September 2010 by CoffeeTalk Magazine

September 2010 Vol. XXIII No. 9

www.CoffeeTalk.com

Locked Out?

Roasters and the K-Cup Phenomenon

This Month: 10 14 16 22

Retailer Profile And the survey saysâ&#x20AC;Ś Judy Ganes-Chase Coffee Fest Seattle listings

The Lowdown on Private Labeling Retailer options for private labeling

Coffee Fest Seattle Preview

“ OUR COMPETITORS WEREN’T TOO HAPPY TO SEE WE HAVE ONCE AGAIN IMPROVED OUR QUALITY.” Our decaf bean color now looks more like green coffee, which helps make roasting easier. Helping your decaf business is our only business. Ask for SWISS WATER® Process decaf – coffee without compromise. For samples call 1-800-668-9981.

Previous color

Current color

FRANK DENNIS - President & CEO Swiss Water Decaffeinated Coffee Company

TM/® are registered trademarks of Swiss Water Decaffeinated Coffee Company Inc.

Contents

6 8 10

The View

From Miles & Kerri

The K-cup Phenomenon Are Micro-Roasters getting left out?

Retailer Profile

The Vashon Island Coffee Roasterie

The Lowdown on Private Labeling

And the survey says…

Judy Ganes

Private Labeling

Lessons for independents from the Starbuck’s experience

La Niña worries: Justifies or Not?

Newsbites

Coffee Fest - Seattle Listings

The survey says… CoffeeTalk’s Advertisers at Coffee Fest Seattle

Who We are Owners

CEO/Publisher/Advertising Director Kerri Goodman-Small, ext 1 206.795.4471 kerri@coffeetalk.com Editor-in-Chief Miles Small, ext 2 miles@coffeetalk.com

Production

Production Manager Marcus Fellbaum, ext 5 marcus@coffeetalk.com Daily Dose Manager Justin Goodman, ext 6 justin@coffeetalk.com

Administrative

Feature

Administrative Assistant Katie Bakker katie@coffeetalk.com

Mailing Info

The K-cup Phenomenon

Are Micro-Roasters getting left out? Should we be concerned?

Mail: HNCT, LLC, 25525 77th Ave SW Vashon, WA 98070 Phone: 206.686.7378 Fax: 866.373.0392 Web: www.coffeetalk.com

Disclaimer

CoffeeTalk does not assume the responsibility for validity of claims made for advertised products and services. We reserve the right to reject any advertising. Although we support copyrights and trademarks, we generally do not include copyright and trademark symbols in our news stories and columns. Circulation: CoffeeTalk (ISSN 1084-2551) is mailed monthly (10 times per year) with combined June/July and November/December issues, also bonus mailing/distribution for Education Guides and foodservice/hospitality and coffee conventions/shows throughout the year. Postmaster: Send address changes to HNCT, LLC, 25525 77th Ave SW, Vashon, WA 98070 Subscription: The cost of a subscription in the U.S. is $47.50 per year; in Canada, the cost is $72.00. Free to qualified industry professionals. Non-qualified requests may be rejected. Publisher reserves the right to limit the number of free subscriptions. For subscription inquiries, please call 206.686.7378 x1 or subscribe online at www.CoffeeTalk.com. Copyright © 2010, HNCT, LLC, All Rights Reserved

Kerri Goodman-Small & Miles Small

The View Look at us now!

In this business you really have to have faith. Not necessarily religion, but a basic spirituality that transcends the little whisperings of doubt that try to sink their claws into your confidence. How else can we willingly hop unto bizarre local airplanes and be dropped into jungles to buy coffee; how else can we invest thousands of dollars into buying a commercial espresso machine even before we have a store; how else can we take over the family garage with a 12 kilo roaster without knowing where the first pound is going? We do it on faith. Faith that a decision to take action will pay off. For Kerri and me, we have as a core part of our business and personal choices and methods the faith that once we have looked at all the options, made a decision, and do the work, the rest will simply happen – as long as we never question and as long as we believe. We call this “blue feathering” for reasons that may seem a little too woo-woo for explanation here, but suffice it to say that a Blue Jay feather (and Illusions, by Richard Bach) plays a big part here. Just such a ‘blue feather’ is in your hands (or on your computer screen) right now. Summertime is when we look at where we are, where we have been, and where we are going with the magazine. Being small, entrepreneurial – and married! We are able to examine our direction and make course corrections very quickly. In talking with our customers/friends we heard that although we are admired for our work with non-profits and support of farmers at origin, our magazine had gone a little off-course. Our first love has always been the dedicated independent café owners and roasters without whom the specialty coffee world would simply not exist. We have realized we gave not been properly providing key content for this essential group.

So, what has changed? The Design – while appreciating our history, we have built upon that solid foundation and changed virtually all the design elements, including the background grid to deliver a more modern and tastefully stylish presentation. From the fonts to the color palette we are new from cover to cover. The Paper – we have upgraded our paper to a more substantial weight and gloss. Colors pop off the page and the registration and clarity is the highest quality available. The Editorial – we have our edge back with in-depth investigative reporting of issues important to the US specialty coffee world. We have said goodbye to some elements, moved others such as the Specialty Roasters Directory on-line, and added new columns and features that are meaningful to café and roaster/retailer operators. The Circulation – we examined all our subscribers from A to Z analyzing just how many copies go to each business, removing companies not relevant to the coffee industry, and taking out names that didn’t have real businesses. Then we added hundreds of verified cafes and roasters from all across the US. The result is the biggest and cleanest list of known potential buyers in the industry. The Digital edition – we added thousands of international coffee industry professionals and operators to our digital circulation broadening the reach of the magazine and our advertisers.

On top of that, our advertisers and potential advertisers told us our look needed an upgrade. All agreed that we were the industry leader in content, knowledge, and commitment but the look of the magazine itself just did not fit with our leadership position.

And you know what, our ‘blue feather’ is working. With the trial issue in August, this issue, and our huge October Coffee Fest issue, you have rewarded us for the risk and investment. You have shown us that our decision to adapt, change, and improve was sound.

Wow, was that a wake-up call. Now comes the faith part – the “blue feather.”

Thank you for your support over the years and thank you so much for your support today and in the future. Now you go “blue feather” something good, too. Believe.

In order to fix things quickly, effectively, and with quality we would have to make a significant monetary investment as well as change some elements of the magazine that had become ‘old friends.’ After much thought and discussion the choice was clear. Kerri and I owed it to our audience, and our customers, and frankly, our family to make the necessary changes. Once the

Calendar

decision was made, we set about investing the time and resources to re-invent CoffeeTalk and had faith that the coffee world would approve and reward us.

Sept. 9-11 Sept. 11-13

Expoespeciales, International Specialty Coffee Fair, Narino, Colombia

Sept. 12-13

Florida Restaurant & Lodging show, Orange County Convention Center,

Ultimate Barista Challenge, Orlando, FL, www.ultimatebaristachallenge.com, 503.232.1016, info@ultimatebaristachallenge.com

Orlando, FL, rhomola@reedexpo.com, 203.840.5841

Sept. 13

Green Coffee Association Golf Outing, 212-766-5854, DMadigan@

Sept. 18-19 Sept. 26-27

Puerto Rico Coffee Expo. 787-568.7646, info@prcoffeeexpo.com

Oct. 13-16

Natural Products Expo East, Boston Convention and Exhibition Center, Boston,

Oct. 18-20 Oct. 28

greencoffeeassociation.org

2010 Canadian Coffee & Tea Show, Toronto’s International Centre, Toronto, Canada, www.coffeeteashow.ca, 866.688.0504, mcronin@ fulcrum.ca

MA, www.expoeast.com, 866.458.4935

National Coffee Association Fall Conference, New York, NY Party at Miles’ and Kerri’s

nope, this isn’t it

Cheers,

Oct. 29-31

Coffee Fest Seattle, Washingtion State Convention & Trade Center, Seattle, WA, 425-295-3300 ext 113, davidh@coffeefest.com

Oct. 29-31

New World Latte Art Championship at Coffee Fest, Washington State

Nov 5-14 Nov 11-13

Kona Coffee Cultural Festival, www.konacoffeefest.com

Dec 10 Dec 13-14 Feb 18-20 Feb. 19-20

Convention & Trade Center, Seattle, WA, 425-295-3300 ext 113, davidh@coffeefest. com

Ultimate Barista Challenge, Shanghai,China www.ultimatebaristachallenge.com, 503.232.1016, info@ultimatebaristachallenge.com

Green Coffee Association Holiday Party, 212-766-5854, DMadigan@

greencoffeeassociation.org

2nd International Coference on Arabica Naturals, +967 734435036 Coffee Fest Chicago, Navy Pier, 425-295-3300, www.coffeefest.com 6th Annual Coffee and Tea Festival, NYC 631-940-7290, www.

coffeeandteafestival.com

The K-cup Phenomenon by Sam Kornell

One autumn day in 1992, a man named Nick Lazaris came to visit Donald Schoenholt. Schoenholt is the proprietor of Gillies Coffee, the country’s oldest coffee merchant, and Lazaris was a young engineer, recently graduated from MIT. They sat down at a table on the floor of Schoenholt’s factory, in Brooklyn, and for the next two hours Lazaris attempted to convince Schoenholt to invest in a single serve coffee machine he and a fellow engineer at MIT had invented. Schoenholt was interested, but after careful consideration he decided to pass. Not long ago I spoke with Schoenholt, and asked him about his decision to turn Lazaris down. Only a few days before our conversation Green Mountain Coffee Roasters, the Vermont outfit that bit when Lazaris came calling, had reported its eleventh consecutive quarter of better than 40 percent net sales growth—mostly on the back of its K-Cup sales. Here is Schoenholt’s response:

But some roasters aren’t banging their heads – they’re banging their fists. In recent years, Green Mountain has bought up the last remaining licensees of the Keurig technology in the United States. There is still one remaining K-Cup licensee in Canada (Van Houtte), but at this point Green Mountain’s position in the single serve coffee market in the U.S. is, as one analyst recently put it to me, “dominant—very dominant.” This has led many specialty coffee roasters to grumble about Green Mountain effectively locking them out of the fastest growing coffee market in the U.S. “Just because you were first to market doesn’t mean you should have the right to shut out the rest of the world completely,” said Tom Oliver, co-owner of Coffee Roasters of New Orleans.

Whenever someone “ makes something new, of

course all of the competitors wish In the last few years, as the economy has steadily imploded, more and more Americans they’d thought of it. But they want have been saving money by eschewing coffee shops – according to the latest figures, about 85 Green Mountain to give their percent now make their coffee at home – making the arrival of a clean, efficient, single serve coffee business away? Come on. If you visit my home in Long Island, and you walk machine ideally timed. For the right customer, the Grow up. Dan Cox down to the garage, there’s a brick wall. If you then walk virtues of the K-Cup, the coffee pod Green Mountain to the area right in front of my car, you’ll notice that there’s a dent in the brick. That’s where, for the last twenty years, I’ve been banging my head.

Schoenholt isn’t the only specialty roaster in the U.S. who may feel like banging his head against the wall when the subject of Keurig arises. In 1996 Green Mountain agreed to make a considerable investment in Keurig, and for the next decade the two companies worked closely to refine the Keurig technology; in 2006, Green Mountain bought Keurig outright. It was a good decision: Today, Green Mountain is expanding extraordinarily rapidly—for the last nine months it has produced net sales growth of seventy percent over the prior year. These amazing figures have come mostly on the strength of its dominance of the single serve coffee market in the United States. In late August, Fortune placed Green Mountain second on the their list of the world’s 100 fastest growing companies.

”

produces for use in the Keurig machine, are legion. The coffee is superior to similar quality coffee purchased ground from the supermarket, and requires virtually no cleanup. This makes it particularly attractive to commuters and offices, as well as businesses with reception areas, and it means that for roasters with direct mail order business, and also roasters who supply office buildings, the K-Cup market is a potentially huge source of new revenue. At the moment, single serve coffee comprises about five percent of the total U.S. coffee market, and some analysts believe it could grow to a ten or even fifteen percent market share. In an industry as old as the coffee business, it is highly unusual for one company to so completely control such a rapidly expanding market, and it has led to dark murmurings within the industry about Green Mountain having a monopoly, or at least something like it. “I don’t know if they have a legal monopoly, but they have certainly shut everyone else out of the market,” Tom Oliver told me.

The K-cup Phenomenon

Donald Schoenholt, for one, isn’t buying it. “The Keurig technology produces single serve coffee, and there are other single serve coffee products,” he said. “The category we’re talking about here is single serve coffee, not K-Cup coffee.” I asked Schoenholt how smaller roasters such as Gilles could get into the market. “You can’t,” he replied. “The world isn’t fair, and the coffee world isn’t fair. That’s the way things are in real life.” There is a certain irony that Green Mountain is being criticized by smaller roasters for streamrolling the rest of the specialty coffee industry. Another way to look at its success with the K-Cup is to consider that in the last five years it has, as a mid-sized specialty roaster from Waterbury, Vermont, outmaneuvered Starbucks—a $17 billion company—and Kraft, a $100 billion company, and come to dominate a highly coveted sector of the coffee economy. From a business perspective this is impressive, particularly considering that Green Mountain invested in Keurig’s technology long before it was clear that there would be a pay off. But one of the consequences of the extraordinary way in which Green Mountain has vaulted itself up into the big leagues is that it has had to endure stress on its ideals. From the beginning the founders of Green Mountain defined their company as a socially and environmentally progressive specialty roaster whose attitude was fundamentally local in nature – much like another famous Waterbury, Vermont company, Ben and Jerry’s. But they are currently traveling outside of their traditional precinct as a large specialty outfit, becoming a straight-up national coffee power. Awkward questions often accompany this kind of growth, and Green Mountain is no exception. “Green Mountain was among the very first roasters into being people sensitive and environmentally sensitive,” Donald Schoenholt told me. “They did it very early, and they’ve done it very, very well. Green Mountain is, in my opinion, really the model for the coffee industry in environmental and people sensitivity.” He paused. “Now, why am I going to pains to say all of this? Because the K-Cup is the most anti-environmental item made in the coffee industry today, with the possible exception of the Nespresso cup, which is aluminum. The K-Cup is not biodegradable plastic – it’s the stuff you hate putting in landfills. So here is this company with this wonderful track record of sensitivity making its primary living today from an item that is an environmental nightmare.” Not long ago I spoke with Dan Cox, who from 1981 to 1992 served as Green Mountain’s Vice President. Cox now runs Coffee Analysts, a coffee testing firm, and he emphasized to me that his remarks in no way represent Green Mountain. I asked him about the environmental problems associated with the K-Cup. “It puts them in a very awkward situation, and they don’t like it,”

he said. “They have a task force working on this around the clock and they haven’t found a solution.” He continued. “It’s more than an image problem for them – they’re pretty solid on their image. They just want to do the right thing and right now they know that putting fifty cups per pound of coffee in the dumpster doesn’t feel very good. But they’re going to sell two and a half billion dollars of K-Cups this year. What? Are they going say no to the orders? That’s not going to happen.”

Feature

Last winter Green Mountain bought the last remaining K-Cup licensee in the U.S., San Jose-based Diedrich Coffee, for $290 million, besting Peet’s in a bitter bidding war. Before Green Mountain could complete the purchase, however, the Federal Trade Commission conducted an investigation to determine whether the acquisition would give Green Mountain a monopoly over the single serve market in the U.S. The FTC concluded that it would not. But when I recently asked an industry analyst which competitors are likely to offer a credible challenge to Green Mountain in the foreseeable future, he couldn’t name any. Last year Green Mountain made $803 million in sales, and this year it expects to sell nearly three billion K-Cups. Even if what Green Mountain has does not constitute a legal monopoly, might it be a “functional monopoly,” as Oliver put it?

Cox, who has served three terms as the president of the Specialty Coffee Association of America, is well known for having a frank way of expressing himself. When I asked him about complaints that Green Mountain is monopolizing the market, his response was characteristically direct. “It’s a really simple story: there is no monopoly,” he said. “A monopoly is where someone controls the market so that no-one else can get in. The market is not about K-cups. The market is about single serve coffee. That’s the category, and in single serve you have multiple players.” According to Cox, complaints about the Green Mountain’s control of the K-Cup amount to little more than “spilled milk. They spent years making [the technology] technically proficient,” he told me. “At the time, it was a huge risk. It was a gamble. It wasn’t on the market, and they spent a lot of money and it panned out. Whenever someone makes something new, of course all of the competitors wish they’d thought of it. But they want Green Mountain to give their business away? Come on. Grow up.” If there’s no way for specialty roasters to get in on the action, I asked Cox, how do they counter the growing demand for K-Cups? The answer is simple, he responded. The K-Cup offers consumers good coffee, but not high-quality specialty coffee. That”, he said, “is what specialty roasters should emphasize in their marketing. If you like your coffee stronger you can’t get it out of a K-Cup – the most coffee you can get in one of those things is about 11 grams,” he said. “So if you’re a microroaster, you can say ‘Hey listen, we have excellent coffees that we make fresh and you make at any strength you want.’” Many specialty roasters agree with Cox on this point. In an email, Paul Thornton, the roastmaster at Portland-based Coffee Bean International, told me, “There is a very clear difference in the experience a consumer might have between automated single brew from a Keurig, and manual single brew from a coffee shop. I personally feel it’s equal to the comparable difference between truck stop coffee and a coffee shop” – two different markets. I heard a similar sentiment from Larry Challain, the owner of Olympia, Washington based Batdorf and Bronson. “I think this is all a tempest in a K-Cup,” he told me. “I applaud Green Mountain for their success with Keurig and K-Cups. A K-Cup brewed in a Keurig brewer makes a good cup of coffee for what I would call a “gourmet” product.” However, Challain said, “I do not consider pre-ground coffee sealed in a plastic container that sits for months at a time on the shelf to be specialty coffee. Batdorf & Bronson has no interest in this single serve market. Quite frankly I think Green Mountain should be applauded for upgrading the quality of the convenience sector niche.”

ster Roaster coffee ration retailer Roaster operation

profile

successful ccessful ration Roaster retailer

fee ofile

Roaster coffee

Retailer Profile: secret to success what they did The Vashon Islandhow Roasterie they did it by Maxim Vershinin

he Vashon Island Coffee Roasterie, a “historic coffee roasterie and store,” is located right in the center of Vashon Island, WA, and is successful in spite of significant competition; there are currently eight cafes for the island’s 10,000 residents. The owner, Eva DeLoach, started Vashon Island Coffee Roasterie five years ago in the same building where Jim Stewart originated Wet Whisker, which later became the birthplace of the now famous Seattle’s Best Coffee. In spite of having limited knowledge of the coffee industry, Eva, who has been a successful retailer of organic food and herbs for the past 35 years, took a chance and decided to jump straight into it. She found her own path through the maze of coffee, and now Eva is a successful roaster-retailer. Eva connects her passion for coffee, organic foods, and herbs and spices all in one location. The business consists of the roasting plant in the basement, a café and herb store upstairs, and an organic grocery store next door. However, everything is dominated by the 40 year old German Ford Gothot roaster. “There are only forty to fifty people in the world who know how to properly use it. And there is not one thing automated. They have to pull the coffee out, look at it, listen, and smell it to determine if it meets our standards!” Eva says. Everyday, the coffee roasting process is ceremonial. Roasting veteran Peter Larsen, Jim Stewart’s former master roaster, and his apprentice Casey start each roast with words of prayer and love for humanity. They believe that positive energy flowing throughout the roast makes a big difference. The roasting plant can be seen from the upstairs café area, and every morning both adults and kids love watching the roasting process taking place right in front of their eyes. As soon as they hear the machine, everybody gets up from their seats and goes to the observation area. They say it makes their day better. The beans used are high mountain shade grown beans, produced using traditional growing practices. The beans are sourced through the Vashon Island Coffee Foundation created by Jim Stewart, which specializes in providing just compensation directly to the farm’s owners.

profile operation successful About coffee

Giving back goes a long way for Eva. In addition to supporting numerous organizations such as American Cetacean Society, AHOPE for Children and many others through direct donation, some of the blends sold on the Roasterie’s website carry spiritual and social purposes. For example, her medium dark roast Orca blend was created after a dream that Eva had about whales coming to her and asking for her help to survive. A portion of the

retail sales from this blend now goes to programs dedicated to fighting whale extinction. Another example would be her Wolf Blend, which benefits organizations caring for wolves’ survival. That particular one is really popular with eco-resorts in the Alaskan wilderness. The Roasterie has grown to be a unique place, it is now a must-visit destination for any coffee lover or casual traveler to the island. Guided by Native American elders, who told Eva to look for answers to everything in the past, and eager to commemorate Jim Stewart’s legacy, Eva has turned the café into a beautiful living coffee museum. Antique grinders, espresso machines, SBC memorabilia from the early ‘70s, roasters, cupping room equipment, and scales don’t just create a museum atmosphere; they are still occasionally being used today. Nowadays, when most people think coffee shop, they think about quality one-on-one time with their gadgets, but not at the Vashon Island Coffee Roasterie. Here you won’t find folks hunched over their laptops, and surprisingly, lack of Internet access does not make you feel limited in any way. Simple human conversations, laughing, family and friends, books, local art, and coffee tastings take over your need for modern technology. Since the Wet Whisker times, brewed coffee was the only available choice at the Roasterie. People would stop by the front porch, get their coffee, and leave money right on the table (it is a small island.) When Eva opened her business, she feared decreased sales by introducing espresso. However, after a multitude of requests, she went ahead and bought an espresso maker. In the end, it turned out that sales of brewed coffee didn’t get affected at all. Customers still consume about forty air pots before 10:00 a.m. every morning (still on the porch), and those in love with espresso form lines at the barista. Nobody complains. Customers enjoy honoring Eva’s commitment to preserving the past and her focus on “doing the right thing”. As Eva says, “Remember how everything started. Look back at the past. Back in the days when people didn’t used to be in so much hurry to get a cup of coffee. Coffee is about unity. It unites people for a time to share their stories and life experiences.” Eva and her staff give 100 percent to the quality and another 100 percent to love and passion for their work. Her idea is to make sure to build her roasting and retailing business around what she loves, even if it means going against conventional practices. As Eva always says “There will be those who love it and those who hate it, but in the end you can’t make anybody love something they don’t. Do pay attention to what others do, but find your own path and you will be successful.”

Profile About

Peak of Perfection Brew coffee to the peak of perfection using professional-grade thermometers and timers from CDN. Offering an extensive range of precision timers and specialty frothing thermometers, CDN gives coffee professionals essential tools to deliver the full flavor and aroma of coffee with every cup they serve.

1-800-338-5594

The Lowdown on Private Labeling by Katie Bakker Private labeling is quickly becoming a popular way to sell more products by using another company’s product with your label. For starters, private labeling is, according to the Marketing Dictionary, “When manufacturers of a certain product use either their own name, that of a middleman, or a combination of both when they are marketing their products. Since manufacturers’ brands have large advertising expenditures built into their cost, a private labeler is able to buy the same goods at a lower cost and thus sell them at a lower price or at a better profit margin. In addition, private labelers have more control over pricing and are able to advantageously display their own brands for maximum impact. Private label brands are usually priced lower than comparable manufacturers’ brands and therefore appeal to bargain-conscious consumers.” Everyday we see some sort of advertising, whether it be on the television, in a magazine, heard on the radio, or even seen as we’re driving by, all of these events lead to a major marketing goal, brand recognition!

Also, private label products such as coffee jackets can be a way to connect with the community. Jay Sorenson of Java Jacket adds, “Consumers can then read and see what’s going on with your coffeehouse, whether you’re adding another store in a different town, offering a coupon, or promoting a future event, it’s always a good marketing idea to have your name on the coffee jackets. It helps with brand strength, and lots of times, the person drinking the coffee won’t be the only person to see the jacket, which further helps brand identity.”

Private labeling has always been a prominent part of the coffee cafe industry; it gives owners of small independent shops a way to build their brand, as well as brand recognition and credibility within their own community. Robert Kraeuter of Kaffe Magnum Opus Inc adds, “Retailers get the opportunity to blow their own trumpet and be proud of their shop, brand and hard work. One of the joys of being an independent retailer is creating and growing your brand from an idea that was perhaps scratched out initially on a napkin. Getting more and more consumers to recognize your brand, logo, quality and commitment to the community is key to long-term success. The market place is competitive and you must get your brand out in front of the local shopper. Recognition is critical to maintaining current customers and growing that base with future customers. Clients like to be a part of someone’s success, a part of a community and a good, well thought out custom labeling program by a retailer can make that happen.”

Buzz Chandler from Asean Corporation, manufacturers of eco-friendly products under the brand name Stalkmarket agrees and also points out that private labeling gives the café operator the opportunity to more clearly present their personal philosophy through recycled, re-usable, and compostable products. An opportunity that is not always available through traditional foodservice distributors.

Ellen Jordan Reidy of Amfotek, developers and manufacturers of custom beverages, agrees. “Custom private labeling allows cafes to offer their customers exceedingly high quality products that help polish THEIR brand. It also enhances and elevates the customer perception that the product is more specialized and not found on every corner or competitor location.” By engaging your community in your brand success, and promising nothing but the best you will continue to get more repeat customers. Though many would argue that introducing a brand new product under their own name can be a challenge and a bit risky but in reality, it’s quite the contrary it helps branding strength. “Typically when the coffee houses have existing products (their private label) it’s a bonus to offer more and more items. If it’s a new product for them, yes it could be a challenge but when they promote a good, consistent coffee house with quality beyond means, their customers will come back over and over again, they’ve earned their trust to serve nothing but the best”, continues Gina Costello of Costellini who offers private labels sauces, caramel, chocolate, white decadence powders: chocolate mocha, white chocolate sugar free white chocolate and no sugar added chocolate powder Vanilla Frappe and Chocolate Frappe for iced blended drinks.

Michelle Wagner of Dixie Foodservice agrees, “Private labeling delivers brand equity.” Labeling all your consumables and take-aways such as packaging, napkins, cups, sleeves, plates, and to-go containers “reinforces the brand, builds customer loyalty, and advertises. Printed, branded packaging is a virtual billboard.”

Café owners should be aware however that private labeling paper products and other items may be prohibitively expensive to small operations. Minimum order size may drain the pocketbook of a café operator. Both Michelle Wagner and Buzz Chandler agree that the operator should use caution and examine all the costs before making an investment in private labeling. Private labeling is very relevant in large chains. They have the need for larger quantities of product, therefore making it even more worthwhile. Jeanette Zimmerman of Lowery Coffee further explains, “A large retailer has the advantage of greater control over their advertising schedule, generally better margins on products mostly due to higher volumes, and the ability to reinforce store, as opposed to brand, loyalty. Premium coffeehouse chains can, with judicious choices, have top grade products that are both unique to the store and economical for their customers. Roast names can be coordinated with the chains themes and mottos. All of this reinforces customer loyalty.” “A private or custom label helps extend a company’s brand by acting as a portable billboard. That bag of coffee may sit on an office counter every morning as staff comes in for their morning cup of Joe or perhaps in the kitchen where family and friends congregate for meals and snacks. Custom labeled coffees for gift baskets, mugs and small single pot “frac” packs can be used as a quick and inexpensive replacement for a business card. Custom created signs to match the products go a long way to boosting the retailer’s local brand. Custom programs have set the stage for a full blown branding program with cups, napkins, bags and other private labeled products. “Once the wheels start turning it’s tough to slow down success,” adds Robert Krauter. Many coffee houses are thriving because of the experience they offer their customers, great retail connections are much deeper than logo recognition. They start with the experience of the coffee shop then become reinforced with the logo and other branding methods.

And the Survey Says... By Kurt Feshback; President, Falcon Research, Inc.

y day job is doing research that helps people make investment decisions for the stock market, so anything from here on out can be viewed from that perspective. Will more people go toward single serve and will that hurt Starbuck’s or Peets? Is McDonalds, Tim Horton’s or Dunkin Donuts taking business from anyone in the “special” specialty coffee business? Will independents end up winning more business because of a superior product or better service? Coffee is a zero sum game so if any of those places are winning business someone is losing it. The number of people drinking coffee hasn’t changed much in the US for a number of years according to the NCA. More people are drinking specialty coffee (35%) and fewer are drinking Maxwell House or Folgers. Besides drinking coffee every day and not leaving home without having some, there are two main things that drive people to coffee shops, the first being convenience and the second being price. (survey.com) Move a store a few blocks and it may lose business, raise the price of the coffee and it may lose business. 56% of coffee drinkers prefer to go to a coffee house but 86% of coffee drinkers make their coffee at home (NCA) because of convenience and cost. (Survey.Com) I have been surveying coffee related subjects for the past year. The reason for this is to understand the difference between the “away from” business and the “at home” business. How has the single serve market effected the away from home business or has the office coffee market effected the coffee house business? Taking the recession out of it (not easy to do) how will businesses improve and which ones are winning? I use consumer surveys to see who might win or lose. My first objective, about a year ago, was to find out what effect single serve coffee would have on the “away from” home market and what that meant for Starbuck’s and Peet’s. (Publically traded

Falcon Research Insights

companies) My second objective was to find out what single serve would mean to the coffee aisle in a grocery store. I have found that doing consumer surveys regularly can help one understand consumer trends, so I have done a single serve survey one month followed by a coffee house survey the next month for the past year or so. There are some interesting statistics that have come from these surveys. One of those relates to knowing your customer… • There are 3 types of Starbuck’s customers, Super Regulars who visit Starbuck’s 4 times or more a week, Coffee house enthusiasts who visit 2 or 3 times a week and Treat Seekers who visit once a week on average. The point here is important. Do you know your customers and what will make it more convenient for them to come to your establishment, rather than to sit at home or stay at the office? • You are not only competing with other coffee houses but you are also competing with Single Serve and at home coffee. According to the National Coffee Association nearly 86% of people drink coffee at home and Single Serve is making it easier to make coffee. The idea is to know what your customers are drinking and to turn them from Treat Seekers to Enthusiasts and from Enthusiasts to Super Regulars. Surveying your costumers for what they need and want is easy to do these days and isn’t expensive. Type in a search for ‘surveys’ and you can find many places on-line that host surveys and you can drive your customers toward taking them by offering free coffee or treats. Find out if your coffee or food or service could be changed to make people more likely to come in. I use survey stats every day to decide where to suggest people invest their money; you should do the same as you invest in your cafe. “Starbuck’s Rewards” is also a factor in Starbuck’s business, members of Starbuck’s rewards spend on average $20 a week, whereas none members spend 5.50 a week. (survey.com) I mention Starbuck’s here because this is a successful program and

the difference between someone with a reward card and someone without is worth noting. The conclusion here is don’t copy Starbuck’s, but find a way to reward your regular customers and do something that helps them bring in their friends. A big question today is Wi-Fi – to have or have not? Starbuck’s move into free Wi-Fi may have helped their business initially. 42% of Starbuck’s customers have used the free Wi-Fi and half of those people tend to buy more coffee when doing so. (survey.com) It may be a short lived phenomena based on what some other independents are doing. Other coffee houses are going in the other direction, Café Coupa in Pala Alto California turns off the Wi-Fi on the weekends. They found that customers were unable to get seats because people just sat on their computers, took up space and didn’t order more coffee or food. Four Barrel Coffee in San Francisco also cut off the free wi-fi and the owner, Jeremy Tooker, said it made business boom Victrola Coffee also has changed its free Wi-Fi policies because they found that customers no longer talked to one another. Do you know how many of your customers use their laptops or how many stay away because there isn’t any place to sit? I suggest that going against the Starbuck’s grain may make things better, but ask your customers and not just the ones sitting with their laptops open. Nearly 38% of people that go out for coffee go to Starbuck’s but as I said at the beginning of this article, my interest in coffee is stock market related, if the independent coffee shops take business from the big chains then my work is easier. A simple survey will help answer questions like this. For more information: please contact Kurt Feshbach, Falcon Research Inc.• 727-298-5430 • kfeshbach@falconresearch.net

Starbucks Survey — July 2010 Powered by Survey.com Consumer Viewpoints

Subject: Starbucks Coffee Target: Ages 18+, coffee drinkers Sample Size: 468 total • 145 who purchase coffee at stores or restaurants • 88 who purchase coffee at Starbucks

Key Findings:

• A majority of respondents who purchase coffee from a store or restaurant, purchase it from Starbucks. • Members of My Starbucks Rewards and those who use Starbucks’ free WiFi service buy more coffee from Starbucks. • Consumers who have purchased single serve coffee makers are increasingly using them to replace Starbucks coffee.

Starbucks Habits 14

• 31% of respondents get their coffee by buying it from a store or restaurant, down from 40% in March

• . Of these, 61% buy their coffee at Starbucks. • 17% of Starbucks drinkers can be defined as Super Regulars or those who visit Starbucks 4 times per week or more, 38% are Coffeehouse Enthusiasts who visit 2-3 times per week, and 42% are Treat Seekers who visit just 1 time a week. • Most respondents (73%) typically purchase specialty drinks from Starbucks such as lattes, mochas, or cappuccinos. 42% typically purchase drip/brewed coffee, an increase from 29% in March. • Respondents indicated they purchase their coffee at Starbucks because of the convenience (56%), and that it tastes better than homemade (55%) as well as other stores (53%).

My Starbucks Rewards

• Of Starbucks drinkers, 22% are members of My Starbucks Rewards; 11% with Gold level membership, 10% with Green level membership. • Members of My Starbucks rewards spend about $20 per week, more than non-members who spend approximately

$5.50 per week. • 68% of My Rewards members use Starbucks WiFi, compared to 25% of non-members who have also used it.

Starbucks and Single Serve Coffee Makers

• 53% indicated that convenience best explains why they purchased a single serve coffee maker. • 54% of respondents who buy coffee at Starbucks and own a single serve coffee maker at home indicated that since owning a single serve coffee maker they purchase less coffee from Starbucks; an increase from 38% in March. • 42% are likely to use a single serve coffee maker instead of purchasing from Starbucks if they had a single serve/ ‘pod’ coffee maker in their household • 33% would use a single serve coffee maker at work instead of purchasing a cup from Starbucks; a decrease from 44% in March who indicated it would cause them to purchase less Starbucks coffee.

WMF

2000S

espresso wakes up the world

The new WMF 2000S, a combination one and two step bean-to-cup Espresso machine solution Less space (12â&#x20AC;? wide), Lower Cost, Better Efficiency WMF Americas 09.10

Phone: 800-966-3009

coffee@wmfamericas.com

http://www.wmfamericas.com

The Art of Hydrationâ&#x201E;˘

Make an Impact

Vessel Drinkware products motivate customers to adopt a lifestyle free of disposable bottles and cups. Work with us to create a more successful merchandise program.

Reusable Polypro Tumblers Our double wall BPA-free tumblers, in 16 and 20 ounces, are sure to be stylish and affordable customer favorites!

Extend the reach of your brand by incorporating your logo into one of over 150 designs, or have us create custom artwork for your stores. For smaller orders and more variety, order directly from our warehouse to keep your shelves fresh!

Out of the Box, Ready to Go Ten Colors!

Custom Orders

Over 150 different designs

Select from our existing designs or co-branding collections

Over 20 body styles

Send us your logo in vector format

6 pc. minimum per item

Place your order (72 pc. minimum)

Case packs of 24

Upon approval, your order ships in 7-10 business days

View our line at www.vesseldrinkware.com. Wholesale information available upon request.

sales@vesseldrinkware.com

(206) 763-0366

(866) 876-8282

Judy Ganes-Chase

La Niña Worries: Justified or Not?

President, J Ganes Consulting, LLC

Because of geographic differences, Arabica and Robusta production tend to be impacted differently by El Niño or La Niña episodes.

hen mainstream media starts covering the weather from a commodity perspective, it’s generally late in the game and probably an opportunity to take an opposing position with the futures market having already accounted for the worries in prevailing prices. However, recent coverage of a developing La Niña episode seems to be on the mark or if anything a bit early. A year ago, world crops were threatened by El Niño, the warming of the temperature on surface ocean waters in the Eastern Tropical Pacific. El Niño episodes are generally followed by the La Niña phase, where the opposite occurs and the Easterly winds gather speed, pushing warm waters towards the coasts of Indonesia and Australia, bringing very high precipitation in South Asia and drought like conditions in South America. El Niño or La Niña episodes happen irregularly every 4-7 years and can last 9-24 months. While El Niño episodes are typically associated with causing harm to crops and then for improved conditions during the La Niña phase, this simply is not true and depends where in the world the production is located, the intensity of the event and the time of year when it is strongest. There are some locations where La Niña can be far more harmful than during an El Niño. The situation needs to be examined on a case by case consideration rather than in sweeping generalizations. For coffee, the severity of the event can have different implications on output. During moderate and severe conditions, average world coffee production drops by around 1%, while weak conditions increased output by 1.6%.

La Niña Episodes Tend to Reduce Colombian Production

Colombian Production Recovery Could be Hampered by La Niña?

The impact of La Niña on Vietnam’s production is inconclusive, although there is a noted increase in precipitation with wet and cool weather more prevalent. Indonesia also has experienced a negative effect on coffee production during La Niña events with production dipping 2.4% below the 5-year average with cold, wet weather reducing productivity. The greater the intensity of the episode, the more Indonesian output is hurt. The area of greatest concern is in Colombia. Severe La Niña events have reduced output by an average of 5.8% with heavy rainfall common, especially to the west coast. With Colombian production at 30-year lows this season and last, there had been high hopes that the 2010-11 crop would see a strong recovery and help to ease the tightness that is being felt in the supply of Mild coffee and causing cash market differentials to remain at extremely high prices despite a surge in futures. A rejuvenation program aimed at boosting output by replacing older less productive trees with new ones was expected to finally kick in and with improved weather thus far, farmers have been anticipating the start of a recovery. Recent monthly production levels have started to show higher levels than a year ago, although the differences are not extraordinary and total production in 2009-10 should still be significantly less than it was in 2008-09. A third consecutive problematic crop in Colombia would create extreme hardship for the market, especially since Central American producers are not anticipating much of a gain in their production and stocks are at minimal levels.

NewsBites Swiss Water Decaf Defined

Swiss Water Decaffeinated Coffee Company, Inc. is the leader in the science of decaffeination. The SWISS WATER® Process “seal” is recognized and trusted by decaf coffee drinkers. The 100% chemical-free process uses water from the British Columbia Costal Mountains to extract caffeine. The proprietary carbon regeneration technology is uniquely caffeine-specific. The result is a coffee that is 99.9% caffeine free. Swiss Water embraces continuous product improvement linked to Six Sigma Methodology and Quality Management Systems. Since 2009 we have improved bean color and gained higher chlorogenic and amino acids retention, which result in flavor and body that deliver in the cup. With decaffeination as its only business, benefit from their singular focus and passion for quality. SWISS WATER® Decaffeinated Coffees are well positioned to help grow your decaf segment sales. Visit them at www.swisswater.com to learn how SWISS WATER® Decaf can make a difference for you.

Dial-in the ideal mineral balance for your water

Dial-in your water to the ideal mineral balance OptiPure introduces its new model BWS-QT ‘blended water system’ for specialty coffee applications. The system utilizes reverse osmosis to remove total dissolved solids (TDS) from water which is then blended with specially treated water to a user determined TDS level and mineral balance. OptiPure’s proprietary ScaleX2 pretreatment minimizes waste and extends membrane life without removing (softening) calcium, which is essential for the ideal balance of minerals for coffee and espresso. Inlet and outlet digital water quality monitors detect seasonal changes in incoming water, which can be quickly, and precisely adjusted to within your blended TDS target range. Producing up to 400 gallons per day the system can provide water for most other applications such as ice and hot water dispensers. OptiPure manufactures a complete line of filtration and Advanced Membrane Separation systems for foodservice applications. For more information and application assistance call 1-800-333-2556 or visit www.optipurewater.com.

Over 25 WeighPack Machines on Display at Pack Expo 2010

In booth S-2483, WeighPack will have over 25 machines on display, most running in complete systems. WeighPack designs and manufactures a comprehensive line of weighing, bagging, and conveying machines. Models range from standalone, semi-automatic machines to completely integrated packaging systems. WeighPack offers

a complete line of machines, from its well known Vertek™ and XPdius™ Series of VFS Baggers to its Swifty™ line of horizontal and HFS baggers, Primo™ multi-head weighers, Star Auger™ fillers, TigerScale™ linear scales, and a variety of conveyors and fully integrated packaging systems for food and non-food applications. For more information, visit us at www.weighpack.com or call 1.888.934.4472.

Puerto Rico is Coffee

With this slogan, Puerto Rico Coffee Expo is bringing together the coffee community and related products to stimulate and reposition the Puerto Rican coffee industry. The event, which will be an entrepreneurial, educational and cultural forum of the coffee industry, will take place on September 18 -19, 2010 at the Puerto Rico Convention Center. Puerto Rico Coffee Expo will gather coffee brands, producers, roasters, distributors, restaurant owners, coffee shops, barista, coffee lovers, artisans, private organizations and government agencies that promote the coffee industry development. For more information about the Puerto Rico Coffee Expo access www.prcoffeeexpo.com, write to info@coffeeexpo.com, or call (787) 568-7646.

Coffee Ed, How does coffee work?

Coffee Ed’s mission is to educate and advance the understanding of all facets of the coffee industry. Professionals working at any level of the coffee industry will benefit from our courses. The classes are taught by industry leaders, who will impart their knowledge, expertise, and experiences with a thorough and up-to-date understanding of the course materials. Samplings of the workshops are: Introduction to the Coffee Experience, Advanced Coffee Practices: Coffee and Sensory. The state-of-the-art facility and relaxed atmosphere over-looks mountains and Lake Champlain in Burlington, Vermont. Email kathryn@coffee-ed.com , call 800-3753398 or visit www.coffee-ed.com .

Qpontext.com delivers customers Qpontext.com delivers customers at the speed of texting, capturing the power of the latest technology connecting business owners to their customer base by the newest trend – “Marketing through texting.” Qpontext.com partners with the number one software company in mobile marketing, allowing businesses to easily, and cost effectively market their product or service through texting better than any other mobile marketing service. Qpontext. com allows businesses to adopt texting as a way to communicate information that is time sensitive and relevant to a customer’s specific interests. The advantage of text marketing is

that the message arrives instantaneously on the customer’s cell phone broadcasting up-to-the minute information that is delivered in real time, yet is not disruptive or obtrusive to the receiver. Due to texting’s very nature, businesses can be confident that their promotion will be received instantaneously. Qpontext.com literally puts your business in the hands of consumers bringing the business to the costumer and the customer to the business. Today marketing through texting is the frontier and the pathway to untapped success. become the New American Past time. For more information visit www. qpnotext.com.

Expoespeciales.

From September 9th to the 11th, Colombia will have its Third International Specialty Coffee Fair in Nariño. The fair aims at promoting the Colombian specialty coffees among national and international buyers by providing a meeting place for all the participants in the coffee commercialization chain. ExpoEspeciales was born two years ago as an annual specialized fair that outstands in the sector’s calendar worldwide and promotes the different coffee regions in the country. Note: This year’s guest country is Switzerland. For more information, please go to: http://www.expoespeciales.com/en/

Martha Stewart ®s “Must-Have” Espresso Seeks National Distribution Partners

Alessandro Hausbrandt, the founder and president of Antica Tostatura Triestina in Trieste, Italy, whose great-grandfather was considered by many to be the ‘founding father’ of espresso coffee and whose family has been in the business for four generations, now plans to introduce his unique espresso into wholesale and retail markets across the USA. Combining the ancient and classic, but mostly elapsed process of wood-roasting together with the precise and homogenous blending of the eight origins only after roasting, this unmistakable and truly exceptional espresso blend is now served in 26 countries worldwide. Since 1996, Antica espresso has also been enjoyed in some of the finest restaurants, hotels and coffee shops in New York, in selected national accounts, and also by well known chefs such as Mario Batali, Terrance Brennan, David Bouley and Todd English. Antica espresso has been served on The Martha Stewart Show from day one. Martha also featured Antica espresso as one of her “must-have” products in 2009. Visit www.anticaespresso.com for more information.

Cup of Excellence Prices Reflect Growing Demand

The combined prices of the four 2010 Central American Cup of Excellence® auctions indicate

NewsBites global demand continues to explode for awardwinning quality coffee. The four auctions - Nicaragua, El Salvador, Honduras and Guatemala - grossed over 2.5 million dollars combined. After having 10,550 individual bids placed, the four highest prices ranged between $22.05/lb and $35.65/lb and the average price for the 110 lots was approximately $8.00lb - much higher that of past auction years. “Top prices have stabilized but the overall prices are rising,” indicated Jon Lewis, Membership Director of the non profit program. “This is a really good indication that all of the winning coffees are highly valuable.” The four competitions all using Probatino roasters and the most stringent quality control parameters utilized the skills of over 100 international cuppers who selected the final winners from well over a thousand farmers each hoping to win what has become the most prestigious award for coffee. The coffees have been vacuum packed into 4,776 boxes each containing two 15kg bags and should be arriving in the marketplace ready for presenting to discriminating palates by early fall. For more information about the Cup of Excellence program and to become a member logon to www. cupofexcellence.org

Infinite Flavors is now Beck Flavors.

Beck has two innovation centers – Cincinnati, Ohio and St. Louis, Missouri. Combining these two sites with our 110,000 square feet Lancaster, Pennsylvania manufacturing facility we offer state of the art analytical capabilities, cutting edge flavor creation, application and Sensory support, excellent customer service, marketing and trends support, industry standard lead times, customer focused sales team, and overall industry knowledge. Beck is back not just in name, but with the same people that brought the Beck name synonymous with quality flavors. We welcome the opportunity to work with you and look forward to assisting you with the success of your next project. For more information, please contact info@beckflavors.net.

Big Train® Adds Two New Chai Products

Big Train® is adding two new flavors to its line of chai products, Decaf Vanilla Chai and Dairy Free Spiced Chai. Now, Big Train offers 14 chai flavors in either powdered mixes or liquid concentrates that meet various dietary needs including Decaf, Low Carb, No Sugar Added, Dairy Free, Gluten Free, Low Fat, No Trans Fat and No Hydrogenated Oils. Not only does Big Train have a large variety of chai products, it has great tasting products which have won the American Academy of Taste’s Gold Award for superior flavor. Both flavors come in ready-to-blend mixes that make hot, iced or blended chai beverages. Big Train drink mixes and samples are available to operators through your local Big Train distributor or by contacting Big Train directly at 800-BIG-TRAIN (800-244-8724). To taste these new products, stop by Big Train’s booth (#801) at the Coffee Fest Show in Seattle, Washington held October 29-31, 2010. For more information, visit www.bigtrain.com.

Grant Rattray Hired as Managing Director of Cup of Excellence The Alliance for Coffee Excellence (ACE) is expanding its management team with the inclusion of Grant Rattray to be the Managing Director for The Cup of Excellence® Program. Rattray has most recently been in a senior management position with Mercanta the Coffee Hunters, a specialty coffee importer based in London with offices in the US. While at Mercanta, Rattray has been a supporter and an international juror for the Cup of Excellence program and has also traveled extensively to producing countries to source top quality coffees. For more information log on to www. cupofexcellence.org.

Hawaiian Coffee growers gain political support

Responses to Candidate Questionnaires sent by the Legislative Committee of the Kona Coffee Farmers Association to candidates for Hawaii Governor, Lt. Governor, US Congressional District 2, State Representative Districts 5 and 6, and Hawaii County Council Districts 6, 7, and 8 show overwhelming support from candidates for… 1— Reform of the state law which permits the deceptive use of the “Kona Coffee” name with only 10% genuine content and no identification of the origin of the other 90%; 2— Putting in place a video conferencing system to effectively bring the voice of Neighbor Island residents (including that of Kona coffee farmers) to State Legislative committee hearings; and 3— Serving 100% Hawaii-grown coffee (including 100% Kona coffee) at events sponsored by these Hawaii office holders. The only negative responses to the positions supported by the Kona Coffee Farmers Association came from candidates Robert Herkes (State Representative District 5) and Kelly Greenwell (Hawaii County Council District 8). All other candidates recognized the need to protect the reputation of Kona Coffee and recognize the interests of Kona coffee farmers. For more information, contact Cecelia Smith at info@KonaCoffeeFarmers.org

Improve Customer’s Experience and Satisfaction with XPress Lid by SmartCup

SmartCup’s XPress lid, the industry’s first disposable and recyclable single-serve French press built into a lid, provides what customers want most: choice, freshness and a quality cup of coffee they can customize their way. “Since our introduction at the beginning of 2010, we have caught the imagination of coffee aficionados and have been profiled in the New York Times, New York Post, Fast Company and Businessweek,” explained Kent Rhodes, CEO. “The consumer demand has been outstanding.” With the XPress lid there is no additional capital expense involved in offering a premium cup of coffee at a premium price. It is simple to use for the consumer, and it is easy to train employees in how to serve. It fits both standard 16oz and 20oz disposable coffee cups. SmartCup’s disposable French press delivers a premium, customized freshpressed coffee and tea experience with increased customer satisfaction. For more information connect at sales@mysmartcup.com or dial the corporate offices at 530-889-1754 .

Coffee-Mate® Heats up Beverage Sales with “Heart Warmers” Promotion

This September COFFEE-MATE is launching the “Heart Warmers” promotion as part of its ongoing Feel the Love 2010 campaign. At the “heart” of the promotion is the introduction of COFFEE-MATE’s limited-edition seasonal flavor, Peppermint Mocha, available in both COFFEEMATE Liquid Pump Bottles and COFFEEMATE Liquid Creamer Singles. Between September and December, the promotional website, www.CMFeelTheLove.com is offering a choice of free COFFEE-MATE Peppermint Mocha Liquid Creamer Singles or Liquid Pump Bottles with a qualifying purchase of any format and flavor COFFEE-MATE, along with delicious, easy-to-make hot beverage recipes and other profit-building ideas and special offers. For official rules, details and to register, visit www. CMFeelTheLove.com

Southern California comes alive at the Ultimate Barista Challenge USA

Over 13,000 attendees crowded Los Angeles Convention Center August 14–16 as regional baristi steamed and brewed their way to the championship round of the Ultimate Barista Challenge® USA. The 5th annual Ultimate Barista Challenge® entertained audience members with a power struggle between 2 local cafes; Klatch Coffee & Fix Coffee of Los Angeles. Nine Baristi from 4 cafes battled the clock as well as each other in three tasty categories. Ultimate Barista Heather Perry the reigning Latte Art Champion garnered a new Mazzer Mini E Grinder from General Espresso Equipment Corporation (GEEC). Espresso Frappe Champion Jana Bain of Klatch Coffee impressed the judges with her “Blackberry Bliss,” a refreshing blackberry cheese cake frappe and received an incredible prize, the new “Quiet One” Vitamix Blender. Ultimate Barista Finalists each received the Everpure Pentair Water Claris Filtration System. All participants received barista gifts from Astoria GEEC, Coffee Talk Magazine, BUNN, Ghirardelli, Routin 1883 Syrups, Espresso Supply Inc., Dr. Smoothie Brands, Boyd Coffee Company, CDN, and Innate. The UBC now goes to Orlando, Florida at the Orange County Convention Center, September 12 - 14, 2010.

Weldon Flavorings – The recommended coffee flavorings of Douwe Egberts

February 2010 Sara Lee Coffee & Tea contacted Weldon Flavorings searching for a flavoring system for their Douwe Egberts’ coffee program. The Weldon Flavoring concept was the perfect solution. Mark Ericson, Sara Lee Coffee & Tea, Specialty Distributor Regional Mgr, “recommends Weldon, as a flavoring solution to all our Douwe Egberts’ coffee customers.” Weldon is introducing flavorings in 16 oz. bottles, with pre-measured pumps available that allow convenient stores and other businesses to flavor coffee pump pots easily. Ask your Douwe Egberts representative for details. Since 1995 Weldon Flavorings has been providing unsweetened coffee flavorings to discerning coffee drinkers. For more information and distributor inquiries please contact Weldon at info@WeldonFlavorings.com

CoffeeTalk Advertisers at Coffee Fest Seattle Astoria-General Espresso Equipment Corp. Booth #901 336.393.0224 www.astoria.com General Espresso Equipment Corporation is the exclusive distribution center for Astoria brand espresso machines in the United States, Canada and the Caribbean. See our ad on page #22

F. Gavina & Sons Booth #404 800.428.4627 www.gavina.com When it comes to superb coffee and exceptional service, Gaviña is the preferred coffee partner for retailers and entrepreneurs everywhere. Gaviña Coffee: Grounds for Great Partnership. See our ad on page #17, 22

Booth #200 SmartCup, Inc. 530.889.1754 www.mysmartcup.com SmartCup?s disposable French press, XPress lid, provides a fresh, high-quality, single cup of coffee brewed from your superbly roasted beans. See our ad on page #16

BriteVision Booth #307 877.479.7777 www.britevision.com BriteVision, the leader in custom cup sleeve production offers cafe’s fast and affordable 4-color printing on eco-friendly materials! Learn more at www.britevision.com. See our ad on page #13

Java Jacket Booth #1012 800.208.4128 www.javajacket.com Java Jacket: The Original Green Coffee Sleeve. Comes in 100% Recycled Natural Kraft or White. Can be Custom Printed with your design. See our ad on page #11, 22

Stalkmarket Products Booth #626 503.295.4977 www.stalkmarketproducts.com Stalkmarket is the leading supplier of 100% compostable plant-based coffee cups, lids, tableware, cutlery and food packaging. See our ad on page #7

Coffee Fest Host 800.232.0083 www.coffeefest.com Coffee Fest is dedicated to the growth and proliferation of the specialty coffee, gourmet tea and alternative beverage industries. See our ad on page #23

LBP Booth #732 & 734 800.545.6200 www.lbpmfg.com LBP manufactures innovative sustainable packaging for the foodservice industry. We convert a wide range of paper based products including clamshells, hot cups and coffee sleeves. See our ad on page #5

Coffee Holding Company Booth #740 800.458.2233 www.coffeeholding.com From one bag to a full truck, Coffee Holding Company provides green coffee solutions to specialty roasters including exclusive Daterra Estate and Organic Certified coffees. See our ad on page #2 Costellini’s Booth #409 877.889.1866 www.costellinis.com Our goal is quite simple! To provide consistent Premium product’s ALWAYS and at competitive prices. Visit www.costellinis.com today See our ad on page #21

Booth #711 Pacific Bag, Inc. 800.562.2247 www.pacificbag.com PBi prides ourselves on knowing our customer needs, the markets we service, and offering a product line that leads the industry in quality. Celebrating 25 years! See our ad on page #22 Booth #411 Penn Scale Mfg. Co. 215.739.9644 www.pennscale.com Suppliers of Digital and Mechanical Scales and a wide range of scoops in different sizes and materials including our new ?Don?t Spill The Beans Scoop. See our ad on page #21

Swiss Water Decaffeinated Booth #1118 800.668.9981 www.swisswater.com Swiss Water Decaffeinated Coffee Company, Inc. leads the science of decaffeination with a environmentally friendly 100% chemical-free process that removes 99.9% of the caffeine. See our ad on page #3 TightVac Booth #1111 888.428.4448 www.tightvac.com Coffee & Tea vacs use a Patented Vacuum sealed system that protects your coffee & tea every time you open and close the container. Simplicity that works! See our ad on page #22 Vessel Drinkware Booth #828 866.876.8282 www.vesseldrinkware.com Katri, Inc is a supplier of branded Drinkware to independent retailers throughout the U.S. and Canada. Please visit us at www.katriinc.com, or call (206) 762-2784. See our ad on page #15 Booth #911 Vita-Mix Corporation 800.437.4654 www.vitamix.com/thequietone Since 1921, the Vita-MixÆ Corporation has been a leader in blender technology. See our ad on page #22

Advertisers Index

Company

Astoria-General Espresso Equipment Corp. Bridge Brand Chocolates BriteVision ChefTec/Culinary Software Services, Inc. Cimbali USA, Inc Coffee Fest Coffee Holding Company Coffee Roasters of New Orleans Comfort Grip Wrap Component Design Northwest, Inc. (CDN) Costellini’s Eagle Web Press Everpure F. Gavina & Sons Hartley Transportation LLC Java Jacket Kaffe Magnum Opus, Inc. Knutsen Coffees, Ltd. LBP Lee Hays & Associates Lowery & Co. Inc. Nuova Ricambi USA OptiPure Pac Coffee Consultants, Ltd. Pacific Bag, Inc. Penn Scale Mfg. Co. Plastic & Products Marketing Sav-on Bags Scolari Engineering S.p.A. Service Ideas, Inc. SmartCup, Inc. Stalkmarket Products Swiss Water Decaffeinated TightVac Ultimate Barista Challenge Vessel Drinkware Vita-Mix Corporation Weldon Flavorings WMF of America, Inc.

Phone

Web

336.393.0224 www.astoria.com 415.677.9194 www.bridgebrandschocolate.com 877.479.7777 www.britevision.com 303.447.3334 www.culinarysoftware.com 312.265.8100 www.cimbali.us 800.232.0083 www.coffeefest.com 800.458.2233 www.coffeeholding.com 800.344.7922 www.orleanscoffee.com 847.478.0184 www.comfortgripwrap.com 800.338.5594 www.cdn-timeandtemp.com 877.889.1866 www.costellinis.com 800.800.7980 www.eaglewebpress.com 800.323.7873 www.everpure.com 800.428.4627 www.gavina.com 800.427.8539 www.hartleytrans.com 800.208.4128 www.javajacket.com 800.652.5282 www.kmocoffee.com 800.231.7764 www.knutsencoffees.com 800.545.6200 www.lbpmfg.com 712.246.3301 www.comingsoon.com 360.668.4545 www.loweryscoffee.com 916.315.2535 www.nuovaricambi.us 800.333.2556 www.optipurewater.com 425.361.1973 www.paccoffeeconsult.com 800.562.2247 www.pacificbag.com 215.739.9644 www.pennscale.com 800.654.5741 www.plasticpm.com/ 909.869.9158 www.sav-onbags.com 856.988.5533 www.scolarieng.com 800.328.4493 www.serviceideas.com 530.889.1754 www.mysmartcup.com 503.295.4977 www.stalkmarketproducts.com 800.668.9981 www.swisswater.com 888.428.4448 www.tightvac.com 503.232.1016 www.ultimatebaristachallenge.com 866.876.8282 www.vesseldrinkware.com 800.437.4654 www.vitamix.com/thequietone 502.797.2937 www.WeldonFlavorings.com 888.496.3435 www.wmfamericas.com

Page

Coffee Fest Booth

22 901 22 13 307 21 22 23 2 740 17 21 11 21 409 17 22 17, 22 404 21 11, 22 1012 13 22 5 732 & 734 22 21 22 11 21 22 711 21 411 22 21 24 22 16 200 7, 22 3 1118 22 1111 17 15 828 22 911 21 15

Hartley Transportation specializes in providing its customers with Truckload, Intermodal, LTL, and Air & Ocean Freight services to and from any point in North America! We are committed to providing our customers with the finest transportation services at the most economical costs, without sacrificing quality. Our goal is to form a winning partnership with each customer by performing our services beyond expectation in order to assure our mutual success. Call or email for a rate quote or to find out more today!

Truckload • Intermodal–Rail • LTL • Air • Ocean 800.HARTLEY (427.8539) • fax: 603.228.9555 • info@hartleytrans.com

www.hartleytrans.com

Win the new iPod Nano!

r feathe e u l b e, he Find t in this issu alk T n hidde the Coffee d o t a it st n bring t Coffee Fe new a Cafe a ed to win ast r el te be en ano on th . iPod N f the show day o

AllStar Tools Superautomatic

Espresso Machine

Roasted Coffee

Sleeves

Cups & Lids

Cimbali USA, Inc.

Astoria/General Espresso

F. Gaviña & Sons, Inc.

Java Jacket

StalkMarket Products

312.265.8100 cimbali.us

888.3ASTORIA espressobrewer.com

800.428.4627 gavina.com

800.208.4128 javajacket.com

503.295.4977 stalkmarketproducts.com

All Cimbali super-automatic machines are equipped with the patented Smart Boiler and TurboSteam technologies. Available in one-step, two-step and self-serve models.

Plus 4 You espresso machine grants energy savings up to 47.6% compared to traditional machines; helping protect the environment & providing economic benefits.

Gaviña, the preferred coffee partner for retailers and entrepreneurs everywhere, is a founding member of the SCAA. Gaviña’s expertise provides a consistently high-quality coffee experience for your customers. Gaviña Coffee: Grounds for Great Partnership.

Java Jacket provides the best insulation of all sleeves on the market. Protects customers from hot or cold to-go beverages, and provides a more grippable surface than other coffee sleeves.

StalkMarket Products, a leading provider of compostable products, offers the world’s first certified compostable Ingeo™ hot cup and lid system from Planet+ that meets the rigorous composting requirements of Biodegradable Products Institute (BPI).

Blender

Roasting Enginerring Consultant

Chocolate

Vacuum Container

Green Coffee Importers

Vita-Mix Corporation

Lee Hays & Associates

Bridge Brands Chocolates

Tightvac

Knutsen Coffees, Ltd.

800.848.2649 vitamix.com/foodservice

712.246.3301

888.732.4626 bridgebrands.com

888.42.TIGHT tightvac.com

800.231.7764 knutsencoffees.com

Coffee Lover’s Chocolate pairs irresistible quality chocolate with coffee, and irrefutably drives up retail sales. Private label options make a good concept even better.

Tightvacs are the ultimate Coffee & Tea container! Our unique patented Tightvac closure system allows the gasses from the beans to escape – without letting oxygen back into the container. Tightvacs guarantee the smooth flavor your customers pay for.

Award winning purveyors of the finest green coffees in the world. Call us about our exclusive 100% Estate Grown Jamaican Blue Mountain grown at over 4,000 feet on a farm established over 200 years ago. Supplies EXTREMELY limited.

With 34 blender programs, the Blending Station Advance has been programmed for perfection – each program combines the right speed and timing to eliminate guesswork and to create quality drinks! A streamlined cover saves counter space while minimizing sound for an improved customer experience.

Specializing in capacity analysis, green coffee handling & storage, roasting, roasted handling and storage, grinding, degassing, and packaging equipment. Call for references from satisifed clients! “Thanks to Lee, our new plant is working flawlessly. Lee’s meticulous facilities and equipment planning and execution saved us a fortune.” William H. Kirkpatrick, C.E.O. Cameron’s Coffee

Erna Knutsen, President & Founder.

Water treatment

Grinding Equipment

Packaging

Air Pots

Cup Dispensers

Everpure, LLC

Nuova Ricambi

Pacificbag Inc.

Service Ideas Incorporated

Plastic & Products Marketing

800.323.7873 everpure.com

916.315.2535 nuovaricambi.us

425.455.1128 pacificbag.com

800.328.4493 serviceideas.com

800.654.5741 plasticpm.com

• Stock pre-made bags • Custom printing • One-way valves • Labeling services • Packaging equipment • Rollstock laminations

Providing products that increase profitability, ensure safety and minimize labor costs. Service Ideas stocks a variety of airpots with features and benefits that others don’t include.

• Dispense all size cups • “ONE AT A TIME” • Interchangable Gaskets • Holds full sleeves of cups • See website for details • Or give us a call

The leading manufacturer of water treatment equipment for foodservice applications, Everpure offers filtration, reverse osmosis, softening, and scale control systems plus complete customer support programs and services.

We are the leading wholesaler of parts for espresso machines and grinders in the world. In addition to our large inventory of parts, we also have a complete line of espresso grinders, hoses, fittings, cleaners, and accessories. Our stock is continually monitored to provide the highest quality, the best selection and the largest on-hand quantities available. We strive to exceed the ever-changing demands of the coffee and espresso industry.

Give us a call; we will simplify your packaging decisions.

Seattle Build your business at the 59th Coffee Fest America’s #1 Coffee Retail Show • New World Latte Art Championship • New - Social Media Workshops • New - Micro Lot Cupping Workshops for Retailers & Roasters • New - Retailers Round Table Networking Session • Bid for Hope - Silent Auction • New - Single Cup Brewing and Extraction Workshop • Coffee Kids Origin Challenge • Latest Trends - Fresh Ideas Mark your calander for Coffee Fest Hawaii together with July 8-10, 2011 Booth Spaces Start at $500

HCA