November 2010 by CoffeeTalk Magazine

November 2010 Vol. XXIII No. 11

www.CoffeeTalk.com

Alchemy of an Espresso Cocktail. Thinking About Tomorrow ...Today

This Month: 7 12 14 18 18

The Great Coffee Debate Cupping as a Sales Tool Retailer Profile- CafĂŠ Grumpy Judy Ganes-Chase Mintel Reports

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Contents

Letters to CoffeeTalk

The Great Coffee Debate

By Ed Sanders

8 10

The View

Café Grumpy

From Miles & Kerri

Alchemy of an Espresso Cocktail by Sherri Johns

Cupping as a Sales Tool

Retailer Profile

Thinking about tomorrow…Today

By Rocky Rhodes

Cupping as a Sales Tool

Café Grumpy

Thinking about Tomorrow

By Rocky Rhodes

Judy Ganes

The Great Debate on Brazilian Deliveries

Mintel Reports

Newsbites

Advertiser Index

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

Design

Print Design Marcus Fellbaum, ext 5 marcus@coffeetalk.com Web Design Justin Goodman, ext 6 justin@coffeetalk.com

Administrative

Administrative Assistants Claire Vallin, ext 4 claire@coffeetalk.com

Feature

Katie Bakker katie@coffeetalk.com Phaedrea Powell-Zecher phaedra@coffeetalk.com

Alchemy of an Espresso Cocktail by Sherri Johns

Mailing Info

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

Letters to CoffeeTalk Kerri and Miles— I’m a coffee drinker/English teacher looking at this trade mag the shop owner put out where we customers can read it. I love your editorial for it’s looking at and then beyond the apparent problem to the actual situation and then proposing another view of the situation -- and the solution. (Hey! You even offer to be a large part of the solution!)

I want to use your editorial to encourage my students beyond the obvious and show then it is done and how to do it. Keep up the good work Fred Hathaway

The Great Coffee Debate

gathering of industry leaders to discuss coffee’s present and future took place October 28th at the International Culinary Center in New York City; co-hosted by Andrea Illy and Dorothy Hamilton. CoffeeTalk was pleased to have been invited to attend the gathering and can report the following:

Dorothy Hamilton introduced the program immediately followed by a panel discussion moderated by Corby Kummer, senior editor, Atlantic Monthly. Panelists included: Richard Coraine, Union Square Hospitality Group, James Freeman, Blue Bottle Coffee, Andrea Illy, illycaffè S.p.A., Wolfgang Lindlbauer, Marriott International, Karalynn McDermott, BUNN, Jonathan Rubinstein, Joe The Art of Coffee, Donald Schoenholt, Gillis Coffee Co, Guenter Seeger, Chef, Restaurateur, Consultant, and Doug Zell, Intelligentsia Coffee & Tea. The discussions were grouped into three sessions: From Farm to Roaster, In the Cup, and Looking Ahead. The comments and answers to discussion questions posed by Corby Kummer to panelists were informative and thought provoking as ideas were shared and new things learned. All were in agreement that the quality of coffee continues to improve and the best coffee in the world is yet to come, particularly as the health benefits to drinking coffee are further recognized. Also coffee production cannot keep pace with the growing demand, which will be reflected with increasing prices. An interesting fact discussed was that many of the people that grow coffee often never actually taste their product. Currently, many companies have a direct relationship with growers, bypassing a broker’s involvement. And many of these companies are further involved with the growers in helping to implement good systems at the farm level, which translates into improved quality. Therefore establishing higher quality standards through training provided to the growers. Another observation is that the training of baristas continues to improve which is resulting

by Ed Sanders in a better-educated consumer as baristas are taking the time to inform their customers about the product that is being served. At the fine dining segment there is a greater expectation of quality, and as Richard Coraine of Union Square Hospitality Group stated, “The barista is the new maître d of the millennium.” There is also an advancing interest by consumers in seasonal availability of certain coffees as might be compared to consumer interest in certain craft beers and select wines. Furthermore, pairing desserts with coffee as wine is paired with foods continues to gain in popularity: Coffee with great bakery / dessert items. At the coffee house level it was noted that many stores are dropping Wi-Fi in an attempt to increase table-turns and create and different atmosphere. The concerns expressed for k-cups (pods) were that in some instances there are issues with the quality of the water, the amount of water dispensed per cup, and the water not being hot enough. The consensus was that K-cups will continue to gain acceptance. The fun tidbits of information are what were shared over a superb lunch at The French Culinary Institute within the International Culinary Center. Industry pros like Jimmy Sneed, Chef and Restaurateur, Sam Patti, Owner, La Prima Espresso Company, and Karalynn McDermott, Vice President, Business Development with BUNN, all had informative experiences to share.

It’s true, for coffee the best is yet to come. Edward E. Sanders, food and beverage editor (Founder/CEO Emeritus-Hospitality News) CoffeeTalk

Andrea Illy, Chairman, illycaffè S.p.A. and Dorothy Hamilton, Founder and CEO, The International Culinary Center

Kerri Goodman-Small & Miles Small

The View The question of the day

e, as an industry, are surrounded by one abiding question – why is coffee getting so expensive. I recently gave a presentation at the NAMA Coffee Show in Las Vegas on this very subject. It is the most important question OCS operators face, their entire business model revolves around ground coffee in a price sensitive and competitive market. The answer to the question is too complicated to go into in my allotted space but it comes down to these points… Climate change is real and it is removing land from coffee production at an alarming rate. Coffee is an agricultural product, it is very sensitive to climatic conditions. You can’t grow oranges in Minnesota and you can’t grow coffee on the side of Mt. Rainier, at least not yet. Temperature, moisture, winds, sunlight, and soil work together to form the exact conditions necessary for highgrown arabicas. Climate change is permanently removing coffee-lands from production. As to the question of why?, that has become a political question more than a scientific one. The emergence of the BRICs (Brazil, Russia, India, and China) has dramatically increased demand. Emerging middle classes in developing countries have placed extraordinary demands on the market to deliver. Coffee supply has essentially plateaued but demand continues to rise. As the market perceives that there may not be enough supply of quality coffees, the price of coffee rises. Increasing costs for labor and agricultural inclusives are reducing yields and ultimately quality. At the ICO conference in Guatemala the spectre was raised of a world where in order to reduce labor costs and increase yields, we will have to sacrifice quality. Seriously? The problem is that

there simply aren’t enough people around who are willing to pick coffee. It is hard and exacting work. Other economic opportunities exist that are more attractive. A grower is lucky to have enough labor to complete 2 picking cycles instead of the usual 4 or 5. The only alternative is mechanical picking but this takes all the fruit at once regardless of ripeness, disease, or infestation. The explanation is that the bad will be sorted out at the processing plant, which is true but the result is that the number of ripe quality fruit is reduced because so much was not left to ripen. Yields of specialty coffees go down, prices go up. Investment uncertainty Reserve stocks of coffee held in certified warehouses are essentially depleted. These stocks cannot support a week of consumption. When stocks get this low and have little prospect of recovery the price on the commodity exchange rises rapidly. This price then affects all other pricing through the application of differentials. There is a bittersweet side to the soaring price of coffee and that is that growers are finally receiving a realistic price for their coffees. However, with every silver lining there is a black cloud, growers yields are dramatically down, especially in Central America where yields are down 38% from last year. This is particularly disturbing because, according to growers in Costa Rica, their cherry weights are very high. What has happened is that the beans inside are smaller than normal. I was having a hard time getting my arms around this until I realized that the value of the bean to a grower is in its volume. Inside each cherry, there are two beans (aside from peaberry coffee of course). If the beans are small, it takes more beans to fill a 60-kilogram bag. A grower’s labor costs are very high because a larger than usual crop has to be picked but the volume yield of finished coffee beans is low. Seasonal labor costs, which

Calendar Nov 5-14

Kona Coffee Cultural Festival, www.konacoffeefest.com

Nov 11-13

Ultimate Barista Challenge, Shanghai,China www.ultimatebaristachallenge.com,

Dec 10 Dec 13-14 Jan. 16-18 Feb. 17-19 Feb 18-20

Feb. 19-20

are a grower’s largest single expense, skyrocket. Whatever gain may be realized by growers from higher pricing are offset by higher than typical labor costs. So what is a retailer or OCS operator to do? Well first, definitely do not do nothing! Higher prices are here to stay. Get creative! Perhaps you can work with your roaster to purchase at a fixed price for one year. Make your offer higher than today’s price and you may be able to strike a deal. Consider increasing your pricing, especially if the bulk of your business is in drip-brewed coffee. Pricing heroics are never rewarded and usually lead to failure. In order to respond to customer questions, formulate a positive proactive message that works for you and your staff. Customers can be understanding if they know why something is happening. In addition, most importantly, grin your way through it. Higher prices are not your fault, you can’t do anything about them, and everyone is dealing with this issue, so cheer up.

The CoffeeTalk Just ‘Cause Calendar is now here

The eagerly anticipated 2011 Just ‘Cause calendar is ready for sale. Benefiting Grounds for Just ’Cause Health, 100% of the net proceeds will be donated. Some of the most recognizable faces in coffee show their fun side (not necessarily their good side) for this Just Cause. Each calendar is available on Amazon for $25 with discounts for 10 or more. Every dollar donated to Grounds for Health saves 4 women’s lives through testing for cervical cancer, the number one killer of women in the developing world. Thanks for your help. 2011 Calendar

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Cheers,

6th Annual Coffee and Tea Festival, NYC 631-940-7290, www.

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503.232.1016, info@ultimatebaristachallenge.com

Feb, 27-Mar. 1

International Restaurant & Foodservice Show of New York, New York, NY

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

Mar 16-19

National Coffee Association Conference, New Orleans

Mar. 21-23

Tea & Coffee World Cup/Asia 2011, Suntec City

greencoffeeassociation.org

2nd International Coference on Arabica Naturals, +967 734435036

April 27-28

SCAA Symposium, Houston

Winter Fancy Food Show, San Francisco, CA

Apr 29-May 1

SCAA Annual Conference, Houston

African Fine Coffee Conference, Arusha, Tanzania

June 3-5

Coffee Fest, San Diego

Coffee Fest Chicago, Navy Pier, 425-295-3300, www.coffeefest.com

July 8-10

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Alchemy of an Espresso Cocktail Coffee and Cocktails, a brief history

by Sherri Johns

an Francisco – the year was 1952 and a barkeep by the name of Jack Koeppler invented his version of a popular drink created and served at the Shannon Airport in Ireland. The drink was Irish coffee, and it quickly became the namesake of the legendary Buena Vista. Fast forward twenty-five years to the mid 70’s, I had moved to the City and was haunting the Italian espresso bars in North Beach. When I wanted a jolt, it was Café Corretto’s espresso with brandy or grappa. For a more leisurely afternoon, Cappuccino con vov enjoyed near the window at Mario’s couldn’t be better. Ah Vov, a sweet egg and marsala wine liqueur added to an espresso and topped with steamed milk foam. Delicious. Toss in an occasional Sambuco and Coffee at the tourist hotels and you probably have all the brews that were fit to drink. Today, the consumer has many more options when looking for a coffee cocktail. Some microbreweries in Portland, Oregon even offer an espresso stout. The phrase “espresso cocktail” now exudes sophistication, classic style, mixology, glamour, drama, and all the images that a “Thin Man” movie set would contain. And espresso Cocktails are not just for foggy nights or Italian Coffee Bars. The truth is many hotels, restaurants and cafes are beginning to brew up their own espresso cocktail recipes. Which makes sense when we remember that the term “barista” is simply Italian for “barman.” It is therefore a natural step for coffee bars to introduce a line of coffee and espresso cocktails. Espresso cocktails don’t have to be difficult or complicated. For example, a delicious drink can be made by simply warming melted dark chocolate, deep cabernet, and ristretto espresso, and then straining through a metal sieve into a heated snifter. Heavenly! This velvety drink is one to savor and linger over with a book in front of a cozy fireplace. For baristi experimenting with espresso cocktails, approach it as you would a signature or creative drink. Balance, harmony, sweet, savory, hot or iced are all elements that should be considered. When I am creating my own espresso cocktails, I think about the base flavor of the coffee, what flavors are inherent and what can be highlighted or augmented with the addition of other ingredients, particularly the alcohol element. Most importantly, I like to have a clear idea about what I want the finished product to be. Will it make me contemplative, happy, refreshed? Will this be an after dinner espresso cocktail or will it be enjoyed poolside? Do I want it to have subtle flavors or ones that hit me over the head? And don’t forget, you should always taste the drinks so you know what you are serving. I keep a journal to record what worked and what didn’t. Just remember, the key word here is taste, not drink. It is easy to over consume if one makes many drinks in a single night.

When mixing drinks, keep balance in mind. Sometimes an inexperienced baristi will have such a heavy alcohol pour you can hardly taste the espresso. Don’t forget, you are trying to highlight all the flavors of the drink, not overwhelm the palate with a single element. Additionally, it is not always necessary to create a completely new recipe. Many great drinks have been born by mixing traditional drinks with an espresso twist. For example, this year during the Ultimate Barista Challenge, Champion Mike Love concocted an Espresso Pisco Sour with amazing results. Or, try rum, simple syrup, naturally pulped Brazilian espresso and sparkling water. Serve in a tall glass on crushed ice with garnish and it is pool time for papa.

Dave Buehrer, Owner & Barista of Greenway Coffee and Tea in Houston, Texas has this approach to his espresso cocktails: he can’t get enough. As if running an espresso bar in the heart of Houston, blogging, Ultimate Barista, Committee Member of the Barista Guild, helping organize barista activates for up coming SCAA conference and talking coffee round the clock isn’t enough, he pulls shots and shifts on Sundays at the Anvil Bar and Refuge where he features his coffee and his award winning espresso cocktails. At Anvil Bar and Refuge cocktails are crafted in the classic tradition. Spiritforward drinks are made with fresh ingredients, house-made bitters, sodas, infusions and liqueurs. Each is fashioned with careful attention to detail, favoring local flavors and locally-sourced ingredients, returning to the elegant simplicity of a past era when cocktails were fashioned with pride and bartending was a respected profession. A perfect example is his recipe for “Occam’s Razor” which features Ancho Tequila, Cream de Cocoa, heavy cream, and “six drops of chili tincture” garnished with mulled mint. David has wowed many with this drink and is often described as imaginative as a chef. He has tackled the melding of flavors, balance, and harmony, sweet and savory, as well as the lingering finish without masking. David is not alone in creative creations of the espresso cocktail variety. Barista-Owner of Proper Drop Consulting in Sedona, Arizona and former Manager Barista Trainer of Caffe Pronto, Greg Suekoff, crafted the following recipe. First prepare ginger syrup of chopped ginger root, ginger powder and simple syrup, set aside. Fill a 14-ounce glass with ice then fill the glass halfway with club soda and add 2 ounces simple syrup. In a shaker, add 1.5 ounces fresh espresso, 2 ounces rum, 1.5 ounces ginger syrup, and shake vigorously. Strain over soda and garnish. I personally enjoy this drink immensely. It is perfect for a day lounging by the pool. Greg originally crafted this drink for a competition where Chef Ferdinand Metz was a judge. For new recipes, Greg uses his customers and friends as taste testers and there is never a shortage. Buena Vista’s Jack Kolpper would use his friends to test new drinks as well. When attempting to perfect his Irish coffee recipe he couldn’t get the cream to float atop the coffee and whiskey. The answer came when then mayor of San Francisco, a customer and a dairy farmer, got into the fray. He suggested Jack use his milk, age it for 48 hours, and then gently whip it before layering the cream. It worked and the rest, as they say, is Irish Coffee history. Keep in mind, if you plan to sell espresso cocktails, you will need a license to sell alcohol. However, you can taste and sample. Just keep brewing and follow your palate. Will espresso cocktails catch on? Current trends suggest they will, and retailers should consider adding cocktails to their beverage lineup. If you have a liquor license, you have no reason not to offer finely crafted espresso cocktails. Not everyone will want a coffee concoction in the evening, but for those who do, offer them one of your own creative drinks! In the age of sustainability and growing bottom line profits, hotels, bars, restaurants and cafes can increase sales and satisfaction with the addition of espresso cocktails, and have some fun along the way. Cheers.

Just ’Cause 2011 Calendar

look for us on www.amazon.com  proceeds benefitting Grounds for Health  extremely limited supply

Cupping as a Sales Tool Making yourself the expert

by Rocky Rhodes

hy do we, in the coffee industry, ‘cup’ coffee? Other than the joy of making the loudest slurping sound you can without your mother yelling at you or the fun of watching your peers occasionally blowing scalding coffee out their nose, there must be a good reason. Traditionally, cupping has been a buying tool. It assists the entire coffee supply chain in making a quality judgment on a particular lot of coffee to be purchased. Some cuppings are as simple as pass or fail. Some are as complicated as getting a certified Q-Grade. All of them deal with answering the question, “What is wrong with this coffee?” If there are defects in the coffee they need to be discovered early. Defining these defects helps to determine the usability of the coffee and ultimately the price to be paid. If the coffee is defect free with noticeable, favorable flavor characteristics then it will demand a higher price. This type of cupping is also very useful in getting process feedback down the chain on what is working or not working in getting this crop to market. The focus of this article however is to look at cupping as a sales tool so you can sell a lot more coffee while developing your customer’s loyalty. We will explore cupping as a way to celebrate what is beautiful about a coffee. This will work whether you are in a retail setting or talking to a wholesale client. The key is to make you the coffee expert and to share an informational, bonding experience with your customer. To get there we need to start with you and your sales staff. Cupping as a sales tool will start as a training tool to both educate and to practice presentation skills.

Building Cupping as a Training Tool

Your company is going to become the coffee expert and all your staff must be a part of the process. At retail this means you involve not only the baristas, but the drivers, office staff and anyone else on the payroll. If you wholesale, the same rules apply. Involve the company in cupping. It is fun, informative, team building and it will build your presentation skills at the same time. Soon you will hone it down to an intensive experience that will be useful for your customers without taking too much of their time. You will need cupping supplies for internal sessions and a subset of that for customer events. Here is what needs to be in the cupping area:

Item 5-8oz ‘Rocks’ Glasses

Quantity A few cases

Cupping Spoons

A couple of boxes

Hot Water Heaters

4 x ½ gallon

Clipboards

About 10

Mud Jugs

A good grinder

Scale

Notes Get extra because they break Deep bowled soup spoons are easiest to get Need to be 110v for portability Download SCAA cupping forms as well Perfect spittoons for cupping Best if it is small for portability Should read to .01 grams

Now you are set to start cupping! First thing to do is to get a professional cupper to teach you how to do it in the “Industry Standard” way. Once you have that you can tweak it to serve your training or sales purposes. You can go to SCAA for classes or any number of industry consultants. You should also ask your roaster for assistance. Most would be happy to help you in this way. If you are not a roasting company, cupping every day is a bit impractical, but cupping once a week with staff is a great idea. You will want to openly discuss the qualities of the coffees you cup to start to calibrate internally. Don’t get hung up on getting the same scores. Concentrate on descriptors that everyone at the table can agree on for the coffee. Write those down and share the notes with all staff so they can tell a unified story to the customers. You will be amazed at some of the descriptors your staff will come up with! Just make sure that they all use the same ones while selling. Now you have learned to cup, built a kit, and practiced internally. It is time to engage the customer!

The Customer Cupping Experience

Here are the guiding principles for this cupping: A) This cupping is to discover what is beautiful about your coffee. B) You are the expert. C) Your goal is to educate. Now that you are comfortable with cupping, it is time to reduce this skill down to its basics so a non-coffee centric person can participate. Look at it as a customer going to a wine tasting for the first time. They will be intimidated by process and ignorance. It is your job to make them feel at ease and to help them have a couple of “AHA! moments.” When this happens you will not only have a customer for life but an enthusiastic advocate for your brand. So how do you put this on? Pick the most public place you can. If you have a retail store, do it at the center table of the floor. If you are at a customer’s location, do it in the break room. Making this a public spectacle will get more people to wonder what is happening. You will be seen as the expert and your customer will be seen as self-improving and the new internal expert. Use the SCAA form as a guideline but don’t try to score coffee. Feel free to give or suggest the answers so the customer can experience what you do and not feel insecure about getting it wrong. Agreement brings you closer. You will find that if you put three very different coffees in front of your student they will identify that they are different. This is the first AHA! moment. Then try to get them to see what the differences are in acidity and body. If they get these concepts, your job is basically done. The rest is gravy. One last thought: When you give this information away, it can be perceived as having little or no value. Some retailers charge for the class. When a student pays they are more attentive as they expect to walk away with something. It also makes them feel like they have accomplished something that others have not. You will be working hard to develop this program and it does have value. Don’t be afraid to charge for it in appropriate circumstances. Now go bond with your clients. The worst that can happen is a great coffee conversation with a new friend. The best is a customer for life.

Retailer Profile: Café Grumpy by Maxim Vershinin

ike to feel grumpy along with the New York crowd? Who does not look grumpy in New York? Well, I am really grumpy if I don’t have some “good” coffee in a simply “good” coffee shop even on such a perfect, sunny Saturday morning in the city. There is a perfect place to get a cup of coffee that will guarantee to be a wonderful addition to an already great day. Welcome to café “Grumpy” at Chelsea 224 West 20th Street. “Grumpy” is one of those places that you find out about reading reviews or by an accident, since it’s quiet location, in between two busy avenues, does not allow for it to be visible to lots of people. “Well, first of all it’s just my nature, I don’t like to be out there. But second, the city has right people for everything. We are trying to make them discover our place, and it makes it even more special. They tell their friends about it and we have been noticed as something special through word of mouth,” says the “Grumpy’s” owner Caroline Bell. Outside, the café has a very sympatique, homey look that gives you a “basement of the museum” feeling. The logo – a “grumpy” coffee bean – is genius, any New Yorker can relate to it any time of the day and night. You will be surprised by the amount of people inside as you come in. All of the few tables are taken and there is a never-ceasing line to claim a cup of coffee. Interestingly though, compared to the chaotic and automatic atmosphere in chain commercial franchised coffee shops like Starbucks, here customers appear to be calm and chill, seriously enjoying every sip of their drinks; sort of if the world would come to an end right here, right now, they would be happy to die with their coffees beside them. Don’t be in a rush to take out Ipads or Iphones; the baristas will kindly ask you to remove any kinds of electrical beauties away from their eyesight. The baristas’ 60s, perhaps, 70sh look make me wonder if time travel exists, and people are being sent here to help with an additional workforce. Perhaps that is why I cannot use my laptop, so that it wouldn’t confuse, maybe corrupt their antique souls. Nevertheless, they could understand me perfectly, and

made me a cup of some of the most delicious coffee I have ever tried. “Grumpy’s” owner Caroline is a young sophisticated woman and a successful coffee-roaster/ retailer with five years of retailing and one year of roasting experience. Her “Café Grumpy” chain incorporates three stores in New York City: one in Chelsea, Parkslope and Greenpoint. Everything got started at Greenpoint, Brooklyn. In 2005 with business was really slow due to the primarily older clientele. Then as more and more young professionals moved in to the area, it gradually picked up, and spread to Chelsea and Parkslope. One of the main challenges she constantly had to face was learning how to manage finances. She and her husband didn’t have investors, so they took the entire financial burden on themselves. That is why now they have to take great care of making sure that every financial aspect of the business is under control, as well as the quality. Caroline is one of the leaders in keeping up some of the highest quality standards in the coffee industry. Last fall, her team bought a classic Probat 12 kilogram roaster that now heats up the air in the first location in Greenpoint. Surprisingly, the only difficulties she had with installing the roaster in New York weren’t licenses and permits, but mainly the costs associated with refurbishing the old roaster and installing the afterburner with the high stack – New York architects and engineers were a little confused by such a daunting task. Caroline said that the main reason she acquired the roaster was a to deliver a sense of excitement and personality she wanted to add to the whole business, since being a retailer has its limits, there is only so much that you can do. The roaster gave Caroline an opportunity to explore a wider range of possibilities of flavors and tastes and made the coffee more personal both to her and her customers. The “Grumpy” family is gaining more and more momentum of popularity in the retailing and roasting world. If you haven’t yet given it a visit, don’t wait for the divine chance; save the address to stop when you are around, you won’t be disappointed…guaranteed.

60th Show

February 18-20, 2011

America’s #1 Coffee Retail Show

• 65 Free Classes • 36 Workshops

• Latte Art Championship & Training

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• New Products • Networking • Inspiration

Thinking about tomorrow…. Today by Rocky Rhodes

n order for green to be truly green, you want to see innovation and effort from each step in the chain. This means the raw materials used should be produced sustainably. Then manufacturers must innovate to turn those products into recyclable or compostable products. In addition, retailers must have a plan and facility to separate trash and customers must participate. The last step is the weakest link in the chain: How do you get the waste recycled or composted? This is the tomorrow we are thinking about today. Green changes in our industry can be hard. Staying on the forefront of greeniness requires innovation. Creating a sustainable recycling program at retail can be a financial tightrope. And now that you decided to recycle and put in your special bins and have staff sorting trash, you can add one more bin to the parking lot; the green composting bin. Now you will be the greeniest company in town! Or will you? Green initiatives that catch on the fastest are driven by more than just an owners desire to reduce their carbon footprint. In order to really catch on it has to have a positive impact on the bottom line and be easy to implement. If it is unsustainable, it will stagnate.

Find partners for Organics Recycling.

So, how can composting, or rather ‘Organics Recycling’ give us that next level of green? It has to have support from each member of the chain, be easy to implement and improve the bottom line. Are we ready for tomorrow today? Well, yes, actually! Here is all you have to do:

First, identify what of your products are compostable. Ask the manufacturers or look for the compostable logo. Then you can seek out additional compostable products to replace what you are using.

Find and use compostable products.

In a coffee house there are lots of areas in which a company can go green. There are a few places where you can go compostable. One would be in your disposable food and beverage containers. All you have to do is find partners that produce compostable and BPI certified products. Asean Corp makes hot cups, and lays claim to the first BPI certified lids, cold cups, and lids for cold cups. They also have certified plates, bowls and cutlery. BriteVision and Java Jacket already use post consumer products for their cup sleeves and these are compostable. Jay Sorenson of Java Jacket says, “Ninetyfive percent or more of our products are either recyclable or compostable.” Beyond the food and beverage container, TekPak Solutions produces coffee bags. “Our films are the only ones that are backyard compostable, they also biodegrade in any landfill or body of water,” said Jack Hutchinson of TekPak. Other companies are close to a compostable offering. Jeffrey Najar of Smart Cup says. “It’s important for us to push technology to deliver a compostable solution and we hope to have one in place by mid-2011.”

Set up an internal policy and marketing program.

In order for a program to work, as mentioned above, it must also be sustainable for the retailer. For this to happen currently, it will require a price increase and/or increase in business. Without exception, every product manufacturer has said that customers are asking for these products. Seeing a potential conflict of interest with their statements, we checked with several retailers. There were mixed feelings on the amount of demand for recyclable

and compostable products. Those that had some program in place thought there was indeed a customer demand. Those that did not, felt that the whole green movement was right up there with global warming. We suggest you ask your customers in survey form if they would like to see compostable products and if they would be willing to pay more. This will give you the start of your business model for implementing a compostable program. By simply telling customers that you have this program you will build more loyalty with existing customers and that should increase word of mouth advertising. Also let them know of other components to your green program. Don Scherer of BriteVision says retailers can already relate to their customers that the, “BriteVision sleeves are made from both post consumer paper and virgin pulp from FSC tree farms.” Messages like these make it easier to charge a green premium, if you need to, or it can simply build a stronger bond with your customer Many municipalities have embraced home recycling. A few have business recycling offerings. Only a handful have Organics Recycling. So how can you get this done? Start small and demand change. There are three steps:

Second, work with local municipalities to find anyone doing Organics Recycling in your area. If there is not one, you can contact the municipal waste company and determine if you can put compostable products in your green cans at home. You should also write a request letter that an Organics Recycling program be established. Buzz Chandler of Asean points to successes where, “in Portland Oregon and Toronto Canada they are doing successful curbside pickup.” Third, let your customers know what you are doing and how they can participate. Since the largest landfill contributions from a coffee house come from disposable products, let your customers know how to dispose of their cups, carrying trays and food containers. Once you have the OK from your municipal waste company, tell your clients what they can throw in the green can and what needs to be recycled. Until your town offers an organics recycling location there is another very interesting option available. A GreenGood Composter can be installed at your store. John Gillespie of GreenGood USA says, “You can take your food waste including your compostable paper products and reduce their overall weight by 90%.” It leaves you with an organic compost that you can either give away to your customers or even partner up with a local nursery to offset costs. Just make sure that if you are trying to sell the compost that you meet the health codes for your area. In these three steps you have found your products, told your customers how to help, and laid the groundwork to increase sales prices, if needed, and to increase business with word of mouth advertising. That sure helps the whole footprint and the bottom line.

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Judy Ganes-Chase

President, J Ganes Consulting, LLC

The Great Debate on Brazilian Deliveries proposed discount for Brazilian coffee will probably keep much coffee from being delivered at all, let alone provide an incentive to make the change in processing methods.

he New York Coffee “C” futures contract specifies that delivery of any coffee against contracts must be of washed Arabicas with very specific criteria set as the suitable base grade. This was representative of much of the coffee that was commonly used in the United States when the contract terms were set and included Central America, Mexico, Colombia and over time the contract evolved to include Peru and some other origins that met the stringent guidelines. Robustas and Brazilians were excluded because at the time, most of Brazilian production was processed naturally, in the cherry, rather than washed. However, a portion of Brazilian production is now washed or semi-washed and is widely accepted for use by the trade as a substitute for Central Americans or Mexican beans. But the futures contract still excludes this coffee rather than having evolved with shifts in production trends and quality. There has been heated debate about adding Brazil as the 20th deliverable origin under the rules for the Coffee “C” contract and the Exchange Committee after several years of indecision which blocked Brazil out, seemed to soften their posture and have made a preliminary recommendation to make the change, according to media reports. There has been no official statement from the Exchange, however, about the addition of Brazil and even with an ICE approval it may take as long as two more years to be in effect and so would not immediately have any impact.

Opponents have also argued that it would keep better grade deliverables from being delivered, but this already has been the case because of the higher prices buyers are willing to pay for quality. With the differentials now at still unusually high levels, even what is believed to be older coffee is attracting buyers. I don’t believe the structure or the integrity of the existing contract will be compromised with the inclusion of Brazilian washed coffee, since they are already widely accepted in commercial blends. What has created potential fireworks is that the producers of washed Arabica coffee have focused mainly on increasing the quality of their coffee so much of it commands a premium to the “C” market and this has caused fewer and fewer bags of coffee to be certified for delivery when they can fetch premium prices in the cash market. The problem has become particularly acute this year due to all growths trading at positive differential because of the tightness in the cash market for Mild coffees. In 1997 deliverable stocks were reduced to less than 100,000 bags and the futures market skyrocketed briefly to over $3.00 per pound. At that time there were plentiful stocks sitting in producer hands and the high prices lured this coffee to the Board. These stocks no longer exist and certified stocks keep dropping, which is creating a rather dangerous situation and could add further fuel to the market’s already bullish bent. Prices have already breached the $2.00 mark and may be poised to keep rallying, especially if weather this year once again keeps washed Arabica producers from seeing their harvests reach the fullest potential.

Representatives of the current deliverable growths have long argued that making the change to include Brazilians would flood the market and put prices under pressure as well as diminish the quality of the contract. The confusion stems from Brazil being the world’s largest producer and the concern that much of the crop will be delivered. However, only a small portion of the Brazilian crop would meet the contract specifications AND much of this coffee is already being hedged against the New York contract. Brazil still mainly produces natural coffee rather than washed or semi-washed. The monetary incentive would need to be there for Brazilian producers to invest in making the change to boost output of the deliverable variety but the

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Mintel Reports Sustainable food and drink lovers attracted by perceived superior quality, reports Mintel

Consumer demand for sustainable food and drink continues to grow, and companies are increasing the supply, as Mintel Global New Products Database (GNPD) has tracked more than 13,000 new sustainable food and drink products since 2005. While 84% of consumers say they regularly buy green or sustainable food and drink, some are unaware of what the claims actually mean.

“Packaging claims such as ‘recyclable’ or ‘eco- or environmentally friendly’ are fairly well known to consumers, but sustainable product claims such as ‘solar/wind energy usage’ or ‘Fair Trade’ have yet

to enter the mainstream consumer consciousness,” David Browne, senior analyst at Mintel points out. “They may have heard of the terms, but they’d be hard-pressed to define them.” Of those surveyed, 40% have never heard of the solar/wind energy usage claim. The 37% that have say they’ve never purchased food or drink bearing the claim. Reduced carbon footprint/emissions is another lesser-known claim, as 32% have never heard of it. Thirty-four percent say they’ve never heard of the Fair Trade claim.

So, why do they buy?

According to Mintel research, 45% of sustainable food and drink users cite a perceived belief

in superior quality as the reason behind their purchases. Meanwhile, 43% say they buy sustainable food and drink because they’re concerned about environmental/human welfare and 42% say they’re concerned with food safety. “These reasons vary in importance across different demographics. What’s most important to young adults may not be the primary deciding factor for affluent consumers,” notes David Browne. “Marketers should consider this in their claims closely; noting that health, welfare, and safety are important for nearly all consumers.”

NewsBites Rwanda’s Coffee Famers and the World’s Roasters: Everyone Wins at Auction It took ten minutes for all 22 of Rwanda’s 2010 Cup of Excellence winning coffees to receive opening bids of $3.50 per pound. Five hours later, 120 global companies had registered. Japanese coffee companies bought about half of the coffees. Hiro Coffee Co. ended the bidding war with $23.61/lb USD. Maruyama Coffee, Mikatajuku and Yokoi Coffee purchased the second place lot for $13.00/ lb. Third place garnered the winning farmers $13.05/lb from UCC Ueshima Coffee Co. The Cup of Excellence program has been hosted in Brazil, Nicaragua, Guatemala, El Salvador, Honduras, Costa Rica, Bolivia and Colombia. It is managed by the Alliance for Coffee Excellence, Inc, which enjoys membership from top global coffee companies as well as a long-standing sponsorship from Probat. The technology is executed with CommoditiesOne, a leading software development firm based in Sydney, Australia. For more information about the Cup of Excellence, log on to www.cupofexcellence.org.

National Coffee Association of USA Celebrates Centennial with National Coffee Break

The National Coffee Association (NCA), celebrating a century of service to the industry in 2011, will kick off its Centennial year by setting aside Thursday, January 20, 2011 as a day for a National Coffee Break. Commemorating coffee’s iconic place in U.S. history and culture, NCA will encourage industry members nationwide to mark the day by spearheading special customer-facing activities and events. NCA is inviting members to submit current and historic brand materials, print advertisements, television commercials, links to websites and social media accounts, logos and other insignias, memorabilia, and so on, for posting on the site. The resulting content will reinforce NCA’s efforts to celebrate coffee’s heritage, encourage curiosity and involvement, and drive interest and consumption, as well as create visibility for industry brands, products and services. A host of participation opportunities are under consideration. Members can contact Gerri Buchanan at 212-766-4007 or gbuchanan@ncausa. org to learn more.

Entenmann’s rolls out Two New Flavored Coffees – Perfect in time for the Holidays!

Now there is a whole new way for you to fall in love with coffee. Introducing our two new delicious tasting flavored coffees – Raspberry Danish Twist and Southern Pecan. Both 100 % Arabica coffees. These coffees were created and blended to match your favorite Entenmann’s baked goods and just in time for the holidays. This new line of coffees, available just in time for the holidays, represents the best of the best! You can expect to find flavors that explode on your palate and fade with a lingering complexity. Raspberry Danish Twist is a medium bodied coffee that captures the essence of sweet raspberry

and classic Danish pastry. Southern Pecan is a smooth bodied coffee with a pecan flavor and creamy vanilla notes. Entenmann’s Raspberry Danish Twist and Southern Pecan’s new friends are definitely the Entenmann’s baked goods these coffees were based on. These new buddies can be found hanging out together because of their mutual flavors of Raspberry’s and Pecan’s.

The Innovative Mud Jug Portable Spittoon Debuts. Coffee experts say “This product is perfect for cupping!” The patented Mud Jug Portable Spittoon appearing in CoffeeTalk Magazine, is an absolute necessity for cupping rooms around the world. A leaky, napkin-lined paper cup is not only messyit’s downright uncool. Fortunately, there is an answer: the Mud Jug Portable Spittoon. Developed by owner Jeff Welch, this patented product answers a specific need in the fast growing, billion dollar coffee industry. This information is not news to Welch. “We want to have a Mud Jug in every cupping room possible,” he said. “We find that once a “cupper” gives it a try, they will wonder how they ever lived without it.” Dozens of pleasedas-punch customer testimonials indicate that he’s met his goal. Made of high impact injection molding plastic, the Mud Jug boasts a weighted base and easily removable, snap-fit funnel lid. Its ergonomic design fits securely in your hand and its innovative shape conceals odors and virtually eliminates spills. Available in a broad array of colors and designs, there’s a Mud Jug to suit every fashion-forward coffee aficionado. Best of all, it just plain looks cool.  For more info, go to MudJug. com.

Urnex Brands, Inc. - Director of Marketing Urnex Brands, Inc. announced the hiring of Debbie Rebell as Director of Marketing. Debbie joins Urnex from Pepperidge Farm, Inc. where she was a Sr. Brand Manager in the Fresh and Frozen Bakery Division. Prior to that, Debbie was at Kraft Foods, Inc where she worked in the coffee division on Maxwell House and General Foods Int’l Coffee as well as in the Nabisco division on brands such as Oreo Cookies and Fig Newtons. Debbie will be responsible for oversight and direction of all marketing and promotional efforts related to the Urnex® Brand, Puro® Brand, and Full Circle® Brand portfolios. For more information about Urnex Brands, Inc. please feel free to contact us by telephone at +1.914.963.2042, or via email to info@urnex.com.

WEGA USA hires new National Sales Director Wega USA, exclusive North American distributor of Wega espresso equipment, would like to welcome Tom Rolleri as National Sales Director. Tom Rolleri brings over 20 years of sales, marketing and business ownership experience with an emphasis on customer partnerships and product branding. As National Sales Director, Tom is charged with all aspects of business development, including overall strategy, new market segments, and managing the existing

customer base. Tom’s marketing skills will give Wega USA the same prestigious recognition in North America that it now receives in Europe.

Global Sales Team to Expand

Neal Robinson, Senior Vice President of International Sales for BUNN’s commercial division, will become the Senior Vice President of Global Projects. In this role, Robinson will work with the BUNN sales team to ensure the continued success of the planning and execution of projects with the company’s national and global customers. Brian Wisniewski has joined BUNN as Senior Vice President and General Manager, International. Wisniewski will assume overall leadership for the international division, including executing strategic direction and identifying opportunities and markets. Wisniewski joins BUNN with significant international insights, having held international positions at both Nielsen Marketing and PepsiCo/Quaker Oats. For more information, please visit www.bunn.com or call 1-800-637-8606 or +1-217-529-6601.

SmartCup Inc. Introduces “Your Perfect Cup of Coffee Kit” SmartCup, Inc. announced that they now have available “Your Perfect Cup of Coffee Kit” just in time for the holidays. Operators and distributors are now able to provide their customers the best French pressed coffee in a complete to-go kit for the home, office and holiday trips. The coffee kit allows three variations utilizing the XPress lid (the world’s first disposable, portable, recyclable French press in a lid). The kit can be configured as a 6 Pak including 6 lids, 6 cups and the operator’s coffee; a 12 Pak holding 12 lids and 12 cups; or the 24 Pak providing a total of 24 XPress lids. For more information connect at sales@mysmartcup.com or 530-889-1754.

GreenGood Composter

GreenGood is launching 6 Composting machines ranging from a residential to large commercial models with capacities ranging from 2 to 780 metric tons per year. These machines will compost most Food Waste (including coffee grinds, fish, meat, fruit, vegetables, pasta, rice, breads, pastry, etc.) and Animal Feces within 24 hours. Egg Shells, Fish and Poultry Bones, Crustacean Shells, Coffee Filters, Tea Bags, Sugarcane, Bio-Paper, PLA packaging and paper napkins will even compost. Due to the lack of Commercial Composting facilities in many parts of the World, the GreenGood Composters offer an efficient alternative with small a carbon footprint vs the continuing problem of increasing landfills. After extensive testing in various parts of the world (including City Farmer in Vancouver, BC, Canada), composters will be available in Canada and the USA by December. They operate on intermittent heat and agitation with no water required to reduce the weight and volume of the waste input. The result is organic compost suitable for planting. Visit www.GreenGoodComposter.com for more details.

SUSTAINABILITY IS...

PACKAGING

PRINT DESIGN

IDENTITY

WEB DESIGN

Community Empowerment. Affordable Solutions. Health Care with a Lasting Impact. http://groundsforhealth.org/sustainability

May

May Day

Mother's Day

Memorial Day

Nearly 100% of women with cervical cancer have HPV

September 2010 Vol. XXIII No. 9

www.CoffeeTalk.com

Locked Out

Roasters and the K-Cup Phenomenon Economics of a Coffee Retailer What it really costs

KIMMERER

Private Label Advantages Retailer options for private labeling

Coffee Fest Seattle Preview This issue will have distribution at Coffee Fest

PHOTOGRAPHY This Month:

MOTION DESIGN

14 16 18 22

LAYOUT

Locked Out

Economics of a Coffee Retailer Private Label Advantages

EDITORIAL DESIGN

Coffee Fest Seattle Preview

JUST GOOD DESIGN WWW.JUSTGOODDESIGN.NET • 206.948.0036 20

Advertisers Index Company

Astoria-General Espresso Equipment Corp. Bridge Brand Chocolates BriteVision ChefTec/Culinary Software Services, Inc. Cimbali USA, Inc Coffee Enterprises Coffee Fest Coffee Holding Company Coffee Roasters of New Orleans Comfort Grip Wrap Eagle Web Press Everpure F. Gavina & Sons Fres-co System USA, Inc. Georgia Pacific-Dixie Grounds for Health Hartley Transportation LLC Java Jacket Just Good Design Knutsen Coffees, Ltd. Lee Hays & Associates Mud Jug Nestle Coffee-mate Nuova Ricambi USA Pac Coffee Consultants, Ltd. Pacific Bag, Inc. Plastic & Products Marketing Pod Pack International Sav-on Bags Scolari Engineering S.p.A. Service Ideas, Inc. Stalkmarket Products TekPakSolutions TightVac Vessel Drinkware Vita-Mix Corporation Weldon Flavorings WMF of America, Inc.

WMF

Phone

336-393-0224 415.677.9194 877.479.7777 303.447.3334 312.265.8100 800.375.3398 800.232.0083 800.458.2233 800.344.7922 847.478.0184 800.800.7980 630.790.1092 800.428.4627 215.721.4600 866.435.5647 802.241.4146 800.427.8539 800.208.4128 206-948-0036 800.231.7764 712.246.3301 888.683.5841 800.637.8534 916.315.2535 425.361.1973 800.562.2247 800.654.5741 225.752.1160 909.869.9158 856.988.5533 800.328.4493 503.295.4977 416.505.3839 888.428.4448 866.876.8282 800.437.4654 502.797.2937 888.496.3435

2000S

Page Web

23 23 11 22 23 22 15 13 20 22 20 23 23 3 2 20 22 17, 23 20 23 23 22 9 23 22 23 23 17 22 24 23 5, 23 22 23 17 6, 7, 23 22 21

astoria.com bridgebrandschocolate.com britevision.com culinarysoftware.com cimbali.us coffee-ent.com coffeefest.com coffeeholding.com orleanscoffee.com comfortgripwrap.com eaglewebpress.com everpure.com gavina.com fresco.com gppro.com groundsforhealth.org hartleytrans.com javajacket.com justgooddesign.net/ knutsencoffees.com comingsoon.com mudjug.com coffee-mate.com nuovaricambi.us paccoffeeconsult.com pacificbag.com plasticpm.com/ podpack.com sav-onbags.com scolarieng.com serviceideas.com stalkmarketproducts.com tekpaksolutions.com tightvac.com vesseldrinkware.com vitamix.com/thequietone WeldonFlavorings.com wmfamericas.com

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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 Engineering Consultant

Chocolate

Vacuum Container

Green Coffee Importers

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Bridge Brands Chocolates

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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.

“ For the past 8 years, Mr. Hays has been instrumental in providing engineering technical, process, and project management expertise in support of Caribou Coffee’s business. Lee’s experience and knowledge have been paramount to our success... projects are completed within time deadlines and financial targets...his team approach and working style mesh well with our internal Group.” Paul Turek Vice President Supply Chain, Caribou Coffee Co. Inc.

Erna Knutsen, President & Founder.

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Nuova Ricambi

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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.

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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.