April 2014 by CoffeeTalk Magazine

April 2014

www.CoffeeTalk.com Vol. XXVII No. 4

Connect. Grow. Prosper!

The Single Cup Revolution

See NAMA Exhibitor Listings page 30

See SCAA Exhibitor Listings page 32

page 10

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Jim Stewart Founder Seattle's Best Coffee

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Traceability What does it REALLY Mean?

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

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Contents

The View

The Single Cup Revolution

Coffee Chemistry

The World is Changing

Organic Acids - Combining Science and Art

Marketing Miracles

Marketing the "Real" and the "Fake"

Sight is the Most Powerful Sense

Retailer/Roaster Profiles One Girl Cookies - Using Smart Technology

The Power of Good

Roasters Rock Cupping as a Communication Tool

Traceability

What does it REALLY Mean?

26 Jim Stewart Founder Seattle's Best Coffee

On the Shoulders of Giants Jim Stewart - Founder Seattle's Best Coffee

Start Up Strategies

Calculating Your Startup Costs

NAMA Emerging Leaders

Shivani Gupta — Canteen Vending

NAMA Exhibitor Highlights

SCAA Exhibitor Highlights

24 Traceability What does it REALLY Mean?

Coffee and Weight Loss?

22 26

20 Coffee and Weight Loss?

The Last Mile

18 20

Connect. Grow. Prosper!

The Voice - Dreams for our Industry Troy Lucas - Closing the Circle

News Bites

Advertiser Index

Feature

The Single Cup Revolution

Who We are Phone: 206.686.7378, see extensions below

Owner

Publisher Kerri Goodman, ext 1 | 206.795.4471 kerri@coffeetalk.com

Editor/Feature Writer Jessica Tanski, ext 7 jessica@coffeetalk.com

Design

Print Design Marcus Fellbaum, ext 5 marcus@coffeetalk.com

Web Design Justin Goodman, ext 6 justin@coffeetalk.com

Administrative

Researcher Libby Smith, ext 8 libby@coffeetalk.com

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. 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

Cover painting by Wendra Lynne.

April 2014

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The View

Kerri Goodman Mistakes – The Key to Success

irst, we must accept that everyone makes mistakes. We wouldn’t be human if we didn’t. They are either our own mistakes, or we experience mistakes from others that have somehow come to impact our life or business. Some people are so terrified of making mistakes that, in fact, they don’t take enough chances or in the extreme cases, any chances. This is a recipe for disaster. The only way to know we are pushing ourselves to new heights is making some mistakes. So in this way, mistakes are a win! However, there is an even larger win to be had in making mistakes. A mistake can provide the perfect opportunity to show just who you really are, to cement a relationship, and to reinforce the connection between your “talk” and your “walk.” Mistakes are a great way to demonstrate our authenticity! Now I am not suggesting we start trying to make mistakes. They are still something to be avoided as much as humanly possible. With the correct amount of prior proper planning, having a good understanding of our own limitations, and knowing when and who to ask for help in advance, can avoid the majority of mistakes. However, there will be some situations in which mistakes just do happen.

Now this activity could be starting a new business. It could be putting together a monthly magazine. And it could be organizing a vote to determine the leadership of an industry organization. The activity is really not the point. The essential elements are the same: • Did you have proper preparation? • Did you identify and secure the proper resources and technology in advance? • Did you create a reasonable timeline? • Did you appropriately monitor the process? • Did you achieve the goals set out in a way that shows your true values and operational style? And then, BAM! The mistake happens. It comes to your attention. Here is where the key to success lay. Here is what separates “the boys from the men” (forgive my sexist phrase – am on deadline and have 15 minutes to finish this article).

access blame. Change your mode of thinking into a problem-solving mode. Mistakes are not a personal attack. They are a situation to be fixed, and you and whoever has identified the mistake can become an effective team to correct it, IF you take the time to listen, understand, and approach the problem together. Create an atmosphere of appreciation of bringing you the knowledge of the issue and a sense of team in correcting it. Be willing to accept the responsibility. Remember not to panic, especially when under pressure. Quick decisions made from a place of fear will never result in good long-term results. And thus, I am here to say thank you to my amazing advertisers who this morning, gave me the opportunity to correct some mistakes sent out in the preview edition of this issue. After 20 years of publishing, I am still learning, and I am so grateful for the opportunity to be a part of this passionate, thriving specialty coffee industry.

What do you do when you are presented with the mistake? Initial reactions are terribly important. Denial is the one that is the quickest, easiest, and unfortunately the deadliest reaction. Instead, we must fight the impulse to just shut down the situation and instead, be open to the learning. So instead, the first reaction should be to STOP, take a moment, and simply listen. Take it all in. Acknowledge the mistake without trying to

Calendar April 9-11

NAMA OneShow, Chicago, IL

June 9-13

April 7-9

Boot Coffee Lab - Roast Profiling & Cupping, San Francisco, CA

International Conference on Environmental Science and Technology 2014, Houston, TX

June 12

Grounds for Health Online Charity Auction

April 10-11

Boot Coffee Lab - Single Origins & Creating Blends, San Francisco, CA

September 8-13

XXV International Conference on Coffee and Science, Armenia, Colombia

April 24-27

26th Annual SCAA Event of the Year, Seattle, WA

September 12-14

Dublin Coffee & Tea Festival, Dublin, Ireland

May 2-11

6th KA'U Coffee Festival, Ka'u, HI

September 24-26

May 27-29

China International Coffee Expo 2014, Guangzhou, China

Coteca Coffee Tea Cocoa Global Industry Expo, Hamburg, Germany

May 29-31

World Tea Expo, Long Beach, CA

September 25-27

11th China International Vending & OCS Show, Shanghai, China

May 30 - June 1

Coffee Fest St. Louis, St. Louis, MO:

October 17-19

Coffee Fest Portland, Portland, OR

8 April 2014

The Single Cup Revolution The World is Changing

ingle serve coffee has become all the rage in the coffee world within the last few years. In fact, Packaged Facts estimates that overall retail single-cup coffee sales in the U.S. jumped by 82 percent from $1 billion in 2011 to over $1.8 billion in 2012, and will reach a projected $5 billion by 2016. Actually, single serve coffee accounts for about 25 percent of total coffee sales in grocery and it keeps climbing. It’s simple really and can be summed up in one word: convenience. Some people are willing to sacrifice superior quality for convenience, but what they do not realize is that it does not have to be that way. There are companies out there that are helping roasters put their specialty coffee into K-Cups, and there are even refillable capsules that can be filled with the consumers’ favorite coffee and brewed in K-Cup compatible machines. While the Keurig® brewer is a fan favorite, there are other ways of getting a great cup of coffee, one cup at a time. You can break out the ol’ Melitta® or Chemex® for a great pour-over cup, or pull out the classic French press brewer for that single mug of coffee goodness. You can even use a variety of pods in various drip brewers. What it comes down to here is single serve is slowly starting to dominate the coffee industry. It is important for an industry to recognize the current market trends and to position itself to gain a maximum benefit. Single Serve- Important for Retailers, Roasters, and Offices! For retailers and roasters, this opens up a huge door of opportunities. New technologies are allowing consumers to enjoy the convenience of thier single cup experience at home with the quality of beans from their roasters and retailers! The UpShot Solution - A Possible Game Changer The UpShot Solution by LBP may be the perfect solution for roasters to reenter this marketplace. It is a line of eco-friendly filters that are paired with a flexible production model that allows roasters, OCS operators, food service, and even retailers to take advantage of the current single serve trend in the coffee industry. These filters are not only Keurig compatible, but are also compatible with Cuisinart, Mr. Coffee, and multiple other brewers. The UpShot Solution aids in the brand building or leverage of your company and can be utilized in many facilities. This is a great solution to get a competitive edge in the single serve market. Bill Rickert, Vice President of Sales for PBideas Single Serve 1 Cup Upshot says, “It allows for additional Machine consumers in the market place. People who would normally not take a full pot of coffee can now pop in a single serve, which creates more users in the category.” “For profitability. This is the new standard and the next generation of coffee consumption. Within the ground segment, growth is being fueled by singleserve coffee. Mainstream canned coffee, which is still the leader in coffee sales, is starting, after years, to show a decline,” says Bill Meissner, CEO of Tazza Pronto.

Single serve can increase a retailer’s or a roaster’s profit margin. Since the single serve category is becoming more and more popular, more single serve consumers are entering the market. In return, this is a great way for roasters and retailers to boost their margins with additional sales.

by Jessica Tanski “It is a new delivery platform. It is a new way for roasters and brand holders to market their product,” says Robert Melikian, President of Automatic Brewers and Coffee Devices (ABCD). Offices are becoming more equipped with a better coffee service for its employees. Single serve offers a variety of options that can be implemented into the office atmosphere. Rickert says, “It offers a variety. People have different tastes and by implementing single serve into the office allows them to have the opportunity to have their favorite boutique coffee at work.” Just like coffee, employees have a variety of different tastes and flavors. You should not limit your employees to just one, full-pot of coffee. Some employees may like a dark roast, while others may prefer a light roast. An office can benefit from single serve because when you cater to a variety of different taste buds, employees are less likely to bring their coffee from home if they can get a great cup at the office. “If the right single serve system is chosen, then it can serve as a very inexpensive fringe benefit to the office employees and allow them to choose a coffee or tea at the office instead of leaving the office to get what they want,” says Tom Martin Executive Vice President of Pod Pack International, LTD. There are various companies that roasters and retailers can utilize to private label their coffees for purchasing to get them more involved in the single serve category. Mother Parkers Tea & Coffee is just one of many. According to their website, their company has built its reputation on providing quality products and excellent service as part of our private label solutions for retailers. Our teams develop customized private label programs to fit your needs and match the national brands, all manufactured in our world-class, SQF-certified facilities. The Fan Favorite: The Keurig® In the last few years, Keurig Green Mountain and its partners has dominated the single serve category. K-Cups are slowing pushing bagged coffee off of the deep end of grocery shelves. In fact, some companies are even abandoning their ground coffee line because the K-Cups are more profitable. Many large companies are jumping on the K-Cup bandwagon. Dunkin Donuts, Maxwell House, and Starbucks are just naming a few. Even small roasters and smaller companies are coming aboard. This was previously a challenge for the small roaster due to high minimum order quantities and patent disputes. But now, companies like Lasaers Coffee & Tea who only operate a five-store chain and Just Love Coffee Roasters, located in Tennessee are starting to utilize single serve tactics.. Dozens of these specialty coffee retailers are recognizing the need for a single serve option and adapting accordingly. Not to mention they recognize the profit opportunities that occur when adopting a single serve line. This fall, Green Mountain will start selling a new brewer called Keurig 2.0. This new model will replace the existing lineup soon after the launch. These new machines will only be able to brew K-Cups made by the company. This means that specialty coffee roasters and suppliers lose out, along with many other individuals—including the consumers. Because of this, small roasters who have put their coffee in K-Cups for their consumers will no longer be able to utilize this technology. The so called “interactive technology” that the 2.0 comes with is a reader that scans Keurig Green Mountain-licensed packs for instructions for that particular, coffee, tea, or other beverages. The new model will be equipped with the necessary tools to make cold beverages as well, provided that they are licensed and compatible with the 2.0 technologies. This strategy has landed the company in court multiple times over allegations of anticompetitive practices. April 2014

cont. on page 12

Single Cup New Cup Technology from Tazza Pronto Systems In 2013, single serve division, Tazza Pronto Systems, launched an innovative new single cup technology that delivers a superior coffee experience. The cup features two single-serve innovations: a patented freshness valve that allows coffee to be packaged immediately after roasting and grounding to lock in fresh-roasted flavor, and a patent-pending dual filter to allow more natural oils that provide coffee flavor into the brewed cup. “In the past, single-serve has been a premium convenience product for consumers, but not a quality coffee experience. The reason for this lack of quality taste from single serve comes from a lack of freshness for the coffee. Even the finest coffee lacks flavor if it goes stale in a single serve cup,” says Meissner. “We think this is a groundbreaking technological shift and consumers are going to taste the difference.” These products are best used in the home or at the office. However, Meissner has bigger visions, “Beyond home and office use, we see other areas where single serve will see growth moving forward. Possibilities include use at group events, which allows portability, variety and ease of use; convenience stores, as an alternative to self serve drip coffee; and many more.” Customize your Kups! One of the biggest problems for small retailers and roasters about adopting a single serve line was the outrageous minimum order quantity. Vice President of CustomKups, Joseph Fernandes III and his two partners, Deland Jessop and Adam Cooper, created a way to acclimate businesses- big and small. Fernandes said, “We wanted to appeal to the 70 percent of coffee businesses.” They have created an edible ink that adheres to the foil on top of the pods, that way when the metal pin punctures the foil the toxins from nonedible ink will not contaminate your delicious coffee. “At first, the process was not easy. We had to go back to the drawing board a few times,” Says Fernandez. “But eventually we created a facility with 10 to 15 medium size machines to print the entire process… even the boxes!” CustomKups has no minimum order requirement and can craft both small batch promotional items for conferences and corporate promotions, as well as filling the private label needs of retailers, hotels, offices, and restaurants requiring tens of thousands of customized coffee pods. “We believe in fair transparent practices. We charge between 30 and 35 cents per cup no matter how many someone orders. Every cup is important to us,” Fernandes said. The CaliX by XIRA, LLC A man by the name of Louis Dakis realized the impact that the Keurig brewer has on the coffee industry. He recognized that many people utilize a Keurig machine for its convenience. Realizing this, he longed for a great cup of coffee that could be brewed in the Keurig. He tried some of the other refillable capsules with his favorite blends of coffee, and they didn’t do the coffee justice. Dakis said, “Convenience is no reason to settle for an okay cup of coffee.” So, he invented the CaliX, A multi-layer brewing capsule that incorporates an extra interior layer to the standard "drip method" capsule, utilizing all the grinds by entirely submerging them. The forced circulation flow allows the water to stay in contact with the grinds slightly longer promoting a more robust cup of coffee.

The CaliX is more durable than other compatible capsules. It only takes one minute longer to brew than regular K-cups. However, it is so worth the wait because it tastes that much better! Using this capsule eliminates the waste of coffee. This means you will get the most out of your specialty coffee. Not to mention, the clean up is quick and easy. Dakis explained his side-by-side taste tests that he conducted at Coffee Fest New York this March. “We put our product next to another refillable K-Cup compatible capsule. The results surprised me. Our product won the contest 195 to 0!” This patent pending product is set to hit the market within the near future. Look for the CaliX in stores near you! They will be available in a variety of colors so that each family member can have their own capsule to accommodate their own taste buds. A tea capsule is also in the works! Non K-Cup alternatives! While the Keurig seems to be one of the most convenient ways to brew coffee based on market statistics, there are various ways to get a great cup of single serve coffee with great taste. While they may take a little longer to brew, the final results are in the bottom of your mugs! Keep in mind that these are only a few options, and if you don’t see something that you think would work for you… keep looking, there is one out there! One Cup Pod by Pod Pack The One Cup paper pods are changing the way coffee is brewed at home. This company allows consumers to enjoy a variety of premium coffees and teas. A cup of great coffee can be brewed one at a time at home, in the office, or at a variety of other locations. The paper pod is just as easy to use as K-Cups and brewed in single serve systems similar. The paper pod is effective in the office space. It allows companies to give their employees options and convenience. Not to mention, the clean up is very simple and does not leave a mess around the work place. “The pod is actually a superior single cup alternative. With the pod and the correct pod brewer settings, we can achieve a cup quality in the gold cup standard range. The pods are environmentally friendly, since they are compostable. You get all of this at $.10 to $.15 per cup cheaper than a K-Cup – Now that’s great value,” says Tom Martin. AeroPress Aerobie, Inc produces the AeroPress coffee maker. It is a hand press brewer that yields great quality coffee. Their product helps retailers because it sells well, but perhaps more importantly because it makes coffee so delicious that users will return again and again to buy more beans. “The movement to single serve is part of the larger movement to higher quality and more enjoyment of coffee. The essence of single serve is brewing one fresh cup of exactly what the user wants right when he or she wants it.” Says Alex Tennant, General Manager of Aerobie, Inc. “Our product enhances the movement to quality by brewing a cup of coffee under ideal brewing conditions to yield the best possible tasting cup. People getting more enjoyment out of coffee is obviously very good for the coffee industry.” Multiple Options by Melitta The Melitta Company was built on single serve coffee. Over the years Melitta has introduced numerous single serve pour over brewers in every shape, size, and color, always with the mission of creating the best coffee flavor. “Our founder, Melitta Bentz, actually pioneered single serve coffee with her manual pour over brewer innovation over 100 years ago. Since that point in time, Melitta has devoted itself to perfecting the art of coffee brewing,” says Christopher S. Hillman Vice President, Marketing.

12 April 2014

cont. on page 34

Coffee Chemistry

Organic Acids Combining Science and Art

n the past two series of articles we briefly discussed a handful of important chemical components. This month we will zoom in organic acids and explore their role in flavor development in coffee.

Chlorogenic Acids (CQA) Of all the organic acids in coffee, chlorogenic acids (CQA) are perhaps the largest and most important. In coffee, CQA can account for roughly between six and seven percent in Arabica and about ten percent in Robusta. Although this may not seem high, when compared to that of caffeine, it is seven to eight times higher in terms of relative concentrations. Now it should be mentioned that the term ‘chlorogenic acid’ does not refer to a single compound, but rather a family of over half a dozen different isomers. Basically these compounds can be grouped into two main families, namely the mono-caffeoyl and di-caffeoyl acids. The mono-caffeoly acids are simpler in structure and readily decompose during roasting, while the larger di-caffeoyl acids remain almost unchanged and have been reported to impart a metallicbitter notes to coffee. It’s no surprise then why robustas, which typically exhibit harsher taste profiles, also contain corresponding higher amounts of di-caffeoyl acids than Arabica. Interestingly, research suggests that in addition to caffeine, plants also use these harsh tasting di-caffeoyl acids as an effective deterrent against insect attacks in the wild. The exact concentration and type of CQA that a plant produces depends on a number of factors. Ultimately the exact composition of CQA varies greatly on the plant’s genetic makeup, species, variety, etc., but also on the growing environment in which it was cultivated. Plants that have been exposed to harsher environments tend to exhibit greater concentrations of CQA than those grown at more moderate conditions. This is further complicated by the fact that recent changes in the environment, such those seen in ‘global warming,’ are expected to have an even greater effect on the plant’s overall composition and ultimately supply for years to come. But although CQA’s development may be difficult to predict in the plant in the coffee roaster, CQA’s follow a more predictable mechanism. Thermal decomposition of CQA’s during roasting depends on a number of factors including: roaster type, airflow, time-temp, etc., but we can generally expect a fifty to eighty percent decrease in CQA composition with coffees of a medium to dark roast, respectively. The decomposition of CQA’s during roasting

Joseph Rivera

brings about significant changes in sensory perception and can be easily observed when comparing coffees of varying roast levels. Of these two acids, quinic and caffeic acid, play a particular role and is generated as shown in Figure 1 below. Figure 1: Decomposition of Chlorogenic Acid (CQA) Chlorogenic Acid

Quinic Acid + Caffeic Acid

If you look closely, you will see that the reaction splits CQA in half and creates equal amounts of products (right side) in a one-to-one ratio. Meaning that for every mole of CQA that is broken down, we produce a corresponding amount of caffeic and quinic acids. These compounds, which are phenolic in nature, contribute to coffee’s astringency and lingering aftertaste. In espresso, for example, where we may want such attributes, these reactions may be desirable, but for others excess of these products can off-set the delicate acidity balance and have an overpowering effect. As such, the key to proper roasting lies in selecting the correct usage of coffee type, origin, roast level, and ultimately controlling the bean’s chemistry to create that fine cup of coffee. In the end we may never know what exactly happens in the cup (or roaster), but it’s yet another example of how the coffee industry is still very much a science as it is an art. Joseph A. Rivera holds a degree in food chemistry and was formerly the Director of Science & Technology at the Specialty Coffee Association of America (SCAA). He’s the creator of coffeechemistry.com and newly developed Coffee Science Certificate (CSC) program. He can be reached at jrivera@coffeechemistry.com

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Marketing Miracles Marketing the "Real" and the "Fake"

mentor of mine many years ago shared his wisdom that we live in a world of real and fake, and the lines between these two can ebb and flow like the tides of the oceans. At the time, this was no news and as you read this sentence you are probably thinking the same thought. But the reality - and wisdom - of time inevitably proves that no one can fake it, and especially in today’s social marketplace the fakes will eventually be called out and marginalized. No marketing miracle can forever mask an inferior product. And the superior product will always make the marketing miracle that much more real. Once someone has experienced your product, service, offering, or people the gig is up. If their experience does not exceed the expectations, even if those expectations are low, then time is working against you for the end to come. Many times we hear of a company that has a superior product but lacks the marketing. These are the businesses and their people who are passionate for doing it right, of the highest quality, and with superior authenticity. There is no replacement for the best and they believe that eventually, because of the superiority of their offering, that the marketing miracles will come to them. Marketing and advertising consultants love these clients because of the upside in taking the product out to the masses who have never heard of it. That’s much easier than marketing a product of inferior performance. What is coming to the coffee industry is a continued trend of product superiority as witnessed in the Third Wave. My definition of Third Wave coffee is about getting as close to the core product as possible. But strip this down to it essence and you will find consumers, especially Millennials, are seeking real product experiences and transparency. They are seeking out these coffee products and solutions that make coffee because they want to have the smart, genuine, and own-able experience of the product. Many Americans are turning away from the factory-processed convenience of mass produced foods, and looking for what can be seen: the real ingredients that go into the product. The real people that make what we enjoy. The plants and animals that are involved and how they are really treated. They are looking for the preservation of the environment for a sustainable future, and for those consumers up and coming to coffee. We want to know the journey that it all took to get from place to person so that we can feel good about the good food we consume. To be precise, these types of consumers are not just coffee connoisseurs or insiders, but the wave of Millennials (those born between 1978 and 2000) now in the market…and those still coming that will be future coffee drinkers. Because

Mike Dabadie

of how they were raised and the unprecedented access to information at their fingertips, Millennials are turning to products that are verifiable and bona fide. China has their “little princes” created from a one-child policy and in the U.S. we have our “trophy” generation, a label used to describe Millennials because they were raised by “helicopter” parents believing in the importance of self-esteem; so in competition there were no winners and losers – everyone got a trophy. Millennials are confident and optimistic, yet they need structure. They are conformists and can be passive, but expect others to adapt to them. As babies, they were sheltered—the precious “Babies on Board” of the 80s— with their safety a high priority from birth. Infused with a “leave no one behind” mentality, they were taught to be inclusive and tolerant of other races, religions, and sexual orientations—everyone is special in their own way. Here are lessons with this up-and-coming generation and where a coffee brand has potential to connect with them: 1. Millennials have a personal-values structure that is more pluralistic than other age generations. Lesson: Show how your brand and product helps people and planet in need. 2. Compared with earlier generations, they are living ethnic diversity and appreciate inclusion. This is especially true for their tolerance of sexual diversity. Lesson: Don’t market your brand as exclusive; let your consumer define its exclusivity and themselves as purists. 3. This is a “look at and listen to me” cohort who wants to be seen as smart and heard for what they have to say. Lesson: Create online and offline spaces where Millennials can choose to speak to others about their experiences socially and as individuals. 4. For years Millennials were raised on having choice, adaptation, and the ability to select what other age groups never had access to and what they experience. Lesson: Don’t be afraid to experiment and let the consumer drive your innovation ideas through crowdsourcing. Let them feel that they have some control over your product. 5. According to the latest Pew study on Millennials, just 19 percent say that most people can be trusted. While still low, the number is much higher among Gen Xers at 31percent, 40 percent among Boomers, and 37 percent among the Silent Generation. Lesson: Be a brand that has real products and show that your company is one that does what it says. Some think that Las Vegas epitomizes that anything can be faked and that fancy marketing can sell any story. These individuals argue that Las Vegas is a manmade mirage of fantasy, super-hyped in its promise of anonymous adult freedom in the deep recesses of the desert where those hipster Millennials go to hang out. But nothing could be further from the truth for those who have experienced Las Vegas. Go behind sin city’s curtain and what you will find is authenticity of the product vertical offering that wows and exceeds expectations. Cirque du Soleil? Bobby Flay? City Center? High Roller? They don’t fake it. Market your real. Mike Dabadie is the founder of Heart+Mind Strategies, LLC, a research consultancy that continues to pioneer the use of personalvalues insights and marketing. He can be reached at mdabadie@heartandmindstrategies.com.

16 April 2014

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The Last Mile

Sight is the Most Powerful Sense

spend about half of my time visiting cafes, training baristas, and management on, let’s call it, best bar practices. As in so many professional situations, the potential for success turns on two factors: quality of talent and work environment. And while I can help just about anyone serious about coffee hone their skills within a matter of hours, I don’t have an architect and contractor on call to fix common flaws in bar design. The defects can be both aesthetic and functional, and have a material impact on customer experience, operational efficiency, and the effectiveness, happiness, and even health of those behind the bar. When it comes to bar design, the eyes – and feet – have it. Sight is the most powerful of our senses, taking in and processing a myriad of information every second. That information sets mood in a profound way that has a domino effect on our other senses. A so-so coffee served up in the right setting can taste far better than it should, just as the perceived quality of something technically superb is easily diminished consumed in a less than pleasing environment. As for the feet, true fact: during a busy eight-hour shift, struggling in a poorly designed set-up, a barista can cover a good ten miles behind the bar. That is not a typo! Thankfully, this partial marathon can be reduced to a pleasant Sunday jog with smart, efficient design. With a good architect, ideally, one experienced in café building, with past work you can visit before signing on the dotted line, consulting with a barista you know and trust, and ample planning time, getting it right isn’t tough at all. Following are my design suggestions. By no means is it an exhaustive list and there are no absolutes. Even if you don’t agree with my recommendations, take note of each element, and think about what could work best for you and your team. (1) Floor height. Let’s literally start from the bottom up. Good eye contact is such a big part of the customer experience, saying a gentle “I hear you, and I care,” even among strangers. In that vein, you’ll want to build a raised floor behind the bar (ideally six inches), so your baristas needn’t be NBA players in order to lock eyes with customers, maintain a sense for café traffic, and just plain communicate more easily. Go with wood, which has a little give and is far easier on the feet, neck, and back than concrete. (2) Espresso machine placement. There are pros and cons to placing machines so that baristas can look straight out across the counter (pro: better eye contact; con: impeded view of technique), or so that baristas face the back wall or kitchen (pro: better chance to glimpse technique; con: minimal eye contact). Your baristas can have it all with right-angle

Giorgio Milos

machine placement, which opens up a side view enabling eye contact with just a slight head turn, while putting full tamping, pulling, and steaming moves on full display. (3) Grinder selection. No big argument here: you want your grinder close to your machines, but away from humidity sources like the dishwasher, steaming station, or sink. Since professional grinders are big investments, know that a serious conical grinder, running from about $1,500-$3,000 is about three times as efficient as a flat grinder of comparable quality selling for one-third the price. (Big tip: be sure to regularly clean your grinders with special tablets that work with machines’ grinding action. This is too often overlooked.) (4) Sink location. Place your sink as close to the espresso machine and steaming station as possible, and cut down on those ten miles. Your baristas will thank you. (5) Milk fridge. Allow ample room to place the below-bar refrigerator within three feet of coffee equipment. Even a few steps away makes a big, negative difference. Capacity allowing, keep it stocked with between two and four hours worth of milk. (6) Steaming station. Rather than gallon containers, which can take away from the aesthetic if within a customer’s gaze, consider keeping milk in airpots, labeled by type. Functionally, your baristas will favor pressing down over lifting containers, especially when full. (7) High-volume brewers. I haven’t seen one yet that looks at home behind a beautifully designed bar. If you have room, keep them out of sight and decant into airpots for a more pleasing service experience at the bar. That does it for physical set up. When it comes down to it, it is all about people. The world’s most beautiful and efficient bar won’t fulfill its full promise without a good manager: someone who understands merchandizing and sales, and has that sixth sense essential to keeping customers and staff delighted -- not just coming, serving and going. And as for the coffee menu: keep it simple. More about that in a future column.

Giorgio Milos is illy’s award-winning Master Barista and illy’s North American Barista in Residence who regularly ventures beyond the cup to study the biology and chemistry of the coffee bean, continually striving to master the beverage that is his passion and profession.

18 April 2014

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Retailer/Roaster Profiles One Girl Cookies Using Smart Technology! One Girl Cookies 68 Dean St. Brooklyn, NY 11201 +1 (212) 675-4996 www.onegirlcookies.com

ack to Brooklyn, New York. This place is filled with outlets to relieve a java thirst of famous New York coffee geeks. That is why, as far as running a coffee business here, competition is tough. You have to be smart with your running costs. I won’t just present you with another successful business profile, but I will talk about one of its major tools to success - a powerful POS system - they use ShopKeep. Many of you have already heard about it. It is an uber simple app that uses any iPad to turn it into a powerful POS system for pretty much any kind of small business. You can download and check out the app right now to see how amazingly simple this thing is, free of charge. Meet Joel Branson, a GM of One Girl Cookies shop, to tell us about his experience with your POS system. V. Briefly tell me about your business and the environment it operates in. B. Well, I am not a famous girl from One Girl Cookies! This business was started about 12 years ago by Dawn Casale, who grew from baking cookies in her kitchen to now having two brick and mortar locations where we don’t just serve baking goodies anymore, but complement it with an excellent coffee program. There is a certain game that you have to play out here to be successful. Passion for what you are doing in every capacity is a must-have. Everything you do as a business has to be top notch. There is a lot of competition out here, and you can’t be offering what everyone else offers. V. What made you search for this technology? B. We have been using ShopKeep for about two and a half years now. Before I found out about it, I was looking for a POS system that basically could let me operate both stores very easily. If I am at home or at the office and want to know what is going on in either shop, I can access that through the Internet or through my phone. We did the trial version and it worked out great! We signed up pretty much immediately.

Maxim Vershinin They are also based in New York, which is important for us because they are right here. Some people have coffee shops opening up on the east coast in the morning with their POS systems configured with west coast software. What that means is, if there is ever any trouble you have to wait for a few hours for them to pickup. ShopKeep is based right here in New York, and you can reach them pretty much anytime about any questions you have. V. What advantages does this technology give you? B. Well, it lets us perform operations really fast. Speed and efficiency are some of the many great things about it. It is super easy to ring someone up. I have a couple of registers set up in the store to expedite the transactions. So for example, if credit card situations happen, it is a bit easier to send someone paying with a credit card to one line and keep people ringing up on the other system. The transaction speeds are probably the fastest they could be at this point. Even though our shop is busy and has a line, slow service just doesn’t happen. The other benefit is that aesthetically this system looks really nice and adapted well to our build out of this space. They adapt really well to our build out of this space. You know counter space is super valuable to any small business, and the system barely takes up any of it. Plus in addition to its main purpose as a POS system, I use the iPad for the stereo, time clock, Internet, scheduling, and a whole bunch of other things. Other than aesthetics, we have a lot of customers who don’t speak English very well and timeto-time we have language barrier problems. However, usually it is very obvious for anyone to communicate with the ShopKeep screen. At last, it is a very swift learning curve for any new barista or any other employee. I have just trained our new employee with it and it took him a minute to get it. To summarize, ShopKeep lets us fully concentrate on our products and customers, while it runs the store technically – it is just fantastic! Maxim Vershinin has been a columnist for CoffeeTalk for the last few years highlighting various roasters and retailers in the industry. He has lived in Peru for the last few years and is now furthering his education at Columbia University seeking a B.A. in economics.

The Power of Good

Siri Khalsa

Coffee and Weight Loss?

he Way Coffee Works The way coffee works is not completely understood. Including caffeine, coffee contains over 1,000 compounds, and only a few of which that have been studied. It is known that coffee contains antioxidants, making it the greatest source of antioxidants in the American diet.

One of these antioxidants has been of particular interest to scientists who are studying coffee beans: chlorogenic acid. Chlorogenic acid is a type of antioxidant known as a polyphenol. There are over 4000 different polyphenols. It is thought that many of the health benefits delivered by coffee are related to the presence of this plant compound. Several properties of chlorogenic acid have been distinguished. Perhaps the most important of these is its anti-diabetic effect. You may remember that drinking large amounts of coffee can lower diabetes risks by up to 67 percent. This is because chlorogenic acid reduces blood sugar levels. It also increases insulin sensitivity and decreases the storage of both fat and sugar (carbohydrate). Working with other compounds, possibly including caffeine, chlorogenic acid may lower carbohydrate storage by as much as 35 percent. Coffee compounds are also anti-inflammatory agents and protect human cells that are rich in lipids, especially the brain cells. This may explain why coffee is so protective against cognitive decline. A further effect of the coffee polyphenols on our body’s cells is the modification of enzymes that are involved with intracellular signaling. This enhances the cellular communication system. Since signaling facilitates tissue repair, immunity, and homeostasis (the ability of the body to remain stable in performing its functions), this important property may underlie all of coffee’s health benefits. Don’t like coffee? Don’t want to drink it? Can’t drink it? Don’t worry! Green coffee bean extract is high in chlorogenic acid. It is available at your natural products store and even your local grocery stores.

It is important to note that the disease studies cited are associative, not causal. In other words, these are not controlled studies looking at the effects of coffee drinking on one’s health. People were not instructed to drink or not to drink coffee over decades for researchers to observe the results on diabetes or heart disease or cognitive decline. Rather, in studies where large groups of

people reported their coffee drinking patterns, among other lifestyle habits, those patterns were strongly statistically associated with the results you read about here. Green Coffee Beans = New Jeans? Recently, Science Daily reported striking evidence that unroasted coffee beans could yield substantial loss of weight in a relatively short amount of time. Generally referred to as “green coffee extract,” the same mechanisms that can protect you from diabetes can help you drop over a pound a week effortlessly. This happens because of the high chlorogenic acid content of green coffee beans. A 400mg dose consumed one-half hour before eating shows a remarkable 24 percent drop in after-meal blood sugar. In addition, this extract also helps inhibit the absorption of calories from starches and sugars. A small study, in which participants took 350mg of green coffee extract three times a day before meals, resulted in an average weight loss of 17.6 pounds in only 12 weeks. This was over ten percent of body weight. This small study repeats the results of work conducted by Joe Vinson, Ph.D. and fellow colleagues at the University of Scranton in Pennsylvania. Vinson’s original work was presented at the prestigious American Chemical Society national meeting in 2012. That study lasted for 22 weeks, and it tested the effects of different doses of the extract. Incredulous, Dr. Oz ran his own two-week study with 100 women. Half of the women took the green coffee extract, while the other half took a placebo. The women on green coffee extract lost two pounds. The women taking the placebo only lost one. All women were asked to keep a food diary. Dr. Oz believed the diary explained the weight loss for the women on placebo. The important thing to note is that in none of the studies were participants ever placed on any special diet. They were simply told to follow healthy low-fat eating habits, and to continue with their regular exercise routines. Coffee is roasted to bring forth its unique, robust flavor and aroma. However, roasting breaks down some of the chlorogenic acid content. In contrast, green coffee beans have little aroma, a slightly bitter taste, and far more chlorogenic acid. Siri Khalsa is the editor of Nutrition News, and she has been writing for the publication for many years. She has the passion and dedication to educate readers on the health benefits on tea and coffee.

April 2014

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Roasters Rock

Cupping as a Communication Tool

“

The single biggest problem in communication is the illusion that it has taken place.” — George Bernard Shaw

Mr. Shaw could very well be talking about the coffee industry. How many times have you heard the words ‘bold’ or ‘bright’ or ‘strong’ used to describe coffee. These terms only make sense to the speaker. The listener has to apply personal filters that may be far from what the speaker intended. According to one source, if you count all of the little island nations and tiny producers, coffee comes from over 90 countries. It is unclear as to how many languages that represents, but we can safely assume it is a LOT. When we try to communicate about coffee, this can be a challenge to the effective exchange of information. Even if we restrict conversation to only English speakers, there is a huge chasm of understanding when trying to explain taste characteristics of specialty coffee. For that matter, it is even a comical challenge to ask ten people to define what specialty coffee means! In the coffee world, we strive to communicate within the supply chain so we can improve the quality of coffee, but we struggle to be understood. Thanks to an experiment worked on by the Kenya Coffee Research Center and the Coffee Quality Institute more than a decade ago, a language tool was created to help us try to communicate taste characteristics by quantifying them and calibrating the interested parties. Additionally, a base group of words were chosen to talk about aromas and tastes. It is now known as the SCAA / CQI cupping protocol, and it is the basis for the Q-Grader certification program taught around the world. Now that there are Q-graders calibrated in many places of the world, about 3700 in 60 countries, communication is getting easier. Roasters, importers, exporters, cooperatives, and farmers are getting certified as Q-Graders to be

Rocky Rhodes

able to participate meaningfully in conversations about cup quality and ways to improve it. With increased communication has come increased profits for the farms and cooperatives and increased coffee quality for the importers and roasters. Everybody in the supply chain benefits. One of the most important tools a roaster can have is a strict, repeatable cupping protocol that drives decisions about roasting and green coffee sourcing. If you do not have one yet, DO IT! If you need an easy path to get it done, use the Q-Grader protocols and keep massive amounts of records on your coffee and detailed cupping notes. There are practical, financial, and logistical reasons for roasters to become Q-Graders. Here are a few: 1) Intensive education: you learn more in one week than you can learn by ‘experience’ in 15 years. 2) You may not realize it, but your importer, exporter, and farmer contacts are getting certified. 3) Imagine being able to say, “I would like to improve the ‘fruitiness’ that comes from acetic acid, so would you please ferment the coffee in the tanks for an additional few hours?” and have your listener understand what you mean and why you want it? 4) If you can’t afford to travel to every origin you deal with, at least you can email your cupping results back and forth and be able to understand and communicate with the partners you can’t visit. Some larger roasters needed this ability to communicate before CQI invented the cupping protocol, so they invented their own and taught their suppliers. Now that the world has adopted the SCAA / CQI system, they have retrained their staff and their suppliers because it is a lot easier to have everybody on one system. “Society cannot share a common communication system so long as it is split into warring factions.” — Eugen Berthold Friedrich Brecht Other organizations have invented cupping protocols for specific reasons, like the Cup of Excellence (COE) cupping protocol. It celebrates coffees entered into a competition by awarding a score that makes more sense to a consumer. Often the two systems seem to be ‘at odds’ with one another, but in fact they serve their purposes well. If talking to the supply chain you would use ‘Q,’ and if you were trying to sell coffee to the public at large you might use the COE score. Even the SCAA has decided to add a layer of confusion in cupping certifications by announcing the SCAA Coffee Taster Certificate that seems to have a purpose of... well, it is not exactly clear why they have done it. The bottom line is this: If you are a roaster, then you MUST cup coffee. If you want to increase the quality of your coffee by communicating with the supply chain, you should be a Q-Grader. You must keep excellent notes and also be able to communicate your results to your partners to get what you want in your green coffee purchases. That’s why roasters cup coffee! Rocky Rhodes is an 18 year coffee veteran, roaster, and Q-Grader Instructor, and his mission now is to transform the coffee supply chain and make sweeping differences in the lives of those that produce the green coffee. Rocky can be reached at rocky@INTLcoffeeConsulting.com Photo by Trish Rothgeb

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Traceability What does it REALLY Mean?

t takes a few years working on the ground in a producing country to realize that “traceability” is not the objective, but in fact is rather the inevitable result of reaching a much more basic objective, that of consistently raising the income of coffee small holders. It’s easy to fall into this trap as the whole world seems to be clamoring for “traceability.” But at the end of the day, the reason we are doing all this work is to earn more money! It’s pretty basic, really; we need to stay focused on maximizing earnings, and accept that this is best done by raising both the intrinsic and the percieved value of the coffee. Raising the intrinsic value is the first step in the process and it is most conservatively accomplished by raising quality. And noting that since coffee is a “manufactured” product, a very good way to do this is to adopt a manufacturing mentality and integrate process controls (and the accountability these controls demand) into the process. The inevitable result of taking this approach is consistent quality, fully traceable coffee! The second step is to raise the perceived value of the product; this is accomplished by appropriately marketing the results of the first step, and realizing the resulting increased earnings. Traceability does not exist without process controls and accountability! The next time someone tells you they have “Traceable” coffee, ask them to show you where the money went. It is a sequence, accountability comes before traceability.

Our experience in Mexico amply demonstrates the value of process controls and the accounting systems needed to support them. Our program consistently pays producers more than commodities prices for their coffee and this year we are seeing that Grupo Terruño Nayarita’s associates are earning between 10 percent and 20 percent more than other producers who are only 20 to 30 miles away from our group. These tangible results are easy to see and appreciate. And there is added benefit to offering high quality coffees to buyers outside of the NYC-based market; it helps producers smooth out conventional commodities based pricing schemes. In 2005, in his presentation “Market Outlook For Differentiated Coffee” at SINTERCAFE in Costa Rica, Lawrence Pratt, from the INCAE Business School, showed that premiums for the best coffee result in a relatively stable price year to year that is nearly unaffected by the commodities market. Pratt has thus defined our secondary objective: identify and sell the best coffees outside of the NYC-based market! This philosophy has been applied for over 15 years in Mexico where San Cristobal Coffee Importers has teamed with Cafes Sustentables de Mexico (CAFESUMEX) and rural Mexican coffee producing societies. Since 2005 “Gupo Terruño Nayarita” has exported 118 containers of controlled quality, excellent coffee that has a barcode and serial number on every bag; all bags fully traceable at www.trackyourcoffee.com. Coffee production Unlike other commodities such as petroleum or pork bellies, coffee is a “manufactured” product; green coffee, ready for roasting, is the ultimate result of a number of process steps, all of which affect its quality. Process controls are essential. Producers need to document all process inputs and outputs and acquire the data needed to continuously improve quality, assure accountability and ultimately provide the traceability Generalized coffee process sequence, from harvest to sale of green coffee needed to satisfy ready to roast government regulators. This is exactly what has been done successfully in Mexico: by managing process, Grupo Terruño Nayarita’s producers are able earn more for their coffee than do their neighbors who are selling into the commodities market. Also the premiums for the best coffee have simultaneously: a) Paid growers more money for ALL of their fruit than their neighbors earn by spot selling into the commodities market. b) Paid the added cost of a quality assurance system. It is simply good business. Bottom up process controls strengthen the supply chain by installing quality management systems where they are most needed, at the bottom. Quality management systems traditionally exist only in large organizations. Small producers and small cooperatives who supply the majority of the world’s coffee are generally “flying without instruments.” This is simply too risky for those without the resources to survive the downside.

Process control can be very basic: separation of daily lots Fruit entering the process must be evaluated before being allowed to enter the wet mill or placed on patios or beds for sun drying. Inferior fruit MUST be separated and processed or dried separately.

by Jim Kosalos Also each day’s input of fruit needs to result in one “lot” of dried product, either parchment, or sun-dried fruit, and these daily “lots” must be kept separated until they can be individually evaluated. This is essential. Experience has shown that there are significant variations in quality from day to day. Once the coffee is mixed, the best lots are lost to the average and the worst lots may contaminate the resulting blend. It is too risky to mix daily lots for the sake of convenience; if quality and consistency are valued, blending can only be done The data show that cup quality as a function of time of the harvest by design after each can have significant variations daily lot has been evaluated. Blending of daily lots is ALWAYS done with the objective of maximizing value and fulfilling contracts. We use the FincaLab® system to create blends, assign blend identification numbers, and issue work orders for dry processing that result in defined lots of fully traceable coffee for sale with barcodes and serial numbers on every bag. Exporting the concept Samson Guma, founder of Yeti Agro Forestry in Ethipoia noticed the success of Grupo Terruño Nayarita. Samson has now installed the FincaLab® technology in his wet mill in Garjeda, Ethiopia, and is implementing its controls to improve his coffee quality. Samson and Grupo Terruño Nayarita associate CAFESUMEX, have instituted an “internship” program and are currently collaborating to offer hands-on training in coffee process controls to Ethiopians. Mr. Abdi Itana Tumtu, arrived in Nayarit, Mexico, last February. He is working shoulder to shoulder with the CAFESUMEX quality assurance team, as well as getting experience in the wet mills of the group’s member societies and the CAFESUMEX dry mill. Abdi is getting four months of hand’s on Abdi Tumtu in the CAFESUMEX office in Tepic, Nayarit experience in all aspects of the coffee production process. Summary Maximization of the value of a product requires attention to both its intrinsic value and its perceived value. To attempt to quickly raise the perceived value of coffee by building on the public’s perception that all it takes is a cell phone GPS to demonstrate “traceability,” is to risk losing public confidence in the long run when faced with the inevitable failure to deliver a consistent quality product for lack of the process controls needed to raise and manage the product’s intrinsic value. A bottom up approach provides the needed accountability and transparency, and hands-on, on-site training help assure success in replicating Grupo Terruño Nayarita's success in other countries. The use of process control systems such as the FincaLab® amply demonstrate that “traceability” begins with documentation of the reception of proven perfectly ripe coffee cherries of known origin and results in a consistent and known quality product that can be “traced” back to the trees which produced the fruit. There can be no traceability without accountability. By James Kosalos, San Cristobal Coffee Importers and Samson K. Guma, coffee farmer and founder, Yeti Agro Forestry, Ethiopia.

April 2014

On the Shoulders of Giants Interviews with Coffee Industry Pioneers

Jim Stewart

Jim Stewart - Founder Seattle's Best Coffee

tewart grew up in Wisconsin and even went to college at the University of Wisconsin. In 1967 his parents moved to Seattle. “I guess you could say that I went to Seattle for a visit, caught a salmon, and never went back to Wisconsin,” he alleged. From Ice Cream to Coffee Stewart, the founder of Seattle’s Best Coffee, surprisingly did not originally begin his journey in the coffee industry. His first adventure started with a small ice cream shop in 1969 on Whidbey Island in Coupeville, Washington, called The Wet Whisker. Later that year in the fall, he went to optometry school in Los Angeles, California. It was there where he ran into The Coffee Bean and Tea Leaf. Believe it or not, Stewart did not even drink coffee until The Coffee Bean. “It made me nauseous and nervous,” he admitted. “Because of The Coffee Bean, I became fascinated with coffee. It was so appealing that Sumatra tastes completely different than Costa Rican coffee. It was interesting to me, different, unusual, and very complex.” One thing had lead to another and coffee was introduced in the second summer at The Wet Whisker with the help of a roaster in Portland, Oregon. Stewart bought his coffee from Boyd’s Coffee Company. In 1971 The Wet Whisker opened as a year round store on Pier 70 on Seattle’s waterfront. It remained The Wet Whisker for roughly ten years. However, to compete in the market, he and brother Dave decided to rename the company to Stewart Brothers Coffee. In 1982 an opportunity presented itself that allowed Stewart Brothers Coffee to open up a store in Bellevue Square, Washington. The Evolution of SBC Stewart built a house on Vashon Island, which is located just outside Seattle, and only accessable by ferry. He rented a building on the island and went from a 25-pound roaster to a 132-pound roaster. The building is still on Vashon and, in fact, in use by a local roaster. It will be the site of a charity dinner this year honoring the pioneers of Specialty Coffee!

businesses end in the same year and 95 percent are gone within five years. Accordingly, his financial accomplishment was to plan a successful exit from his business. “Most business owners work until they get worn out or die, go broke, or just plain quit. I was able to plan a profitable exit and continued to work for the company for the following ten years,” explained Stewart. Also, Stewart was successful in having the first Organic Crop Improvement Association (OCIA) certified coffee farm in Costa Rica. “I’m proud to say that I pioneered the first long-term fixed price contract at a sustainable level. This enabled coffee producers and individuals that we bought coffee from to stay in business. They could take our contracts to their banks and obtain financing as we guaranteed them sustainable income from their product,” he said. The creation of the Vashon Island Coffee Foundation was also on his list of accomplishments. He did this to pass on international value of coffee to coffee producing communities through disaster relief in countries like El Salvador, Colombia, and sister city of Santiago de Atitlan. It was here where a water system, two schools (including supplies and uniforms), roadways, and a clinic were built and made possible by the Vashon Island Coffee Foundation. “We also did a project in sister city Santiago de Atitlan, Guatemala. We helped change a culture from one of distrust, to one where there is a future,” explained Stewart. “They gained an appreciation for an education and did not just work because children were taken out of school after the third grade by the parents to work.” It was because of this project, that for the first time three students have completed the eighth grade, and even one child has plans to go to high school and eventually attend a college. It was not just educating a few kids, it changed an entire culture and way of thinking, and it gave them hope in a future and a better life for their children. “That is record breaking!” Stewart said with excitement.

Tim Girvin was hired in 1985 to design the company logo. It was here where the SBC oval was born. Little did Stewart Brothers Coffee know, but Stewarts Private Label in Chicago had discovered them and challenged their right to use the name.

Advice from Stewart “Don’t do it!” he said laughing with regard to entering the coffee business. “There is no tougher business than the coffee business. Prepare a budget and use a calculator to do it, not your computer!!!”

“They were relatively nice, but firm about the whole thing. They let us keep our logo and stocked supplies, but gave us 18 months to change our name. For a while, SBC stood for ‘Screwed By Chicago,’” he said jokingly.

You should use that budget as a plan and watch the numbers unfold. See how long the losses from January and February take to get back to normal, as summer approaches and sales increase.

It was not until 1990 that Seattle’s Best Coffee became Seattle’s Best Coffee—literally. A local Seattle restaurant, McCormick & Schmick's, held a competition to see who had the best coffee in Seattle. SBC won the competition and coincidently SBC now stood for the famous Seattle’s Best Coffee.

“My toughest obstacle was success,” he said. “While some may say that I have pioneered coffee, the real pioneers are Al Peet of Peet’s Coffee & Tea and Herb Hymen from The Coffee Bean and Tea Leaf.”

In 2004 Starbucks Corporation bought Seattle’s Best Coffee.

“Herb taught me the standards I maintain today in coffee and in life. I followed his philosophy… Northern European countries roasting lite to develop the fine Arabica coffee flavors, while the Southern European countries roasted dark to mask the bitterness of their Robusta coffees,” He said.

Greatest Accomplishments Stewart had said that his first greatest accomplishment was starting and growing a business successfully for 35 years. Roughly 90 percent of startup

Just because you may not start where you want to, does not mean that you wont end up where you are supposed to. And that is the case for Jim Stewart.

“The name kind of… well, just fell into our laps,” said Stewart.

26 April 2014

Passion. insPiration. transformation. “Coffee, like music, is one of those huge and everyday things that almost everyone consumes. When it’s really good quality, it inspires and moves you.” -Rohan Marley

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Start-up Strategies

Greg Ubert

Calculating Your Startup Costs

ne of the first questions potential business owners ask is, “How much will it cost to open my coffee shop?”

Because every specialty coffee business is different, there is no simple answer. Your costs will depend on the type of business, the price of retail space in your community, and many other variables. Lets Get Started! The first step is to decide what kind of business you want to open. Some common types include a coffee house with drive-thru, a walk-in coffee house, or a strictly drive-thru coffee bar. Generally, the more square footage, the higher the cost of build-out. At the same time, consider where you will operate. Location can make or break your business. In most cases, your coffee shop should be on the drive side of a road with heavy morning traffic. Tailor your location search to the type of business. A coffee house with drive-thru requires up to 1,500 square feet in a retail strip or standalone building. For a walk-in coffee house, you may need as little as 300 square feet in high-density location to 1,800 square feet with easy access to automobile or walk-up traffic. For a coffee drive-thru, usually 100-300 square feet will suffice. Calculating Projected Sales Once you’ve found potential locations, it’s time to run some numbers. Calculating projected sales weans out unprofitable options. Count the number of cars passing during peak morning hours. In a good location, you can expect about 1.5 percent of cars on the drive side to stop at your shop. You can also expect visits by five percent of those passing by on foot. So if 10,000 cars and 500 pedestrians pass each morning, expect visits from 175. For this article, we’ll use $4 as a conservative estimate for each purchase. (In reality, this figure varies by market.) Daily sales would be $700, with monthly sales averaging $21,000. As a rule, your rent or mortgage should take up no more than 15 percent of monthly sales. For a location generating $21,000 in monthly sales, this means a maximum of $3,150 in rent. You must also account for build-out and equipment costs, which will be depreciated over time. It’s a good idea to hire an architect or contractor for the build-out. These professionals can estimate costs of plumbing, electrical, heating, and air conditioning systems, and they can help you negotiate to see whether the landlord will finance any of the remodeling expenses.

In terms of equipment, you’ll need a top-of-the-line espresso machine, espresso and coffee grinders, blenders, coffee brewers, refrigerator, etc. Don’t be tempted to save money by buying cheap or used equipment. Your espresso machine is the lifeline of your business. If it breaks, you’re out of business. Buy the best you can find, learn how to use it, and follow the suggested maintenance schedules rigorously. Drink ingredients such as coffee, milk, and syrups will be your largest operating expense, accounting for up to 40 percent of sales, or up to $8,400 monthly in the scenario above. Never scrimp on ingredients. Serving the best is the only way to attract and keep specialty coffee customers. You can keep inventory costs low by partnering with a supplier that makes frequent deliveries. Your next-largest operating expense, payroll costs, should account for 30 percent or less of sales. These include wages, benefits, payroll taxes, worker’s compensation, and costs of payroll processing. For our scenario, you would budget no more than $6,300 – including your salary, if you plan to work in the shop. Calculating “Other” Expenses Rent, drink ingredients, and payroll costs can account for 85 percent of expenses in the beginning coffee shop. This leaves 15 percent to cover all other expenses, including: 1. 2. 3. 4. 5.

Professional fees for architects, attorneys, accountants, and business consultants Training costs Principal and interest costs (if you plan to borrow money) Income taxes (usually about 35 percent of operating profit) Other expenses, including business insurance, supplies (cups, napkins, stir sticks, etc.), licenses and permits, office supplies, utilities, advertising, and repairs and maintenance 6. Your profit After you’ve done your homework, add up all these projected expenses. You should have cash on hand to cover your initial build-out as well as operating expenses for the first six months. That’s what it will cost to open your coffee shop. Greg Ubert, founder and president of Crimson Cup Coffee & Tea, has been roasting coffee in small batches since 1991 and has taught hundreds of business owners how to run successful independent coffee houses. Greg can be reached at greg@crimsoncup.com.

NAMA Emerging Leaders Shivani Gupta — Canteen Vending Shivani Gupta, Division Controller Canteen Vending MBA, Masters in Accountancy 1. What are the skills you use the most in your career? Since I’m a finance professional, using my technical skills is a given. However, some of the management skills I think are very important include: the ability to collaborate and synergize, whether with sales, IT, operations, or clients. 2. How did you get into the vending and refreshment services industry? I got into the industry based on a call from a recruiter and, the rest is history. I’m certain I made the right choice! This is an evolving industry, and I love every minute I’m part of it. I greatly value the fact that I work for a company that has such a big focus on developing people and providing endless opportunities. 3. Give us an idea of your role and key responsibilities: My core responsibility is to handle all financial activity in the Mid-West Region. That includes managing a full team of smart finance professionals, making sure the financial statements are correct, and managing the budget process and M&A activity. Also, I work to ensure we stay true to our strategy and provide the most pertinent information to all players as quickly as possible so we can drive information-based decision making. A big part of my job is also to help create the right culture where people embrace new ideas, take care of their teams, communicate openly, and have a passion for results.

Jessica Tanski

6. What are the greatest opportunities? Our industry is going through an evolution with a big push on innovation. New technology and concepts, like office coffee and micro markets, have opened up so many possibilities. We also finally have tools to get a lot more insight into our sales and what customers want. Newer products are entering the channel attracting newer consumers. These open up a host of opportunities in terms of growth, effectiveness, and efficiency. 7. Moving forward, what are your personal/professional goals? I want to continue to learn and grow as our industry evolves. I’ve been blessed with great mentors and opportunities that have been instrumental in my professional development. On a broader scale, I want to be involved in the community and industry to see how I can add value. I think the stronger and more mature the industry, the stronger the players in the industry get. The industry attracts more talented people and it becomes a more interesting work environment. I’m a part of the WIN advisory council and would like to promote workplaces built on talent and skill rather than gender or race. 8. Could you provide us with an idea of the most memorable work experience(s) you’ve had? I’ve had many amazing moments. When I started out in the industry, I was completely shocked by how hard everybody worked!!! But we have so much fun on a daily basis and every day is an experience in itself- never a dull moment holds so true.

4. What does an average day for you include? As most folks in the industry would agree, there is no average day in our industry! There are days when I work by myself in my office with my head buried in my laptop, others when I’m out and about visiting branches and spending time with my team.

9. What is your advice for young people starting their careers in the industry? This is a tough, but fun industry. I would advise new people to try and learn the industry and the business from multiple aspects. Also, bring your passion with you if you’re just starting out.

5. What are the biggest challenges you face in your business? The biggest challenge facing us right now involves industry regulations. There are multiple proposals to promote healthy products in vending. I think there is a big wave from consumers towards healthier products, but balance is necessary. Consumers still want some of the indulgent, core products including snacks, coffee, and soda. We cannot change faster than our consumers, and this shift needs to happen over time.

As previously published in NAMA’s InTouch Magazine.

April 2014

Welcome to the all-new QuickBooks

Haymaker's Restaurant

Home Customers Vendors

Income $2,493

$751

$52,614

OPEN INVOICE

OVERDUE

EARNED LAST 30 DAYS

Employees

Expenses Transactions Reports Sales Tax Apps

$47,183 SPENT LAST 30 DAYS

$14,433 Payroll $23,879 Cost of Goods $ 8,871 Utilities & Insurance

Get Paid Faster

Profit & Loss

$5,431 NET INCOME

$52,614 INCOME

-$47,183 -$47, 7183 7, EXPENSES

Toss with it.

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The essential tool for running your entire business. Smarter. Faster. Simpler. The all-new QuickBooks helps you do more than ever before. Track sales, pay employees, scan receipts and get paid however and whenever you want. Turn on only what you need — it all works together so your data syncs automatically. This is your business on the all-new QuickBooks. Run with it.

Start now for free at QuickBooks.com

Please Make Sure to Visit these NAMA ONE Exhibitors Follett Corporation (800) 523-9361

NAMA Booth #451 follettice.com

Follett icemakers and dispensers provide a continuous supply of ice that is dispensed hands-free to improve safety and sanitation and to support "green" initiatives. See our ad on page 41 Bloomfield Industries (314) 678-6336

NAMA Booth #156 wellsbloomfield.com

Pod Pack International, LTD. (225) 752-1160

Brew your perfect cup of coffee every time. See our ad on page 42

Pod Pack is a single cup coffee & tea copacker that specializes in private labeling and national branding with focus on single cup brewing solutions for hospitality, foodservice, OCS, and homes.&quot; See our ad on page 11

Brand Culture Marketing & Promotions 14-5250 Satellite Drive, Mississauga, Ontario L4W 5G5 T: 905 361 0305 F: 905 629 9305 REVISION:

DOCKET: #

DATE: February 20, 2014 CLIENT: Club Coffee

COLOUR: CMYK

Club Coffee NAMA Booth #576 (800) 387-4367 clubcoffee.ca PROJECT: Single Serve Coffee Cups

TRIM SIZE: 10.5” x 14”

DESCRIPTION: CoffeeTalkMedia Magazine Ad CONTACT: barbara MacDonald

bLEED SIZE: 11” x 14.5”

DATE REqUIRED: February 20, 2014

LIVE AREA: 9.5” x 13 ”

Service Ideas, Inc. (800) 328-4493

Capitalizing on its 100 year history, as a trusted business partner, Club Coffee's goal is to be the leading, high quality, custom coffee roaster in North America. See our ad on page 33

A passion for Booth #385 the NAMA perfect coffeetalk.com cup of coffee. CoffeeTalk Media is the most reliable source of coffee business

Curtis (800) 421-6150

TEAJA Office (778) 840-4832

SINGLE SERVE COFFEE PODS NOW INDIVIDUALLY WRAPPED!

NAMA Booth #368 wilburcurtis.com

NAMA Booth #583 teajaoffice.com

TEAJA Office is a line of Organic loose leaf teas, developed by TEAJA exclusively for OCS and Office Services professionals looking for creative ways to grow their business and increase revenue. See our ad on page 46

Our line up now includes Single Serve Coffee Pods in bag in box and office coffee boxes. Works in brewers that accept K-CUP® portion packs*

NAMA Booth #478 serviceideas.com

Since 1946, Service Ideas has been a leader in the foodservice industry offering an extensive line of products for insulated beverage service. See our ad on page 45

CoffeeTalk Media (206) 686-7378

news and informational articles available in the world today. Make sure to keep your competitive edge with our free subscriptions at www.coffeetalk.com

NAMA Booth #353 podpack.com

UpShot (800) 545-6200

NAMA Booth #165 upshotsolution.com

Since 1941, Curtis has remained a family-owned business committed to the principles of innovation, quality and superior The UpShot? Solution is a line of Eco-friendly, single-serve filters craftsmanship in gourmet coffee, tea and specialty beverage paired with a flexible production model that allows roasters to take 1.800.387.4367 systems. advantage of the booming market. www.clubcoffee.us or www.clubcoffee.ca See our ad on page 15 See our ad on page 35 CLUB COFFEE® AND CLUB COFFEE DESIGN® ARE REGISTERED TRADE-MARKS OF CLUB COFFEE COMPANY INC.

*K-CUP® is a registered trademark of Keurig, Incorporated. Club Coffee Single Serve Coffee Pods are not affiliated with nor approved by Keurig, Incorporated.

30 April 2014

The Best Coffees Wear Fres-co

EZ Open reclosure, no scissors needed Industry-leading Degassing Valve

Custom-designed high barrier material Matte Finish Select Scuff Resistant Lacquer

Vivid Rotogravure or Flexo Custom Printing Let’s use Corner Seal® so we have an uninterrupted surface for printing on the back side as well as the front

Quality never goes out of fashion. Maybe that’s one of the reasons we’re trusted by some of the best names in the business. They all trust us to do one thing – deliver the highest quality coffee bag solutions on time, every time. Our ability to meet your needs stems from our continuing commitment to Technology & Innovation, Materials & Degassing Valves, Packaging Equipment, and Service & Support.

Be bold – let Fres-co help your coffee bag make a fashion statement about your coffee. www.Fresco.com

215.721.4600

Please Make Sure to Visit these SCAA Exhibitors CoffeeTalk Media (206) 686-7378

Selling supplement-boosts promotes Health & Wellness. Healthy Blended Beverages = Healthy Profits. Position your café to the health minded consumer. 18 Powdered Boosts. See our ad on page 43

CoffeeTalk Media is the most reliable source of coffee business news and informational articles available in the world today. Make sure to keep your competitive edge with our free subscriptions at www.coffeetalk.com

Adulina Coffee Exporter, PLC +251114000000

SCAA Booth #16101 adulinacoffee.com

Cropster/ColorTrack SCAA Booth #5038 (408) 550-2860 cropster.com / color-track.com

SCAA Booth #9032 aerobie.com

Inspiring Quality Management Software for Coffee & Cocoa Professionals. See our ad on page 45

See our ad on page 47 Aerobie Inc (650) 493-3050

Aerobie's AeroPress is a completely new kind of press whose rapid, total immersion process brews coffee with all the delicious flavors but without the bitterness. See our ad on page 43 Agtron (775) 850-4600

SCAA Booth #8013 agtron.net

Coffee Roast Analyzers, for determining your coffees degree of roast, and Scientific Coffee Roasting Workshops instructed by Carl Staub focusing on consistency and improved cup quality. See our ad on page 25 Bloomfield Industries (314) 678-6336

SCAA Booth #14041 wellsbloomfield.com

BriteVision (415) 374-8119

SCAA Booth #1005 britevision.com

BriteVision provides colorful, eco-friendly cup sleeves. Come by our booth to learn how to grow sales or build your brand and image through cup sleeve marketing! See our ad on page 17, 30 Buhler Inc. (905) 754-8389

SCAA Booth #1043 buhlergroup.com

From green coffee intake to roasted and ground coffee, Bühler offers state-of-the-art technologies along the value chain. Your coffee creations deserve the best. See our ad on page 46 SCAA Booth #11107 cablevey.com

Cablevey Conveyors (641) 673-8451 See our ad on page 19

SCAA Booth #9023 cafedecostarica.com

Cafe de Costa Rica 5 (062) 243-7863

Cafe de Costa Rica has been designed with Geographical Indication as an endorsement of our unique model of fair price payment system to growers (Liquidation), our environmental friendly mills and our continuous agronomical and milling research. See our ad on page 38 SCAA Booth #14039 cclind.com

CCL Industries (716) 852-2155 CCLLabelMarch14.pdf

3/12/14

4:18 PM

Designed and Engineered Solutions is introducing a new pre-oiled one-way coffee Flexis Pre-oiled coffeeand valve valve that eliminates inline oiling utilizes multi-layer valve 90% less plastic than the leading -Pre-oiled hard-valve. technology -Up to 30% increase in packaging machinery throughput See our ad on page 15 -Up to 30% cost advantage over

coffee valves For Rigid Containers, Fractional Packaging, and Retail Bags

Coffee Fest (800) 232-0083 Y

CMY

button valves -90% less plastic vesus button valves

SCAA Booth #10032 coffeefest.com

flexisvalvetechnology.com/coffee

Coffee Fest Trade Shows, classes, workshops, competitions and networking events have been driving the specialty coffee industry since 1992. For the best value, classes, workshops, networking events and competitions, mark you calendar and we will see you at Coffee Fest. See our ad on page 39 Coffee Shop Manager (800) 750-3947

SCAA Booth #10031 wilburcurtis.com

Daterra Coffee +551937288010

SCAA Booth #7009 daterracoffee.com.br

SCAA Booth #6017 coffeeshopmanager.com

Coffee Shop Manager Point-of-Sale is designed specifically for coffee shops. Great features including tablets, integrated online and mobile ordering, self-serve kiosks, and no-fee pre-paid cards and loyalty make CSM the perfect business partner for your shop. See our ad on page 45

SCAA Booth #5031 diedrichroasters.com

From a coffee farm in Guatemala to the chain of Diedrich Coffee Roasteries to the building of coffee-related machinery, coffee has been a part of the Diedrich family culture for a long time. See our ad on page 45

Painting with Coffee About Coffee View gallery and learn more at www.drippinghotdesigns.com

SCAA Booth #2033 handybrew.com

Come and experience the invention. Clever Method, Handy Brew for tea Method, and Handy Brew for coffee Method (Newly invented). See our ad on page 25 SCAA Booth #17109 fincalab.com

FincaLab, Your tool for Tracability, All-in-One Coffee process. Control System with fully equiped portable professional laboratory; just open it up and plug it in. See our ad on page 46 SCAA Booth #9022 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 41 Gavina Gourmet Coffee (323) 582-0671

SCAA Booth #7005 gavina.com

When it comes to superb coffee and exceptional service, Gaviña is the preferred coffee partner for retailers and entrepreneurs everywhere. Gaviña Coffee: Grounds for Great Partnership. See our ad on page 39 GPI Solution LLC (954) 389-1959

SCAA Booth #9047 gpisolution.com

GPI is a company with a vast experience in the areas of Automation, Design, Testing and Training pertaining to machinery, controllers, and related equipment for the coffee and tea industry. See our ad on page 43 Java Jacket (800) 208-4128

SCAA Booth #7018 javajacket.com

The Original Green Coffee Sleeve. Comes in 100% Recycled Natural Kraft or White. Can be custom printed with your design. See our ad on page 6, 44 PBFY Flexible Packaging (877) 224-7496

SCAA Booth #9012 plitek.com

PLITEK provides Complete Solutions For PLI-VALV In-Package Degassing including: One-way degassing valves for a range of packaging sizes and types, Semi automatic and high speed valve applicator systems, Testing and quality assurance systems, System design, installation, service and support See our ad on page 9

SCAA Booth #2009 pbfypkg.com

PBFY supplies a wide range of packaging products geared to better promote coffee, tea, & other specialty items. Increase brand awareness without breaking the budget with our hot stamp service! See our ad on page 43

April 2014

SCAA Booth #10044 podpack.com

SCAA Booth #15088 serviceideas.com

Since 1946, Service Ideas has been a leader in the foodservice industry offering an extensive line of products for insulated beverage service. See our ad on page 45 Shore Measuring Systems (217) 892-2544

SCAA Booth #8000 wendra-lynne.com

See our ad on page 45

Fres-co System USA, Inc. (215) 721-4600

Plitek (847) 827-6680

Pod Pack International, LTD. (225) 752-1160

Daterra means "from the earth" in Portuguese, and it is from there that we cultivate with respect to the environment, technology and good people, high quality green coffee beans to be consumed all over the globe. See our ad on page 43

FincaLab (425) 825-9106

Perka is a mobile app for neighborhood merchants that's as fast and familiar as an oldfashioned paper punch card. Reward regular customers with custom perks, learn their buying behavior, and get to know them by name. See our ad on page 3

Since 1941, Curtis has remained a family-owned business committed to the principles of innovation, quality and superior craftsmanship in gourmet coffee, tea and specialty beverage systems. See our ad on page 15

E. K. Int'l Col, Ltd. +886 2 2720 6058

SCAA Booth #1007 getperka.com

Curtis (800) 421-6150

Dripping Hot Designs see web

Perka Inc. (503) 427-1377

PACKAGE DEGASSING SYSTEM

Diedrich Manufacturing, Inc. (208) 263-1276

Brew your perfect cup of coffee every time. See our ad on page 42

SCAA Booth #8000 coffeetalk.com

Add a Scoop Supplement Boosts SCAA Booth #3014 (415) 382-6535 addascoop.com

SCAA Booth #9004 moisturetesters.com

Shore Measuring Systems, a division of CTB Inc., manufactures, markets and services commercial grade moisture testers for coffee, tea and cocoa. See our ad on page 45 Tightpac America inc. (888) 428-4448

SCAA Booth #9020 tightvac.com

Brands include - Coffeevac, Teavac - Patented Vacuum sealed system protects your Coffee & Tea every time you open and close the container. Simplicity that works! See our ad on page 44 UpShot (800) 545-6200

SCAA Booth #17101 upshotsolution.com

The UpShot? Solution is a line of Eco-friendly, single-serve filters paired with a flexible production model that allows roasters to take advantage of the booming market. See our ad on page 35 uVu Lids (561) 674-9415

SCAA Booth #12124 uvulids.com

The uVu Lid provides a safer and more secure customer coffee drinking experience than any other lid in the market today. See our ad on page 2 Vessel Drinkware (855) 883-7735

SCAA Booth #13094 vesseldrinkware.com

oneVessel by Vessel Drinkware provides retailers with high-quality, reusable drinkware featuring lifestyle driven artwork to capture the attention of your customers. Please visit us at www.vesseldrinkware. com, or call (206) 763-0366 See our ad on page 17 Vita-Mix Corporation (800) 437-4654

SCAA Booth #5024 vitamix.com

Unsurpassed durability. Amazing consistency. And massive horsepower. All blended together in one brand renowned for maximizing productivity on professional countertops. See our ad on page 5 Xeltron SCAA Booth #2011 011-506-2279-5777 xeltron.com Xeltron is in the forefront of color sorting technology innovation. Extremely high sorting precision anE efficiency are the basis of Xeltron’s worldwide leadership in premium Arabica coffee processing. See our ad on page 42

A passion for the perfect cup of coffee.

SINGLE SERVE COFFEE PODS NOW INDIVIDUALLY WRAPPED!

Since 1906, our passion at Club Coffee has been to deliver the perfect cup of coffee. That’s why we insist on sourcing beans from the world’s finest growers. We then carefully roast them for the well-balanced full-bodied taste unique to Club Coffee. Our line up now includes Single Serve Coffee Pods in bag in box and office coffee boxes. Works in brewers that accept K-CUP® portion packs*

1.800.387.4367

www.clubcoffee.us

www.clubcoffee.ca

CLUB COFFEE® AND CLUB COFFEE DESIGN® ARE REGISTERED TRADE-MARKS OF CLUB COFFEE COMPANY INC. *K-CUP® is a registered trademark of Keurig, Incorporated. Club Coffee Single Serve Coffee Pods are not affiliated with nor approved by Keurig, Incorporated.

Single Cup “On our filter business, we introduced two excellent alternatives for our consumers. Our Java Jig filter system provides consumers with a paper filter solution, while our E-Filter provides consumers with a semi permanent filter solution. Both systems are environmentally friendly, economical, and allow consumers to use their own coffee in their single serve machine,” says Hillman. The Melitta Café de Europa Gourmet Single Serve Coffee has also been recently introduced. It is a prefilled coffee capsule. This gourmet product line uses a proprietary capsule design invented by LBP, which maximizes coffee extraction for the very best flavor. Curtis Gold Cup Brewer Their current solution to single cup brewing is their Curtis Gold Cup brewer (CGC). Unlike any other single cup brewer on the market, their brewer does not use any pressure to increase the rate of extraction in ground coffee. The CGC is the only commercial single cup brewer that brews good old-fashioned drip coffee. “While originally designed for an office environment, the CGC has seen most sales into cafes and restaurants. Due to the unrivaled amount of technology in the CGC, Specialty Coffee cafes have really taken to the brewer,” says Brant Curtis, Director of Specialty Coffee, Wilbur Curtis Company. The CGC brewer has innumerable benefits. One of the most important benefits is that it is a commercial brewer. This brewer comes equip with a fully responsive touchscreen and easy programming to fine tune your customer’s favorite recipes. One of the most lauded benefits is the ability to use common pour over devices under the spray head to brew coffee! “Many roasters want to deliver pour-over quality coffee at their wholesale accounts, but time, training, and passion are usually all lacking at wholesale locales. This brewer helps mitigate any of those concerns,” says Curtis. HandyBrew Method The HandyBrew brewer has a built-in filter. However, using their Clever Coffee Dripper, an extra paper filter is used, and the Image from EK Int’l Co., Ltd. result yields great taste. This is a filter cone with a stopper in it. This allows the coffee to steep properly before dripping through and into the cup below. This processes extracts more flavor from your coffee. It will give you full-bodied coffee without the sediment. The Impress Coffee Brewer The Impress Coffee Brewer makes delicious handcrafted coffee one cup at a time. The Impress combines immersion brewing and reverse micro filtration with triple walled insulation. It takes just three minutes to create 14oz of amazing coffee, and keeps it hot for hours, so you can relax and enjoy or take it with you on the go. Saves time and reduces waste, no electric mechanisms, or fussy coils and plungers. Owner, Beth Khalifa says, “The Impress Coffee Brewer is perfect for any place you want your coffee your way. Fast to make, no mess, stays hot for seemingly forever...it's great at home, the office, in a hotel, on a camping trip, or on your way to any of these places. As a single serve brew tool, it is also a drinking vessel, so you can make it, and take it with you.”

The finished coffee has a glorious crema on top, and grounds are trapped below the coffee, not in it. With the filter size holes much smaller and the tolerances much tighter than a traditional press pot, you can drink a cup free of excess grit and sediment. Cleanup is a cinch. Just scoop out the grounds and wash the inner press and outer vessel.

Brew Cup Refilling Kit Single Cup Accessories, Inc. introduced its Brew Cup Refilling Kit that is great for the office and at home, as well as various other places. The kit consists of a dispenser to fill the brew cup and a Cleaning Wand to clean it for reuse. The kit can be purchased with or without a brew filter. While the single cup market is still evolving, Keurig users are looking for ways to get that great specialty cup of coffee that cannot be readily made available through generic K-Cups. “Up to now, most Keurig owners use K-Cups for their beverage of choice. In fact, the myth is that you need to use K-Cups if you have a Keurig brewer. This has had a negative impact on specialty retailers who cannot (or will not) put their coffee into K-Cups. Essentially, every customer who bought a Keurig brewer was no longer a customer for specialty coffee,” says Mike Gronholm, Founder of Single Cup Accessories, Inc. While there has been growing concerns for the environment due to the disposal of K-Cups, about 8.4 billion K-Cups in 2013 alone, refillable options have become more attractive to the industry. “To address these concerns, lots of K-Cup style brewer owners have begun to use refillable brew filters, but many have found them cumbersome to fill and clean. In 2013, Single Cup Accessories, Inc. introduced its products, which make it far easier to use refillable brew filters with the Keurig K-Cup style brewer,” explains Gronholm. Why Single Serve? “We estimate that somewhere around 40 million Keurig brewers have been sold so far. In the 15 months ended 12/31/2013, Keurig sold over 15 million brewers, over 1 million per month. How can you be in the coffee industry and not pay very close attention?” says Mike Gronholm. Single serve coffee eliminates the waste factor. By brewing coffee one cup at a time reduces the waste of coffee. There are often times where a whole pot of coffee does not get consumed and it ends up being thrown out. By utilizing single serve tactics, consumers will get their full brewed potential when purchasing their favorite coffee. Consumers can afford to try a higher-end coffee at a coffee shop with single serve. It gives people the option to try different types of coffees without burning a hole in their pockets. Single serve is the fastest growing segment in the coffee industry. There is no reason that this segment cannot continue to grow. Improved flavor and freshness of single serve and if the industry can work together to bring equally beneficial standards as whole bean or ground specialty coffee, the single serve segment will flourish and keep in line with the current trend of convenience. “Companies that haven’t been paying attention are already behind. More coffee dollars are going to single serve than any other packaging format at retail. The food service and OCS segments are also starting to bring in more single serve. It’s very significant, and here to stay,” says Meissner. In the end, what it comes down to is great coffee and convenience. The coffee industry is still working on a way to get both of these aspects into one cup. OSC operators, retailers, roasters, and consumers all need to pay attention to this ever-evolving category. Companies are coming out with newer models of older brewers, different brewing concepts, different strategies to private label specialty coffee in cups and pods, and even new inventions all together. The reality of it is, people are not going to stop drinking coffee, but they are continuing to look for ways to get a good quality cup, quicker. Change with the times and keep up with the trends. Single serve is here to stay!

April 2014

The Voice

Troy Lucas

Dreams for our Industry Troy Lucas - Closing the Circle

’ll never forget a trip taken to Brazil, my first origin trip, and the respect I gained by meeting the farmers and their families while studying their coffee growing efforts and when cupping side-by-side with them. From each farm represented, the farmer would always insist that his coffee was the finest on the table. When in fact, it typically wasn’t, but rather, he most likely “needed” it to be the best so I would buy his coffee at a great price. That would in return help feed his family and further his dreams. Truth of the matter was that there were truly only a few standouts among the many. In fact, my traveling companions and I bought, at a very fair price, the entire crop from one such exceptional farm. We all know that our purchase decisions are made based upon the quality and final intended use of any coffee. Cup of Excellence exists because there is a market for people who desire the finest coffees, just like there is a market for coffee below specialty grade. The contrast of a farmer’s existence based on the two couldn’t be further apart based on sizing of farms nor the trickle-down economics to employed laborers. Is there a way to go beyond Fair Trade structure for all, or are we filling consumers with hope that may never convert to realized dreams for certain farmers? Note: this is in no way a slam on Fair Trade. The fine work being done by those among many industry organizations, like the Coffee Quality Institute, means that we are learning to baseline how we judge the coffee that is being produced. Qualitative analysis that is consistent, via trained and qualified Q-graders, is proving invaluable to identifying all kinds of crop variables impacting final green quality, and ultimately the definitive asking price of the coffee. At the farm level, farmers have now truly become “taste scientists” as they work to influence the final flavors in a cup of coffee even when the crop isn’t perfect. Yet, it isn’t necessarily final asking price alone that is changing the lives of farmers, though every bit of successive crop improvement helps. You may ask, why do I even care? I personally care because I feel it too, purely based on industry “size” dynamics. We at Lucas Roasting Company exist as one of the many small roasters in the industry. We aren’t trying to expand our market aggressively across the country, like the numerous other excellent roasters have been able to. But, we do want a sustained existence with hopeful continued growth in our region, especially in our community, which had very little prior focus on coffee. We are little, but we are passionate as hell, just like some of the really small farmers we met in Brazil. We are as passionate as any large roaster, but with extremely limited resources, like many of the smallest family farms we visited. We relate to the underdog. Yet, “size” between a farm and a roasting operation are two distinctly different issues. We could find financial backing to fund our next roasting facility and become a household name tomorrow and be on our way to quick growth with the right funding, as other big names have done. The smallest farmers however, are locked in. They are locked in generally by geographic location and are limited by land available to them for purchase unless a coop forms; but even that has its own complications. One of the largest complaints we hear from small farmers is that without a farm’s own mill, some mills can’t be trusted to process one’s coffee without mixing it with other coffees, making an exceptional crop a target for being stolen. Milling equipment is as expensive as roasting equipment. This is similar to us only having a 7-Kilo roaster with limited production potential per day because it was what we could afford. If the yield of the family farm is only five sacks of finished dried coffee, income potential is small. With what then are we all left with? PASSION…QUALITY…STORIES, but from where will the growths come from unless we MAKE it happen? Ultimately, it isn’t anyone else’s call as to how a farmer is or isn’t financially sustainable. Any business owner has to be on the lookout for the best scenario for their business.

However, what if the farmer that grew the five sacks of super-premium coffee did get an excellent price? It’s still only five sacks of coffee. Better yet, what if that farmer managed to travel to one of the barista competitions where that coffee was used and was in the crowd the moment Ms. Barista won the title for that competition, but only vaguely mentioned the farmer during the presentation? What if she mentioned everything about the farm? It still takes time and money to grow, even with a winning reputation. Farm “size” is really what I’m addressing here. My point is this: what are we truly doing to create an important human-connection element in everything we do in coffee beyond our focus on what end-consumers can see? Are we working enough to draw the “small” farms (or any small part of this industry, for that matter) into growth models or are some really just interested in keeping people suppressed as long as we receive our gain on the finished end of really high quality coffee? Have we misled the public as to what is actually possible through their buying of products marked as “Fair Trade” or even “Direct Trade” seeing as at least some of the income inequality simply stems from basic business dynamics, “small versus large,” and whether certain farmers even have room for growth as they are structured with small tracts of land? If we’re deeply invested in this industry, we are ALL working harder than most consumers realize because we care passionately about quality and integrity, and we’ve developed intense specialization from origin all the way to crafting beverages as baristas. This industry is intensely hard work from start to finish, but the farmers are the ones “growing” this industry from the beginning, and coffee consumers are being fed products (of all kinds) instead of recognizing the connection stories. At a time when the U.S. is exploding with farmer’s markets making farm-direct buying by consumers more possible than ever, I feel this same tug of urgency in our industry. That being said, some of you are doing amazing jobs of connecting all of the dots with each bag of coffee packaged for the end consumer. The stories, the pictures, the absolutely beautiful coffees that are roasted to perfection and then served with the upmost care and distinction… The world of coffee for end consumers has never been more decadent than it is right now. But, some farmers and employees continue to struggle, especially with new problems like climate-change. My dream for the coming year in the coffee industry is that we begin to re-build the “value-added” segment of PEOPLE throughout coffee. Sustainable-wages-earned for anyone, from origin to cup, would be incredible for our industry, but will only be achieved where we place our values. Are our values being placed in our pride of being known the over the world as successful or will we better exemplify all people at every stage of coffee as crucial? We’re a bit at odds from top to bottom, and much of that has to do with the moment when some turned coffee into a “thing” instead of the personal journey. I want to see us continue to build an industry as we improve from the ground up, not the top down that is accessible to people and companies of various sizes that emphasizes the one common bond—the growers and their lives at origin. I’d be a hypocrite if I didn’t say, that I myself have a long way to go to reach my own vision. Coffee…it is a beautiful community of people. What is our direction for the future?

Troy Lucas Lucas Roasting Company, LLC

36 April 2014

NewsBites

AeroPress® Coffee Maker Continues to Thrive The AeroPress coffee maker continues to delight coffee lovers who appreciate the control it provides over the brewing process. Coffee aficionados love managing brewing process variables like grind, water temperature, coffee to water ratio, and steep time to optimize the recipe for each coffee. You truly can brew it your way and enjoy all the beautiful flavors of your coffees. It’s no wonder the AeroPress has inspired its own increasingly popular championships worldwide. The 7th annual World AeroPress Championship will take place in Rimini, Italy in June around the time of the World Barista Championship. Competitors from about 20 countries will compete to impress the panel of expert judges with coffee brewed using an AeroPress and their favorite brewing recipe. The top three winners will receive the traditional, custom AeroPress trophies and a good time will be had by all. For information, please visit www.aerobie. com. Black Oak Coffee Roasters Named Ukiah Business of the Year In their annual award ceremony on Thursday, March 6th, The Ukiah Main Street Program awarded Black Oak Coffee Roasters "Business of the Year." Black Oak Coffee Roasters opened in December of 2012 in the former Coffee Critic location. Business owners Keith Feigin and Jon Frech have revitalized the former Ukiah institution with a small-town take on the hip, big city coffee shop. Renovated with a reclaimed redwood interior and a shiny La Marzocco espresso machine, Black Oak Coffee has all the trappings of a so-called Third Wave coffee bar now common in big cities like San Francisco and Portland, including singleserve drip coffee, latte art, and single-origin coffees with hard to pronounce names. They also feature a menu that expresses the owners' willingness to have a bit more fun with their take on the modern coffee bar. You will find on their signature drink menu a Lovers Lane Latte, which is a traditional latte but infused with local honey and garnished with bee pollen. They also make their own lavender syrup in-house, as well as dulce de leche for specialty drinks. "We like to combine new ideas around coffee preparation with mixology and a big helping of fun," says co-owner, Jon Frech.

Caffè Nero Comes to Boston One of Britain’s largest coffee chains is planning its own British invasion of Boston. Caffè Nero, a London-based chain that operates more than 650 specialty coffee shops in six countries, is slated to open its first US restaurant in Downtown Crossing in late April. The coffee shop is known for Italian espresso and has added drip coffee to its Boston menu to appeal to local tastes. The new cafe, to be located in the Millennium Place building next to the new Legal Crossing restaurant, will also feature sandwiches, salads, and cakes, cookies, and pastries from local bakeries. “There’s a place for us in Boston and New England,” said Gerry Ford, the founder and chief executive of Caffè Nero. “We’re European, not American. We have a different flavor of coffee and food and a different feel. Boston, more so than many markets, has an affinity toward European things and I think our brand will fit in really well there.” The company said it intends to open several more coffeehouses in Greater Boston over

the next year. For more information, please visit www.caffenero.com

Xeltron = Precision AND Volume! XELTRON incorporates cutting edge technology with its new 15XC channel-sorting machine. This machine can sort high volumes of about three to four tons per hour. The machine is also precise, reliable, user friendly, and requires lower maintenance than competing machines. This new high velocity microcontroller is the leading technology in the industry and is known for its precision and now greater volumes, 30 percent more volume than roller sorters. Let them help you increase your yield and maximize your investment. For more information, please visit www.xeltron.com Coffee Doughnut Wins 2014 S&D Culinary Challenge Thomas Richberg takes his coffee with cream and sugar, but he never drinks it. Instead, he bakes with the coffee, and thanks to the S&D Culinary Challenge, he now wins with it. Richberg’s Tiramisu Doughnut recipe made him the grand prizewinner of the 2014 S&D Culinary Challenge on February 18, 2014 at Johnson & Wales University in Charlotte. The cooking competition, now in its fourth year, has become an opportunity for students of the culinary arts school to whip up creations for a chance at the prestigious top honor and the $2,500 cash prize that accompanies it. It also gives S&D Coffee & Tea, one of the nation’s largest custom coffee roasters and providers of iced tea based in Concord, an opportunity to glean new uses for its products from the innovative creations of the region’s up-and-coming future chefs. Richberg’s recipe, a scratchmade fried doughnut filled with mascarpone and heavy cream, and topped with a Kahluabased glaze, contained four tablespoons of S&D Coffee extract. “I’m not really a coffee drinker, but I love tiramisu,” admitted Richberg, a Johnson & Wales University freshman. For more information, please visit www. charlotteobserver.com

DaVinci Gourmet America’s Best Coffeehouse: first place – Café Grumpy’s, in second place– Common Place Coffeehouse, and in third place– Mudhouse. Coffee Fest Latte Art World Championship Open: The results of the 35th Coffee Fest Latte Art championship were: first place Cabell Tice, in second place Lee Kam Wo, and in third place Junichi Yamaguchi. For more information, please contact Veronica Welch at Ronnie@cwrpartners.com Nespresso Goes to Colombia In the fall, Nespresso, an operating unit of the Nestlé Group, will start selling its brewing machines and coffees in Colombia, a key sourcing country of their coffee. Nespresso Grand Crus Coffees are primarily made up of 80 percent Colombian coffee. Colombia’s capital, Bogota, will see the first Nespresso boutique. Consumers will be able to visit the boutique as well as buy coffee and machines on the website and over the over. Jean-Marc Duvoisin, Nestlé Nespresso CEO says, “Colombia is a country where coffee holds a very special place and we are very excited that Colombian consumers will be able to discover the highest quality of Nespresso Grand Crus coffees.” Peet's Coffee & Tea Open in Wrigley Building Peet’s Coffee & Tea Inc. said it plans to open a shop in the Wrigley Building this summer, as well as other locations in the Chicago

Coffee Fest New York 2014 Huge Success Coffee Fest New York 2014 is excited to announce its huge success after completing its 70th show that took place March 7th thru March 9th at Jacob Javits Center. The New York show marks Coffee Fest’s 70th and its first complete exhibitor sell-out since 2008. This year’s New York show saw an eight percent increase in exhibitors over 2013 and a 14 percent increase in attendance over the previous year. Several contests were held within the event and the winners for Best Espresso are: first place, Ceremony Coffee Roasters, in second place Flat Black Coffee Co., and in third place Red House Roasters. At Coffee Fest, new products are broken into two categories and judged based on innovation and retailer appeal. For Coffee Fest New York 2014 the winners were: New Products/Non-Consumables: first place was JOCO Group for re-suable glasses, in second place it was 1st Line Equipment for the Intelligent Dosing Ring, and in third place was Pacific Bag Inc. for Pbideas by Pbi single serve simplified. New Products/Consumables: First place Sticky Toffee Pudding Company-Bars, in second place, Simpson & Vail -Dessert Teas, and in third place-KIND-Healthy Grains Bars.

April 2014

area. Peet’s and the Wrigley Building signed a lease for a 2,240 square foot retail space. The plaza-level location is set to open in the building’s south tower in the summer of 2014. While the lease is new, Peet’s and the Wrigley Building already share an investor in Chicago-based BDT Capital Partners. The Wrigley Building is owned by a group of investors including BDT Capital, Zeller Realty Group, Eric Lefkofsky, and Brad Keywell. Peet’s already has a store in a shopping area at 1000 W. North Avenue, as well as a shop on Chicago Ave. in Evanston. The chain plans to open new stores in other Chicago neighborhoods this summer, President and CEO Dave Burwick said in a statement. For more information, please visit http://www.peets.com Community Coffee’s Mill Put on Display Community Coffee’s first industrial coffee grinder, the Jabez Burns No. 12 Mill, has come home. The grinder, which Community purchased 88 years ago, is now back at the company’s home office some 44 years after it was sold to another local business. And it was Norman Saurage III, Community’s former board chairman and grandson of the company’s founder, Norman “Cap” Saurage, who made it happen. Saurage not only bought the grinder, but also restored it. “I thought it would be educational, historical and fun,” Saurage said. The old grinder was used by the company until it was sold in the summer of 1970 to members

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NewsBites of the Fresina family, who used it in their pasta business. After they quit using the grinder, they moved it to a family member’s garage. “Frank Fresina told our facility Superintendent Sal Michelle that he had the grinder, so I went by to see it,” Saurage said. “It was on its third coat of paint.” On Dec. 13, 2013, Saurage bought the grinder. “We loaded it into my dad’s old 1987 Ford Squire station wagon,” said Saurage. He spent 11 days cleaning and sanding it, and knocking out some of the dents. Then he painted it antique red. For more information, please visit www.communitycoffee.com Introducing The Flexis® BUFFALO, New York based CCL Label has brought a new valve technology to the coffee industry allowing roasters who take advantage of this technology to benefit significantly. This new technology- the Flexis® coffee valve, consists of a three-layer construction focused on the release of carbon dioxide and prevention of oxygen penetrating into the packaging. The Flexis® coffee valve has shown benefits to roasters in areas including packaging machinery throughput, maintaining coffee freshness, and allowing carbon dioxide to be released from the packaging without letting oxygen in. Roasters who have taken the Flexis® coffee valve approach have seen a significant increase in processing speeds and operational reliability. One roasting company out of Fort Worth, Texas utilize these valves as a better solution for its degassing process to prevent their coffee bags from ballooning out and coffee becoming stale, a common worry of coffee roasters. Additionally, the Flexis® coffee valve was recently recognized in July 2013, with one of North America’s most prestigious packaging awards, the AmeriStar Award, in the Institute of Packaging Professionals (IoPP) non-alcoholic beverage-packaging segment. For more information, please visit: flexisvalvetechnology.com/coffee The Heine Brothers’ Coffee Shop Closes Location The Heine Brothers’ Coffee shop at the corner of Eastern Parkway and Bardstown Road closed March 16, 2014. When faced with renewing the lease at its Eastern Parkway store for five years, Heine Brothers’ Coffee Inc. owners decided to leave the highly trafficked corner and work on building its other nearby locations. “We feel like we can do better as a company,” said Mike Mays, the Louisville coffee company’s co-founder. “It’s a business decision.” Heine Brothers’ original location is just a two-minute drive down Bardstown Road from the Eastern Parkway store. Plus, there is another Heine Brothers nearby in Schnitzelburg, a four-minute drive down Eastern Parkway. Heine Brothers’ Coffee currently has 14 locations around Louisville. Heine Brothers doesn’t need that many locations so close together, Mays said, so the company decided to give up the Eastern Parkway store. That space will not sit empty though. “A great local business is going to move into the space,” said Mays, who added that he could not disclose the name of the business.

Howard Schultz and Oprah Collaborate on Tea Howard Schultz, chairman, president and CEO of Starbucks, and Oprah Winfrey, announced a first-of-its-kind collaboration to co-create Teavana® Oprah Chai Tea. Beginning April 29, Teavana Oprah Chai will be sold in Starbucks and Teavana stores across the U.S. and Canada, with Starbucks making a donation for each product sold to the Oprah Winfrey Leadership Academy Foundation to benefit educational opportunities for youth. “With the introduction of Teavana Oprah Chai, we are going to elevate the tea experience in the same way we did for coffee," said Schultz. "Partnering with Oprah Winfrey

in the creation of this distinctive and remarkable tea is a strong next step forward in accomplishing this objective, while also giving back in a meaningful way through the Oprah Winfrey Leadership Academy Foundation.” Contributions from sales of Teavana Oprah Chai products will go to the Oprah Winfrey Leadership Academy Foundation, which provides funding for the Oprah Winfrey Leadership Academy for Girls – South Africa and is dedicated to helping its graduates attend colleges and universities. The foundation will support additional youth education through Girls Inc., National CARES Mentoring Movement, Pathways to College, and the U.S. Dream Academy. For more information, please visit www.oprah.com Illycaffé Named as a 2014 World's Most Ethical Company Illycaffé SpA (“illy”), the worldwide leader in sustainable coffee, announced today that it has been recognized by the Ethisphere Institute, an independent center of research promoting best practices in corporate ethics and governance, as a 2014 World’s Most Ethical Company®. This is the second consecutive year that illy has been honored with this award, which recognizes organizations that continue to raise the bar on ethical leadership and corporate behavior. Illy is one of only one of two companies in the coffee industry honored this year. “Truly, this award belongs to the people who comprise our organization across many countries, who hold themselves to the highest standards, every day,” said Andrea Illy, Chairman and CEO, illycaffé SpA. “Our company has understood since its founding by my grandfather how ethics and profits can, and should, walk hand-in-hand.” “The entire community of World’s Most Ethical Companies believe that customers, employees, investors and regulators place a high premium on trust and that ethics and good governance are key in earning it,” said Ethisphere’s Chief Executive Officer, Timothy Erblich. “Illy joins an exclusive community committed to driving performance through leading business practices. We congratulate everyone at Illy for this extraordinary achievement.” The full list of the 2014 World's Most Ethical Companies can be found at http:// ethisphere.com/worlds-most-ethical/ wme-honorees/. Keurig Green Mountain Discards Starbucks Keurig Green Mountain, formally Green Mountain Coffee Roasters, has introduced an aggressive business strategy. Keurig Green Mountain has discarded Starbucks as the exclusive provider of super-premium coffee for its coffee brewers. Last May the two companies announced a five-year extension deal to have Starbucks’ coffee and tea available for the K-cups for the Keurig brewers. Keurig wanted to expand its lineup, starting a relationship with Starbucks rival, Peet's Coffee & Tea. In order to do that, however, it had to end its exclusive deal with Starbucks. Now, Starbucks is getting improved business terms and Keurig just signed a multi-year deal to add Peet's Coffee & Tea to its K-cup selection. All of this maneuvering is taking place while a potentially bigger business takes shape behind the scenes. Coca-Cola Co. bought a ten percent stake in Keurig Green Mountain earlier this year and will offer its brands for an upcoming Keurig machine that makes cold drinks. The details of that machine, called Keurig Cold, are being kept under wraps, but it is expected that it will let customers make their own carbonated beverages at home, including versions of Coca-Cola. For more information, please visit www.greenmountaincoffee.com

Numi® Organic Tea Blends Coming to RealCup™ RealCup™ brand and Numi® Organic Tea are teaming up to bring convenience and quality to teacups everywhere with the introduction of single-serve capsules to the Numi® line of organic teas. Developed by Mother Parkers Tea & Coffee®, RealCup™ single-serve capsules feature a FlavorMax™ filter that is designed to allow more of the essential oils into the cup, ensuring a more flavorful experience. Numi’s® blends are created with organic and fair trade certified teas and herbs from around the world. “I was impressed by the taste delivered by a RealCup™ capsule,” said Ahmed Rahim. “It was clear to me that the superior taste from the carefully chosen real ingredients used in Numi® Organic Tea’s blends would be found in the teacup and not left behind in the capsule.” “We are excited to welcome Numi® Organic Teas to RealCup,” said Joe Navin, General Manager Strategic Alliances for Mother Parkers. “Organic and premium quality teas are a yet undeveloped channel in single-serve and we are thrilled to be pioneers in this effort along with Numi®.” *RealCup™ products and Mother Parkers Tea & Coffee are not affiliated with K-Cup® or Keurig Inc. K-Cup® and Keurig® are registered trademarks of Keurig Inc.For more information, please visit www.numitea.com Philz Coffee Coming to Santa Monica Philz Coffee, a coffeehouse from the north, is gaining shops in Santa Monica, California. Founded in San Francisco in 2003 by Phil Jaber, Philz spread throughout the San Francisco peninsula and into Silicon Valley. Now the coffeehouse chain is expanding into Silicon Beach. The company asks its potential employees if they are “ready to better people’s day with the best damn cup of coffee and wowing them with your killer service skills.” Up north, Philz Coffee has locations in Berkeley, Cupertino, Menlo Park, Palo Alto, San Francisco, San Jose, Sausalito, and South San Francisco. In all, there are 12 locations in the Bay Area; the Santa Monica location would be Philz Coffee’s thirteenth store. On the Philz Coffee blog, the company announced it would soon be sharing the recipes of Jerry James Stone, who uses its coffee products in his creations. An opening date has not yet been set, so check their website for updates and even job postings. For more information, please visit www.philzcoffee.com PLITEK Announces the Launch of PV-25-FV PLITEK is excited to announce the launch of PV-25-FV, the only pressure sensitive one-way degassing valve with integrated filtering base. PV-25-FV’s carefully designed structure inhibits coffee grounds from entering the valve and interfering with its functionality. It is one in a line of PLITEK’s many product generations that help roasters provide the best quality coffee to their customers. One-way degassing valve with filtering base has been trademarked under patent #8,636,034. PLITEK will officially showcase PV-25-FV at SCAA 2014 in Seattle, booth 9012. In conjunction with the current line of PLI-VALV one-way degassing valves, PLITEK also offers valve applicator systems that can be integrated on customers’ packaging machinery providing full customer support and simplifying the source of degassing systems. For over 20 years, PLITEK’s one-way degassing valves have enabled coffee roasters to eliminate bulk degassing from their operation and preserve the freshness and quality of their coffee. With billions used world-wide, our valve technology is proven to allow freshly roasted coffee to naturally degas inside of hermetically sealed packaging while providing effective barrier to environmental oxygen, moisture, and contaminants. For more information, please visit www.plitek.com

Remington Introduces the iCup Remington introduces a comprehensive lineup in its new “Lifestyle Series” with iCup – the world’s first single-serve coffee brewing system to use rotational SteamBrew technology. Featuring the iCarafe, a stainless steel thermal carafe, the iCup system will brew up to 28 ounces of coffee into iCarafe with a larger singleserve K-type cup. The new Remington Lifestyle Series featuring iCup and the iCarafe is debuted at the International Home+Housewares Show (IHHS) in Chicago, March 15-18. Bruce Burrows, CEO of the Valencia-based company, explains, “Our iCup Lifestyle Series and the iCarafe is breakthrough technology for the single-serve brewer industry, providing a superior tasting cup of coffee from your favorite Keurig K-Cup or K-type equivalent.” iCup uses patent pending rotational SteamBrew technology to steam and stir the coffee grounds in all Keurig and K-Type compatible cups. Remington launched iCoffee in 2013. iCoffee was the first-ever coffee brewer to utilize rotational steam jets inside the brew basket to crack open the grounds, unlocking all the rich coffee flavors while eliminating any bitter or acidic aftertaste. iCup uses a patent pending rotational jet inside the K-Cup or K-type cup that steams and stirs the coffee at the optimum brewing temperature to release maximum flavor. The iCup brewer is also the first to use a patent pending Dial-a-Brew cup size selector. For more information, please visit www.icoffee.com Weldon Coffee Flavorings – East Coast Distributors Wildly Successful! Weldon Flavorings seeking west coast distributors. The Weldon Gourmet Coffee Flavorings' product line is becoming a huge hit on the east coast. However, while New York, Maine, New Jersey, Pennsylvania, and other east coast states are enjoying these pure liquid flavorings in their coffee, California, Oregon, and Washington distribution is still limited. Completely free of sugar, artificial sweeteners, creamers, powders, and syrups, make these flavorings the perfect compliment to coffee, cappuccino, lattes, and the healthy west coast life style. Weldon Coffee Flavorings add flavor that you can enjoy without worrying about putting on weight or clogging your arteries. With all the various sweeteners on the market, these flavorings allow the customer to use their sweetener of choice. Ideal for office coffee service, coffee shops, drive-thrus, convenience stores, or any place coffee is served. For more information, please visit info@WeldonFlavorings.com Rogers Family Company Files Lawsuit Against Keurig The legal action claims violations of federal and California antitrust and unfair competition laws. Keurig recently lost an appeal of a district court ruling that Rogers had not infringed on Keurig’s K-Cup patents. Rogers launched its OneCup product – which uses a mesh filter instead of a plastic brewing pod – in the fall of 2011. Last year, it launched OneCup Bio, which is touted as 97 percent biodegradable. “We filed this lawsuit to end Keurig’s anticompetitive practices which deny consumers access to our and other competitors’ products,” said Jon Rogers, Rogers Family Co. president. “Our goal is to ensure that consumers in the single-serve coffee market have access to a free and open marketplace, in which they are provided the opportunity to select a wide range of products based upon whatever factors are most important to them such as price, quality, and commitment to social and environmental responsibility. “No single company should be permitted to control consumer choice or prices through illegal, anti-competitive conduct.” The

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NewsBites lawsuit says that Keurig plans to launch a new line of single-serve brewers that will contain lockout technology that will prevent them from functioning with competitors’ coffee pod products. The Coffee Bean & Tea Leaf Partners with Keurig The Coffee Bean & Tea Leaf brings more than 50 years of coffee expertise to the K-Cup pack marketplace with the introduction of four coffee varieties for the Keurig K-Cup Brewing System. The new lineup showcases some of the company's most popular roasts and new blends created specifically for the Keurig K-Cup Brewing System. The Coffee Bean & Tea Leaf announced a multiyear agreement to make The Coffee Bean & Tea Leaf brand available in K-Cup packs for the Keurig K-Cup Brewing System in May 2013 "We are excited to bring our signature premium coffee roast profile to Keurig customers," says John Dawson, president and CEO, The Coffee Bean & Tea Leaf. "Now, millions of Keurig customers can enjoy the distinct coffee profile of The Coffee Bean & Tea Leaf with the convenience of the Keurig platform. We believe these new additions will delight our current customers and introduce many others to our great products." They will be available in 16-count boxes in four different coffee varieties including Cafe 63, Costa Rica, Viennese Blend, and Toasted Amaretto. For more information, please visit www.coffeebean.com TOMS® Welcomed by Three Avocados to Clean Water Movement TOMS®, well known for their One for One® model of giving a pair of shoes to a child in need for each pair purchased, recently announced a new One for One® model: TOMS® Roasting Co. This new One for One® coffee will provide clean water for one person for one week for each bag of coffee purchased. Three Avocados is a non-profit coffee company that has been providing clean water for each bag of coffee of its Uganda Bugisu purchased since 2010, reaching over 20,000 people with clean drinking water. “I was thrilled to hear that a company like TOMS® had joined the coffee for clean water movement. In the end, it helps bring clean water to more of the roughly 768 million people in need,” says Koenig. “Over our four years, we have found that $10 can provide clean water for one person for life, so for us, every four bags can accomplish that. I’m thrilled to see more attention brought to concept of coffee providing clean drinking water,” Koenig stated. Three Avocados has funded 16 clean water projects through International Lifeline Fund, and is excited to announce a project through Compassion International in 2014. For more information, please visit www. threeavocados.org or www.toms.com

Corp., Bronx, N.Y., also has added the tins, and is handling New York and New Jersey independent stores. Additional retail placements of the tins include: • Foodtown stores in New York and New Jersey, New Seasons Markets and Roasters in Washington, and Market of Choice in Oregon through UNFI. • Food City stores in Kentucky, Virginia, and Tennessee. As well as Best Yet Markets in New York through Haddon House of Medford, New Jersey. For more information, please visit www.TorieAndHoward.com. The Quiet One® from Vitamix® Vitamix ®, the world leader in high-performance blending equipment for home and commercial-use, offers The Quiet One®. A powerful, premium blender, The Quiet One provides dramatic sound reduction, exceptional blends for a consistently superior product and significantly improved speed of service. Designed to create a more enjoyable customer environment, The Quiet One also offers operators the ability to deliver a wide variety of superior blended beverages to their customers. Lisa Klein, vice president of Commercial Sales, Vitamix. Klein says, “Where Vitamix blenders, including The Quiet One, consistently outperform is in the total cost of ownership. By focusing on designing blenders for the most demanding users and the most demanding applications, we create blenders that last longer and need fewer repairs. Other blenders may cost less in the initial purchase but cost more over the life of the blender due to early end-oflife failures, higher repair expenses and lower reliability resulting in lost sales.” The Quiet One utilizes exclusive technology in the arena of noise reduction. The unit is also fully programmable to create custom blending programs for signature drinks, smoothies, and blended coffees. It features an Advance® container with a unique design and built-in dripless spout that improves pourability. For more information, please visit www.vitamix.com Warped Wing Brewing Company Releases Coffee Beer Warped Wing Brewing Company and Wood Burl, a new coffee roaster company started by the owners of Press Coffee Bar, will release a coffee beer on March 20. The beer, a twist on a Belgian style Black Tripel made with cold brew coffee from Wood Burl, is called Pirogue. “Wood Burl currently operates out of a garage in the Twin Towers neighborhood,” said owner Brett Barker. Barker said he would love to eventually grow into a combined coffee bar and roasting location someday. “I have a lot of respect for

what Brett is doing at Press and Wood Burl, and he and I really wanted to get together to do something that was unique in terms of flavor profile,” Haggerty said. The booming craft beer scene in Dayton is making a strong impact on the region, and the two downtown breweries have turned vacant spaces into regional destinations. As Warped Wing expands its line of innovative beers and increases its regional distribution, it will continue to put Dayton on the map for craft beer. For more information, please visit www.warpedwing.com Product Release from LBP Manufacturing LBP Manufacturing, Inc. has expanded the Twin Lock™ portfolio to include the new Twin Lock™ Look! We’ve taken all the superior features from the original – the locks, vents, and trouble free design – and added a window making Twin Lock™ Look perfect for when customers and cashiers need to see inside. Use this premium package, available in natural kraft or white, to showcase freshness at the deli cooler or in any cold case. For more information, please visit www.lbpmfg.com

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A Expo!

ACE Exhibition of Extraordinary Coffees Taste exceptional coffees! Friday and Saturday April 25th & April 26th: 1 pm – 5 pm Washington State Convention Center U.S. Coffee Championship Arena

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Torie & Howard Gains Further Distribution Availability of Torie & Howard’s organic and kosher certified hard candy continues to expand with the addition of new distribution in eastern and western states, and new retail placements across the country, including in Wegmans and Sprouts. “All four flavors of Torie & Howard’s candy in two-ounce recyclable steel tins now have been placed in 38 of Wegmans’ 84 stores through UNFI, headquartered in Providence, R.I.,” said Torie Burke, company co-founder. In addition, Nature’s Best of Brea, Calif., now has been added as a distributor in the Western United States and Texas. “Sprouts Farmers Markets, headquartered in Phoenix, is carrying tins in all flavors through Nature’s Best,” Burke said. J & J NY Distributors

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Advertisers Index

Company.............................................................................. Phone.......................................Web................................................................... Page............. SCAA Booth#....NAMA Booth# 1stPayPOS..........................................................................................(888) 638-7867...........................1stPayPOS.com........................................................ 44 Add a Scoop Supplement Boosts............................................(415) 382-6535............................addascoop.com....................................................... 43.................... 3014 Adulina Coffee Exporter, PLC..................................................... +251114000000.........................adulinacoffee.com.................................................. 47..................... 16101 Aerobie Inc........................................................................................(650) 493-3050.........................aerobie.com.............................................................. 43.................... 9032 Agtron.................................................................................................(775) 850-4600..........................agtron.net.................................................................. 25..................... 8013 Alliance for Coffee Excellence/Cup of Excellence.............(406) 542-3509..........................AllianceForCoffeeExcellence.org...................... 42 Bloomfield Industries.....................................................................(314) 678-6336............................wellsbloomfield.com.............................................. 42.................... 14041...................... 156 BriteVision..........................................................................................(415) 374-8119..............................britevision.com........................................................ 17, 30.............. 1005 Buhler Inc...........................................................................................(905) 754-8389..........................buhlergroup.com..................................................... 46.................... 1043 Cablevey Conveyors.......................................................................(641) 673-8451.............................cablevey.com?pmcv=CT-DD-2013.................... 19...................... 11107 Cafe de Costa Rica.........................................................................+0622437863..............................cafedecostarica.com.............................................. 38..................... 9023 Cafe Don Pablo................................................................................(305) 249-5628..........................cafedonpablo.com.................................................. 37 Cascade Coffee, Inc.......................................................................(800) 995-9655..........................cascadecoffee.com................................................ 39 CCL Industries..................................................................................(716) 852-2155.............................cclind.com.................................................................. 15...................... 14039 Club Coffee L.P................................................................................(800) 387-4367..........................clubcoffee.ca............................................................ 33..................... Coffee Fest........................................................................................(800) 232-0083.........................coffeefest.com......................................................... 39..................... 10032 Coffee Shop Manager....................................................................(800) 750-3947..........................coffeeshopmanager.com..................................... 45.................... 6017 CoffeeChemistry.com....................................................................(626) 872-4563...........................coffeechemistry.com............................................. 44 Cropster/ColorTrack.......................................................................(408) 550-2860.........................cropster.com / color-track.com......................... 13...................... 5038 Curtis....................................................................................................(800) 421-6150............................wilburcurtis.com...................................................... 15...................... 10031...................... 368 Daterra Coffee.................................................................................. +551937288010..........................daterracoffee.com.br............................................. 43.................... 7009 Diedrich Manufacturing, Inc........................................................(208) 263-1276............................diedrichroasters.com............................................. 45.................... 5031 Dripping Hot Designs....................................................................see web..........................................wendra-lynne.com.................................................. 45.................... 8000 E. 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Int'l Col, Ltd.............................................................................+886227206058.........................handybrew.com....................................................... 25..................... 2033 FincaLab ............................................................................................(425) 825-9106...........................fincalab.com.............................................................. 46.................... 17109 Flavor Right Foods Group...........................................................(888) 464-3734..........................flavorright.com......................................................... 41 Follett Corporation.........................................................................(800) 523-9361...........................follettice.com............................................................ 41....................................................... 451 Fres-co System USA, Inc..............................................................(215) 721-4600............................fresco.com................................................................. 31...................... 9022 Gavina Gourmet Coffee................................................................(323) 582-0671............................gavina.com................................................................ 39..................... 7005 GPI Solution LLC.............................................................................(954) 389-1959...........................gpisolution.com....................................................... 43.................... 9047 Hamburg Messe...............................................................................(403) 569-2444..........................hamburg-messe.de................................................. 41 InterContinental Coffee................................................................(619) 338-8335............................ictcoffee.com............................................................ 45 International Coffee Consulting................................................(818) 347-1378.............................intlcoffeeconsulting.com...................................... 43 Intuit Inc..............................................................................................(800) 446-8848.........................intuit.com................................................................... 29 Java Jacket........................................................................................(800) 208-4128...........................javajacket.com......................................................... 6, 44............... 7018 JavaSuits............................................................................................(714) 240-1314.............................javasuits.com............................................................ 44 Lampada Coffee Art......................................................................see web..........................................www.etsy.com/shop/lampada........................... 41 Mother Parkers Tea & Coffee......................................................(800) 387-9398..........................realcup.com............................................................... 27 PBFY Flexible Packaging.............................................................(877) 224-7496...........................pbfypkg.com............................................................. 43.................... 2009 Perka Inc.............................................................................................(503) 427-1377............................getperka.com........................................................... 3....................... 1007 Plitek....................................................................................................(847) 827-6680..........................plitek.com.................................................................. 9....................... 9012 Pod Pack International, LTD........................................................(225) 752-1160.............................podpack.com............................................................ 11....................... 10044.................... 353 Primera Technology, Inc...............................................................(800) 797-2772...........................primeralabel.com.................................................... 45 Scolari Engineering S.p.A./Texpak Inc....................................(856) 988-5533...........................scolarieng.com......................................................... 48 Service Ideas, Inc............................................................................(800) 328-4493..........................serviceideas.com..................................................... 45.................... 15088..................... 478 Shore Measuring Systems............................................................(217) 892-2544............................moisturetesters.com.............................................. 45.................... 9004 Single Cup Accessories, Inc........................................................(855) 621-1222.............................singlecupaccessories.com................................... 42 Square.................................................................................................(917) 344-3260...........................squareup.com........................................................... 21 Stalkmarket Products (Asean Corporation).........................(503) 295-4977..........................stalkmarketproducts.com.................................... 45 State Farm.........................................................................................(844) 774-8060..........................statefarm.com.......................................................... 23 TEAJA Office....................................................................................(778) 840-4832..........................teajaoffice.com........................................................ 46..................................................... 583 The Coffee Trust..............................................................................(505) 670-9783..........................thecoffeetrust.org................................................... 45 The Truvia Company LLC.............................................................(855) 855-2362...........................truvia.com/foodservice........................................ 7 Tightpac America inc....................................................................(888) 428-4448..........................tightvac.com............................................................. 44.................... 9020 Torie & Howard LLC.......................................................................(888) 826-9554..........................torieandhoward.com............................................. 39 UpShot................................................................................................(800) 545-6200.........................upshotsolution.com............................................... 35..................... 17101....................... 165 uVu Lids..............................................................................................(561) 674-9415.............................uvulids.com............................................................... 2....................... 12124 Vessel Drinkware.............................................................................(855) 883-7735...........................vesseldrinkware.com............................................. 17...................... 13094 Vita-Mix Corporation.....................................................................(800) 437-4654..........................vitamix.com............................................................... 5....................... 5024 Weldon Flavorings..........................................................................(502) 797-2937...........................weldonflavorings.com........................................... 45 Xeltron.................................................................................................+50622795777............................xeltron.com............................................................... 42.................... 2011

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April 2014

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