March 2011 by CoffeeTalk Magazine

March 2011 Vol. XXIV No. 3

www.CoffeeTalk.com

How do you serve it? Cups, Lids, Sleeves & To Go Mugs

Retailer Profile The Pitfalls of Today’s Coffee Market The Growth of Specialty Coffee

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SCAA Roaster Profiles

HNCT, LLC 25525 77th Ave SW Vashon, WA 98070

NCA- New Orleans Show Listings

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A bible of the industry since 1994

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This Month:

see page 7

Contents

The NCA Conference Exhibitor listings

The View

From Miles & Kerri

Cup and Cup Accessory Options

Cups and Cup Accessories

by Claire Vallin

Retailer Profile – Think Coffee by Maxim Vershinin

Think Coffee – NYC, NY

The Pitfalls of Today’s Coffee Market By Guest Writer Jonathan White, White Coffee Company

SCAA Roasters

Hand in Hand: Quality and Roasting

by Aaron Kiel

byAaron Kiel

SCAA Roasters

Can Specialty Coffee Continue to Grow? by Tracy Ging

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

Feature

Administrative Director, Accounting, Subscriptions Claire Vallin, ext 4 claire@coffeetalk.com

Mailing Info

Cup and Cup Accessory Options by Claire Vallin

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

4 March 2011

Be sure to visit these exhibitors at NCA American Packaging Corp. 28 515.733.1407 www.ampkcorp.com American Packaging a flexible packaging converter specializing in 10-color Flexographic and Rotogravure printing, multi-ply Extrusion and Adhesive laminated specifications for rollstock, lidding, and preformed pouch applications.

Hartley Transportation LLC 16 800.427.8539 www.hartleytrans.com Hartley Transportation is a leader in green bean and processed coffee transportation. We pick up and deliver your shipment at a competitive rate with a premier level of service.

Barista Bath & Body 19 888.233.3178 www.b3products.com Barista Bath and Body (b3) is the first full beauty line to leverage the revitalizing benefits of coffee by making organic coffee its primary ingredient.

Mrs. Bryant’s Specialty Foods and Sauces by Nouvel, LLC 12 757.291.9510 www.mrsbryants.com Mrs. Bryant’s Specialty Foods & Sauces is known for organic/natural healthy, tasty, gluten free, local, gourmet foods, beverages & ingredients with no additives, no preservatives & no sugar substitutes.

BriteVision 25 877.479.7777 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 #18 & 25 Coffee Board of India 2, 3 & 4 +918022255920 www.indiacoffee.org Coffee Board, as nodal agency for coffee sector in India, is the friend, philosopher and guide and carries out Research, Extension & Development, Quality Control, Market Development and Promotion of Coffee Coffee Network / Hencorp 23 305.808.9868 www.coffeenetwork.com CoffeeNetwork provides in-depth commentary from the leading experts, breaking news, key weather information, real time prices for all futures markets and charting with technical analysis tools. 39 CoffeeTalk & the Daily Dose 206.686.7378 www.coffeetalk.com A bible of the specialty coffee industry since 1994. 13 Dupré Logistics 337.314.2246 www.dupretransport.com Dupré Logistics enables manufacturers and distributors to eliminate the invisible costs that occur in their distribution.Our clients gain increased productivity, permanently reduced cost structures and they become more competitive and profitable. Eastern Dry Coffee Mill 5 +447879611592 www.easterndrycoffeemill.com The finest Arabica coffees, roasted to perfection. We are passionate about creating community, promoting justice, and serving our customers and Rwandan coffee growers. See Our Ad on Page #29 Flavorchem 29 800.323.8100 www.flavorchem.com Flavorchem specializes in creating and manufacturing solutions for food and beverage applications, and is dedicated to providing the flavor and fragrance industries with quality products and outstanding customer service. 22 Fres-co System USA, Inc. 215.721.4600 www.fresco.com Supplying Customers with pre-made bags, custom-printed rollstock, degassing valves, packaging machinery, pod equipment and service. Fres-co System USA has been the coffee industry’s packaging expert for over 30 years. See Our Ad on Page #9 9 Fresh Cup Magazine 800.868.5866 www.freshcup.com Since 1992, Fresh Cup Magazine has served as “the voice of the specialty beverage industry,” providing cutting edge business information and marketing tips for specialty coffee and tea professionals. Grounds for Health 21 802.241.4146 www.groundsforhealth.org Grounds for Health, with support from 250 coffee companies, has brought sustainable cervical cancer prevention programs to origin since 1996, empowering communities and saving lives. 27 See Our Ad on Page #

Pacific Bag, Inc. 15 800.562.2247 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 #29 & 30 Plitek 34 847.827.6680 www.plitek.com PLITEK manufactures PLI-VALV® one-way degassing valves for coffee packaging, automatic valve applicators for FFS lines, and semi-automatic valve applicators for pre-made bags. Pod Pack International 11 225.752.1160 www.podpack.com We are your specialists in private labeling and national branding of 1-Cup pods for OCS. We will be featuring our new Generic Private Label program. Sav-on Bags 40 909.869.9158 www.sav-onbags.com Sav-on Bags specializes in coffee related packaging products, with 400 items in stock ranging from bags to packaging equipment. Sav-on Bags, since 1994. See Our Ad on Page #29 Shore Sales 27 217.892.2544 www.shoresales.com Shore Sales Company was founded in 1968 and specializes in moisture meter sales and other grain grading equipment and also manufactures equipment under the shore name. SONOCO 24 843.383.7000 www.sonoco.com Founded in 1899, Sonoco is a $3.6 billion global provider of industrial and consumer packaging and services, with more than 300 operations in 35 countries. Spiroflow Systems Inc 17 & 18 704.291.9595 www.spiroflowsystems.com Spiroflow, a global leader in coffee handling, offers solutions for green beans through finished products. Specifically Flexible Screw, Tubular Drag, Aero-Mechanical & Pneumatic Conveyors. Ultra Flex / ICA Quality Packaging 1 718.272.9100 www.ultraflex.com Film, Machinery and Technical Support three critical components, brought seamlessly together, delivering a full-service packaging solution to the Coffee Industry. Utz Certified 11 781.752.5729 www.utzcertified.org Utz Certified Good Inside is dedicated to creating an open and transparent marketplace for agricultural products with a goal of achieving sustainable agricultural supply chains.

The View T

he “single serve coffee” segment is going crazy, or is it just “crazy?” That is the best observation that I can make. A few months ago, we did a feature on this very subject and the landscape that was defining that market has changed enough to get me thinking about it again. At that time, it was all about Green Mountain Roasters K-cup and what seemed to be their iron grip on this segment. Not so much anymore. Can Green Mountain continue to be the prettiest girl at the dance, or is there a new kid in town? It looks like in this case “the first” may not necessarily be “the winner.” Taking into account that the in-home brewed single serve segment only represents 7.5% of the total in-home brewed coffee consumption, and that the Keurig distributes primarily in North America, there exists a whole world of opportunity out there, literally. When we published the article in September of last year, we thought that the cost barrier for entry for other roasters was too high to allow for the development of new systems to compete with the Keurig. We contended that the large roasters would more likely contract with Green Mountain to produce private label K-cups. The future of the K-cup has begun to play itself out and…I was right and I was also wrong! Yes, you heard me…Wrong! Just as I had predicted, Dunkin’ Brands and Folgers have contracted with Green Mountain for production of K-cups with their own labels, rather than do it themselves. However, Starbuck’s is sending strong signals that they fully intend to present a new system of their own. Howard Schultz said that there is plenty of room for market development and, with only 80% of 7.5% of the home-brewed coffee market held by Green Mountain, Schultz contends that a clear winner system has yet to emerge. In a week that should have been dominated by the growth news of Green Mountain, Starbuck’s stole their entire spotlight, on what was really only a rumor. So, where is Green Mountain headed? I believe their best strategy is to be acquired by a much bigger fish, and in fact, they seem to be positioning themselves for just such a possibility. Their stock is now selling at 265 times earnings! This has made them the most valuable company in the world relative to number of shares. Any fish that would consider buying Green Mountain would have to be a real whale. The truth is that all this dust-up over single serve coffee systems is really great news for specialty coffee and smaller roasters and cafes. As Green Mountain rushes to capture market share from the big multi-nationals, they become more and more distant from the market WE talk about. Green Mountain is effectively removing themselves from the Specialty Coffee world we love and cherish. The Keurig platform simply is not a device that produces fine specialty coffee beverages. By definition, little metal cans of pre-ground coffee of unsubstantiated quality being brewed with water from a teeny inefficient boiler and delivering a product without enough soluble coffee to meet

accepted specialty standards, is not specialty coffee. The Keurig style machine, or any other single serve machine for that matter, is never going to be popular amongst folks that want to start the day with a truly great cup of coffee. So, for whom is this gadget designed? This shouldn’t come as too big a surprise, folks who always have and always will brew coffee at home. I know that sounds pretty simplistic but really, this customer is an extension of the Mr. Coffee generation. The K-cup single serve phenom must not be confused with traditional pods. Pods, after all, have served the home, business, and hospitality customer for a long time. The ABCD Pod Manufacturing Company is one of the venerable companies in the coffee industry, so is Fres-co. These products are significantly different than the K-cup! Pods are accessible to small roasters and do not require mass-market scale driven sales to cash-flow so therefore lend themselves easily to gourmet and single origin coffees. Nitrogen packaged in foil individual packages, traditional pods still hold the promise of a great cup of coffee. And of course, the modern history of pods began with illy Caffe, the global paragon of quality. Pioneering and innovating industry standards for the now-familiar E.S.E. pod system that revolutionized the improvement of the espresso experience for consumers in restaurants, hotels, and at home, illy Caffe’s efforts to create standards for the shape and size of pods made access to the machines, and systems that produce pods, possible for any roaster, regardless of volumes. The K-cup product and the machines that use them, are appealing for really good reasons – ease of handling, easy clean-up, on-demand brewing, and no leftover coffee to be thrown away. This is the epitome for the blurry-eyed suburban commuter who is looking for an effective caffeine delivery system, period. These will still be our customers. That travel mug of coffee from a 10 ounce Keurig machine is not going to last very long on the commute, they will still pull in for another cup for the office, and this time they will want it to be more special. The Keurig is a replacement kitchen counter coffee maker and will be used the same way – to wake people up. I think the Specialty Coffee industry has dodged a bullet with the drive to market the Keurig down-market. We should all feel very relieved that it isn’t a better product and that Green Mountain is a publicly traded company, otherwise we could be faced with a product that really challenges the way we do business. Instead, Green Mountain is forced to build wider and wider markets and the big guys are battling it out, trying to be the first to deliver the ultimate home coffee brewer, but inevitably not a brewer that produces great coffee. That part of the market is left for us. Thank goodness!

Cheers,

Calendar Mar 16-19

National Coffee Association Conference, New Orleans

June 3-5

Coffee Fest, San Diego

Mar 16-19

Ultimate Barista Challenge; NCA, New Orleans

July 8-10

Coffee Fest, Hawaii

Mar 18-21

Taipei International Bakery Show; Taipei, Taiwan

Sept. 8-10

Mar 21-23

Tea & Coffee World Cup/Asia 2011, Suntec City

Coffeena International Coffee & Tea Fair and EU’Vend – Cologne, Germany

Apr 27-28

SCAA Symposium, Houston

Oct. 8-12

Anuga 2011 – Cologne, Germany

Apr 29-May 1

SCAA Annual Conference, Houston

8 March 2011

Multiply your profits with single serve from a single source. Fres-co’s Pod systems can help you get a big serving of the single serve market.

For coffee roasters looking to capitalize on single serve, Fres-co’s complete system approach equips you with everything you need to effectively

Fres-co® will demonstrate the 60PD Pod machine along with new brewing technologies at the SCAA Expo.

compete in the market, including machines, printed laminated materials and service.

The Freshest Ideas in Flexible Packaging | www.fresco.com | 215.721.4600

VISIT US AT SCAA EXPO 2011 | BOOTH #1449

Cup and Cup Accessory Options for Today’s Coffee Shop Owner by Claire Vallin

s a café or coffee shop owner, one of the easiest ways to make an impression on your customers is through the cup you serve them. The cup is the piece of your café they will take away with them, the object they will have the most interaction with, and consequently, your greatest branding opportunity. Additionally, the sheer number of cups a typical café and coffee shop uses in a single day illustrates how large a financial impact your choice of cup can have on your business. However, choosing which cup you will carry can be confusing. Should you choose new or recycled material? Sleeves that are built in, or separate? Colorful designs or plain white paper? Should you pay extra to imprint your logo? Offer reusable mugs for in-house customers? Carry to-go mugs the customer can bring back again and again? Admittedly, making these decisions can be a headache, but being informed of all the options available will help you choose what works best for your café or coffee shop. Whether you ultimately choose to offer reusable mugs for in-house customers and/or reusable to-go mugs for sale, one decision you will have to make regardless is what kind of single-use cup you will offer. The plethora of options on the market today can be dizzying, but it helps to assess what you are personally hoping to get out of your cups. Is a branded cup something you consider indispensible? In this case, many cup manufacturers have imprinting options to customize your cups, for a small fee. For instance, Moducup® will imprint multi-colored logos or designs on your cups, which is a great way to imprint your brand on your customer’s mind.

Image courtesy of Vessel Drinkware

Is choosing an eco-friendly disposable cup important to you? If so, cups made from recycled material and compostable cups are both championed as “green” cup options. For instance, Solo offers eco-forward® cups with recycled content and a plant-based compostable cup. Additionally, LBP Manufacturing offers their Clayx® cup, which according to their website boasts “the highest postconsumer fiber content in the industry.” For other compostable products, Stalkmarket offers 100% compostable cups and lids made from sugarcane fiber-based paperboard. Similarly, Biodegradable Food Service makes fully compostable cups made from bio-based materials. Not only is their cup lining petroleum-free, but they blend a formulation that gives it a higher heat resistance than other cups on the market today. Yet another company featuring cups that may be of interest to eco-conscious café and coffee shop owners is GreenGood®. GreenGood carries cups that are 100% compostable and biodegradable. Ultimately, it is the cup choice that has the most influence on your other disposable cup-related decisions, as some cups will make additional choices obsolete. For instance, you can choose to offer a single-walled paper cup and then provide sleeves for customers who want them. Or, you can offer cups with built in sleeves, or those that are made with insulating material, thus eliminating the need to buy additional materials. A good example of a built-in sleeve product is Georgia-Pacific’s Insulair® eco cup, which according to Alec Frisch, Vice President of the Beverage Category at Georgia-Pacific is “available with 12 or 25 percent recycled fiber options, and features an insulating middle layer made from 99 percent recycled fiber that keeps beverages hot while remaining comfortable to the touch.” Or International Paper’s Hold & Go® Cup, that according Joni Janis of International Paper, “eliminates the need for the operator to add a sleeve to a hot cup and prevents the café from double-cupping.” She adds “by using the Hold & Go® to cut out extra steps, operators can service more customers while reducing their waiting time.” Additionally, according to Larinda Becker, Vice President of Foodservice and Marketing for Solo Cup Company, Solo offers “the Duo Shield® insulated paper hot cup, a dual layer paper product with an overwrap and air pockets to insulate and eliminate the need for a sleeve or a double cup.” With so many choices available, a café owner should be careful to evaluate what is the best fit for their particular needs before placing initial orders. Most companies will send samples if requested, so if you are having a hard time deciding between several different products, try them out for yourself first!

Image courtesy of Coollid

Another choice you will have to make concerning disposable products is the lid. Although it may seem like choosing a lid is a fairly straightforward process, there is actually an incredible array of lid options available today. March 2011

continued on page 12

Excessive.

Impressive.

Cups and Cup Accessories continued from page 10

Things to be considered when choosing lids are: price, design, ease-of-use and of course, customer demands. The prices of lids are going to vary depending largely on which design features they utilize. To that end, there are several different lid design features that can have a significant impact on your customer’s experience. Some lids feature a built in closure such as Double Team’s SlideLock® lid. Regarding this lid, Ida Chan of Double-Team remarks “The end user can slide the lock and cover the drink opening of the lid while he/she is not drinking or he/she is on the go.” Features like this can greatly increase customer satisfaction for only minimal additional costs. Double Team’s Slide-Lock® lid is one innovative way café owners can address the problem of drink spillage, which is both irritating and dangerous to the customer. Andy McClusky of StixToGo, Inc comments to this end: “a coffee shop wanting to prevent spilling and enhance the customer experience has two choices. They can purchase a self-closing lid, or plug the hole.” The latter choice is what StixToGo aims to accomplish through their combination plug and stir stick, which fits in the hole of the lid and effectively blocks spillage while also serving as a functional coffee utensil. Furthermore, lid innovations do not stop at simple sleeves or plugs, there are also some products on the market today that have the potential to completely alter the way your customers experience their coffee. One great example of this is the Xpress™ lid by SmartCup. This lid has a built in French press, and fits on most standard cup sizes. With this kind of product the customers are able to press the coffee on their own, and thus save valuable time. This is one innovative way cafés and coffee shops can offer fresh, single-cup coffee to customers on the go. Another innovative product on the market today is the burn-preventing Coollid®. The Coollid® features a reservoir inside the lid that cools hot drinks to a comfortable temperature before drinking. Yet another exciting new lid option comes from Repurpose® Compostables, who manufacture a plastic lid which is made out of maize, not petroleum like most plastics. These lids are 100% compostable and constructed to biodegrade in 45 days after initial disposal. In short, while lid decisions may appear trivial at first, it is these small innovations that can ultimately make the difference between keeping a customer and losing him or her to the competition.

Beyond cups and lids, today’s café and coffee shop owner must think about how they are going to deal with the heat-transfer issue associated with hot drinks. As previously stated, some cups already incorporate sleeves in to their design, eliminating the need to buy sleeves separately. However, while built-in sleeves have their benefits, keeping the sleeve separate allows a customer to make the choice on their own - either using or foregoing the sleeve. Beyond just choice, there are several other reasons why café and coffee shop owners might choose separate sleeves. According to Don Scherer of Britevision “Sleeves are more environmentally friendly, using less then half the paper of a double-walled insulated cup.” However, concerning the environment, it is not only the quantity of materials used but also the source of those materials that contribute to how truly “green” that product is. For example, some sleeves are made out of virgin fiber, while others contain some portion of recycled or compostable material. For instance, Scherer says of Britevision sleeves,

Retail Merchandise in the Coffeehouse By Erez Toker, Vessel Drinkware Most retail merchandise programs in the marketplace today present the consumer with deep inventories of identical products displayed in a rank and file formation. While these merchandising standards create grand displays and are an impressive homage to a logo; the uniformity and limited selection often lack emotional appeal. Limited variety of both body and design selection contribute to slower turns at retail. Deep inventory levels only compound the situation and limit the buyer’s ability to rejuvenate displays with new merchandise. Suffering from slowly turning retail programs reinforces a common feeling amongst coffeehouse buyers that retail products just don’t sell well.

Emotional appeal, utility, value, variety and scarcity are all key elements that factor into a retail customer’s decision to make a purchase. When developing a retail merchandise program the buyer should maintain a careful balance holding emotional appeal above value. Surely the functionality of an item is important, however, combining functionality with good design makes all the difference between a good item and a great item. Before launching a logo-centric merchandise program, a coffee-house buyer should consider the lifestyle appeal of their logo or brand. Many coffee houses have gorgeous stores with great staff, offer a nice experience, serve good food and great coffee. A minority of coffeehouses offers a brand or a lifestyle that is considered so aspirational by their clientele that they are willing to adopt every element of the lifestyle that is available to them. Some retailers have the luxury of having a segment of their clientele that follow the brand almost like religion. While most retailers don’t enjoy that sort of following, all retailers have the ability to create successful retail merchandise programs. Very few retailers should limit their entire merchandise collection to only logoed merchandise, while some should not offer logoed merchandise at all. There is no one right cookiecutter answer that fits all stores. Each situation is unique and dollars, space and client base all play a role. The single biggest obstacle to creating a successful retail merchandise program is the amount of duplicate items a store must order to complete a minimum production run. The buyer must resist dangerous temptation to over-order. While the per unit price drops as the order quantity rises, this comes at the expense of customer selection. The lack of variety directly correlates with slower sales. A balance is struck when buyers give the logo a presence but keep it scarce on the shelf (scarcity) and surround the logoed product with a broad variety of stylized merchandise, co-branded or pre-decorated. The program offered at Vessel Drinkware is designed to help retailers best achieve that balance. That is why we offer a very broad selection of over 150 designs on our best body styles pre-decorated, in our warehouse and ready to ship with low minimums. And of course our designs are available for cobranding to enhance your branded merchandise program. continued on page 18 March 2011

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

Fantasy or reality? Find out at swisswater.com 13 or call 800.668.9981

Retailer Profile: Think Coffee by Maxim Vershinin Think Coffee 248 Mercer Street; NY, NY Machines: La Marzocco GB/5 Grinder: Mazzer Robur

eing a busy Columbia University student, I often find myself lost amidst the small, but busy streets of Greenwich Village to forget the horrors of the yesterday’s midterm and to observe consistently carefree faces of the New York University students. Which coffee shop puts the smiles on their faces? Apparently, most coffee drinking takes place here at Think Coffee cafe on 238 Mercer Street. What struck me the most about the place is that the times that I have been here, day and night, it’s literally packed like sardines, 90% being students and young professionals. I haven’t yet encountered a coffee shop that was so full of people. An interview with Think Coffee’s owner, Jason Scherr, shed some light on its secrets to success. M: Your coffee shop is really large with lots of seating capacity, and it looks like you have never had a problem filling it up. How are you able to maintain a constant flow of customers despite rigorous competition both from franchises and independent coffee shops here in Manhattan? J: Most coffee shops in Manhattan, that are not Starbucks, typically don’t provide much in the way of seating. And that is because rents are steep, and I totally understand that. We have made a decision we wanted to be a community-gathering place, so by larger spacing we provide seating, and I think people just want to sit and have a cup of coffee in New York. We think it is important that people have a place to drink a cup of coffee, it is not that they are forced to walk the streets, and

it’s part of the experience of drinking it is having a place to do it, plus we want good food that pairs well with coffee. M: You have a wide selection of items on the food menu, some salads, sandwiches, soups, and bagels. How important is food in the coffee shop? J: We believe good coffee tastes better if you have the right food paired with it. We make bagels to order. Which you would think in New York it would be easy to get a good toasted bagel with cream cheese and cappuccino, but to my knowledge we are the only ones who do that. The one thing, we don’t bake, because it would distract us from our business model, but every morning we prepare good, high-quality sandwiches on premises and we throw them out in the end of the day if they are not sold. We don’t have them made by somebody else and get brought in wrapped up in plastic. However, we don’t want the quality of our coffee to be overshadowed by any other elements of our business, so our food menu is designed not to inhibit our ability to serve coffee. Serving food is also important though because it helps us to pay the rent by increasing overall sales. M: How did you join coffee business community? J: I used to be a lawyer in New York, but about 12 or 13 years ago, I moved to Brooklyn, and opened a coffee shop in Williamsburg, at a time when there were no coffee shops. When I did open, I was a person behind the counter making the drinks, doing all the things that needed to be done to make the place go. It was a great experience and I got to know many people. Sort of a community feeling that we were willing to create and at the time it was very much an artist community, very small. Based on that experience I was trying to replicate what we have created on a small scale on sort of a larger scale. So, now we have four operating coffee shops in Manhattan in close proximity to each other, and I am about to sign a lease for a new one on the 8th Ave between 13th and 14th street. M: I have noticed that most of your coffee is Fair Trade, but there was some mention of the Farmer’s Dividend program on your website www. thinkcoffeenyc.com, could you please expand on it? J: We really are trying to understand where the

14 March 2011

coffee is coming from and what the relationship is to the farmer. One of the things we do, is we provide what is called a Farmer’s Dividend. The industry came under fire for disparity between the price for a latte, for example, of $4.50 or $5 dollars and the amount that the farmer actually gets. How do they benefit from that? So we actually provide a dollar per pound directly back to the farmer. Matt, one of our staff members is now on his way to Nicaragua and El Salvador to meet the farmers who actually grow our coffee that we are selling here and give them a dollar per pound. Now, there are lots of logistical problems with that including being able to actually reach the farmer, since factors such as the political climate and the coffee farms’ physical remoteness in those countries doesn’t make it easy for us to get to the farmer directly. But we are definitely working in good faith to make it happen. We also give 10% of our profits to a community based charity in the neighborhood where we are doing business. M: There has been a recent trend in coffee shops to start roasting their own coffee. Where do you get your beans and would you consider roasting yourself? J: We get our coffee from Porto Rico, they roast in Brooklyn. I don’t think Think Coffee will ever be roasting coffee. We learn so much from our relationships with coffee roasters. We would be concerned that if we isolated ourselves by trying to bring the whole program in-house we would reduce, rather than expand our educational experience. As far as one of our main future goals, we are working in the direction of making people interested in where their coffee comes from. One of the reasons we call it Think Coffee is because we want you to think coffee. You have to think about what’s in your cup, where it comes from, how it tastes and how the farmer who grew it benefits. Think Coffee sets a model for a successful coffee shop in a city like New York. Despite high rent, Jason wasn’t afraid to introduce the idea of an independent coffee shop that has a large capacity and is just a nice place to hang out, study and get a nice freshly made bagel and cappuccino, Jason’s favorite treats. At last, I hope that more coffee shops will follow Think Coffee’s example of concern for the coffee farmers’ profits and will introduce programs similar to “Farmer’s Dividend.”

The Pitfalls of Today’s Coffee Market by Guest Writer Jonathan White, White Coffee Company

etween the fall of 2006 and the spring of 2010, coffee futures traded in a relatively narrow price range between $1.10 to $1.30. This provided stability to the roaster, the retailer and the consumer for some time. Suddenly in the late spring of 2010, a steady rise began in the “c” market, culminating in early January 2011 with a interday price of $2.445, amounting to a nearly 80% rise in the market in little more than six months. In addition, coffee differentials, or the “premiums” paid for finer quality coffees, have increased significantly as well. After shrinkage (coffee shrinks when you roast it anywhere between 15-20%), the net result is a roasted cost increase of well over a dollar for most arabica coffees, over $1.50 for Colombian coffees, and several dollars or more for the highest quality varietals. Why has this occurred? And more importantly, what will be the consequences of this rapid rise? And what is the likely future trend for prices? Why has this occurred? Speculative interests now use commodity contracts in general, and coffee futures contracts in particular, as a type of investment without any interest in converting the contract into physical coffee. This “speculative bubble” has raised many commodity prices (cocoa, sugar, wheat) in the last year to all-time or generational highs. In addition, other factors to a lesser degree have also contributed to this price spike, including: increased consumption in such nations as China, India and Brazil; multiple years of smaller crops in several Central and South American countries (particularly Colombia, formerly the world’s #2 producer of total coffee and #1 producer of fine quality arabicas); smaller prior year stocks to offset current year needs; and currency fluctuations in both the dollar and the euro. For the first time in many years, weather conditions in and of themselves have not played the dominant role in the price rise.

There are several potential issues/consequences resulting from this increase. What happens to the price charged by roasters and wholesalers, and in turn to consumers? On the one hand, the logical expectation is that prices will have to increase dramatically to offset raw material increases. And

there have been increases in the industry by a number of small and large roasters. And yet at the same time prices have clearly not increased by the corresponding cost increases that should have occurred. Perhaps some roasters/wholesalers were fortunate to foresee this price increase and secured significant lower priced inventory. At the same time, the current economic climate may give coffee sellers at all points in the product chain great pause to raise their prices any more than absolutely necessary. At a recent show in San Francisco, I spoke with multiple retailers who have sold significant coffee volumes in recent years. They acknowledged that the commodity prices had increased and that supplier increases were inevitable. In the face of higher prices, they had decided to “de-emphasize” coffee in their marketing programs, as their ability to aggressively promote (so critical in today’s economic environment) would be compromised. At some point, every great inventory position comes to an end. And, if coffee sellers are unable or unwilling to adequately raise their prices, roasters/wholesalers will be faced with two lessthan-optimal choices. The first choice is to absorb the significant margin hit for some period of time. Companies who sacrifice such significant margin jeopardize their long-term viability. Some companies may attempt to “wait out” the market and hope for a future price decline. This strategy could potentially claim some market players in the coming months in the event that prices remain high (as market players will need significant additional dollars in order to purchase their coffees moving forward). Many companies have attempted this strategy for several months in the face of ever-increasing prices, only to see prices continue to rise. And the other potential option to address these cost increases in the arabica coffee market is an attempt to compromise the quality of their product with the increased use of robusta coffees. The robusta market, while it has increased somewhat over the last year, has not increased anywhere as dramatically as the arabica market. Currently, robusta coffee typically sells at less than one-half the price level of the arabica contract. While robusta coffees have a distinct taste profile in its pure form, many roasters may attempt to “blend” these coffees into other blends to limit their actual cost increase and ”stretch” their higher price arabicas. As one discusses this dilemma with many industry veterans, it appears that this latter course is already occurring en masse. Multiple green coffee exporters/brokers have relayed to me that “the companies that will do well are those that can blend the best “and maintain quality taste profiles while keeping cost increases to a minimum.” March 2011

Is there something inherently wrong with this latter course? Because price is such a critical factor in the purchasing equation for so many consumers, this course is likely to become prevalent or inevitable. And at the same time, I have great concern that what will occur will be far more than the minor inclusion of a small percentage of robusta coffees, but rather the wholesale downgrading of coffee qualities. At our company, we often “cup” other industry samples in our lab, and have already noticed a significant deterioration in the quality to date. The use of inferior coffees in the 1960s and 1970s led to the significant decline in coffee consumption that occurred (at one point, a nearly 50% decline in per capita consumption from the 1962 highs of more than 3 cups daily). While the recent specialty coffee craze has helped to stabilize and slightly increase consumption, current levels remain significantly below those of previous generations. Current demographic trends (the largest category of traditional coffee consumers are over 60 years old) and the prevalence of other alternative beverages for other consumers (ready to drink teas, waters, etc) limit potential gains as well. Lower quality product in the long-term can’t be a good thing for the industry. The industry should take all of these issues into account in several ways: (1) everyone must accept some unfortunate increase in pricing in order to preserve the quality that is so crucial to our industry. (2) Retailers and consumers need to be vigilant to insure that their favorite coffee beverage still offers the premium tastes that they have become accustomed to. (3) Coffee needs to continue to be promoted wherever possible (even with challenging margins) so that coffee remains front and center among the essential priorities for every current coffee consumer. Where are prices headed? As I frequently tell customers, “I left my crystal ball in the car.” But based upon the aforementioned long-term issues, it is unlikely that prices will return to early 2010 levels anytime soon. Even if producers wish to take advantage of these higher prices and plant more coffee trees, it will take several years for the harvests to be significantly impacted. The fundamental issues previously discussed are not likely to change. As consumers have adjusted to gasoline prices that are unlikely to approach $2.50 or less for the foreseeable future, everyone in the marketplace should come to expect, and get used to, significantly higher coffee prices that those that existed for many years. But if we want our favorite beverage to continue to taste as good as the one that has existed for so many years, this could truly be the best long-term future with today’s futures market. Jonathan White, Executive VP, jwhite@whitecoffee.com

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Cups and Cup Accessories continued from page 12

“BriteVision prints sleeves on three different paper stocks. All are 100% recyclable and 100% compostable.” Similarly, Java Jacket offers coffee cup sleeves that are made of recycled paper, so eco-conscious café owners can feel good about their choice while catering to the desires of their eco-conscious customers as well. Another consideration when choosing a lid is the potential that your branded cup will be hidden underneath a generic sleeve. One innovative solution to this problem is Double Wrap’s Comfort Grip Wrap™, which is a translucent sleeve that prevents heat transfer but allows your logo to show through. With all of these choices, it is easy to forget the other side of the cup market: in-house and to-go mugs. Because large coffee chains have such an influence on today’s consumer, many consumers now believe that purchased prepared coffee drinks should be served in a paper cup, regardless of whether the patron plans on taking the coffee to-go or staying to drink it there. However, by only serving drinks in the standard paper cup, coffee shop owners can be missing out on an opportunity to create a lasting impression on their customer. To this end, Pat Bowser of Sunset Hill Stoneware comments, “Coffee shop owners create lasting impressions by the way their product tastes and how it is presented to customers. Sipping from a paper cup, to a plastic traveler, to china mug, to a handcrafted pottery mug all leave a different impression to customers. Owners have to make sure their product and service matches the business message they want to communicate.” Bowser explains, “The hand thrown quality of our products makes them stand out. Wrapping your hands around our handcrafted pottery feels comforting. The touch, the feel, and the appearance – it just feels good. And

What Does Research Tell Us About Cup Sleeves? By Don Scherer, BriteVision Cup sleeves provide a valuable consumer benefit on the cup but to what extent can they be helpful for the café owner? Independent research indicates that cup sleeve messages are noticed, stay with customers for a long time, and are persuasive in communicating branding and promotional messaging. Two independent studies provide valuable insights. BriteVision, a leading cup sleeve manufacturer, recently commissioned Edison Research to evaluate the effectiveness of using custom printed cup sleeves as a means to promote in-store products. The results of the study were significant: • 72% of the consumers recalled the promotional message on the sleeves • 68% said they like receiving offers or promotions on cup sleeves • 65% believe sleeves are a good way to inform customers about in-store products or special offers • 40% said the promotional sleeve aided in their purchase decision In a prior study conducted by GfK for BriteVision, other important metrics were determined including the coffee cup sleeve is in the hands of consumers for an average of 52 minutes, and typically 6 other people see the sleeve. Printed in bold colors for eye catching appeal, cup sleeves can be used to showcase baked goods and lunch items, introduce new products or drive trial of special coffee offerings. Sleeves may be printed to promote loyalty cards or offer incentives for customers to visit during off peak hours. Research conclusively shows that sleeves have substantial value. They are much more than just a paper goods expense. When done right they are liked, remembered, have the potential to create brand awareness, and build sales. In a world of ever-rising prices for paper goods, it’s nice to find a product that also drives sales and the bottom line! continued on page 24

18 March 2011

SCAA Roasters

Roasters Look to Their Industry’s Future at Retreat

Phil Beattie, Dillanos Coffee, Reflects on the Annual Roasters Guild Roasters Retreat and Its In-depth Focus on Today’s Key Coffee Issues Phil Beattie

by Aaron Kiel

hether it’s an emphasis on advanced coffee cupping, in-depth lessons on coffee defects, or an eye-opening look at coffee farm economics and the relationship to quality, the curriculum at the annual Roasters Guild Roasters Retreat always delivers. In fact, it’s famous for raising thoughtprovoking conversations among the roasting industry’s elite. The Retreat is certainly revered in the industry; it’s considered a “must” for cutting edge, innovative roasters. It’s the place where they gather, share and gain perception on where the industry will be in the coming years. This year’s meeting, the 11th Annual Roasters Guild Retreat, is set for Stonewall Resort in West Virginia, Aug. 18 – 21 (www.roasterguild.org). “To me, the most recognizable impact that the Roasters Retreat has had on craft roasting is the proliferation of cupping,” says Phil Beattie of Dillanos Coffee Roasters in Sumner, Wash. A forward-thinking affair Beattie notes that long before “relationship” coffee, direct trade or the single cup craze even hit the mainstream, they were hotly discussed topics at the Retreat. He clearly sees how the event makes an impact on the roasting community. “In the early years of the Retreat, the percentage of roasters attending who had never cupped coffee was fairly high. At that time, some roasters saw cupping as a skill that was only needed for large roasting companies and importers. Now, it is hard to find a roaster who doesn’t see the value and necessity of cupping. No matter how much coffee you roast, some credit for this cupping proliferation has to be credited to this Retreat.” As a member of the Specialty Coffee Association of America (www.scaa.org), director of coffee and green coffee buyer for Dillanos and the current secretary/treasurer for the Roasters Guild, Beattie believes the modern roaster is part artisan, part world traveler and part information ambassador. Rather than zealously guarding trade secrets, he actively seeks opportunities, like the Roasters Guild Roasters Retreat, to share his passion and knowledge with others. It’s an event he prefers not to miss. Beattie, who acts as a “roasting emissary” in all his coffee pursuits, says that roasters are exposed to hundreds of different roasting philosophies and taste preferences each year at the retreat. “Even the most veteran roasters are forced to question their own approaches to coffee, and this questioning is what fuels innovation and progress,” he says.

Delving into the key subjects This year’s Retreat offers educational and networking opportunities for roasters, manufacturers, importers and coffee farmers—all gathered in one intimate setting. “It’s an excellent way to expand your sourcing opportunities or even find other roasters that would like to take part in cooperative buying, if you are interested,” explains Beattie, who believes that education is the No. 1 reason to attend. “I can say with confidence that the relationships and knowledge that I have gained from Retreat have been the foundation of my growth in the coffee industry.” Some of the main topics for this year’s event include: Green coffee defects and roast defects; the economics on a coffee farm: the cost of quality; advanced sensory science; the Roasters Guild Certification Program; a sensory skills test, to evaluate a coffee cupper’s ability to identify and discern different taste thresholds, utilizing variations of sweet and sour mixtures; and an introduction to cupping and calibration cupping, among other themes. Beattie says, “Beyond giving roasters the data and practice needed to roast and cup coffee at a higher level, the Retreat exposes roasters to the attitudes and approaches taken by some of the most successful roasters of our generation. It provides the tools and information to allow roasters of any skill level to return to their companies and have immediate impacts on the quality of their product.”

of cost of goods, stability of relationships at origin and global coffee consumption and its impact locally will surely be hot topics at Retreat this year.” In addition to these key issues, the Retreat will highlight “roasting to style.” “With the increasing diversity of brewing methods, it is becoming crucial for roasting professionals to understand ways of matching the style of roast to the brewing format that the coffee is intended for,” explains Beattie. Tri Style Roasting Challenge One highlight of the Retreat is the Tri Style Roasting Challenge, where teams will roast coffees, either a blend or a single origin, and then brew via one of two methods. There will be a winner for each brewing category, but the overall winner will be determined by whichever team has the highest average score between the two brew methods. Another element that’s planned for the Challenge: a calibration cupping and evaluation of all of the coffees. Judges will score each coffee at this cupping, and then each team will choose a single coffee and roast it in an attempt to achieve the same scores as the calibration samples. “Overall, you can say there are tangible and intangible benefits to attending this Retreat,” says Beattie. “But the biggest reward is intangible. It is the renewed sense of curiosity and creative spirit that every roaster who attends takes back to their roastery.”

At the meeting, participants take part in hands-on lessons with roasting equipment, roundtable discussions and many opportunities for the exchange of ideas. For Beattie, he’s going to be tuned in to the strategies of his colleagues, who have established relationships at origin. He wants to know how they’re maintaining those relationships. “As the price of coffee goes up, the conversations of re-negotiating contracts and concerns of maintaining the quality of deliveries from co-operatives increase,” he reveals. “I will be interested to hear how roasters are dealing with these challenges.”

To learn more about the Roasters Guild and to register for the Retreat, visit www.roastersguild.org. The Roasters Guild is a trade guild that consists of specialty roasters dedicated to the craft of roasting quality coffee. Through collaboration, professional certification and training opportunities, the members of the Guild are able to refine their skills and gain a deeper understanding of their professions.

Looking at supply challenges According to Beattie, the biggest current issue facing roasters—and the industry—is supply. “The amount of quality green coffee available continues to diminish while prices continue to soar, so the role of the roasting professional in blend development and consistency will continue to be crucial to the success of roasting companies,” he says. “Indeed, the issues

SCAA Roasters Perspective Sponsor: Scolari Engineering S.p.A. Scolari Engineering S.p.A. produces green silos, computerdriven coffee roasters, grinders and roasted storage systems. Discover more at www. scolarieng.com or by calling Howard Weiss at 856-988-5533.

Aaron Kiel is a freelance writer, public relations and communications consultant. He can be reached at akiel@akprgroup.com.

Hand in Hand: Quality and Roasting Howard Weiss Talks About His Passion for Coffee and His Work with Scolari Engineering S.p.A.

s this issue of CoffeeTalk looks at the year’s key event for coffee roasters—the 11th Annual Roasters Guild Retreat (see above) – it’s only fitting to chat with one of the industry’s longtime, behind-the-scenes leaders: Howard Weiss, who represents roasting trailblazer Scolari Engineering, based in Milan, Italy.

Weiss is the general manager of Texpak Inc., which exclusively Howard Weiss represents Scolari in the United States and Canada. Scolari produces green silos and computer driven coffee roasters, grinders and roasted storage systems. “The No. 1 thing for me is to keep the quality high,” says Weiss. “I think it hurts everybody and their profit margins when the quality of coffee drops, so that’s the most important thing for me.” ‘This could be my future’ Weiss believes that he’s highly fortunate to back-up one of the best companies and product lines in the industry, so he’s always happy to share about Scolari. “That’s the most fun for me—showing off what we do.” Weiss has worked in the industry for over 20 years. Prior to Scolari, he worked for General Foods Corporation and Tetley USA. At Tetley, he set up two tea factories and even did a coffee project for them—ground coffee in a tea bag. Later, he founded Texpak to sell materials to the coffee and tea industry – items like staple wire for tea bags. One day, he came in contact with Scolari and experienced first-hand their line of equipment. He was impressed. “I thought, ‘This could be my future,’ and I never looked back.”

A rich history in roasters Scolari Engineering was started some years before World War II by Antonio Scolari – the father of the company’s current

by Aaron Kiel president, Dario Scolari – when the family decided to buy a company that was roasting coffee and manufacturing roasters. After years of perfecting and fine-tuning, Scolari now offers some of the most advanced, exacting systems for controlling coffee in roasting factories. “We’re the leader because more and more businesses are gravitating towards quality roasting,” explains Weiss. “They’re trying to use better beans and trying to do a better job, and the Scolari equipment is about taking care of the coffee. It’s about controlling the roaster.” According to Weiss, “control” and “consistency” are the keys to quality coffee—and that’s where Scolari excels. “It’s about taking care of the coffees to make a quality product,” he says. “That’s our biggest advantage.” Integrated systems, being a partner Today, Scolari is focused on integrated roasting systems and cutting-edge technology. The company says it doesn’t sell a group of individual machines; they install a sophisticated “manufacturing system.” Weiss notes: “We provide the entire factory, from drop-off of the beans up to the inlet of a packaging machine. We design the factories and we can install. Right now, we have a very interesting coffee grinder that has some advantages over traditional grinders, we have various conveying systems, and we can also lot-track the coffees – each movement of specific coffees throughout the entire roasting production process.” According to Weiss, Scolari works hard to help its roastery customers through each step of the production process, to help them maintain high quality. “It’s very easy to ruin coffee—in roasting, grinding or how you prepare the cup,” explains Weiss. “So we help our clients take each area of roasting and grinding very seriously, and we treat the coffee very well along the way. Essentially, when you begin with us, we like to lay out the entire plan, and we usually plan with expansion in mind. So, if you need two roasters, we might draw the factory for four roasters, for example. It’s better to thoughtfully plan in the beginning as the factory most likely will grow; so that’s something that we try to do as a roast partner.”

March 2011

Indeed, Weiss and Scolari are keen on being partners with coffee businesses. “We keep in constant contact with our clients, find out what kind of problems and opportunities they have, and we make suggestions on how to address those. Of course, a lot of our marketing has been, “Your partner in coffee.” Innovation Scolari is recognized in the industry for its innovation. In fact, when the IBM personal computer first came out, Scolari saw an opportunity. “We were the first company, commercially, to computerize roasters, to drive a roaster control program on a PC,” says Weiss. Now, the Scolari roasting systems are highly advanced on a technical level; they’re totally computerized. “We have more years in software than anyone,” explains Weiss. “And our often updated, mature program has obvious benefits. Also, our programs and equipment have flexibility. We record all batches, and the software helps eliminate common errors that operators might make.” Overall, when it comes to troubleshooting, Scolari machines are able to detect and flag the vast majority of faults, often before anyone is aware that a problem even exists. Join Scolari, Weiss in Italy Weiss is clearly proud of his industry work and the company he represents. So much so that he strongly encourages potential customers to join him in Italy, where he can demonstrate what Scolari equipment can do. He uses this analogy: “It’s similar to looking at a picture of the Grand Canyon. I’ve seen pictures of the Grand Canyon and I’ve seen it in person. The pictures don’t do it justice. It’s the same way with Scolari’s equipment. That’s exactly why I tell prospective customers to visit us in Milan – because seeing is believing. We want to give them the Scolari experience.” To learn more about Scolari Engineering S.p.A., visit www. scolarieng.com or contact Howard Weiss at 856-988-5533 or texpak@bellatlantic.net.

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Can Specialty Coffee Continue to Grow?

n case you haven’t heard, coffee prices are high (and continue to rise). Supplies are constrained, so prices are likely to remain elevated. This new market and resulting dynamics are forcing some challenging questions, namely, “Can Specialty Coffee Continue to Grow?” Of course it can. However, it is not going to grow in the same manner as it has over the past twenty years nor will the same strategies apply. There is an urgent need for new thinking, more collaboration, and new solutions. It is a challenge, but one we approach with a great deal of optimism because one thing we know for sure, a big reason specialty coffee is so special, is because of the community behind it. So it is our great honor, every year, to host the largest gathering of coffee professionals in the world – the event for the specialty coffee community. This year, the setting is Houston. While not known as a coffee city, a host of cool independent roasters and retailers keep popping up to tell me how wrong I am. Guy Burdett of InterAmerican Coffee, our host sponsor, reminds me of Houston’s significance as a port for coffee entering the United States. And as our friends from portrait country Brazil are demonstrating, it is a major hub for the Americas (more than 500 Brazilians are expected to be at The Event – great news for anyone wanting to do business with what will soon become the largest coffee consuming country in the world). The connection point with producing countries is extremely important as we think about the global challenges for specialty coffee. Despite all efforts to

by Tracy Ging be environmentally and socially responsible, deeply complicated issues persist around climate change, poverty, and justice. I know many come to The Event to do business, but let me suggest these issues are our business as well. Solutions will not emerge without a strong connection between Origin and consuming countries, so at the risk of sounding preachy, please take at least one moment to talk to someone you may not normally have a chance to – just to ask their perspective on things. I promise it will enhance the experience of Expo. But on to the experience of Expo…more exhibits, bigger exhibits, new products, new technology, new classes, new competitions, more events, cool venues for the after-parties, and a host of tried and true classics (the Rainforest Alliance Kick-Off Cocktail Party, Opening Ceremonies and Welcome Reception, the United States Barista Championship, New Products Showcase, Coffee Kids Reception, International Women in Coffee Alliance Breakfast, the Coffee Quality Institute Annual Lunch, and the Grounds for Heath Reception, plus Guild parties).

Pause. Breath. Okay, there’s more…

The SCAA Event is more than a trade show; it is a place of inspiration. It is where direction takes shape and the platform for a strong future is set. The SCAA works continuously, not just to produce this event, but help build the specialty coffee community, build knowledge and skills of coffee professionals, and help businesses build their brands. This year, you will see evidence of our progress and glimpses of what’s next.

You’ll see an emphasis on collaboration. As businesses brace themselves around rising prices, we are looking at structural causes. One of which is the failure to invest adequately and scientifically in the supply chain. The newly formed Global Coffee Quality Research Initiative will be very present this year at The Event as one important and viable solution to that problem. We will continue to emphasize sustainable practices. The Specialty Coffee industry is supported by a commitment to actively do good in the world. As part of our commitment under the United Nations Global Compact, we are launching START – a sustainability tracking and reporting tool for corporate social responsibility activities. This six-figure technology will be made available to companies for just a little over one hundred dollars per year and will be hugely impactful in helping us to define future areas of focus. And lastly, you will hear much more discussion about consumer engagement. At our executive series, Symposium, we will hear from retail executives, challenging us to think more (and more honestly) about customer service, communication, and education – prompting answers to the question, “Can Specialty Coffee Continue to Grow?” Of course it can. But we have some work to do figuring out exactly how, we have to do some honest selfexamination, and we have to keep working together; a great place to start is the 23rd Annual Specialty Coffee Association of American Symposium and Exposition, scaaevent.org | scaasymposium.org | scaa.org

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Image courtesy of Vessel Drinkware

the customization of taking a coffee shop’s artwork and capturing the intricate elements of the design promotes the brand and wholesomeness quality of the beverage inside.” One major consideration regarding the use of reusable mugs for in-house customers is the additional labor and time investment required to serve, clear and clean the mugs. However, for coffee shops that have the means, in-house mugs can be one great way to set your shop apart from the large chains. Additionally, a great way to achieve further branding for your shop is to offer imprinted to-go mugs for sale. Potentially, this merchandise could be offered along with a promotional program such as a discount for customers who bring the mug back to the café. Promotion or not, branded mugs are a great

way to increase profits and keep your café or coffee shop on your customer’s mind. Planetary Design is one company that sells reusable to-go mugs that can be imprinted with your café or coffee shops logo, for a small fee. However, it is important to remember that customers will often forgo purchasing and utilizing a reusable Image courtesy of ModuCup to-go mug because of the inconvenience. Regarding this problem, Erez Toker of Vessel Drinkware comments, “eco-friendliness is obviously not motivation enough for the vast majority of retail customers to bring along their own mug… Our Vessel Drinkware fans remember to take their mugs and bottles with them because they have made an emotional connection with their favorite designs. That emotional connection is the most powerful element of the equation. Toting that piece around becomes a natural, fun part of their lifestyle.” To this end, café and coffee shop owners might see higher sales and increased repetitive usage by offering to-go mugs with innovative and attractive designs, rather than simply sticking with more traditional options. Regardless of what you ultimately choose to offer in your café, don’t forget that cups can be a fun part of the experience, especially for your customer. With a little bit of research and time you can tailor your cup program to be a perfect fit for your specific needs. And remember, running a successful café always involves trial and error, if you end up unhappy with your initial choices you can simply go through the process again until you find what works for you. For a complete list of cup and cup accessory vendors, please see www.coffeetalkyellowpages.com

24 March 2011

NewsBites

New Green Coffee Marketplace Increases Market Access for the Entire Supply Chain

Koffeelink, an independent green coffee marketplace, launches later this month. In an increasingly differentiated coffee market, the web-based company is a one-stop-shop for sellers to sell their offerings and for buyers to find the perfect beans. How it works is simple, sellers create coffee profiles that are searchable and buyers search for free. To draw interested buyers, sellers can provide detailed information on the bean, as well as upload relevant documents, photos, video and maps. “When a seller has a good coffee available they should have easy access to promote it to the entire buyer market. Similarly when a buyer is looking for a particular coffee or wants to develop new relationships, they should be able to quickly search for what they need,” says Koffeelink Co-Founder Hayden Kwast. For more information visit www.koffeelink. com or contact Hayden at info@koffeelink.com.

Monin Offers Variety of Real Fruit Purées Monin Gourmet Flavorings, the world’s leading provider of premium syrups and flavoring products, is offering a variety of real fruit purées to add summer fresh flavor to coffeehouse specialty beverages. Available flavors are raspberry, mango, wildberry, peach, strawberry, banana and superfruit. The fruit purées are highly concentrated and require no thawing or refrigeration, making them a good choice for coffeehouse operators with limited storage and cooler space. Made with high quality fruit that is flash pasteurized to preserve its fragrance, flavor, color and texture, the purées work well in smoothies, flavored iced teas and lemonades, mochas and frozen beverages. For more information on any Monin product, call 800-966-5225 or visit www.monin.com.

LBP Manufacturing Introduces Calyx® Double-Wall Insulating Paper Hot Cups Designed with a 360-degree air chamber to keep beverages hot and hands cool. Calyx® cups are made with 25% post-consumer fiber, and provide a smooth printing surface for showcasing your brand. Calyx® cups are available in 8, 12, 16, 20 and 24 ounce sizes with manageable print minimums. For more information, visit www.lbpmfg.com

American-Made Handcrafted Signature Stoneware™ Mugs

Sunset Hill Stoneware, a family-owned, full service production pottery company, carries a full line of customized stoneware products for the coffee industry. Large coffee roasters to small coffee houses can take advantage of promoting their brand by purchasing handcrafted pottery individually thrown by master potters. Sunset Hill Stoneware combines old world technologies with modern innovations to create handcrafted stoneware. All of their durable stoneware products are 100% lead-free, non-toxic and safe for daily use, making them food safe, along with oven, microwave and dishwasher reliable. The functional stoneware is individually handcrafted with pride in the U.S.A. and distributed in America from coast-tocoast. To learn more about the company’s full offering of products and service, contact us at 800.509.4662, info@shstoneware.com or visit www.shstoneware. com.

Weldon Tea/Water Flavorings Back Again to Cool Off Your Summer!

With Spring and Summer just around the corner Weldon Flavorings is once again offering its Innovative, Natural and Unsweetened flavorings for your Iced Tea and Water. Now you can enjoy wonderfully refreshing Flavored Iced Tea or Water anywhere, anytime. These unique Flavorings are Natural and contain no added sugar or artificial sweeteners. Weldon’s concentrated Tea and Water Flavorings add pure liquid flavor to your iced tea or water. They come in 4 flavors: Guava Passion Fruit Mango, Raspberry, Mango Orange Passion Fruit, and Peach. The pre-measured pump dispensing system allows for quick and accurate flavoring. Just add one pump to each 4oz of your favorite beverage. The 4 oz bottle flavors approximately 59 sixteen oz. glasses of iced tea or water. They are also available in 16 oz bottles for flavoring larger quantities. For additional product information, contact Weldon Flavorings at info@weldonflavorings.com or (502) 797-2937.

Cablevey Welcomes Tim Larsen

Cablevey Conveyors recently welcomed Tim Larsen as their new Beverage Account Manager. Tim Larsen graduated with a Bachelor of Engineering from Monash University in Melbourne, Australia and has since worked in management and engineering positions in a variety of areas of the coffee industry. Larsen is a former Engineering Manager for Starbucks where he was a key element in the Starbucks expansion from 5,000 stores to 15,000. Larsen has also worked as the Director of Technology & Customer Service for Java Trading Company and as a Project Engineer for Heat & Control, Belshaw Brothers and Kraft Foods. From this experience, Larsen has become passionate on ‘best in class’ technologies for manufacturing facilities. To learn more visit www.cablevey.com

Grainger Recognizes Georgia-Pacific Professional for Environmental and Operational Excellence

Grainger recently presented Georgia-Pacific Professional with two Partners in Performance Awards for 2010 at Grainger’s annual supplier conference held recently in Schaumburg, Ill. Georgia-Pacific Professional earned both the Green Supplier of the Year and an award for operational excellence. Grainger, North America’s leading distributor of facilities maintenance supplies, presents awards annually to a select group of suppliers for outstanding performance throughout the year. Grainger’s Partners in Performance Award recognizes suppliers who achieve excellence in several categories, including responsiveness, information integrity, on time shipping and variability, management commitment and order fulfillment. For more information on Georgia-Pacific Professional, please call 1-866-HELLO GP (435-5647) or visit us at http:// www.gppro.com.

Swiss Water Decaffeinated Coffee Company Inc Adds More Coffee Talent

Marisol Pinzon is leading the development of new international business in the newly created position of Export Manager effective January 24, 2011. Marisol has extensive experience with the Colombian Coffee Federation based in Tokyo and the development of

26 March 2011

Colombian Coffee, Specialty Coffees and the Juan Valdez promotions in the Pacific Rim. She has very strong specialty coffee credentials. If you are interested in exploring new caffeine-less business initiatives outside of North America, Marisol can be reached at mpinzon@swisswater.com or 604-444-7760.

TekPak Launches “Omnidegradable”™ Line of Coffee Packaging

TekPak Solutions is launching a revolutionary breakthrough in biodegradable coffee packaging -- “OmniDegradables” ™. Completely organic, this new line of biodegradable packaging is recognized by the world’s leading authorities in environmental biology as the only viable option in green packaging. Unlike other films making green claims, the TekPak “OmniDegradables”™ experience complete organic decay when exposed to microbes; leaving behind only water, CO2 and a small amount of biomass as waste – all beneficial to plant growth. Engineered to biodegrade in landfill and composts, this new generation of biodegradable films will also degrade in salt and fresh water systems; our rivers, lakes, and oceans. They are shelf-stable offering an unlimited shelf-life; and require no special treatment for processing on existing equipment. They also have the added benefit, of being less expensive than competitors. To order or for more information, contact Robert@tekpaksolutions.com.

Simpli-Flex® Ice Cream Cone Dispensers Let You Dispense Cones One-at-a-time!

Simpli-Flex® Ice Cream Cone Dispensers from the Modular® Dispensing Systems Division of Tomlinson Industries organize and dispense cake, waffle and sugar cones with a 1-3/8” to 3-3/8” cone lip diameter. Simpli-Flex cone dispensers are self-adjusting to hold cones snugly, yet gently enough to prevent breakage and waste. Cones are protected from contamination and moisture - they stay fresh longer! Modular offers a wide variety of dispensers to help organize your counter space. Dispensers for cups, domed and flat lids, straws, condiments as well as napkin dispensers for countertop, tabletop and incounter mounting are available. For more information, please contact Tomlinson Industries, E-mail: dgiblin@ tomlinsonind.com, or visit our web site at www. tomlinsonind.com.

IWCA Annual Luncheon at NCA Centennial Convention

The National Coffee Association (NCA) announced that it is partnering with the International Women’s Coffee Alliance (IWCA) as it holds its annual fundraising luncheon at the NCA Centennial Convention. At the luncheon, Phyllis Johnson, president of BD Imports and IWCA Board director, will present “Africa-Aiming Forward,” an enlightening discussion of IWCA’s work in support of the African coffee industry. Johnson will discuss current developments toward establishing IWCA chapters in Eastern Africa, her recent fivecountry mission to the continent, and how the Alliance has gained support from an affiliate of the United Nations. The IWCA luncheon will take place on March 19, 2011, from 12:30 - 2:00 p.m. at The Roosevelt hotel in New Orleans. All are welcome to attend the event, from which a portion of the proceeds will go directly to the IWCA. For more information, contact the IWCA directly at mail@womenincoffee.org or visit www. womenincoffee.org.

Visit our website today for monthly specials.

We did it for a Just Cause

Help us defeat cervical cancer Purchase the calendar at Amazon.com — Just search for “Just Cause Calendar” Check out our new price! Only $12.50

proceeds benefit

featuring

Mery Santos Andi Trindle Wendy DeJong Dan Cox Beth Dominick Andrew Hetzel Jim Stewart Luz Marina Trujillo Martha Caswell August Burns Katherine Buell Jane Sakovitz Dale Brendan Downs-Dudley Justin Mool Bob Goldman Marty Blevins Miles Small Kerri Goodman-Small Marty Curtis David Beeman Rocky Rhodes Skip Finley Erna Knutsen John Rapinchuck & Dan Fogel

Advertisers Index Company....................................................... Phone........................... Web........................................................ Page................NCA Booth

Agtron, Inc................................................................................. 775.850.4600.......................... www.agtron.net ............................................................ 19 America’s Food Technologies, Inc./AMFOTEK..................... 708.532.1222.......................... www.amfotek.com ........................................................ 24 Antica Tostatura Triestina S.p.A............................................ 201.851.7805.......................... www.anticaespresso.com ............................................ 25 Biodegradable Food Service................................................ 541.593.2191.......................... www.earth-to-go.com .................................................. 29 Bridge Brand Chocolates........................................................ 415.677.9194.......................... www.bridgebrandschocolate.com ............................. 30 BriteVision.................................................................................. 877.479.7777.......................... www.britevision.com .................................................... 18 & 25.................25 Cablevey Conveyors............................................................... 641.673.8451.......................... www.cablevey.com ....................................................... 6 Carrie Cups............................................................................... 706.373.2442.......................... www.CarrieCups.com .................................................. 27 ChefTec/Culinary Software Services, Inc............................ 303.447.3334.......................... www.culinarysoftware.com ......................................... 28 Coffee Fest................................................................................ 800.232.0083.......................... www.coffeefest.com ..................................................... 17 Comfort Grip Wrap................................................................ 847.478.0184.......................... www.comfortgripwrap.com ........................................ 28 Display Cafe Ltd...................................................................... 905.799.8197.......................... www.innovatedproductsmfg.com ............................... 29 Ditting USA, Inc......................................................................... 810.367.7125.......................... www.ditting.com ........................................................... 28 Eagle Web Press...................................................................... 800.800.7980.......................... www.eaglewebpress.com ........................................... 7 Eastern Dry Coffee Mill.......................................................... 212.254.8381.......................... www.easterndrycoffeemill.com ................................. 29............................5 Espresso Americano................................................................. 504.2231.0711....................... www.espresso-americano.com ................................... 30 Everpure.................................................................................... 630.790.1092.......................... www.everpure.com ....................................................... 30 Fres-co System USA, Inc.......................................................... 215.721.4600.......................... www.fresco.com ............................................................ 9...............................22 Gaviña Gourmet Coffee........................................................ 800.428.4627.......................... www.gavina.com .......................................................... 30 Georgia Pacific-Dixie............................................................. 866.435.5647.......................... www.gppro.com ............................................................ 11 Grounds for Health.................................................................. 802.241.4146.......................... www.groundsforhealth.org ......................................... 27............................21 Inbru........................................................................................... 314.991.1700.......................... www.inbru.com .............................................................. 27 Java Jacket............................................................................... 800.208.4128.......................... www.javajacket.com .................................................... 23, 30 Knutsen Coffees, Ltd................................................................ 800.231.7764.......................... www.knutsencoffees.com ............................................. 30 LBP.............................................................................................. 800.545.6200.......................... www.lbpmfg.com .......................................................... 21 Moducup, LLC............................................................................ 973.785.7790.......................... www.moducup.com ....................................................... 2 Monin Gourmet Flavorings..................................................... 800.966.5225.......................... www.monin.com ............................................................ 30 Novus Tea.................................................................................. 888.244.3569.......................... www.novustea.com ....................................................... 29 Orleans Coffee Exchange...................................................... 800.344.7922.......................... www.orleanscoffee.com .............................................. 7 Pac Coffee Consultants, Ltd................................................... 425.361.1973.......................... www.paccoffeeconsult.com ......................................... 29 Pacific Bag, Inc.......................................................................... 800.562.2247.......................... www.pacificbag.com .................................................... 29, 30.....................15 Pack Plus Converting............................................................... 877.722.5888.......................... www.packplus.com ....................................................... 29 Repurpose Compostables....................................................... 800.615.6476.......................... www.repurposecompostables.com ............................ 22 Sav-on Bags.............................................................................. 909.869.9158.......................... www.sav-onbags.com .................................................. 29............................40 Scolari Engineering S.p.A....................................................... 856.988.5533.......................... www.scolarieng.com ..................................................... 32 Service Ideas, Inc..................................................................... 800.328.4493.......................... www.serviceideas.com ................................................ 30 SmartCup, Inc............................................................................ 530.889.1754.......................... www.mysmartcup.com ................................................. 22 Solo Cup Company.................................................................. 800.367.2877.......................... www.solocup.com .......................................................... 31 Stalkmarket Products............................................................... 503.295.4977.......................... www.stalkmarketproducts.com ................................... 5 & 30 Sunset Hill Stoneware.............................................................. 800.509.4662.......................... www.shstoneware.com ................................................. 19 Swiss Water Decaffeinated Coffee Company Inc............ 800.668.9981.......................... www.swisswater.com .................................................... 13 TekPakSolutions........................................................................ 416.505.3839.......................... www.tekpaksolutions.com ........................................... 24 The Artful Penguin, LLC........................................................... 847.721.6995.......................... www.theartfulpenguin.net ........................................... 28 The Evelyn Bay Coffee Company......................................... 517.592.4774.......................... www.evelynbaycoffee.com ........................................ 29 TightVac, Inc.............................................................................. 888.428.4448.......................... www.tightvac.com ......................................................... 30 Tomlinson Industries.................................................................. 866.269.1303.......................... www.tomlinsonind.com ................................................. 30 Ultimate Barista Challenge.................................................... 503.232.1016.......................... www.ultimatebaristachallenge.com .......................... 27 Vessel Drinkware...................................................................... 866.876.8282.......................... www.vesseldrinkware.com .......................................... 21 Vita-Mix Corporation.............................................................. 800.437.4654.......................... www.vitamix.com/thequietone .................................. 30 Walker Coffee Trading Company........................................ 877.302.6333.......................... www.walkercoffee.com ............................................... 15 Weldon Flavorings................................................................... 502.797.2937.......................... www.WeldonFlavorings.com ...................................... 29 White Coffee Corp................................................................. 718.204.7900.......................... www.whitecoffee.com .................................................. 30 Wilbur Curtis............................................................................. 800.421.6150.......................... www.wilburcurtis.com ................................................... 3 WMF of America, Inc.............................................................. 888.496.3435 ........................ www.wmfamericas.com ............................................... 23

28 March 2011

PACKPLUS.com

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Service Ideas Incorporated

F. Gaviña & Sons, Inc.

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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.

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.

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

Packaging

Chocolate

Vacuum Container

Green Coffee Importers

Vita-Mix Corporation

Pacificbag Inc.

Bridge Brands Chocolates

Tightvac

Knutsen Coffees, Ltd.

800.848.2649 vitamix.com/foodservice

425.455.1128 pacificbag.com

888.732.4626 bridgebrands.com

888.42.TIGHT tightvac.com

800.231.7764 knutsencoffees.com

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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.

Air Pot Stations

Charity Calendar

White Coffee Corp.

Tomlinson Industries Modular ® Dispensing Systems Division 866-269-1303 www.tomlinsonind.com

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800.866.5225 www.monin.com

Support Grounds for Health in their efforts to establish cervical cancer prevention programs in coffee growing communities by purchasing this fun calendar featuring your favorite coffee professionals. New Price $12.95!

With 200 of the finest flavored syrups, sauces and purees available to the coffee industry, Monin ensures ultimate taste and creativity for successful beverage solutions.

White Coffee creates customized blends and packaging for industry leaders. Wide variety of varietals and flavors available. Exclusive licensee of Kahlua flavored coffee. Fair Trade, Organic, Kosher, NSF certified.

Air Pot Stations are designed to accommodate air pots (not included) of virtually any size and are available in a single or double Station. Each features a divided organizer, stainless steel drip tray and air pot riser.

March 2011

Erna Knutsen, President & Founder.

GOURMET FLAVORINGS International Franchise

PRIVATE LABEL

800.221.0140 718 204 7900 www.whitecoffee.com

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

Monin

Espresso Americano®

011-504-2231-0711 franquicias@espressoamericano.com PASSION FOR COFFEE, FROM BEAN TO CUP Franchise opportunities available worldwide for Espresso Americano®: a Honduran specialty coffee grower/roaster/retailer, guided with a true passion for coffee. Interested investors are welcome to contact email above.