Coffee Intelligence (2024)

01/11/2024

High coffee prices, stubbornly sustained over the last two years, are emerging as a lasting reality for the coffee industry.

Arabica prices peaked at $2.75 in September 2024, and roasters are holding off on premium buys.

Sarah Charles speaks with Sergio Avilán Britto about how the expected price drop is unlikely to happen soon, and how the entire value chain will adapt accordingly.

High coffee prices, stubbornly sustained over the last two years, are emerging as a lasting reality for the coffee industry. Arabica prices peaked at $2.75 in September 2024 – roasters are holding off on premium buys. The expected price drop? Unlikely to happen soon.

31/10/2024

In Thailand, where midday temperatures regularly exceed 30°C, cold coffee has become more than a beverage option – it’s a cultural staple across the country.

Gen Z leads the trend: 60%+ prefer their coffee cold. Speed and convenience fuel popularity: 44% of Thais choose ready-to-drink coffee.

Sarah Charles speaks with Fuadi Pitsuwan, co-founder of Beanspire Coffee, about why cold coffee has such a grip on the country.

In Thailand, where midday temperatures regularly exceed 30°C, cold coffee has become more than a beverage option – it’s a cultural staple across the country. Gen Z leads the trend: 60%+ prefer their coffee cold. Speed and convenience fuel popularity: 44% of Thais choose ready-to-drink coffee

30/10/2024

Quality is increasingly under pressure as farmers weigh short-term gains against long-term standards.

US coffee import prices jumped 65% from 2021 to 2023.

Kosta Kallivrousis speaks with Karl Weinhold about how to maintain quality, the industry must step up incentives for farmers.

Quality is increasingly under pressure as farmers weigh short-term gains against long-term standards. US coffee import prices jumped 65% from 2021 to 2023. To maintain quality, the industry must step up incentives for farmers.

24/10/2024

Italy has long been the bastion of traditional coffee culture, where espresso is king, and the ritual of a quick shot at the local bar has remained largely untouched for generations.

In 2018, Italy had 150,000 traditional coffee bars compared to only 100 specialty coffee shops.

Michaela Tomchek speaks with Cristina Caroli, owner of Aroma Specialty Coffee, and Federico Lucas Pezzetta, the Italian creator behind on Instagram, about how today, Italy is embracing specialty coffee culture, with youth wanting slower, more mindful consumption.

Italy has long been the bastion of traditional coffee culture, where espresso is king, and the ritual of a quick shot at the local bar has remained largely untouched for generations. In 2018, Italy had 150,000 traditional coffee bars compared to only 100 specialty coffee shops. Today, Italy is embra...

23/10/2024

The specialty coffee industry, once defined by its emphasis on craftsmanship and the artistry of small-scale production, is undergoing a radical transformation.

Ironically, the sector now leans heavily on automation to scale, coming full circle. The shift to automation has a human cost – by 2030, up to 25% of the global workforce could lose their jobs to machines.

Gabriella Oakley speaks with Jonathan Morris (University of Hertfordshire) about the shift from craft to consistency, and what it means for the sector and the people part of it.

The specialty coffee industry, once defined by its emphasis on craftsmanship and the artistry of small-scale production, is undergoing a radical transformation. Ironically, the sector now leans heavily on automation to scale, coming full circle. The shift to automation has a human cost – by 2030, ...

18/10/2024

Alupak AG, the Swiss packaging company known for its pioneering role in coffee capsule manufacturing, is preparing for the future.

The coffee capsule market is surging: JDE Peet’s poured €110m in 2021 to increase French capsule production by 60%.

Sarah Charles speaks with Martyna Fong, Director of Market Intelligence at AMI. Regulators are tightening the screws on waste, pushing for eco-friendly packaging – innovation and partnerships are now crucial.

Alupak AG, the Swiss packaging company known for its pioneering role in coffee capsule manufacturing, is preparing for the future. The coffee capsule market is surging: JDE Peet’s poured €110m in 2021 to increase French capsule production by 60%. Regulators are tightening the screws on waste, pu...

17/10/2024

Office coffee, once drab, is now elevated to the standard of “barista-quality” thanks to coworking companies using sleek, bean-to-cup machines or even hiring their own baristas.

This trend is transforming the modern workplace, as businesses and coworking spaces alike look to offer employees the perfect balance of flexibility, comfort, and caffeine.

Sarah Charles speaks with Kieran MacRae (Slow Writers Club) and an anonymous source about how despite this transformation, Coffee shops still hold strong – 60% of respondents from a survey still favour coffee shops over offices for remote work.

Office coffee, once drab, is now elevated to the standard of “barista-quality” thanks to coworking companies using sleek, bean-to-cup machines or even hiring their own baristas. This trend is transforming the modern workplace, as businesses and coworking spaces alike look to offer employees the ...

16/10/2024

Geographical Indication (GI) is a designation that many consumers associate with authenticity and quality, increasingly so in the world of coffee.

Hawaii’s new coffee labeling law highlights the blurred lines of GI certification. Minimum Hawaiian-grown content in coffee blends increased from 10% to 51%.

Jordan Montgomery speaks with Jorge Raul Rivera (Finca Santa Rosa) and Paulo Vischi (Be Consulting) about whether is GI more about genuine authenticity or clever marketing.

Geographical Indication (GI) is a designation that many consumers associate with authenticity and quality, increasingly so in the world of coffee. Hawaii’s new coffee labeling law highlights the blurred lines of GI certification. Minimum Hawaiian-grown content in coffee blends increased from 10% t...

11/10/2024

In a decision that has divided stakeholders across industries, the European Union (EU) has announced a 12-month delay in the implementation of its Deforestation Regulation (EUDR).

The delay was driven by both technical and political factors. After 20 years in development, EUDR remains firm, but does this delay hint at easing requirements?

Sarah Charles speaks with Auret Van Heerden, Founder & CEO at Equiception Business and Human Rights, about why the delay occurred, what it means, and how coffee sector stakeholders will use the extra 12 months.

In a decision that has divided stakeholders across industries, the European Union (EU) has announced a 12-month delay in the implementation of its Deforestation Regulation (EUDR). The delay was driven by both technical and political factors. After 20 years in development, EUDR remains firm, but does...

10/10/2024

In Greece, few drinks are as emblematic as the freddo espresso. Whether it’s sweltering summer heat or the cooler months of fall, Greeks can be found sipping it at all hours of the day.

Cold coffee reportedly makes up 60-65% of total coffee consumption in Greece, with freddo espressos and cappuccinos comprising 70-80% of that.

Sarah Charles speaks with Kostas Vallianos (Kafea Terra S.A.) and Panagiotis Konstantinopoulos (Coffee Island) about how surprisingly, this beloved drink was originally created to revive a sluggish coffee market.

In Greece, few drinks are as emblematic as the freddo espresso. Whether it’s sweltering summer heat or the cooler months of fall, Greeks can be found sipping it at all hours of the day. Cold coffee reportedly makes up 60-65% of total coffee consumption in Greece, with freddo espressos and cappucci...

09/10/2024

From roasters to coffee shops, crowdfunding has emerged as an appealing alternative to bank loans, especially as financial institutions tighten their lending criteria.

It can be highly effective – WatchHouse raised 700% of their target this year.

Jordan Montgomery speaks with Carlos Eduardo Bitencourt (Cafezal Specialty Coffee Roasters) and Roland Horne (WatchHouse) about how this model can have great gains, but also carries notable risks that businesses should carefully consider before diving in.

From roasters to coffee shops, crowdfunding has emerged as an appealing alternative to bank loans, especially as financial institutions tighten their lending criteria. It can be highly effective – WatchHouse raised 700% of their target this year. However, this model carries notable risks that busi...

04/10/2024

In late 2023, the Alshaya Group, a major franchise operator in the Middle East and North Africa (MENA), reportedly put plans to sell a minority stake in its Starbucks franchise on ice.

Political tensions and growing “boycott, divestment, and sanctions” movements may be factors.

Sarah Charles speaks with Tristan Hawkey, Trade Consultant at OCO Global, about how homegrown brands like Barns are expanding fast, aiming for 1,000 outlets globally by 2030.

In late 2023, the Alshaya Group, a major franchise operator in the Middle East and North Africa (MENA), reportedly put plans to sell a minority stake in its Starbucks franchise on ice. Political tensions and growing “boycott, divestment, and sanctions” movements may be factors. Homegrown brands ...

03/10/2024

The coffee C futures market – a global benchmark for Arabica prices – has long played a vital role in price discovery and risk management.

Traditionally, the market operates in a structure where futures prices are higher than spot prices, accounting for storage and financing costs. The C market has been in “backwardation,” with spot prices rising above future prices due to tight supply.

Jordan Montgomery speaks with J Ganes Consulting, LLC about how this inversion is fueled by shrinking stocks of ICE-certified coffee. Arabica certified stocks saw a sharp decline in Q4 2023.

The coffee C futures market – a global benchmark for Arabica prices – has long played a vital role in price discovery and risk management. Traditionally, the market operates in a structure where futures prices are higher than spot prices, accounting for storage and financing costs. The C market ...

02/10/2024

For years, quality has been the hallmark of the specialty coffee industry, shaping standards for sourcing, roasting, and brewing in pursuit of what is considered objective excellence.

Yet, quality alone doesn’t always outshine local preferences. Many large brands like Blue Bottle faced challenges in Miami’s Latino market, where darker roasts were favoured over third-wave offerings.

Jordan Montgomery speaks with Sabine Parrish (University of Aberdeen) and Marty Pollack (Torch Coffee ) about what is “good” coffee – and if there is really such a definition.

For years, quality has been the hallmark of the specialty coffee industry, shaping standards for sourcing, roasting, and brewing in pursuit of what is considered objective excellence. Yet, quality alone doesn’t always outshine local preferences. Counter Culture and Blue Bottle faced challenges in ...

27/09/2024

JAB Holding Company, the private investment firm known for its vast consumer goods portfolio, recently announced a pivot towards building a global insurance platform.

F&B's appeal is fading – JAB sold 100 million Keurig Dr Pepper shares in March at 25% below their 2022 peak.

Sarah Charles speaks with Austin Frerick (Yale University) about how JAB's pivot could reshape the industries it's exiting, especially coffee.

JAB Holding Company, the private investment firm known for its vast consumer goods portfolio, recently announced a pivot towards building a global insurance platform. F&B's appeal is fading – JAB sold 100 million Keurig Dr Pepper shares in March at 25% below their 2022 peak. JAB's pivot could resh...

26/09/2024

Lately, the Saudi coffee scene has been quietly but aggressively making its mark. One particular homegrown brand stands out, which has been rapidly growing.

International coffee chains are eyeing Saudi Arabia, the Middle East’s new coffee hotspot. But it’s local brands like Barn’s and Half Million who are leading the way with explosive growth through social media. Half Million reportedly launched with just $130 in 2018 and now boasts 56 stores across over 14 cities.

Sarah Charles speaks with an anonymous Saudi green coffee trader and Badr Alkurash, R&D Manager at Saudi Coffee Company, about Half Million’s appeal, and the wider attraction of homegrown Saudi coffee brands, and their success abroad as well.

Lately, the Saudi coffee scene has been quietly but aggressively making its mark. One particular homegrown brand stands out, which has been rapidly growing. International coffee chains are eyeing Saudi Arabia, the Middle East’s new coffee hotspot. But it’s local brands like Barn’s and Half Mil...

25/09/2024

London’s coffee scene has undergone a radical transformation in recent years. Once a city better known for its tea-drinking traditions, it has become a global hotspot for specialty coffee, with premium cafes springing up on nearly every corner.

With nearly 10,200 brands nationwide, coffee shops are set to outnumber pubs by 2030. VC-backed chains like WatchHouse, Grind, and Blank Street dominate the city, driven by a “spend big to grow fast” approach.

Sarah Charles speaks with Jonathan Townsend (The Institute of Coffee) and James Hennebry (Rosslyn Coffee) about how London’s coffee scene has changed, and where it’s going.

London’s coffee scene has undergone a radical transformation in recent years. Once a city better known for its tea-drinking traditions, it has become a global hotspot for specialty coffee, with premium cafes springing up on nearly every corner. With nearly 10,200 brands nationwide, coffee shops ar...

20/09/2024

In a surprising move, Black Rifle Coffee Company (BRCC) has struck a distribution deal with Keurig Dr. Pepper (KDP) for its line of energy drinks.
Keurig will distribute Black Rifle’s new energy drinks nationwide.

Energy drinks are set to lead U.S. soft drinks growth in 2024 with 4.2% sales rise.

Sarah Charles speaks with Joel Silverstein (Canyon Springs Advisors) about how coffee brands are diving into the lucrative energy drink market, and why.

In a surprising move, Black Rifle Coffee Company has struck a distribution deal with Keurig Dr. Pepper for its line of energy drinks. Keurig will distribute Black Rifle’s new line nationwide. Energy drinks are set to lead U.S. soft drinks growth in 2024 with 4.2% sales rise. Coffee brands are divi...

19/09/2024

For some, coffee is just a pumpkin spice latte (it is the season, after all) – but for others, it is deeply politicised. More than a product, coffee is also a heavily politicised tool for economic development.

USAID’s Coffee Alliance for Excellence (CAFE) will leverage $14 million over its 7-year partnership.

Jordan Montgomery speaks with Karl Weinhold (Universidade de Lisboa) about whether foreign donors and governments are helping farmers, pushing their own agendas, or both.

For some, coffee is just a pumpkin spice latte (it is the season, after all) – but for others, it is deeply politicised. More than a product, coffee is also heavily politicised tool for economic development. USAID’s Coffee Alliance for Excellence (CAFE) will leverage $14 million over its 7-year ...

18/09/2024

Over the years, coffee lovers have increasingly turned to the convenience of delivery services.

However, once-absorbed “invisible” delivery fees are now being passed directly to the customer. Prices have surged by up to 30% for the same products.

Jordan Montgomery speaks with Matthew North (Raw Material) about coffee’s hidden operational costs, consumer frustration, transparency reports, and value chain impact.

Over the years, coffee lovers have increasingly turned to the convenience of delivery services. However, once-absorbed “invisible” delivery fees are now being passed directly to the customer. Prices have surged by up to 30% for the same products. As venture capital dries up, consumers are left f...

12/09/2024

The SCA’s cupping form is a cornerstone of the specialty coffee industry.

Largely unchanged for 20 years, it has now evolved into the new Coffee Value Assessment form – released in 2023.

Jordan Montgomery speaks with Emma Haines (Algrano) and Carlos Pineda (Finca "Las Pinequitas") about how the industry remains divided on whether it truly adds value to coffee evaluation.

FOR more than 24 years, the Specialty Coffee Association – the industry’s long standing authority on coffee quality assessment – has relied on a universal form. It has now evolved into the new Coffee Value Assessment form – released in 2023. The industry remains divided on whether it truly a...

11/09/2024

Ready-to-drink (RTD) coffee is increasingly dominating beverage aisles, and it’s getting sweeter and more processed by the minute.

Over 50% of Americans’ daily diet is made up of processed foods, compared to just 8% of their European counterparts.

Sarah Charles speaks with Krzysztof Barabosz (Hard Beans Coffee Roasters and Hardtank ) and Ildi Revi (Purity Coffee) about how sugary processed drinks are easier to push in the US market, but consumers now want more transparency.

Ready-to-drink (RTD) coffee is increasingly dominating beverage aisles, and it’s getting sweeter and more processed by the minute. Over 50% of Americans’ daily diet is made up of processed foods, compared to just 8% of their European counterparts. Sugary processed drinks are easier to push in th...

06/09/2024

Australian appliance giant Breville Group, known as Sage in Europe, has recently reported a record performance, achieving $1.53 billion in revenues this year, marking a 3.5% growth.

Over the last 4 years, at-home coffee consumption has held steady, while out-of-home has fallen 11% as customer trust wanes. Breville’s series of acquisitions points to a consolidation of the coffee machine market.

Sarah Charles speaks with Spencer Turer (Coffee Enterprises and Luis Fernando Velez (Amor Perfecto) about why Breville is so popular with prosumers.

AUSTRALIAN appliance giant Breville Group, known as Sage in Europe, has recently reported a record performance, achieving $1.53 billion in revenues this year,

05/09/2024

For decades, the dominant strategy to improve incomes in coffee-producing countries has been to increase yield per hectare.

Brazil and Vietnam's yields have risen by 40% and 18% respectively in the last decade.

Sarah Charles speaks with Beto Bina (FARFARM) and David Batres (Finca Batres) about how despite production scaling, profitability remains low for most coffee farmers, and financial conditions are making it worse.

For decades, the dominant strategy to improve incomes in coffee-producing countries has been to increase yield per hectare. Brazil and Vietnam's yields have risen by 40% and 18% respectively in the last decade. Despite production scaling, profitability remains low for most coffee farmers, and financ...

04/09/2024

Gift cards have long been a staple of modern consumer culture, marketed as a convenient and thoughtful solution to the age-old problem of gifting.

Starbucks reported $1.77 billion in unredeemed gift card balances – a 9% increase since last year.

This is called “breakage revenue” – essentially free money. Customer loyalty, tapping into new networks and consumer data collection are other benefits.

Sarah Charles speaks with Spencer Ross (University of Massachusetts) about why consumers keep coming back to gift cards, despite the downsides, and what’s in it for retail brands.

Gift cards have long been a staple of modern consumer culture, marketed as a convenient and thoughtful solution to the age-old problem of gifting. Starbucks reported $1.77 billion in unredeemed gift card balances – a 9% increase since last year. This is called “breakage revenue” – essentiall...

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