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Welcome Welcome to the CoffeeTalk Magazine 2007 mid-year International State of the Industry E-Zine. This is an evolving experiment in publishing. We hope it delivers powerful information to you that is easily accessible and important.
The E-Zine format allows CoffeeTalk to provide you
with content-rich stories and links that greatly expand your experience. This format allows you, the reader, to develop a more intimate relationship with our writers and advertisers. The familiar format and interface does not require extensive computer experience, and‌
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We hope you enjoy these articles and wisdom from
these leaders in the industry. Our thanks go to them, and of course to you, our readers. Cheers,
Kerri Goodman-Small Miles Small Š copyright CoffeeTalk magazine 2007
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How to use this document T
his State of the Industry Report is a document of exceptional value if viewed as a whole idea. Each article is a unique perspective by an industry leader. Their topics address key qualities and challenges they, or their companies, professionally face. If you decide to cherry pick a few articles to read then you will be greatly enriched. However, we recommend that you read the entire document. If you do, you will find a deep three-dimensional view of our Global Industry and gain insights into the interactions and shared responsibilities we all play in continuing the success of specialty coffee. Maneuvering around the document is easy. The report is in .PDF format and is easy to download to any computer. You will require Acrobat Reader to view it on your computer. If you do not have Acrobat Reader by Adobe, you can download a copy from Adobe free at http://www.adobe.com/. The Table of Content pages are hyperlinked to their matching stories. Move the hand cursor over the title of a story, when the hand turns into a finger, click your mouse and you will pop to the article. At the bottom of each article is a navigation tool that, when clicked with you mouse, returns you to the Table of Contents. Of course, you can also scroll through the document using your scroll bar or the ‘pages’ tab on the PDF desktop. You can easily print any or all pages of the document. Simply go to ‘File’ click print, and follow the prompts.
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his extraordinary document would not have been possible without the support and encouragement of the companies that sponsored advertising to cover the report’s costs. We appreciate their support of this report and encourage readers to support these sponsors too.
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Table of Contents and Contributors 22 Best Practices Versus an Asterisk By Donald N. Schoenholt
2 Welcome 4 How to use this document
26 A Commitment to Ethiopia By Tracy Ging
8 Sponsor’s Index 10 Editors Prologue 14 SCAA has lots to be proud of in its 25 year history By Ted Lingle, Executive Director – Coffee Quality Institute 18 The National Coffee Association’s impact on the coffee world By Robert Nelson, President - The National Coffee Association
30 Global Coffee Connections By Phyllis Johnson, President, BD Imports 34 Marketing Meets Technology & Lives Happily Ever After By Krista Reddington-Telios - Marketing Director, FETCO® 38 Conference Empowers Coffee Industry Affiliates to Help Landmine Victims By Rebekah L. Fraser
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The Blending experts
速
800-4DRINK4
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Sponsor’s Index Company.........................................Phone.............................. Web Page.................................... Page # America’s Food Technologies, Inc./AMFOTEK.............708.532.1222..................................................http://www.amfotek.com..............................................13 Ascent Home Loans..............................................................678.598.2298..................................................http://www.ascenthomeloans.com/tscott..............27 Athena Marketing International, LLC...............................206.749.9255..................................................http://www.athenaintl.com..........................................17 Big Train Inc..............................................................................800.BigTrain..................................................http://www.bigtrain.com...............................................3 Boyd Coffee Company..........................................................800.545.4077..................................................http://www.BOYDSCOFFEE.com................................9 BriteVision.................................................................................877.479.7777..................................................http://www.britevision.com..........................................23 Cablevey....................................................................................641.673.8451..................................................http://www.cablevey.com............................................33 Cafe de El Salvador................................................................503.2267.6600...............................................http://www.salvadorancoffees.com.........................25 Coffee Holding Company.....................................................800.458.2233..................................................http://www.coffeeholding.com...................................11 Dunkin’ Brands........................................................................781.737.3000..................................................http://www.dunkinbrands.com...................................35 Elan Organic Coffees.............................................................619.235.0392..................................................http://www.elanorganic.com......................................29 Frey-Moss Structures...........................................................800.366.6385..................................................http://frey-moss.com......................................................19 Grand Avenue Chocolates..................................................925.682.1800..................................................http://www.grandavenuechocolates.com.............37 Java Jacket..............................................................................800.208.4128..................................................http://www.javajacket.com..........................................31 LBP..............................................................................................800.545.6200..................................................http://www.lbpmfg.com................................................21 Millrock......................................................................................800.645.7625..................................................http://www.millrock.com..............................................15 Monin Gourmet Flavorings..................................................800.966.5225..................................................http://www.monin.com..................................................5 Nature’s Best Coffee..............................................................506.239.2773..................................................http://www.naturesbestcoffee.com.........................39 Vita-Mix Corporation.............................................................800.437.4654..................................................http://www.vitamix.com/foodservice.......................7
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Editor’s Prologue By Miles Small, Editor- CoffeeTalk Magazine At this midyear look at the International State of the Industry,
I believe that there are nexus of effects that when taken
it is rewarding to see that the specialty coffee industry and
as a whole can generate ‘tipping point’ events with cascading
countries of origin have increasingly become aware of their
results. They are…
interdependence to each other as well as to the political and policy decisions of those outside our industry.
Communication and electronic data exchange
As the world is wired through internet and cell phones;
Information empowers otherwise uninformed remote growers
instant messaging and cheap airfares, more of us are becoming
to challenge the claims of unscrupulous buyers. On a recent
personally involved with friends and business associates
trip to Nicaragua, I was introduced to a grower with impeccable
in coffeelands. This not only heightens awareness but also
credentials and extraordinary horticultural practices but
deepens feelings of kinship. Not many years ago, travel to
like the other growers in his area, without electricity,
coffeelands for all but the most adventurous in our industry
transportation, and communication. The remoteness of
was out of the question. Events and tragedies that happened
this group of farms made them inevitably susceptible to the
on the other side of the world had little direct impact on the
predations of ‘coyotes’, unethical and immoral buyers who
business lives of the fledgling specialty coffee industry in the
attempt to coerce the grower to sell cheap through fear and
United States. Not so anymore!
intimidation.
The global village within which we all do business
I believe that the consuming side of coffee should engage
vibrates with the cause and effect of changes that occur.
in a concerted effort to make ‘wireless’ communication and
Specialty Coffee has become the ‘canary in the coalmine’
data exchange available to growers to ensure that they have
for rapidly sweeping world changes. Remittances, climate
the market information they need to make effective business
change, international terrorism, piracy, political turmoil,
decisions.
currency valuation, communications, and so many other issues alter the price, supply, and future of specialty coffee.
Financial tools
At the same time, as consuming countries become
The Specialty Coffee Associations through their members
emotionally involved with producing countries, behaviors
should form international not-for-profit lending institutions
and expectations have changed. We have become more
that process coffee from crop to cup, providing financial tools
sensitive to the financial and cultural prerogatives of the
to qualified participants that ensure proper horticultural
international business people with whom we interact. As an
practices; proper crop processing, storage, and transportation;
industry, we have opened our eyes and become aware of the
International trading documents; and guaranteed receiver
need for sustainable and responsible business relationships
remittance.
worldwide.
By taking this into our own hands, we provide a key
element toward ensuring sustainable and profitable supply. continued... © copyright CoffeeTalk magazine 2007
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International standards of grading and rating
Protection and empowerment of women
As an essential element of International financial tools,
The apartheid of women in coffeelands must end. Access to
commonly accepted ISO standards for bean grading and
proper female and family health care, education and training,
rating must be established. The current systems operate with
and protective services are mandatory if specialty coffee
layer upon layer of tradition and cultural features that have,
expects to achieve sustainable and ethical international
over the centuries created a hodge-podge of terms, meanings,
business relationships. Cultural paradigms that allow, and
and intents that can confuse and, unfortunately be used to
even encourage the separation of women and female children
deceive through mis-information. By not establishing an
from open access to essential services and fundamental rights
international standard set for the grading and understanding of coffee, we will continue to have credibility confusion among ourselves and with consumers.
is not acceptable. Patriarchal control and manipulation of women’s behaviors, appearance,
freedoms,
and
sexuality against their will is slavery.
If the Specialty
coffee industry is truly
Yes, I agree that much
preparing to move
of this agenda is part
toward the type
of the Millennium
of differentiation
Development
that has driven
Goals set forth by
the wine industry,
the UN. I have to
then
ask however, are
operate
we
must with
a
firm foundation of understandable, usable, and universal standards.
we as an industry willing to allow the vagaries of international governmental
agencies
define the end result of our Infrastructure development Coffee quality is directly associated with handling. Infrastructure deficits lead to improper
livelihood? I believe that we have a natural business obligation to ensure that our industry does what is necessary to ensure our
processing and transportation resulting in poor sorting
sustained ethical prosperity and, if it should happen that we
and drying, over-fermentation and rot, as well as physical
assist the achievement of the MDG, more the better. We
damages. Poor infrastructure directly effects health access
have the means and the motive to make the entire coffee
and disease prevention; it reduces worker productivity and
supply chain work in a sustainable and fair way.
reduces the likelihood of sustainable business practices.
Water, roads, waste treatment, electrification, and many
other needs stand in the way of maximizing supply and quality. Š copyright CoffeeTalk magazine 2007
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SCAA has lots to be proud of in its 25 year history By Ted R. Lingle, Executive Director - Coffee Quality Institute
W
hen you a r e
part of a process, it is often difficult to step back and see the changes that are the result of the actions
per capita. If we are able to do this, then
Back in 1982, SCAA was formed to be a marketing organization – “To promote public interest in coffee and coffee beverages of the highest quality.”
you are taking at the moment. I think
total U.S. consumption will grow from 18 million bags in 1992 to just over 31 million bags in 2022, an average annual growth rate of approximately 2.5%.
There is no question in my mind
that the reason the specialty coffee market
this is particularly true for those of us that have been part
segment has been so successful in the past twenty-five years
of the “specialty coffee movement” for the past twenty-five
is due to the people in it. They kept their focus on the quality
years. To get a sense of the tremendous change the specialty
of the product – even during the periods with coffee prices
coffee segment has brought to the entire coffee industry, we
were above $3.00 per pound. They had a great passion for
need to think about the paradigm shift that has occurred
the industry and the role they played in bringing quality
over the past quarter century. Today, the consumer no
coffee to the consumer, bringing forth a disproportionate
longer thinks of coffee as a commodity. We now enjoy the
investment of capital and “sweat equity” not only to their
vaulted mind position of “differentiated product” – and the
businesses but also to the entire industry. SCAA was a huge
ramification of this change is huge.
beneficiary of their “can do” volunteer esprit de corps. Not only did they take great pride in their operations, but the
This evolved into three basic marketing strategies for
pride in their operations became a great consumer story
building consumption: (1) reposition coffee as a “family of
to tell in an industry that needed great stories to tell the
differentiated beverages; (2) expands specialty coffee sales
consumer.
in the foodservice market; and (3) establish cold coffee beverages as mainstream consumer items. These marketing
strategies led SCAA into setting two basic marketing
differentiated products of all types, including specialty food
objectives: Goal #1 – expand specialty coffee sales to their
products. Consumers were experiencing great tastes from
natural level of 30% market share by 2022; and Goal #2
meats to cheeses to ice creams. Consumers were purchasing
– expand total consumption back to 1962 levels of 7 kilos
The timing was also “ripe” for the growth of
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extraordinary values – as coffee remained one of the most
So the net effect of the specialty coffee movement on
undervalued agricultural products in the world. And
the entire coffee industry has been to serve as a “catalyst for
consumers were receiving critical education – connecting
change” by:
a sense of taste with a sense of place, as single origin coffees
• Differentiating coffees by origin – connecting a sense of taste to a sense of place;
were the primary focus of the marketing. This consumer movement toward specialize food products came at the
• Attracting young consumers – bringing life and
time of a tremendous consolidation in the coffee roasting
enthusiasm for what had been a dying product
industry. At the end of World War II, there was one or more
category;
coffee roaster in every U.S. city. By the end of the 1980’s
• Selling coffee as a cold beverage – going into a head-to-
75% of supermarket sales were controlled by just three
head challenge of the soft drink industry, which we are
companies.
winning; • Re-establishing industry quality standards – thereby
regaining credibility with the consumer;
These events led to the beginning of the micro-roaster,
as retailers who wanted full control of their coffee supply
• Re-generating the roasting community – creating
chain purchased small roasting machines in order to supply
some sense of hope, growth and opportunity for coffee
their customers with freshly roasted beans. In addition to
producers; and,
maintaining the focus on quality, this group provided the
• Unifying marketing efforts worldwide – by taking a
flexibility of setting trends and creating new market niches
trend in the U.S. market and turning it into a worldwide
for consumers, notably dark roast and flavored coffees.
movement.
Micro roasters also served as a means of reconnecting with producers at origin and creating the concept of “relationship”
SCAA has lots to be proud of during the first quarter
coffees. This group brought a sense of “economic justice” to
century of its existence – and a tremendous challenge for
the coffee supply chain, recognizing early on that producers
the next quarter century in remaining relevant for our
also need a share in the rewards of delivering to the market
members and trend setting for our consumers.
place a product for which consumers were willing to pay premiums.
Ted R. Lingle
Currently Executive Director of the Coffee Quality Institute (CQI), Ted was Executive Director of the Specialty Coffee Association of America from 1991 through 2006. During his tenure, the SCAA advanced into the leading Specialty Coffee Association in the world
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The National Coffee Association’s impact on the coffee world By Robert Nelson, President - The National Coffee Association
C
offee grows in 80 countries but lives in the hearts and palates of consumers the world over.
It’s a long trek from tree to cup, with many twists and turns impacting demand and commerce. Industry players across the supply chain travel the same road to a common destination, which unites us as one global coffee community.
The last year has seen great
The National Coffee Association’s recently published 2007 National Coffee Drinking Trends (NCDT) found that daily market penetration of coffee among American adults surpassed that of soft drinks, reversing a two-decade pattern.
opportunities and tough challenges
Broadening Tastes
Americans’ awareness is growing
along with the coffee category. They see coffee as a menu of options and not a single beverage, looking to different varieties to meet different needs. Among the options, single-origin coffees are becoming a popular consumer choice, having a caché that comes from retail marketing. Organic coffee has also soared, with sales reaching $7.7 billion.
across the supply chain. Consumers drove new of levels of consumption while the threat of terrorism continued
Trademarks
to impact commerce. Coffee is experiencing a new
Renaissance, complete with a new generation of drinkers
some unique challenges. While single origins are attracting
and an exploding café culture; yet, legal and regulatory
consumers and premium prices, the Ethiopian government
proposals stood to impede competitiveness and free trade.
launched an effort to trademark its coffee-growing region
Along with these groundbreaking opportunities came
names. The Ethiopian government argues that these
Consumption
trademarks would bring more of the premium value back to
farmers.
Daily US consumption is up for the third year, and
a whole new generation of coffee drinkers is jumping on
board. Fully 57% of Americans now drink coffee every day
to register geographic names under US law is certification
out of a total of 81% of the population who drink coffee
marks, not trademarks. If one could register geographic
overall.
names as trademarks, roasters, should they choose to sell
Leading the charge are 18 to 24 year olds. Over the
single origin coffee, would have to sign agreements for each
last four years, daily coffee drinkers have skyrocketed from
trademarked region name they would want to use on their
16% of the segment in 2003 to 37% in 2007. Those who
packaging.
drink coffee at least once a week soared from 35% to 56%,
while total consumption jumped from 69% to 82%.
shed more light on whether registering geographic names
NCA has taken the position that the appropriate vehicle
Currently, research is being conducted to attempt to
as intellectual property has added value to raw agricultural products such as coffee. It appears that true value may be a result of large investments in marketing and providing the quality of coffees that consumers seek.
continued...
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The industry reached out to Ethiopia to devise ways to
CoffeeTalk
Legislation was just introduced that would require, by
enhance market access and value through brand building
2012, the scanning of all shipping containers entering the
and to provide tangible benefits to farmers.
US, unless certain waiver criteria were met. It is expected that this conference legislation will pass both the House
Organic Program
and Senate. NCA has long opposed this plan in favor of
Organic coffee was another opportunity. According to
risk-based programs and strengthening participation in the
the 2007 NCDT, consumer awareness increased from 45%
Customs –Trade Partnership Against Terrorism (C-TPAT)
to 52% since 2004. Sales of organic foods generally have
program and other container security programs such as the
increased by about 20% annually since 2000, reaching
Secure Freight Initiative that requires 100% screening and
nearly three percent of all US food spending in 2006, as
then scanning of containers found to be high risk.
indicated by the Organic Trade Association.
Yet, this year, the United States Department of
shipping containers, NCA led an industrywide effort to kill
Agriculture (USDA) proposed changing its enforcement
the proposal. The price tag for the industry would have been
procedures under the National Organics Program to require
over $500 million a year. NCA-led industry efforts resulted
third-party certifiers to physically inspect each individual
in a veto by California Governor Arnold Schwarzenegger.
farm feeding into a coffee cooperative. Historically,
Going forward, NCA aims to reduce the burden on commerce
inspectors examined the co-op’s physical plant and internal
by helping the industry achieve 100% compliance under
controls, along with a statistical sampling of individual
the -TPAT program. Once certified under the program,
farms. who are driving demand and derailed organic brands
shippers quality for expedited inspection and shipping
consumers have come to recognize.
procedures, aligned with the level of C-TPAT compliance.
Following opposition by NCA and other industry
NCA is also supporting this effort with a C-TPAT Portal
groups, the USDA backed down, announcing it would
that will provide information and tools to help companies
maintain the “status quo.” Going forward, the agency
qualify for certification.
Similarly, when California proposed new taxes on
said it would work with the National Organic Standards Board, a citizens’ advisory panel, on any future changes.
New World
Some regulations recommended for amendment might also
Over the last few years, it’s been a new world for coffee.
require public input through notice and
After years of slow growth, consumption
comment rulemaking.
is back on the rise and new consumers
Port Security
While consumption is the rise, the
threat of terrorism at the nation’s ports continued in a post-September 11 world. Key to meeting increased consumer demand is a safe and uninterrupted supply chain. Over the last year, legislative and regulatory initiatives have been proposed to improve port security, posing new burdens for commerce.
Had the change been implemented, some coops would have been required to undergo thousands of additional farm inspections each year. The proposal would also have pushed pricing beyond the reach of consumers…
are entering the category. The industry is beating back the challenges as they arise, paving the way for the opportunities to grow unchecked. That means new levels of success up and down the supply chain and across the international coffee community.
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Best Practices Versus an Asterisk By Donald N. Schoenholt
T
he other day Barry Bonds equaled Hank Aaron’s 755 lifetime home run mark. By
the time you read this that record will no longer stand. It was on April 8, 1974 that Aaron broke Babe Ruth’s long standing 714 Home Run record. As long as baseball memory exists the breaking of the Bambino’s record will stand as a great
…there are no standards for most areas of specialty coffee, and it is time that we understand that we require more than technical standards. We require Standards of Best Practices
The idea of standards for coffee
has, for the greater part, been relegated to technical standards as those for brewing procedures developed at the Coffee Brewing Institute of the Pan American Coffee Bureau, and published as the Gold Cup standard for drip coffee while The Babe’s record still stood. The SCAA Technical Standards Committee
achievement. It is for history to judge if
developed and endorsed standards for
Mr. Bonds’ 756 bests Mr. Aaron’s 755 or
espresso coffee. But as a moral compass
if this exercise is remembered more for its acceptance of a
for specialty coffee, or fifty years from now there may be an
lower standard in ethical behavior expected of our sports
asterisk next to our contribution.
heroes.
Some years ago SCAA attempted to create a bean
The coffee world uses inconsistent standards for bean
quality standard grade with the name “Grade 1” coffee. It
quality from region to region. Cup standards are even less
was a good idea, but not a successful effort. There is limited
standardized. The NYBOT and LIFFE graders standards are
influence that SCAA can exert to create a single accepted
probably the only universally accepted standards, but this is
standard for bean or cup quality throughout the coffee world.
only applicable for a certain type/class of coffee, in a business
It is particularly difficult in the case of a cupping standard as
environment where standardization is essential to keep the
there are various regional styles and preferences for coffee
bid/ask-buy/sell playing field level. The NYBOT graders
in different consumer countries, though there are attempts
would not know what to make of a Triple Pick Sumatra, a
at establishing this right now through the influence and
Hawaiian Kona Fancy, or an Ethiopia Yirgacheffe Koke as
application of Cup of Excellence® standards at origin.
these do not fit the model and the parameters within which they work. The LIFFE graders too would be at a loss.
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There are, we know, modes in coffee as there are in
their goods according to federal labeling guidelines. These
other industries subject to the vagaries of fashion. We
lapses are made either out of ignorance to law, or because
know this as we are the makers of such fashions. We can
they claim the costs to be in compliance are prohibitive.
encourage the creation of generally accepted standards, and
These lapses make us all look bad. These are examples of
we can work to influence these standards, and we must also
areas where the trade must step up and acknowledge the
understand the limitations of our influence.
need to lead in publicizing federal standards where they
exist, and move independently as an industry to create Best
The essential standards that SCAA, and Roasters
Guild can establish are ethical standards that would set
Practices Standards for their fellows where there are no standards today.
the American specialty trade apart from and above the commercial industry, and the importing, roasting, and
Making standards voluntary, and at the same time
retailing trade of other continents. These might include
promoting them to specialty companies and the broader
standards for fair dealing that extend beyond the green
coffee industry and to the media and consumers as being the
coffee contracts that bind buyer and seller to a particular
Specialty Ideal would encourage SCAA/and Roasters Guild
code of conduct and bring ethical standards to important as
members to adopt the standards in their own businesses, and
yet untouched vital areas that contribute to our success and
promote them to the public. As those outside the specialty
our unique status as a trade.
trade perceive the positive impact on the sales of those businesses that embrace the standards these competitors
There are issues that relate directly to quality cup,
will join the affiliated specialty congregation to avail
freshness and the environment. It is a fascination to me, for
themselves of the elevation of reputation that being part
instance, how many specialty roasters advertise their good
of a structured trade dedicated to excellence brings to their
hearts by roasting “sustainable” coffees that support the
brand.
environment in far off lands, but roast on an apparatus that
does not have smoke control. There are others who roast
can stand up to the plate and aim for the fences with a
and sell “Certified organic” coffee in a plant that is not
reasonable expectation of success.
“Certified Organic”. There are many who just don’t label
Organized Specialty Coffee; SCAA and Roaster’s Guild
© 2007, Donald N. Schoenholt
Donald N. Schoenholt
Roasters Guild founder, and SCAA Lifetime Achievement Award laureate, Donald Schoenholt, can be found at Gillies Coffee Co., America’s oldest coffee roasting enterprise.www.gilliescoffee.com
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A Commitment to Ethiopia
Coffee Quality Institute Works to Strengthen the Supply Chain By Tracy Ging
As the birthplace of coffee, Ethiopia is home to more
than four (4) million people reliant on coffee production
there is an intersection between business interests and the
for their livelihoods. The film Black Gold has elevated
social issues facing our industry. We believe that farmer
public interest in Ethiopia and highlighted the problems
incomes can be improved while providing businesses
our industry continues to grapple with, namely that many
with the value of a strengthened supply chain for high
of its coffee farmers are struggling to survive. While these
quality, value-added coffees. We believe that, particularly
problems aren’t confined to Ethiopia, the film presents a
in Ethiopia, we have an opportunity to demonstrate to
clearer picture of the effects years of low prices have had on
the world that the industry is committed to a positive and
coffee farmers. And frankly, that picture isn’t pretty.
active solution.
As a coffee producing origin, Ethiopia is vitally
The Coffee Quality Institute (CQI) has long believed
CQI has developed a three-year Commitment
important to the specialty coffee industry and it possesses
to Ethiopia project to train cuppers and develop the
some of the most unique coffee varietals in the world. Aside
infrastructure to make trading more efficient and transparent.
from the social issues, there is a real business issue inherent
With funding from Fintrac, a non-governmental organization
in this situation. If Ethiopia’s coffee farmers aren’t earning
contributing to poverty eradication in developing countries
enough to survive,
by
what is the incentive
agricultural incomes,
for them to continue
CQI is beginning the
to
first year of activities.
if
produce? they
have
And no
In
increasing
addition,
a
incentive to produce,
corporate grant has
how
been
will
growing
secured
for
industry demand for
the building of a
quality
cupping lab. With
met?
coffees
be
this combined effort, continued... © copyright CoffeeTalk magazine 2007
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CQI will train and certify coffee cuppers, develop a database
program is ultimately to increase the value and volume of
of quality coffees and build capacity within the Ethiopian
Ethiopia’s coffee exports by an additional 500,000 bags at
coffee sector to subsequently expand these activities.
an estimated value of $118.8 million U.S. dollars.
In the Commitment to Ethiopia project, the focus is on
The main issue is achieving scale. While the investments
cupping training, which stems from the belief that only
in the Commitment to Ethiopia project to date are significant,
quality is sustainable. One of the quickest ways for farmers
they only cover about 2/3 of what is really needed to train
to improve their incomes is to know how the world market
enough cuppers in Ethiopia and get them to realize their
defines quality and appropriately identify which of their
full potential in specialty markets in a timeframe that will
coffees fit that definition. The second is by understanding
provide some relief to the country’s coffee farmers.
the quality of their coffee enough so they can begin to make quality improvements. The presence of cuppers at origin
is significant as it helps farmers to access higher paying
industry partners to support the Commitment to Ethiopia
specialty markets. It also provides a business value to buyers
project, with the purpose of improving farmer incomes in
in helping them to more efficiently and effectively identify
Ethiopia while strengthening the supply chain for high
and communicate with existing and potential suppliers.
quality, value-added coffees. We hope people will join
The Coffee Quality is seeking an investment from
our efforts to help reduce poverty among Ethiopia’s coffee
An example of the impact a focus on quality can have
farmers and create a sustainable supply of quality coffee for
on a country can be found in El Salvador, a country with
our industry…so that perhaps the next film will be about
one third the production of Ethiopia. El Salvador earned
the rich culture, incredible biodiversity, and thriving
over $50 million U.S. dollars in 2006, about 27% of total
communities of Ethiopia.
export revenue, by transitioning a greater number of coffees
More information on the Commitment to Ethiopia project
into specialty markets. In Ethiopia, the purpose of this
can be found at www.coffeeinstitute.org
About the Coffee Quality Institute
The Coffee Quality Institute is a non-profit 501(c)3 organization dedicated to improving the quality of coffee and the lives of the people who produce it. CQI has successfully managed a number of development projects at coffee origin. CQI is a highly efficient organization with more than 90% of revenue going directly into programs. Its board and staff have more than 450 years of combined experience and its database of more than 400 coffee experts provide countless more. As the only organization in the world doing the work to measure quality, CQI is committed to working with industry to create marketbased approach to sustainability.
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Global Coffee Connections By Phyllis Johnson, President, BD Imports
“There have always been
networks
powerful
worked for a coffee roasting company asked, “How do
people; but, until recently,
we convince the food-service industry of the value in
it has never been possible
serving quality coffee?” According to J. Gaines Consulting,
for the entire world to
Commodity Specialist, coffee consumption is increasing
be connected,” says Paul
worldwide. Producing countries are looking for ways to
Hawken in “Blessed Unrest.” Our ability to connect and
grow internal demand for their crop by building alliances
build solid relationships continues to be essential to the
abroad. Companies that do not place value on relationships
success of the specialty coffee industry.
will find themselves on the sideline with stagnated growth.
of
Over the past year, Ethiopia connected the world
On a recent trip to Guatemala, a young man who
Global relationships provide authenticity and access to
to the plight of coffee farmers. We saw Kenyan coffee
information, and they demonstrate good will, all of which
producers become excited about the opportunity to connect
is essential for today’s coffee-marketing war. According
directly with foreign coffee buyers. In Rwanda, we saw the
to Mark Pendergrast’s book, Uncommon Grounds, 19th-
successful launch of a café in Kigali that connected locals
century coffee marketing wars focused on the roasting
by giving them a chance to taste their own coffee. Our
company itself. Today, however, companies are no longer
ability to connect has and will continue to provide greater
touting their capacity or their technology prowess. They
opportunities for all. We see industry organizations building
are marketing their ability to appeal to the human spirit.
alliances, while producing and consuming countries are
Today’s coffee marketing war is all about the ability to
transferring knowledge.
connect consumers with the people who grow the coffee.
continued... © copyright CoffeeTalk magazine 2007
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With international government funding for coffee programs
the best pathways to success, ensure positive exchange, and
through organizations like Coffee Quality Institute, coffee
work together in educating global business partners and
quality knowledge will increase. Producers drinking
consumers. Today’s coffee industry is a powerful network of
their own coffee will inevitably increase coffee quality.
people connecting in ways never before possible. As we see
Consumers will start to expect a good cup of coffee as a
women leaders engaged in all aspects of coffee in countries
usual experience, not something that is seldom.
such as Japan, the United States, Latin America, and Africa connecting to learn from each other, phenomenal things
Many companies in our industry have been able to grow
will start to happen.
their businesses by connecting with their customers beyond offering a great cup of coffee. In addition to connecting the
consumer with the place of origin, they have successfully
experiences; and as with anything that is new, time is
tied strong connections through the support of meaningful
necessary to understand and gain the full benefit of the
philanthropic causes.
opportunity.
Many of the connections mentioned are new
My role as an importer is to make a connection between
goods and people. As an industry, our challenge will be to make the best use of our ability to connect and seek out
ABOUT BD IMPORTS, INC.
BD Imports was founded in 1999 by Phyllis Johnson and Patrick Johnson and serves as the premier importer and marketer of specialty grade coffees from Africa. BD Imports was one of the first US importers to visit Rwanda and offer its fully washed coffee to the marketplace. The company imports fine coffees for some of the most discerning coffee roasters in the world, while creating lasting relationships at origin and practicing socio-economic responsibility. BD Imports exclusively owns the Evolution brand of specialty grade roasted coffees found in upscale gift boutiques, restaurants, and grocery stores. BD Imports is a member of the Specialty Coffee Association of America (SCAA), Transfair USA, and The Roasters Guild, Women’s Foodservice Forum, and others. BD Imports…redefining coffee from origin to cup. info@bdimports.com; www.bdimports.com
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Marketing Meets Technology & Lives Happily Ever After By Krista Reddington-Telios - Marketing Director, FETCO® Reaching your audience through any means possible today is a must. Busy schedules, business travel and summer vacations all make it more difficult to connect with your customers and
So what’s a webinar? Webinars
Webinars can be used for product launches, training classes, capability overviews, interviews, etc.
potential customers. In our rush, rush
are interactive web-based seminars. Virtual classrooms. Online educational broadcasts. The greatest thing since, well, the internet itself. So why are webinars so great? Participants simply
world it’s important to speak to your customers
log onto a specified web site on a scheduled date
when they are ready to hear it. So when are they
and time to view a power point presentation with
ready? When they decide they are ready. And that’s
the presenter’s audio or see an instructor via web-
ok because webinars and podcasts are so versatile,
cam video. Participants can type in questions or
you can accommodate information on demand or
voice them over the phone depending on how
more importantly, your message on demand.
the webinar is set up. This interactive component serves many purposes. It allows participants to
Webinars and podcasts provide solutions that
get the answers they need, encourages a relaxed,
not only reach your customer in spite of their
conversational atmosphere and helps the presenter
schedule, but also add a friendly, personal touch
verify that everyone understands the material
that builds relationships with a sense of openness
that is presented. The presenter can also poll the
not available in print or other mediums. The
audience and gain real insight into participant’s
engaging conversation is what sets apart webinars
views and experiences. It also allows the experts
and podcasts from the rest.
from your company to build credibility and create a continued... © copyright CoffeeTalk magazine 2007
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positive impression. More than one person can be
a presenter during a webinar so imagine the value
and podcasts need to be well executed. Clear-cut
of pairing up a sales person and a technical expert
goals must be established. Target audiences need
to launch a new product to a targeted audience.
to be determined. Mission statement and values
Exciting, isn’t it? But wait a minute, webinars
need to be communicated. Brand integrity needs
are scheduled at a specific date and time so how
to be conveyed. Content strategy needs to be
flexible are these and how can they be tailored to
well-defined. Promotion need to be implemented.
the busiest of clients? By recording the webinar
Your company experts are then thought of as the
presentation and the audio as an MP3 file, you
industry experts that can be trusted. Using the
can create a podcast that can be posted on your
latest technology to tell your story can position
web site. By creating a podcast of your webinar,
your company as the creative, innovative thinkers
your message becomes available whenever your
in the market and differentiate you from the rest.
customer is ready to listen. Your message delivered
And in the marketing world, that’s what it is all
when they have time. Awesome. This is of
about.
Like any other marketing campaign, webinars
particular interest when considering training class podcasts. Your clients can have valuable training information at their fingertips and they can revisit this information when they need to take a refresher course.
Relying on the experts from your company to discuss your services, products and topics of interest to the industry not only creates a trustworthy atmosphere, but it also establishes your company as a leading resource center for information.
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Conference Empowers Coffee Industry Affiliates to Help Landmine Victims By Rebekah L. Fraser Landmines beleaguer six of the world’s top coffee producing countries: Colombia, Ethiopia, Guatemala, India, Uganda, and Vietnam. An innovative new public/private partnership is garnering worldwide support and offering hope for landmine victims. The Coffeelands Landmine Victims’ Trust is building a more sustainable industry by improving the lives of victims in coffee communities. Most victims are civilians, including women and children. In March, The Coffeelands Landmine Victims’ Trust hosted the first annual conference to educate and empower coffee industry affiliates to take action. Co-hosting the event were The Polus Center for Social & Economic Development, and the U.S. Department of State Office of Weapons Removal and Abatement (PMWRA). Former SCAA president Rick Peyser kicked off the event with Dean Cycon, of Dean’s Beans Coffee, who stressed the importance of changing our mindset. “This is not about charity,” he said. “We are engaged in people’s lives dramatically, and we have to take responsibility for that.” Speakers included representatives from Colombia, Angola, and various non-governmental organizations who detailed issues faced in the regions they encounter. Despite bleak statistics, Jim Lawrence from PMWRA is hopeful. In a brief but powerful speech, Mr. Lawrence expressed his belief in The Polus Center and the Coffeelands Landmine Victims’ Trust. Colin King, an internationally recognized Landmine expert, educated conference attendees, using a slideshow to illustrate the complexities surrounding de-mining activities. King explained that, until now, humanitarian aid organizations have lacked funding to adequately address the issue of victim assistance. “The war is being won against landmines, but the legacy is left in landmine victims…”
Educate and Empower Yourself You can help landmine survivors living in coffee regions. Check out these websites for more information and learn how you or your company can get involved in supporting victims of land mines in coffee growing regions. Coffeelands Landmine Victims’ Trust http://www.coffeelandstrust.org/intro.html State Department of Weapons Removal & Abatement http://www.state.gov/t/pm/wra/ Angola’s UN connection http://www.icbl.org/lm/2005/angola.html Clearpath International www.clearpathinternational.org Veteran’s For America http://www.veteransforamerica.org/ModuleID/136 The Polus Center www.poluscenter.org Landmine survivors Felix Castillo and Guillermo Candamil shared their own stories of suffering and renewed hope. Castillo owns a small coffee farm in Nicaragua, but he needs his twelve-year-old son to help harvest on the rough terrain. He wants to produce more, but said he needs government support to help him achieve that goal. He shared continued...
Where Does the Money Go? • Donations will be used to help landmine victims – not only people who have suffered limb loss but those who in any way have been impacted by landmines. • Funds will address a wide range of economic development and rehabilitation initiatives – such as prosthetic services, physical rehabilitation services, economic demonstration projects and business start-ups. • Funds will be used to help create and sustain valued social roles for landmine survivors in coffee regions around the world. • Projects we support will help people to help themselves. • Implementation will be done by the groups themselves. We encourage inclusion of victims in the planning © copyright CoffeeTalk magazine 2007
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his dreams of having the resources to expand his farm and buy a new artificial leg. (This month, with a contribution from an individual, The Trust will purchase a new prosthetic leg for Mr. Castillo.) At the conference, Mr. Candamil was still reeling from the tragedy that befell last year, when he stepped on a landmine on the path adjacent to his coffee farm in Colombia. Mr. Candamil had worked hard to create a sustainable future for
Regional Landmine Issues ANGOLA: In 1974, Angola was the top coffee producer in Africa, and the fourth largest producer in the world. Now the country exports only 1-2% of the continent’s coffee crop, because of the 7 million land mines that were placed during the civil war, which ended in 2002. ETHIOPIA: Landmines claim 3-4 new landmine victims per month, including coffee farmers. COLOMBIA: Landmines claim 3 new victims each day. In 2005, Colombia was the world’s 2nd largest coffee producer, and Colombians suffered more landmine incidents than anyone else in the world. The government believes that many landmine casualties go unreported, because people from rural areas never reach the medical facilities where data is collected. Daniela Zuluaga, from the Colombian Observatory for Anti-personnel mines, states that many mines are made from coke cans or footballs, making them attractive to children. LAOS: 58% of landmine victims in Laos are children. The UN sees coffee as the main vehicle for economic development, but landmines and unexploded ordnances (UXOs) create an impenetrable barrier. NICARAGUA: 724 landmine and UXO casualties were reported between 1980 and 2004. Still, thanks to groups like The Polus Center for Social & Economic Development, the International Red Cross and the Organization of American States, Nicaragua is on the road to recovery. RWANDA: According to the Mine Action Information Center website, the Rwandan government neither restricts farmers’ access to farmlands/ minefields, nor provides support to victims of landmines and UXOs. Landmine victim statistics are incomplete. VIETNAM: 70% of injuries in Vietnam occur while people are working, often because farmers can’t wait for someone to clear the mines from their land.
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his family, and eventually realized his dream of purchasing one farm for each of his four children. Since the incident, he has spent almost a year recuperating at the nearest hospital in Manizalles, six hours from his home. His family is now divided between the farm and the city. The bank has threatened to seize the farm, because of a small loan Candamil procured to buy fertilizer prior to the accident. He wrote to the bank requesting it forgive the loan, and was shocked and saddened by the answer he received. “They said they’d only help if I had lost both legs.” After the presentations, conference attendees were invited to break into small groups to brainstorm. Ideas flew among participants, who were shocked by what they had learned. Many people voiced the questions, “What can I do? What is our responsibility?” Bob Heiss, who’s been in the coffee business for 30 years, suggested people do anything possible to get the word out, including creating posters and flyers. He said, “It is an opportunity to be proactive, to make a difference.” Ellen Kaufman, of Equal Exchange considered the impact a documentary film festival could have. The Trust has built a board of advisors, to identify regions impacted by landmines and people who are in urgent need of assistance. As Mr. Cycon stressed earlier in the day, “Needs of individual farmers are different. We need to be creative in finding solutions.” Response to the event was positive. Mark Nunziata, of Mocha Joe’s, said, “I personally got an entirely new perspective on how coffee can play a role in bettering lives.” Mary Ann DiMascio, of Dunkin’ Brands, described the day as emotional and energizing. “It was really moving to be here today… It speaks to important issues for coffee growers all over. I don’t see how anyone hearing this wouldn’t do something about it.” Indeed, since the conference, many individuals and organizations have offered support for the Trust, including: the Organization of American States, Dean’s Beans, Starbucks (for Columbia), Mocha Joe’s, and Green Mountain (for Nicaragua & Honduras). The U.S. Department of State (PMWRA) offered two matching grants totaling $75,000, and Grapes for Humanity raised $50,000 for the Trust at a benefit dinner. Now, The Polus Center, the organization that administers the trust monies, is in the process of identifying people who need assistance in the areas specified by donors. Finding recipients is an involved process. As Theresa Kane, of The Polus Center, explained, “For someone it’s providing transportation; for someone else, it’s prosthetics, but it’s not just about the person who lost the limb.” Look for an update in the September issue of Coffee Talk. Rebekah Fraser is a freelance writer and can be contacted via email at rlf@aya.yale.edu © copyright CoffeeTalk magazine 2007