was also popular in 2021, despite occasional reductions. The consumption of coffee capsules remained stable. Their market share lasted unchanged at 5.3%. With a market share of 6.8%, coffee pods were still in demand. However, their sales fell by 6.1% compared to 2020.

Sales of soluble coffee in food retail: strong increase of single portions

Soluble coffee in its different forms for preparation at home were again very popular in 2021. Sales in food retail increased in all areas compared to 2020. Especially the single portion sticks with milk and/or sugar, also known as „X in 1“***, recorded significant gains of 15.4%. Soluble mixed drinks, e. g. “cappuccino type”, rose by 1.6%. Pure soluble coffee achieved a plus of 0.7%.

“We are looking positively into the future for 2022,” says Preibisch. “The level of consumption out-of-home was at the pre-corona level in the third quarter. This shows that the consumer is just waiting to drink coffee in the catering sector again. With the recent political easing measures, we therefore expect fulminant coffee consumption out-of-home in 2022.”

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Ally Coffee expands European trading with new Hamburg office

Sarah McRitchie — Mon, 06 Dec 2021 16:40:47 +0000

Ally Coffee will be opening a new office in Hamburg, Germany in early 2022 to include purchasing, sales, and a quality control lab with a focus on commercial trading within the European market. This location will add to Ally Coffee’s current European offices located in Lausanne, Switzerland and Gothenburg, Sweden.

Sebastian Link joined the Ally Coffee team in November as Commercial Trading Manager to head up this new endeavor in Hamburg. Sebastian’s background in the coffee industry spans over 15 years working in various roles including account management, trading, sourcing, logistics, quality control as well as physical and futures position management.

As commercial trading manager, he will collaborate with Ally’s trading team to establish new commercial business, connect roasters in the European market more directly to Ally’s sister companies Atlantica and Cafebras in Brazil, and develop sourcing strategies of commercial coffees in Asia and Africa.

“Hamburg is a coffee hub and home to one of the largest ports in Europe. Opening this new office demonstrates a growth that will give Ally Coffee a broad and diverse footprint, opening new doors to the European coffee industry as well as offering new origins and coffee qualities to the existing customer base”, states Sebastian.

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Halo Coffee secures over £300,000 in funding to expand to Germany, Austria and Switzerland

Sarah McRitchie — Fri, 26 Feb 2021 13:48:03 +0000

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.

Since Halo’s foundation in February 2017, the company’s aim has been to make the world’s best coffee in a way that is best for the world. Halo does this by crafting speciality grade coffee capsules that are manufactured from sugarcane and sustainably sourcing its single-origin coffee from the first farm in the world to be awarded a Rainforest Alliance Sustainability A-Grade.

Founders David Foster and Richard Hardwick sit on the British Coffee Association Sustainability Committee, so their experience in the premium coffee industry has given them unique insight.

Hardwick said: “We’re offering the market a product that doesn’t currently exist: …a fully [home] compostable coffee capsule filled with the finest, rarest and most desirable coffees.”

In December last year, Halo began its crowdfunding journey with Seedrs and has since exceeded its initial campaign target of £300,000 following an explosion in demand for in-home brews.

The purpose of the fundraiser was to accelerate growth. Hence Halo Coffee has also launched its newest expansion, Halo Coffee Germany, to serve the German, Austrian, and Swiss regions.

Consisting of co-founders Patrik Fuchs (CEO), Michael Gueth (CMO), and Thomas S Enge (CFO), the new German team is hugely experienced across varied disciplines, and has a long and successful track record in the coffee industry across the D/A/CH Region.

The trio’s overriding principle – and experience – is that metal and plastic capsules can no longer be sustained by the planet; especially when Halo’s home compostable and garden compatible capsules exist.

Halo’s expansion has led to sales in 70 countries and gained a following of 30,000. The launch in Germany is a milestone, as it cements the position of Halo as the single truly environmental and harmless coffee capsule brand in the world, according to the company.

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Probat introduces digital roadmap for 2021

Sarah McRitchie — Fri, 22 Jan 2021 13:12:48 +0000

Coffee roasting equipment and technology manufacturer, Probat, is launching a series of digital events in 2021 to offer the coffee industry a wide variety of formats for the joint exchange of challenges, solutions and innovations. The digital roadmap is now available on the company’s website.

The series consists of three different formats: The “POP UP Series”, the “HEAT Series” and “Connecting Markets digital”. Probat has already been bundling all topics related to the speciality coffee roaster scene in the Facebook Live format “POP UP Series” since 2020. The roasting machine manufacturer has also created the HEAT series to offer large coffee companies from the industrial segment a customised content format.

The “Connecting Markets digital” event will run from 22-24 February. With presentations of the latest forward-looking Probat innovations on environmental, roasting and control technologies, this event will be Probat’s most important information hub this year, according to the company. All formats have been created primarily against the background of exchanging information with customers about Probat’s latest solution developments. At the same time, digital customer communication will be strengthened as an integral part of the overall corporate strategy.

The global society has always been subject to constant change with varying effects on the individual spheres of life. Currently, Probat is in the phase of digital transformation, accelerated even more by the current corona crisis. Jan Molitor, executive vice president Marketing, comments: “Digitilisation offers us the opportunity to roll out our topics much faster. Currently, this is the only way to stay in contact with our customers and the industry. Therefore, we seek this kind of exchange, where we can also present our solutions and ideas for the coffee industry. We are looking forward to it, but also to seeing each other in person again soon.”

All of Probat’s event sessions throughout the year will be streamed live via the company’s social media channels.There is no registration required. Everyone is invited to actively participate, either directly in the live chat during the streams or by sending questions by email in advance, which the Probate experts will pick up and answer during the respective event.

Those who want to follow the digital roadmap can make a note of the dates in iCal or Outlook: www.probat.com/events.

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Dates announced for interpack 2023

Sarah McRitchie — Thu, 21 Jan 2021 12:05:09 +0000

Messe Düsseldorf has announced that the next interpack event will take place from 4 – 10 May 2023 at the Düsseldorf Trade Fair Centre. Messe Düsseldorf has set this date in agreement with its partners and committees.

Interested companies from the packaging sector and the associated processing industry will be able to register online at www.interpack.com from the end of March/beginning of April provided all goes to plan, according to the organisers. Exhibitors who were approved for interpack 2021, which was cancelled due to the pandemic, have already been able to reserve their stand positions for 2023 and will now be able to rebook when they register.

components will take place in parallel with interpack. It is oriented towards the supplier sector for the packaging and processing industry. Interested companies can register for components in the same period as interpack by accessing www.packaging-components.com.

Messe Düsseldorf reports that the online presence of both 2023 events is also being built up and expanded.

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Arabica prices rise in December per ICO’s latest report

Sarah McRitchie — Thu, 07 Jan 2021 11:21:06 +0000

According to the International Coffee Organisation’s (ICO) latest report, prices for Arabica group indicators grew in December 2020, with the largest increase occurring for Brazilian Naturals. However, likely due to the impact of the Covid-19 pandemic, imports by ICO importing members and the United States decreased by 4.5% to 129.98 million bags in coffee year 2019-20. Both green and roasted imports declined in coffee year 2019-20, while imports of soluble coffee and re-exports by ICO importing members and the United States rose.

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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Organisers announce cancellation of interpack 2021

Sarah McRitchie — Thu, 03 Dec 2020 14:25:41 +0000

In agreement with its partners in associations and the industry, and with the trade fair advisory committee, Messe Düsseldorf has decided to cancel both interpack and components 2021, scheduled to take place from 25 February – 3 March, due to the restrictions related to the Covid-19 pandemic.

“We have done everything we can to do justice to interpack’s tremendous importance for the processing and packaging industry, even during this pandemic – above all because we have received encouragement from the industry in support of a face-to-face event and have a hygiene concept that has been tried and tested in practice in place to protect everyone involved. Ultimately, however, feedback from our exhibitors has shown that the uncertainty is too great, and we are thus unable to host an interpack event that would meet the standards of a leading international trade fair,” explains Wolfram N Diener, CEO of Messe Düsseldorf.

“On 25 November, the Federal Government and the German states decided to implement stricter measures in Germany, and to possibly even extend these measures into the new year. This, unfortunately, does not give cause for hope that the situation will improve significantly over the course of the coming months. This will affect all Messe Düsseldorf events in the first quarter. We are now focussing on the next edition of interpack, which will take place in May 2023 according to plan, and which we will supplement with extended online offers,” Diener goes on to explain.

Messe Düsseldorf had offered registered exhibitors special conditions for their participation and at the same time granted them an extraordinary right of termination for those companies that were unable or unwilling to take part.

“Besides the unique market coverage, it provides, interpack is primarily characterised by the direct exchange of information between market-leading companies and top decision-makers for brand names around the world. This is exactly what is now largely prevented by continuously high infection numbers in core Europe and the associated and continuing travel restrictions and quarantine regulations. We therefore welcome Messe Düsseldorf’s decision to cancel interpack 2021 and are focussing on interpack 2023,” says Christian Traumann, president of interpack 2021 and managing director & group president at Multivac Sepp Haggenmüller SE & Co KG.

“For the industry, in-person meetings and live experiences are still extremely important, especially when it comes to complex technology. Both enable a direct market comparison to be drawn and foster new ideas as well as new leads and networks – this is something online formats only offer in part. We are now looking forward to a successful interpack 2023, where the industry can once again come together at its leading global trade fair in Düsseldorf,” says Richard Clemens, managing director of the VDMA Food Processing and Packaging Machinery Association.

Until the next edition of the leading trade fair, the industry can access continuous updates on industry trends, developments and innovations at: www.interpack.de. The online offer for components is available at www.packaging-components.de. Additional online options will be made available for exhibitors and visitors of the upcoming interpack and components 2023.

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Probat builds new production facility at company headquarters

Sarah McRitchie — Fri, 16 Oct 2020 12:59:59 +0000

Probat, world market and technology leader for coffee roasting plants and machinery, is expanding the production area at its headquarters in Emmerich. The project with a total investment volume of €40 million is to be completed by the end of 2022.

On 25 September, the cornerstone ceremony of the project, which runs under the name of Probat GO, took place in the innermost circle of Probat shareholders, the advisory board and the executive vice presidents while adhering to strict hygiene measures. The objective is the revitalisation and new construction of the production and logistics halls at the Emmerich location on the basis of a future-oriented factory concept. As a guarantee for the successful future market cultivation, Probat GO is an important pillar of the overarching corporate strategy. Moreover, the start of the project, especially in a time of crisis such as the one caused by the coronavirus, not only sends special signals to the global coffee industry, but also underlines Probat’s market-leading position within the industry, according to the company.

In all measures carried out within the framework of Probat GO, the focus is on the specification of an economically, ecologically and socially oriented “manufacturing of the future”. A process-oriented factory design with optimal arrangement of the production and organisation areas distinguishes the Probat future factory. The design of the production process is to be optimised as a whole through the more efficient use of decisive production factors. A clear routing, directed material flows and modular structures reflect the focus on increased value creation. Potential expansion areas and changeable structures facilitate future growth.

In addition to the special significance for the company itself, Probat GO also has a signal effect for the business location Emmerich, which will be significantly strengthened by the realisation of the project. The clear industrial architecture corresponds to the functional task of the new production and manufacturing halls and takes into account Probat’s idea of a modern working environment with attractive workplaces by integrating an open and communication-promoting office structure. In addition, the modern factory being built on the Probat premises underlines the company’s claim to be an employer with strong future prospects in the competition for the best talents in the region.

In his speech to the assembled guests of the cornerstone ceremony, Probat CEO and managing partner Wim Abbing put Probat GO into historical context and emphasised the importance of the project within the international coffee industry: “This cornerstone ceremony is a very special event for Probat, as it marks the official start of the revitalisation and the new construction of the manufacturing facility. The current production exists since the reconstruction after the complete destruction during the Second World War. With the creation of this sustainably oriented modern production site, we are also setting an international benchmark in our core markets, as it reflects the constantly increasing quality demands of the customers on our products and services”.

In conclusion, the chairman of the advisory board, Nils Erichsen, expressed his appreciation to the Probat shareholders and project managers on behalf of the entire Advisory Board: “Taking the courageous step to tackle such a trailblazing project in the current times is what distinguishes a family business like Probat. Fortunately, the current order situation holds a growth potential that not only underlines Probat’s strong position in the world market for roasting plants but can also be even better exploited by implementing Probat GO”.

Probat GO is realised in individual expansion stages. The conversion of the production site is to be completed by the end of 2022.

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Coffee prices rise in July after three months of decline

Vanessa Facenda — Thu, 06 Aug 2020 03:29:58 +0000

The International Coffee Organisation (ICO) reported that prices for all coffee groups rose in July 2020 following three months of declines, though the largest month-on-month increase occurred for Brazilian Naturals.

After falling in each of the last three months, the monthly average of the ICO composite indicator rose by 4.7% to 103.66 US cents/lb in July 2020. The daily composite indicator reached a low of 98.59 US cents/lb on 10 July before climbing to 114.25 US cents/lb on the last day of the month. Strengthening of the Brazilian Real in the second half of the month supported prices in July as well as concerns over temporary tightness in supply.

Prices for all group indicators rose in July 2020. The largest increase occurred in the average price for Brazilian Naturals, which grew by 5.8% to 97.96 US cents/lb. Colombian Milds increased by 4.2% to 153.38 US cents/lb while Other Milds rose by 3.7% to 146.78 US cents/lb. As a result, the differential between Colombia Milds and Other Milds increased by 17% to an average of 6.60 US cents/lb. The monthly average Robusta price increased by 4.8% to 67.69 US cents/lb. The average arbitrage in July, as measured on the New York and London futures markets, rose by 7.9% to 48.28 US cents/lb. Additionally, volatility of the ICO composite indicator price increased by 1.5 percentage points to 7.6%. The volatility for Colombian Milds and Other Milds both increased by 1.1 percentage points to 6.7% and 6.9%, respectively. Brazilian Naturals volatility rose by 2.8 percentage points to 11.5%, while the volatility for Robustas decreased by 0.3 percentage point to 6.3%.

Global coffee production in coffee year 2019-20 is estimated at 168.01 million bags, a decrease of 2.9% from 2018-19. Arabica output is estimated to fall by 5.4% to 95.37 million bags, due to a decline in production in seven of the ten largest Arabica producers, while Robusta production is estimated to increase by 0.5% to 72.63 million bags.

In June 2020, world coffee exports fell by 5.3% to 10.57 million bags compared to June 2019, due in part to lower production. Shipments of Arabica fell by 10% to 6.42 million bags, but Robusta exports increased by 3% to 4.15 million bags compared to June 2019. Global exports in the first nine months of coffee year 2019-20 decreased by 5.1% to 95.36 million bags. Shipments of Other Milds shrank by 8.2% to 19.11 million bags in October 2019 to June 2020. Brazilian Naturals decreased by 7.8% to 28.84 million bags while Colombian Milds exports fell by 7.2% to 10.53 million bags in the first nine months of the coffee year. Robusta shipments reached 36.88 million bags, 0.4% lower than in October 2018 to July 2019. In the first nine months of coffee year 2019-20, green coffee exports represented 90.4% of total exports, amounting to 86.2 million bags. This current trend is only slightly lower than that observed three decades ago, when green exports accounted for around 95% of total exports, indicating that much of the value addition remains in importing countries.

In October 2019 to June 2020, Brazil shipped 26.48 million bags of green coffee, 9.5% lower than the same period one year ago, and accounted for around 30.7% of all green coffee shipments. Green coffee exports from Vietnam reached 20.22 million bags in the first nine months of coffee year 2019-20, representing 23.5% of the total and making it the second largest exporter of green coffee. Colombia’s green coffee exports fell by 7.4% to 8.72 million bags and shipments from Honduras declined by 14.1% to 4.81 million bags. However, green exports from both Uganda and Indonesia rose, increasing by 20.6% to 3.79 million bags and by 30.2% to 3.37 million bags, respectively. The main destinations for green coffee were the United States, Germany, Italy, Belgium, and Japan in October 2018 to July 2019.

Mexico, Colombia, Vietnam, Indonesia, and Brazil represent the five largest exporters of roasted coffee among coffee producing countries, accounting for 93.1% of total roasted coffee exports in the first nine months of coffee year 2019-20. Mexico shipped 161,000 bags of roasted coffee while Colombia exported 152,000 bags. Vietnam’s exports of roasted coffee declined by 52.3% to 119,000 bags, and Brazil’s shipments of roasted coffee by 25.4% to 14,200 bags. However, Indonesia’s exports of roasted coffee more than tripled to 28,600 bags.

The United States was the main destination for shipments of roasted coffee, accounting for around 45.7% of the total during the first nine months of 2019-20.

Soluble coffee shipments accounted for 9.1%, of the total, an increase of 1 percentage point from one year ago, while roasted coffee shipments represented just 0.5%. Total exports of soluble coffee reached 8.64 million bags and roasted coffee exports reached 509,000 bags in the first nine months of coffee year 2019-20.

Brazil was the largest exporter of soluble coffee in October 2019 to June 2020, with shipments reaching 2.94 million bags, 1.8% lower than the same period one year ago. India exported 1.36 million bags, 5.3% lower than the first nine months of coffee year 2018-19. Soluble exports from Indonesia rose by 47.3% to 1.23 million bags and Vietnam’s soluble shipments grew by 11% to 1.09 million bags. Mexico’s soluble exports rose by 11.8% to 670,00 bags and Colombia’s exports by 2.4% to 630,000 bags. These six countries accounted for 91.7% of total soluble shipments in the first nine months of coffee year 2019-20.

The United States, the Philippines, the Russian Federation, Poland, and Malaysia were the main destinations for soluble shipments in October 2019 to June 2020.

The ICO estimates that global coffee consumption will rise by 0.3% to 168.49 million bags, which is below the average annual growth rate of 2.2% over the last two decades. Strong growth at the start of the season is expected to be offset by a global economic slowdown.

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

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euvend & coffeena 2020 event suspended

Sarah McRitchie — Fri, 17 Jul 2020 14:24:14 +0000

Koelnmesse, organiser of international trade fair euvend & cofeena, has announced the suspension of this year’s event, originally planned to take place from 29-31 October in Cologne, Germany.

Despite high registration levels in the Spring of this year and extensive preparations, the current Covid-19 situation has reportedly caused strong health, safety, economic and travel concerns among many of euvend & cofeena’s registered exhibitors and visitors.

Koelnmesse said the suspension was “a very difficult decision” since the organisers “were fully prepared to conduct this event under well thought out and renewed safety standards.” However, the company has said it will view this as “an opportunity to get started again, with fresh ideas and new energy”.

The next euvend & coffeena will take place from 27-29 October 2022.

For more information, visit: www.euvend-coffeena.com.

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Interpack announces postponement until 2021

Sarah McRitchie — Fri, 13 Mar 2020 16:06:23 +0000

Messe Düsseldorf has announced that, in light of the worldwide coronavirus outbreak, Interpack has been postponed and will now take place from 25 February to 3 March 2021.

“The decision was taken in close consultation with our advisory board and sponsoring associations,” emphasised Werner M. Dornscheidt, chairman of the board of management of Messe Düsseldorf GmbH. It also reflects the wishes of individual industries: “As their partner, we are currently doing everything in our power to reduce the economic losses suffered by our exhibitors”.

“The city of Düsseldorf is following the instructions of the state government. Our aim is to slow down the spread of the coronavirus so that the health system can continue to function properly,” said Thomas Geisel, lord mayor of the state capital of Düsseldorf and chairman of the Supervisory Board of the Düsseldorf trade fair company.Click here to read the full press release and statement from the Interpack organisers.

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