November 2014

November 2014

www.CoffeeTalk.com Vol. XXVII No. 11

Connect. Grow. Prosper!

Colombia The Future of Coffee page 8

See NAMA Listings page 14

CONNECT. GROW. PROSPER!

20

Susie Spindler

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Sustainability

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This Month:

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The View

Contents

True Sustainability

8

Colombia

The Future of Coffee

Cup of Excellence Winner Sets Record

10

Sustainability

12

10 Cup of Excellence Winner Sets Record

The Social and Economic Impact of Sustainability

14

NAMA Coffee Tea & Water

16

Coffee Service Corner

Exhibitor Highlights

12 Sustainability

An Interview with Ken Shea, part two

18

Marketing Miracles Strategic Planning

Shoulder of Giants: Industry Icons

20 22

Connect. Grow. Prosper!

20 Susie Spindler

Susie Spindler-Founder of the Cup of Excellence Program

Retailer/Roaster Profiles

Fonté Coffee Company, Seattle, Washington

24 26 28 29 30

Roasters Rock

Quality Coffee Could Change the Hotel Business

The Last Mile

Taste Tempting Ways to Build Traffic, Loyalty & Margins

Power of Good

Non-nutritive and "Fake Sugars"

Who We are

Phone: 206.686.7378, see extensions below

Owner

Professional Memberships

Publisher Kerri Goodman, ext 1 kerri@coffeetalk.com

Administration Laurie Veatch, ext 4 laurie@coffeetalk.com

Editorial Staff

NewsBites

Advertiser Index

Editorial Director Libby Smith, ext 8 libby@coffeetalk.com

Design

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

Copy Editor Mark Moser, ext 9 mark@coffeetalk.com Web Design Justin Goodman, ext 6 justin@coffeetalk.com

Mailing Info

Feature

Colombia The Future of Coffee

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.

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4 November 2014

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The View

Kerri Goodman Sustainability

S

ustainability – what a loaded word! It is a nebulous term that is thrown around with abandon throughout our industry as well as many others and upon asking 10 different individuals what it means, I was presented with 10 different answers. The definitions all seem to have some central themes: economic viability, environmental issues, social and community services. In doing some online research I happened upon a very simple definition: “The ability to sustain,” or in other words, “the capacity to endure.” I believe that this simple definition encompasses the true spirit we are all trying to achieve allowing each company, or individual, to then espouse on the specific methods they are employing to ensure the “sustainability” of the specific area to which they are referring.

However, I don’t believe simply using the term is ever enough. Without including the specifics of the situation, the use of them term could be akin to “green-washing.” Thankfully consumers, especially the Millennials, are becoming more savvy and demanding.

and the FNC, programs have been put in place to combat the major threats to the continuation of the Colombia coffee industry: Climate Change; Gender Equality Issues; Motivating the Young to Continue in Coffee Related Careers; and Reducing Violence and Improving Community.

With all that we saw we could fill an entire issue with ideas and strategies that could serve as a model for other coffee producing countries. Libby Smith, our new Editorial Director, shares her observations on page 10. In addition, I hope you all get a chance to check out our guest feature writer, Maura Keller’s exploration of the issue of “sustainability” as it relates to the various certifications for coffee on page 12.

Congratulations Finally, we are thrilled to announce our 2014 Making a Difference Winner. Every July, CoffeeTalk dedicates its entire issue to projects throughout the coffee industry designed to

Vol. XXVII No. 7

That being said, the November issue begins a long-term editorial theme CoffeeTalk will be taking, focusing on how our industry can take the necessary steps for our industry to not just survive, but thrive. This is no small task as I see coffee quickly heading towards some potentially disastrous issues, most revolving around supply chain issues. In fact, our 2015 State of the Industry issue asks the question of respected industry experts, “What do you see as key threats to our industry and strategies to address them.” If you have a specific interest in contributing to this editorial, please visit magazine.coffeetalk.com and click the link in the upper left, “Submit Story Idea.” We truly value your input!

An Inspirational Example of Sustainability A Recent trip to Colombia gave me hope for the future of the coffee industry around the world.

Between the collaboration of the government

Pueblo a Pueblo

Water, Sanitation, and Hygiene for Coffee Community Schools Contact name: Rosemary Trent Email: rtrent@puebloapueblo.org Phone: 202.302.0622 Project URL: www.puebloapueblo.org Organization Name: Pueblo a Pueblo Project: Water, Sanitation, and Hygiene for Coffee Community Schools Project location: Guatemala Projected Impact: 1,500

Project Description At spectacular Lake Atitlan in the highlands of Guatemala, water is truly at the heart of this large, indigenous coffeegrowing community. And yet, this community is in lack of clean water and sanitation services, which is a basic human right. What this means is that coffee farmers and their children continuously face infectious pathogens, resulting in gastrointestinal illnesses, and sometimes even death. When children are afflicted, their ability to absorb enough nutrients is compromised. In return, this then contributes to chronic malnourishment and leads to insufficient physical and cognitive development.

With its Water, Sanitation, and Hygiene in Schools (WASH) project, Pueblo a Pueblo is making a difference. While working with local community organizations, we are helping ensure access to clean water and sanitary facilities to improve the children’s health, such as water filtration systems, toilets, and soaps. The key to this project is helping establish community ownership to make sure that the water and sanitation facilities are kept in working order and conditions. By doing it this way, each community will be able to maintain its WASH facilities, education programs, and healthy behaviors without our support.

MAKING A DIFFERENCE

Calendar 6

improve the lives of those in the most need.

Our goal is to help our readers connect in a meaningful way with the work being done by giving awareness to the projects and making it easy to help. We then make a personal donation of $1000 to the project that receives the most views and clicks in the issue. Of the twenty-eight projects presented this year, one stood out with more than 1,000 more clicks than any other in the issue. Congratulations to Pueblo a Pueblo’s Water, Sanitation, and Hygiene for Coffee Community Schools project in Guatemala. “Sustainability” truly cannot exist unless the population has access to clean water and healthy hygiene! You can read about it at http://coffeetalk.uberflip.com/i/338258/28

November 7-16

Kona Coffee Festival, Kona HI USA

November 6-7

3rd Annual Ethiopian Coffee Conference, Addis Ababa

November 8

Coffee Con Los Angeles, Los Angeles, CA USA

November 11-13

NAMA CTW, Dallas, TX USA

November 12-14

6th International Coffee & Tea Festival, Dubai, India

November 12-15

Sintercafe, Costa Rica

Since its inception in 2011, WASH has grown to serve over 850 students and teachers at six different elementary schools.

The Situation Lake Atitlan is one of the most beautiful places imaginable. Three large volcanoes loom over a huge crater lake that is surrounded by the indigenous 28 Maya villages. Encircling these villages are

vast rows of coffee plants intermingled with avocado trees, papaya trees, and banana trees. This landscape certainly resembles utopia, which is why it is internationally renowned for yielding great tasting highquality coffee. Although Guatemalan coffee is in high demand all around the world, unfortunately, little of the coffee’s profit finds its way back to the average coffee farmer. In return, it then results in widespread poverty.

Daily access to a consistent clean water supply, which is at least five liters per person per day, is imperative to human health and learning. Drinking untreated or unfiltered water can cause gastrointestinal illnesses, such as diarrhea, dehydration, and in some cases, fatalities. The magnitude of the clean water problem in rural Guatemala can be discouraging. However, the good news is that water-related illnesses are entirely preventable. Pueblo a Pueblo’s WASH project focuses on the public elementary schools to improve the health of the most vulnerable individuals, and also because school water and sanitary facilities are often at the center of a village and are used by the entire community.

Who Will Benefit from this Project?

The project has three parts, which are often implemented at the same time.

First, we help schools and communities gain access to clean water and sanitary facilities. Second, Pueblo a Pueblo helps to educate adults and children on healthy behaviors, such as hand washing before food consumption and after bathroom use, as a means of prevention. We work with teachers and school administrators to reinforce these behaviors until they become a habit for the children. Third, we work

closely with community groups, school administrators, and local municipalities to establish the funding, supplies, and community ownership needed to keep the water and sanitation facilities in working order.

Sustainability of these programs is key to the continuation of disease prevention and good health maintenance. It is vital that each community be able to maintain its WASH facilities, education programs, and healthy behaviors without relying on us.

What You Can Do to Help What will help make the project successful are cash donations, in-kind donations of books, clothes, and supplies. You can even volunteer your time to aid in the cause.

There are several ways to help Pueblo a Pueblo expand water, sanitation, and hygiene access to other Guatemalan coffee communities.

You can donate money for a locally made water filter, sponsor a school or community WASH project, or volunteer your time, effort, and skills. For more information visit Pueblo a Pueblo’s website at http://www. puebloapueblo.org/.

July 2014

For complete and updated show information visit our online calendar: http://magazine.coffeetalk.com/industry-calendar/ November 16

Optimism and Innovation at Equip’Hôtel 2014, Paris, France

November 20-21

Asoexport Coffee Summit LXXVIII, Cartagena, Colombia

November 20-23

Café Show Seoul, Seoul, Korea

December 14 - 16

7th Dubai Drink Technology Expo, Dubai, India

November 2014

Colombia The Future of Coffee

I

n early October CoffeeTalk Media, along with other guests and journalists from around the world, was invited to Colombia to attend ExpoEspecials Café de Colombia in Medellin and to witness firsthand the success behind the collaboration between the Colombian Coffee Growers Federation (FNC) and the government of Antioquia. Now going on its third year, the Antioquia Specialty Coffee Program is contributing to a social transformation. This unique program offers technical assistance, education in science and innovation, and the promotion of specialty coffees. The goal of the program is to invest in the education of coffee growing families and encourage younger generations to develop a love of coffee. Of course, the program must adhere to the FNC sustainability policies that impact the coffee growers, focusing mainly in the areas of productivity, and impacts to social and environmental concerns.

Antioquia is only one of 32 departments in Colombia and its slogan is “Antioquia La mas educada” (Antioquia the most educated). It is comprised of 125 municipalities of which 94 grow coffee with an estimated 83,300 coffee growing families. Thirty percent of these are women farmers. The average age of a grower is 55. Faced with dwindling interest among young people for farming and little history of local consumption, the FNC and the government of Antioquia joined hands to devise a revolutionary educational program to benefit the people and to position Café de Colombia as the richest coffee in the world.

by Libby Smith

from seed to cup and the depth of education the Coffee Camp program offers.

While striving to retain pride in the rich culture of Colombia and focusing on the science behind growing coffee, the Antioquia Specialty Coffee Program is empowering both the existing and the new generations of coffee growers.

Culture: Antioquia Colombia is rich in history and culture where old meets new and much of life centers on the Town Square and coffee. We were fortunate enough to view and explore the beautiful towns of Venecia and Titiribi, and a few of the outlying farms where we saw simple growing techniques as well as innovation like the sliding roof that allows the beans to shade dry, but can quickly cover them should it begin to rain. While old methods still exist, we learned that 80 percent of all Colombians have cell phones and the farmers are being trained on how to use that technology to track their crops. The government and FNC are also working to train them on and provide farmers with tablets. We experienced the dedication and distance it requires to get the harvested coffee from field to mills and purchase points. We stood on -and sometimes fell on- the steep fields where the coffee grows. We met the icon for Colombia and coffee in general. Much thanks to the hospitality of Carlos Castañeda from Andes for allowing us to visit his farm and taste his coffee.

Viva Juan Valdez.

ExpoEspeciales Café de Colombia is the most important specialty coffee fair in Colombia and displays the coffee industry’s trends and innovation in the domestic and international arena.

The FNC is a non-profit business association, popularly known for its "Juan Valdez" marketing campaign and is probably the largest rural NGO in the world.

It is a non-profit organization and is not affiliated with any political party, instead investing in sustainable farming practices and the education and promotion of coffee-growing families.

CoffeeTalk was privileged to tour several farms, wet and dry mill facilities, eco mills, the FNC Training & Experimental farm, an educational park and a coffee camp as well as attend press conferences with the governor of Antioquia, Sergio Fajardo; the President of the Colombian Coffee Growers Federation, Luis Genaro Munoz; and of course Carlos Castañeda, the real Juan Valdez.

8

As much as the breathtaking beauty of the region and the warmth and hospitality of the farmers and the FNC mesmerized us, we were most impressed by the emphasis on knowing your coffee November 2014

Collaboration: By working together the Colombian government and the FNC are setting a prime example of how to support sustainability, industry, and education to continue improving the lives of coffee growers and the quality and integrity of Colombian coffee. All while encouraging the “in country” consumption of and pride in their own product.

We began our journey in Medellin and headed south, escorted by representatives of the FNC and were able to witness how the joint efforts between the Antioquian government and the Colombian Coffee Federation are improving the lives of coffee farmers and the quality and value of their coffee. Representatives of the FNC and the mayor of Titiribi greeted us and proudly showcased the Educational Park built there; a group effort of the FNC, the government of Antioquia and the citizens and growers of the surrounding region. We toured the Esteban Jaramillo FNC Training & Experimental farm, where we learned about the work being done to grow Arabica varieties that are high in production yields yet resistant to rust, as well as view a state of the art weather station for early warnings regarding climate change. The automated weather system sends out data every 5 seconds and works with 104 other automated systems throughout Colombia to constantly track changes and variables. We were privileged to witness the historical pact where David Roche, Executive Director of the Coffee Quality Institute and Luis G. Munoz, CEO, FNC signed a Memorandum of Understanding. Govenor Sergio Fajardo gave personal interview time to visiting journalists detailing how he has worked with the FNC to improve the lives of Colombians.

Besides CoffeeTalk, journalists from Brazil, Colombia, South Africa and New York attended. Colombia is a land of diversity and the four-day ExpoEspecial, with more than 70 exhibitors from different countries around the world, provided a space where the academic, commercial, and cultural aspects could all converge to network and share their knowledge to strengthen Colombia’s national and international coffee industry.

Education: In Antioquia, an alliance was made between the FNC and the government called the Antioquia Specialty Coffee Program. Working together they are building 80 parks, which are community centers where the citizens must work together and submit a proposal. Each park is unique and designed to represent the community. Each park assigns a local youth to document the history of the town; a position that requires an intense interview process and requires much dedication.

The entire community can use the space, but much is dedicated to training in grading, roasting, cupping, and barista skills. This program provides the necessary skills to produce differentiated specialty coffees and promote Antioquia’s specialty origin. Antioquia also sponsors a coffee camp where 1000 youth ages 14-28 are brought in from 94 municipalities for 4 days at no expense to them to learn about the coffees from the seed up. The students interact and learn the value of the coffee they already have and how to improve upon it.

They gain the necessary skills to grow, roast, and be a barista. They gain an understanding that they can be important in the coffee world and then take this knowledge home to their families. They are also offered continued education opportunities.

All were impressed with the students’ enthusiasm, dedication, and desire to learn about coffee. We met two such youths, one a graduate of a prior Coffee Camp and the other attending, both named Alejandro. One’s ambition is to be a great roaster: the other, to be the best barista in the world. cont. on page 10

9

Colombia Empowerment: The partnership between the FNC and the government of Antioquia is a model for sustainability, and through sustainability comes empowerment.

Empowerment comes for the coffee growers through deeper understanding of climate change and soil science. The new skills they accrue allow them to grow a special product that they can be confident will return a fair price; with this, they can continue productively farming their land.

Empowerment for the youth, who can choose to train and learn of the crops and income their lands can produce; that tradition and innovation can sustain them and their future families. Empowerment for women, whose culture has hindered their financial independence and freedom in the past. Empowerment for parents, from accessible educational programs and activities; helping keep their children from turning to the gangs and violence that pull them away from their families and livelihood.

The FNC understands the organizing principle behind sustainability from four domains: ecology, economics, politics and culture. Coffeetalk wishes continued progress and success to Antioquia’s and the FNC’s endeavor.

In 1927 the Colombian coffee growers joined in order to create an organization that represented them nationally and internationally, and ensured their welfare and improvement of their quality of life.

The Colombian Coffee Growers Federation is a nonprofit organization working for the welfare of more than 560,000 Colombian coffee-growing families. Since its founding it has been the main guild in Colombia, with a presence in all rural areas where coffee is grown in the country. Its priority is strengthening the families and communities of coffee farmers, and sustaining their business, so the tradition and quality of Colombian coffee continues to be considered the best in the world.

The scope of the joint efforts of the FNC and the government of Antioquia is too grand to fit into a short synopsis, so we encourage you to visit the websites below to learn more. And see page 10 of this issue and help us celebrate Ms. Carmen C. Montoya, winner of the Colombian Cup of Excellence Competition 2014 organized by the Alliance for Coffee Excellence and the Colombian Coffee Growers Federation (FNC), who sold her coffee at a record price. www.federaciondecafeteros.org www.juanvaldez.com www.SustainabilityThatMatters.org

Cup of Excellence Winner Sets Record Coffee Grower from Antioquia sells her Coffee at Record Price of $45.70 per pound

M

s. Carmen C. Montoya, winner of the Colombian Cup of Excellence Competition 2014 organized by the Alliance for Coffee Excellence and the Colombian Coffee Growers Federation (FNC), sold her coffee at a record price of $45.70 per pound at the Cup of Excellence Auction.

Her score of 91.31 points in the competition enabled her, along with thirtythree other coffee growers who scored over 85 points, to participate in the most famous international coffee auction in the world. Together, the thirtyfour participants sold their coffee at an average price of $7.98 per pound.

Carmen, who owns a 2.5 hectare farm in Urrao-Antioquia, is now the Colombian coffee grower who has received the most money for her coffee in this international auction.

Luis G. Muñoz, CEO of the FNC, was pleased with the auction’s results. “The broad participation of international buyers and the prices achieved confirm,

10

Coffee Grower

Farm

Hectares Grown in Coffee

$US per pound

Municipality

Dept.

Carmen C. Montoya

Bella Vista

2.5

45.70

Urrao

Antioquia

Lucas G. Melo

El Cairo

6.11

22.20

Consaca

Nariño

Pablo E. Montoya

La Esperanza

1.3

22.20

Urrao

Antioquia

Gonzalo Dagua

El Naranjo

2.72

6.21

Caloto

Cauca

Jesús M. Martínez

Majagual

7

12.50

Concordia

Antioquia

Bautista Dizu

El Guamito

1.5

10.35

Jámbalo

Cauca

Edgar Dagua

Las Palmas

2

9.10

Miranda

Cauca

Olga Garzón

San Pedro

9

5.00

Consaca

Nariño

Eduardo Torres

Las Margaritas

9

9.20

Génova

Quindío

Oscar S. Trejos

El Danubio

0.8

7.60

Toribio

Cauca

once again, that Colombian specialty coffees are widely accepted and attract more interest, directly benefiting smallholder coffee growers.”

Buyers who wanted to participate in the auction had to be enrolled at the Alliance for Coffee Excellence. The FNC sent them samples of the coffee lots that would be auctioned and fact sheets with their main characteristics.

Carmen’s coffee attracted interest and purchases from The Colombian firms Banexport, Café 18 and Café Palo Alto, in addition to buyers from Australia, Canada, France, Germany, Greece, Hong King, Italy, Korea, Lithuania, United Kingdom, New Zealand and Norway.

Lucas G. Melo, coffee grower from the department of Nariño, won second place in the competition and sold his coffee to a buyer from the United States at the second highest price in the auction ($22.20).

Out of the remaining thirty-two coffee growers, two sold their lots at more than $10 per pound. Pablo E. Montoya, from the La Esperanza farm (department of Antioquia) and Jesús M. Martínez from the Majagual farm (department of Antioquia) secured third and fourth place, respectively, and sold their coffee at $22.20 and $12.50 per pound, respectively.

It’s worth noting that eight out of the thirty-four coffee growers who participated in the auction were women. They sold their coffee at an average of $10.01 per pound and reaffirmed the commitment of Colombian female coffee growers toward producing high quality coffee.

For further information concerning the auction’s results visit: http://www.allianceforcoffeeexcellence.org/en/cup-of-excellence/ country-programs/colombia-second-program/2014/auction-results/

November 2014

11

Sustainability The Social and Economic Impact of Sustainability

T

urn on the television or open a newspaper, and you would be hardpressed not to find information on ‘living green.’ From sustainable coffee production practices to eco-friendly coffee products to water conservation, ‘going green’ is causing specialty coffee businesses to take notice and change the way they’re doing business.

A Growing Trend Consider this statistic: According to the National Coffee Association, nearly eight out of ten Americans drink coffee. Consumers are taking notice of organic, certified organic, and sustainable coffee programs. Although there is still the consumer that just wants “a cup of joe,” most consumers expect more from their coffee and are willing to pay more for it.

So how do organic and Fairtrade labels coincide within the coffee industry?

“Organic” and “Fairtrade” are two different but complimentary certifications that can be run parallel or separately. As Fick explains, organic certification means that agricultural methods to protect the environment have been undertaken in the farming of a crop. While Fairtrade International has requirements for sustainable farming techniques, empowerment and improving the livelihoods of farmers and workers is the core aim of Fairtrade.

According to Bill Fishbein, founder and president of The Coffee Trust, the various commercial certifications and non-commercial efforts are all part of the effort toward sustainability. “That said, commercial certifications are limited, as conditions of the trade are steeply tilted in favor of merchants over producers and commercial interests are not necessarily always consistent with community interests.”

Direct Ties Marilyn Dryke with the Cafe Femenino Foundation, says that direct trade was a marketing term that was created to help roasters sell coffee. “With the term ‘direct trade’ people may be lead to believe that the seller is buying and importing the coffee directly from a coffee farmer or a cooperative. So from our perspective it is a confusing term that is loosely used. There is no verification system for this concept.”

George Kim, coffee quality manager at Caffebene defines direct trade as the process where the buyer and the farmer agree upon certain standards and processes—From production to cultivating, harvesting, drying, and such. The buyer is directly involved in the process.

“The trend is shifting away from buying coffee beans in bulk through distribution companies, but rather, roasters are going directly to the farmers after surveying the soil and the environment of the farm. People believe this truly insures the quality of the beans. Also, roasters use this unique story as a way of marketing.”

In Korea, Caffebene has a direct relationship with the Ipanema farm. All coffee beans produced from this farm are only exported into Caffebene in Korea. “The reason for doing this is to have a story with a specific farm that produces the coffee just the way we want,” Kim says. So how is the term “direct relationships” different from “direct trade”?

Dryke says that “direct relationships” also is a marketing term that was developed to help move coffee. “Some importers may also market their coffees as direct relationship, and probably many of them actually do have direct relationships, but there is no specific criteria attached to this term, so it is a loosely used term with some companies or individuals using it as they wish.”

12

While industry experts may have differing opinions about the terminology surrounding sustainable practices within the coffee industry, certifications are key tokens that ensure standards and criteria are annually substantiated so that consumers know the claims being made are true and verified. Dryke says, “Today we see more organics on mainstream store shelves, which would indicate that consumers are growing more and more willing to pay the extra cost to assure that they are getting a product with the verification.”

by Maura Keller

Economic & Social Impact of Sustainability Brent Toevs, CEO of Marley Coffee says that sustainability in the coffee market encapsulates a combination of social, economic and social impact.

And it’s the role of many nonprofits within the industry to oversee the sustainability of the coffee industry, its practices, and its producers. Experts agree that non-profits within the coffee industry have a vital role to play in building a more sustainable coffee sector, while taking into consideration the economic and social impact sustainability has on the people and their products.

Also, the nonprofit Committee on Sustainability Assessment (COSA), a consortium of global organizations led by the International Institute for Sustainable Development (IISD) and the United Nations Conference on Trade and Development (UNCTAD), is developing and applying scientific metrics to understand sustainability impacts at the field level.

Other key nonprofits and industry-specific organizations that play a key role in the sustainability efforts facing the industry include Grounds for Health, Café Femenino, Coffee Kids, Sustainable Harvest, Coffee Cares, Food for Farmers, Puebla a Puebla, and the Coffee Trust, to name a few.

Definitions & Certifications Certified Organic: In order for coffee to be certified and sold as organic in the United States, it must be produced in accordance with U.S. standards for organic production and certified by an agency accredited by the U.S. Department of Agriculture.

U.S. requirements for organic coffee production include farming without synthetic pesticides or other prohibited substances for three years and a sustainable crop rotation plan to prevent erosion, the depletion of soil nutrients, and control for pests.

Source: Organic Trade Association (www.ota.com) Organic: Organic coffee is grown using methods and materials that have a low impact on the environment. Organic production systems replenish and maintain soil fertility, reduce the use of toxic and persistent pesticides and fertilizers, and build biologically diverse agriculture. Third-party certification organizations verify that organic farmers abide by the law.

Source: Organic Trade Association (www.ota.com) Sustainable: Sustainable farming within the coffee industry implements practices to minimize water consumption and to clean the water used. Water from the fermentation tanks should never be returned to rivers or lakes, but rather filtered naturally through the earth and then used for coffee irrigation. A sustainable farm gives back as much to the land and people as it receives.

It seeks independence from non-renewable resources, using renewable resources when possible. Sustainable farming also minimizes pollution, takes steps to care for the environment, and cares for its employees.

Source: Coffeeresearch.org Fair Trade: Fair Trade certification focuses on labor and trade standards to provide smallfarmer co-operatives a guaranteed price above the conventional market.

Not all Fair Trade CertifiedTM coffee is necessarily organic. However, Fair Trade CertifiedTM does require strict environmental stewardship such as prohibiting the use of genetically modified organisms (GMOs) and the most hazardous pesticides. Fifty nine percent of all Fair Trade CertifiedTM coffee imported into the United States in 2008 was certified organic. In the United States, transactions must be audited by TransFair USA to use a Fair Trade CertifiedTM label. Certified organic producers of Fair Trade coffee receive at least $1.55/lb.

Source: Organic Trade Association (www.ota.com)

cont. on page 14 November 2014

CT

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You pour your heart and soul into your business. The least we can do is help pour the coffee.

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13 116-12 FRC Coffee Talk Ad-10.5x14-v2.indd 1

6/11/14 4:35 PM

Sustainability Direct Trade: Direct trade is a term used by coffee roasters who buy straight from the growers, cutting out both the traditional middleman buyers and sellers and also the organizations that control certifications such as Fair Trade and Bird Friendly, for example. Direct trade proponents say their model is the best because they build mutually beneficial and respectful relationships with individual producers or cooperatives in the coffee-producing countries.

Source: ethicalcoffee.net Direct Relationship: Relationship coffees represent a unique, grassroots opportunity for coffee drinkers to contribute toward the success and development of coffee-producing communities in third-world countries. For example, the Coffee Roasters’ Alliance supports and “adopts” specific farms and cooperatives through Relationship Coffee programs.

These programs uniquely develop a “close-touch” platform designed to establish a direct relationship between coffee drinkers and the communities that grow their coffee. Relationship Coffees offer the potential for generational prosperity within coffee-growing communities.

Source: roastedlocally.com Rainforest Alliance: The Rainforest Alliance Certified™ seal is an internationally recognized symbol of environmental, social and economic sustainability that helps both businesses and consumers do their part to ensure a brighter future for us all. In order for a farm or forestry enterprise to achieve Rainforest Alliance certification, or for a tourism business to be verified, it must meet rigorous standards designed to protect ecosystems, safeguard the well-being of local communities and improve productivity. The Rainforest Alliance then links these farmers, foresters and tourism businesses to the growing global community of conscientious consumers through the green frog seal.

Source: rainforest-alliance.org

UTZ: UTZ Certified stands for sustainable farming and better opportunities for farmers, their families and our planet. The UTZ program enables farmers to learn better farming methods, improve working conditions and take better care of their children and the environment.

Source: utzcertified.org 4C: The members of the 4C Association have developed the 4C Code of Conduct, which sets social, environmental and economic principles for the sustainable production, processing and trading of green coffee. The 4C Code has a moderate entry level, including the exclusion of ten Unacceptable Practices, and commits participants to continuous improvement.

Source: 4c-coffeeassociation.org Equal Exchange: Equal Exchange's mission is to build long-term trade partnerships that are economically just and environmentally sound, to foster mutually beneficial relationships between farmers and consumers and to demonstrate, through our success, the contribution of worker cooperatives and Fair Trade to a more equitable, democratic and sustainable world.

Source: equalexchange.coop Cup of Excellence: Cup of Excellence is the most prestigious award given to a fine quality coffee.

The level of scrutiny that Cup of Excellence coffees undergo is unmatched anywhere in the coffee industry. All of the Cup of Excellence award winners are cupped at least 5 times (the 'Top 10' are cupped again) during the 3-week competition. During this selection process, thousands of cups are evaluated, tasted and scored based on their exemplary characteristics. The prices that these winning coffees receive at auction have broken records and proven that there is a huge demand for these rare farmer identified coffees.

Source: allianceforcoffeeexcellence.org For the full article go to: magazine.coffeetalk.com/november14-sustainability

ORGANIC • ETHICAL • DIRECTLY SOURCED

Please Make Sure to Visit these NAMA Exhibitors

Bloomfield Industries 704 (314) 678-6336 wellsbloomfield.com Brew your perfect cup of coffee every time.

See our ad on page 25 Follett Corporation 215 (800) 523-9361 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 27

Garden to Cup Organics LTD 815 (604) 781-7686 gardentocup.com Garden to Cup Organics is a wholesaler of award winning, directly sourced, organic loose leaf teas and herbal blends. We offer the highest quality products and service to help you grow your business.

See our ad on page 13

Mother Parker's Tea & Coffee Inc. 701 (800) 387-9398 realcup.com RealCupTM is a trademark of Mother Parkers Tea & Coffee, one of the largest coffee and tea manufacturers in North America.

Gavina Gourmet Coffee 914 (323) 582-0671 gavina.com When it comes to superb coffee and exceptional service, Gavi–a is the preferred coffee partner for retailers and entrepreneurs everywhere. Gavi–a Coffee: Grounds for Great Partnership.

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Newco Enterprises, Inc. 925 (800) 325-7867 newcocoffee.com Newco is a leading manufacturer of single serve and fresh brewed coffee and tea brewing equipment celebrating its 40th year in business.

See our ad on page 11

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14 November 2014

Pod Pack International, Ltd 512 (225) 752-1160 podpack.com 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." See our ad on page 25 Service Ideas, Inc. 716 (800) 328-4493 serviceideas.com Since 1946, Service Ideas has been a leader in the foodservice industry offering an extensive line of products for insulated beverage service.

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(641) 673-8451 www.cablevey.com Cablevey is a registered trademark of Intraco, Inc. 11/2014

*Source: AC Nielsen All Outlets, 52 weeks ending 10 May 2014

15

Coffee Service Corner

An Interview with Ken Shea, part two

W

As our customers continue to be aware of and demand the very best beverages, the market share gap will widen between those that offer specialty coffee options and those that do not.

hile in St. Louis at Coffee Fest, Kerri Goodman had the opportunity to visit with DS Services’ (and COFFEETALK columnist) Ken Shea and chat about the state of the Coffee Service Industry and other related topics of interest. Here is that interview: KG – With Coffee Service being so competitive, what are the market share operator leaders doing that sets them apart from their competitors?

KS – Keep in mind that this is a very fragmented industry. On a national basis, no single operator has even a double-digit percentage of market share.

So when I consider market leaders, I look at regional and local operators as intently as I look at things on a national scale.

The most common denominator in a coffee service operator’s success boils down to solid service. In this industry, solid service is simply the ante and only gets one into the game. The best operators provide passionate customer service backed up by great products supported by appropriate brewing systems. It’s not that complex. The great service also includes multiple touch points and a personal relationship with the decision makers. It’s difficult to fire a friend but much easier to terminate a service contract with an unknown.

CC-1059_MoveCoffee_CC-1059 10/13/14 3:37 PM Page 1

Kerri Goodman

The toughest competitors that I have encountered during my operator career are those that are locally owned and where the owner is active in the business, cultivating long term relationships and making certain that his or her company is uber-responsive to customer needs. Today, second and even third generation family members are running many of those tough local and regional companies. It’s exciting to see both the operator and customer base evolve through millennial management and leadership.

KG – You mention millennial leaders. In the coffee shop and specialty world, we see this too. I presume you also see this at the customer level. How does this leadership change impact you as an operator?

KS – One observation that I have regarding millennial decision makers is that as a whole, there is more subject matter expertise on coffee and other beverages. There is also a keen sense of awareness in the areas of sustainability and social responsibility. As a result, we operators will serve ourselves well by expanding our knowledge base to be fully equipped to handle more complex interaction.

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Just this month, while calling on a national account, I saw this first hand as our team presented to a buying group that included two millennial team members. Their knowledge of coffee, of taste nuances, and sustainability certification options paralleled ours. It was quite a dynamic exchange.

KG – Being close to origin myself, I recognize the value of having the knowledge you refer to. So where do you suggest that an operator go for help with continuing education and other business needs for that matter?

world as a good thing. So, as you look into your crystal ball and anticipate the future, what do you foresee?

KS – In the world of Coffee Service, I believe that we will see continued industry roll-up. Given the declared growth positions of several larger operators, I anticipate three or four operators having double digit market share of some proportion within the next five to ten years. But at the same time, there will always be a place for top quality local and regional activity.

E-commerce will continue to be a viable sourcing option both for the small businesses not served by most operators as well as the larger businesses that do not desire nor need direct service. More operators will adapt sophisticated e-commerce efforts in order to give their clients the options of method of delivery.

The good news is that this also opens the door to go after share of stomach in the home market. Again, our industry lines of definition will blur and expand.

KS – It begins with your roaster. If you are not fully integrated into roasting, your private label roaster partner should be able to create training material to meet your needs. The national and coffee shop brand roasters involved with coffee service can do the same.

I find most very eager to provide information not only on their products, but general information as well.

I also suggest that anyone in our industry take part in NAMA’s Quality Coffee Certification Program. Mike Tompkins has developed a fun and exciting event that covers a lot of material in a manner that is easy to absorb.

These are presented in conjunction with NAMA’s two annual trade shows.

All of us in the industry are eager to see how the single cup landscape will change near term and long term. As I mentioned earlier, variety and convenience have been addressed…we’re now in the quest for even better quality.

Exciting times are ahead for sure!

Trade show participation is important. In addition to the information at the booths, both NAMA and SCAA provide a wide variety of meaningful educational sessions. Everything is covered from bean to brewer to beverage to business practices.

KG – I appreciate your taking the time for this interview. Like you, I see the intermingling of the specialty world and Coffee Service

All in all, I believe that our industry is in a good place. The product offerings have never been more plentiful. Competition is spirited and generally at a high level. We are in a demand-pull market chock full of customers that are more knowledgeable of, and desirous to consume, top quality products which for us as operators should translate into larger invoices and even healthier businesses.

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Marketing Miracles

Mike Dabadie

Strategic Planning The Double Diamond Process

B

y this time in the calendar year, some organizations have already started to develop strategic and/or annual operating plans. Some call these sales plans and in large organizations there may be both longrange strategic plans as well as yearly plans that operationalize the long-term strategic plan. Some even have plans down at the team or departmental level.

For small businesses, the plan for 2015 may just be ideas, scribbles on paper, or notes slapped on a computer screen. The “plan on a napkin” may even be present!

Still for others, there is no business plan. In fact, there may not be any type of plan! Without solid planning a business carries more risk, misses opportunities, allows a competitor to seize advantages, slows down progress, and creates confusion.

As General Eisenhower famously said, “In preparing for battle, I have always found that plans are useless, but planning is indispensable.”

So, what is strategic planning and what are the important components of a plan? First, let’s pull apart the term strategic planning.

I define strategy as the art and science of creating a plan to bring about a desired outcome. Before you plan, you want to be strategic in order to reach an outcome. In your business or life; if you want to do something, how are you going to do it? Strategy helps you to think about how to get there.

At this point you may be asking yourself where to start and what process to use. The best marketers use a “divergence and convergence” approach that creates many ideas and then filters those down against a set of criteria for success to arrive at a set of actions for their plan. I call this a “double diamond” and a typical process is shown in this graphic that produces horizons of initiatives: As such, the following are elements of plans that have worked, and if you desire to do some planning I would suggest that you imbed these in your work.

Successful strategic plans have several common traits: • • • • •

Planning can be defined as helping to identify those strategies and accompanying actions to guide you toward a desired outcome. Planning are the tactics and the ways to get there.

•

Taken together, these definitions bring to life what successful organizations do so well: strategic planning.

•

Over the years, we have observed and worked with many organizations on their strategic plans.

We believe that strategic plans and the strategic planning process should reflect and respect the following: the culture of the organization, the people involved, the mission/vision/values of the organization, the need for realistic and attainable horizon goals, the resources that can be deployed for implementation, and the desire for focused action.

• •

• • • •

•

A plan based on the reality of today but is aspirational: Stretch yourself to reach for a bold goal.

An executive sponsor and owner of the process: Someone has to lead these efforts and the CEO or owner cannot just deputize.

An executive sponsor and owner of implementation: Plans are just that unless you do something with them, and then the power of progress is unleashed.

Navigates the political realities of the organization: Agendas and culture can get in the way, so accommodate realities.

Goals, imperatives, and tactics tied to specific outcomes: Setting goals is nice, but be clear on the purpose.

Innovative techniques to reveal new opportunities and create an experience: Strategic planning can be boring, but the revelation and inspiration of new ideas can be sparked by creating innovative experiences to open new ideas.

Clear and unifying agreement of the brand promise: Your product makes a promise to a customer and in turn that customer has an expectation on what they will get if they use your product. Define and deliver on that promise – it’s that simple.

Collaborative input across the organization: The best ideas come from those vested in the results and through partnering.

Socialized throughout the organization for full understanding: Being familiar with the plan is not enough – insure that employees and leaders understand it and that there is there alignment around the plan.

Focused on 3-5 strategic objectives and a very clear plan of implementation: Most organizations try to cram too many ideas into a strategic plan. Focus. The best plans have 3-5 main initiatives.

Supports real-time strategic decision-making: Use the plan to take action and not window dress.

Aligns resources to insure implementation: It takes time and investment to reach your goals.

Is a continuously improved plan against annual and long-term goals: While many strategic plans take a 3-5 year horizon view, they should roll annually and there should be a yearly adjustment based on business and market changes.

Measures progress and implementation over time: Hold yourself and others accountable.

You do not have to take all of these steps nor use a very rigorous process, and perhaps the best place to begin is to just write it on a napkin. But I encourage you to embrace this approach and through it you will find your own diamond.

Mike Dabadie is the founder of Heart+Mind Strategies, LLC, a research consultancy that continues to pioneer the use of personal-values insights and marketing. He can be reached at mdabadie@heartandmindstrategies.com.

18 November 2014

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19

On the Shoulders of Giants Industry Icons

Maura Keller

Susie Spindler-Founder of the Cup of Excellence Program

F

or Susie Spindler, coffee is more than a drink. As founder of the Cup of Excellence program, the most prestigious award given to a fine quality coffee, and creator of the Alliance for Coffee Excellence—the nonprofit organization that owns and manages the Cup of Excellence—Spindler believes that coffee brings the world closer together.

Growing up just north Salt Lake City, Utah, Spindler went to school in Utah followed by graduate school in Arizona.

Spindler’s first job out of graduate school was in marketing research, but her first job in the coffee industry was working for the International Coffee Organization (ICO) helping to increase coffee consumption in the United States.

“I was fortunate to receive great training in my first position with the ICO,” Spindler says. “I worked with high-level coffee people who were willing to share their valuable coffee and life expertise and I was able to create and manage very unique projects that helped upgrade the image and quality of coffee to younger people.”

After having been away from the coffee industry for a few years, the ICO position helped Spindler transition back into the project that eventually became Cup of Excellence.

“The barriers can be NGO, governmental, social, or economic,” Spindler says.

“Cup of Excellence is a good example of trickle up economics—rewarding the individual farmer is paramount.”

As Spindler explains, historically so much international development funding went to large NGOs, to government or large companies that little of it reached or empowered the farmer to build a better life for themselves.

“Having “The historical infrastructure in producing coffee countries has not been one that would empower a the creative farmer to fully understand the value of the product freedom with he/she was selling,” Spindler says. “Even today, much of the development funding partners the ICO, learning with corporations. So essentially, too much development money is benefiting the multiso much about coffee, national corporations that do not need it.” and building long-lasting Spindler also points out that the coffee industry has been historically male dominated. Too often relationships in the if a woman won a Cup of Excellence it was her father or husband that would pick up the award industry allowed me the and, even now there are still very few female cuppers. space to feel comfortable “This is finally beginning to change, albeit very working on a program slowly,” Spindler says. Women farmers are so that had never been very proud to win and they are beginning to feel comfortable building long-term relationships, but tried before” there is still much to be done.”

“Having the creative freedom with the ICO, learning so much about coffee, and building longlasting relationships in the industry allowed me the space to feel comfortable working on a program that had never been tried before,” Spindler says.

Founding and managing Cup of Excellence is by far the most gratifying job Spindler has had within the industry as it has allowed her to witness firsthand the joy of farmers who have won the competition.

“I have watched as their lives have completely changed for the better. I have also had the pleasure of experiencing coffees that no one knew existed and shared the excitement of cuppers also finding these gems for the first time,” Spindler says. “By meeting so many cuppers and spending time with them at the competitions, I have also made priceless friendships across the globe and watched as small quality coffee companies have grown into successful businesses.”

As part of her role with the Cup of Excellence, Spindler travels extensively around the world, offering eye-opening experiences throughout her adventures. “The poverty is always very sad, especially when one considers that such great wealth exists among the few. But the beauty of the land, the wildlife, and often the irresistible and huge smiles of the children are unforgettable.”

As the Executive Director of The Alliance for Coffee Excellence, Spindler also manages the Cup of Excellence program.

Through her many years of experience, Spindler says the biggest challenges she faces are often an entrenched infrastructure that does not empower individual farmers.

Another challenge that Spindler sees facing the industry surrounds the effort of getting consumers to recognize and pay for high-quality coffees so that roasters can pay more to farmers.

“Consumers tend to buy the certifications and often these coffees are not the highest quality nor do the farmers get rewarded, Spindler says. “ Setting premium prices based on absolute quality and not on the nuances of an ever-changing futures market has been a challenge as well as has been the economic bust and boom of the marketplaces.”

Throughout her long-term career in the coffee industry, Spindler has learned an important thing: As individuals, most of us are very similar, no matter where we live.

“We all want to do what is best for our families and to contribute something positive,” Spindler says. “We all have global friends regardless of our politics, a sense of humor about the pleasures and pains of life, and most of us are disappointed in our governments. We all want to leave a better world even though we do not always know how to do this. Coffee is the most global product there is. We either drink it or we grow it and some do both. It could be such a catalyst for bridging the gap between countries, peoples and politics.”

20 November 2014

Retailer/Roaster Profiles

Fonté Coffee Company, Seattle, Washington Fonté Coffee Company, Seattle, Washington

I

t all started in 1992 when Paul Odom took a different direction from his family’s beverage business and founded Fonté Coffee Roaster just as the coffee boom was about to explode in Seattle, Washington. While specialty coffee was just becoming more popular with consumers, Odom saw a void in the hospitality market for a high-end product, noticing a lag in exceptional quality and service to chefs, restaurateurs and hoteliers.

At age 22, just out of college, Odom made it his mission to create the finest coffee and espresso blends in the world by setting the strictest standards in product development and delivery. He procured the best roasting and processing equipment, partnered with arguably the most talented master roaster in the industry, built a sales team with experience in premium coffee and established a business to service this untapped market.

Today, Odom oversees a rigorous daily roasting schedule, a sales force on both coasts and a quality control program that maintains the highest standards of service to its top-tier clientele. Odom also launched Fonté’s online business and downtown café to service a rising demand for its coffee products in the consumer market.

Odom’s right hand man, Steve Smith, has a distinguished career in roasting coffee spanning over three decades. He is an industry veteran and considered an expert by many in the coffee trade. Beginning in 1979, Smith worked for Starbucks and was one of the first roasters ever trained under the three original owners of the company. He was the first roaster to earn the title of Master Roaster and was responsible for all aspects of the roasting process.

In 1992 Smith discovered a like-minded enthusiast for small batch, artisan coffee in Fonté Coffee Roaster founder Paul Odom and joined forces as the company’s master roaster.

Smith’s production philosophy is that of a coffee purist – his techniques adhere to the strictest standards and work to maintain the integrity of the coffee flavor during the roasting process. Smith is responsible for every aspect of coffee production.

He hand-selects each season’s best green coffee from all over the globe, and reviews farms’ harvesting practices, from Papua New Guinea to Ethiopia to Guatemala (he notes, his college Spanish degree did come in handy). He feels single-origin coffees are laying the foundation for a more mature appreciation of refined coffee flavor profiles.

At Fonté, he holds regular cuppings with owner Paul Odom to study flavor profiles from various regions and to create a plan for the development of Fonté’s proprietary blends. He also oversees a rigorous production schedule based on a daily roast-to-order system, shipping out coffee to clients within 24 hours of roasting, always making sure that Fonté delivers the freshest product possible. He also manages the tea program, which includes importing a variety of exotic teas, supervising blending and developing new exclusive blends.

Maxim Vershinin I had a brief interview with master roaster Steve, who was kind enough to answer some questions: V. How did you get involved with Fonté?

S. My involvement with Fonté began when I met Paul, the founder, at a small short-lived coffee company where I ran the coffee program. Paul was interested in buying some of that company’s production equipment to support a set of retail stores he had begun opening and he happened into our office at a time when I was cupping several samples. I invited him to join me in the cupping, and as we talked I began to appreciate the scope and depth of Paul’s plans such that I was very pleased when he offered me an opportunity to participate in what became Fonté Coffee Roaster.

V. Please describe Fonté’s philosophy and uniqueness in just a few words, and elaborate on each?

S. Ours is a philosophy of excellence within context. Fonté is looking to share a very personal experience of appreciation for vivid and fleeting coffee flavors in virtually any context in which coffee is taken. And this underscores the uniqueness of Fonté: we are capable of providing an excellent coffee in any context, whether it be an exotic single origin espresso, a 6 gallon urn at a banquet or a cold brew martini.

V. You have been in business for a really long time now (how long exactly?) what has changed over the past several years (in the industry overall and the mentality of the consumer)?

S. We started in 1992. During the years we’ve been in business, growth has been the over-arching big deal, and the result has been that there is more of everything: more top quality coffee, more people participating in the business, more interest and venues for specialty coffee. There is also more silliness, more misunderstanding and dogmatism, and more pretenses. It’s a pretty colorful business.

V. Being both a successful roaster and a retailer, how do you manage not to compete with your customers? I guess mainly the question concerns Seattle, or other cities as well?

S. Our retail presence is so small as to not threaten our wholesale customers.

I think they appreciate the fact that we share an intimate understanding of what being a successful retailer entails.

V. What makes you one of the leaders in the industry as of today?

S. Our determination to continue to put coffee flavor above trendy lifestyle expressions.

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.

22 November 2014

23

Roasters Rock

Quality Coffee Could Change the Hotel Business

A

s a roaster, barista, or any other coffee professional you have access to some of the best coffee in the world. This is a blessing to be sure! But don’t take it for granted.

As a Q Grader and R Grader trainer I now get to travel world helping to improve communication in the supply chain so we can all talk about quality coffee a little more easily. I too have access to great coffee even if I have to seek it out a little more now that I don’t have a roasting facility.

Even though I have access to ‘the good stuff ’ I still drink the hotel coffee when I travel. Not every cup. I do carry a dripper with me so I can have a little sanity when grading papers in my room. But I drink enough of the in room crap to remind me of one important thing: My job is NOT done yet! I encourage you to do the same!

WITH you as quality ambassadors. The chances of them impacting your business negatively is very small, but the odds of moving a larger part of the market from low or medium quality coffee to your level is huge.

Let’s get back to why you should drink the hotel coffee. If you don’t care for the coffee, maybe you will talk to a manager about it. Maybe you won’t be the first one to do it. Maybe you can work a deal to supply coffee that is 10 times better than what they have with only a slight increase in cost. And what if a major hotel chain were to say, “I think we can use this to get more business travelers to stay here.” Now they are thinking about how quality coffee can improve their business.

If one major hotel chain were to make this change, think of the impact on the industry and on your business. All of those travelers that have now started to appreciate better coffee. Even if it is not yours in the hotel room, there will be some percentage that find your brand as they seek better coffee for themselves. The percentage of customers for high quality coffee has gone up.

As coffee people we strive to make a great product that we like, and hope our customers like it too. We are also keenly aware of the connection we have to faceless, nameless coffee growers around the world that scratch the earth to grow the beans we use and to eke out a bit of a living for their families.

Bridging the Disconnect from Farmer to Roaster If you are successful at increasing the ‘specialty’ piece of the coffee pie, those great ingredients will be in tighter supply. This is why you must also strive to work backwards through your supply chain and be able to tell folks what you want in order to maintain the quality of coffee you have promised to these new customers. This is not easy, but I want to give you some hope.

I still believe in the premise that increased quality of coffee will generate increased value in the product at whatever point the quality is added. If the farmer uses selective picking he should be rewarded. If a barista hand drips a beautiful Sidamo, he should be rewarded as well.

When I started in the industry I was introduced to a concept at a roasters guild retreat: “In the coffee industry we represent maybe the top 5% of the market. Thank goodness for Starbucks because they are our marketing department converting people to the ‘specialty’ market and for every 100 they turn, we get 5. If we all work together on quality we can grow the 5 to 10 or 15 and there would be more business than we could want for everybody. The key is that we keep raising the quality level of everyone.”

I used to think about the above concept only in terms of the products which MY COMPANY produced but have come to see how short-sided that is. This is in part because the farmers are no longer nameless and faceless to me. I see them doing the same thing on their end of the supply chain. They work hard to gain information and to share that info with their neighbors and industry groups.

I think it is interesting that ‘first world’ capitalists get this concept easily for themselves but find it hard to extrapolate to the whole industry. They add value and expect to be rewarded, but often miss the larger forces at play.

You need to strive to not only make yourself better, but also your suppliers, customers and even competitors.

24

To extrapolate that further: • Teach your customers what quality coffee is and they will not only demand quality for themselves but they will tell their friends.

• Ask for quality products from your suppliers and be willing to pay more for them and they will work harder to get you what you want. This can flow all the way to the farm if the supply chain is educated enough.

• Also, be willing to tell your competitors where they can improve their products. This will have them working as a marketing department

Rocky Rhodes

In my last few Q-Grader and R-Grader classes in producing countries I have been fortunate to have the entire supply chain represented in the same class.

Grower, collector, mill, exporter, importer, roaster and barista. This is amazing to me that we all want to learn the same thing! We all want to do the same thing! Now we just need to increase the communication. To accomplish this I have some challenges for you: 1) If you have not taken a Q-Grader or R-Grader class yet, DO IT! This is the language that the industry uses to communicate with one another.

2) If you are a roaster, reach one level back from your importer. Don’t go around them; go with them. Ask to go to origin with them. Ask them for a name of the mills they work with in a particular country. Learn a little more and start a dialogue.

3) If you are an importer, demand transparency further down the supply chain and see if you can get to the farmer. Don’t go around your exporter or mill; go with them. Then introduce your roaster customers to them.

This will build a stronger, longer lasting bond and will not be a risk of being ‘cut out’ of the transaction.

4) If you are anyone reading this, drink the hotel coffee! This should get you ticked off enough to actually follow through with one of the above challenges. That’s why I drink it!

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

November 2014

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25

The Last Mile

Taste Tempting Ways to Build Traffic, Loyalty & Margins

I

f you thought pumpkin spiced lattes were everywhere this Halloween season (which now apparently lasts two whole months), you weren’t seeing ghosts. They were can’t-miss everywhere: Starbucks windows awash in orange and brown, other chains jumping on the gourd-themed bandwagon, and plenty of options for the DIY crowd at home.

I’m guessing you’re a purist like me, so let’s set aside what most of these autumnal treats lack: anything remotely resembling pumpkin on the ingredients list. And in too many instances, only the faintest hint of coffee; hopefully, good coffee. For me, the pumpkin spiced phenomenon is the latest, and perhaps most persuasive evidence to date of Americans’ longing for new experiences with coffee, and growing openness to coffee as a superb, versatile base ingredient.

from vodka, to rum, tequila to whisky, coffee liqueurs, cream liqueurs, and many others.

All that recipe R&D paid off handsomely when I got involved in barista competitions, going up against and getting inspired by the profession’s masters. After five years on the circuit, fully battle tested, I won the Italian Barista Championship in 2008 thanks in part to “The Trinity,” with beverage invention sharing equal weight on the scorecard with quality of espresso pulling and cappuccino making. My idea was to create a three-layered drink that could showcase coffee’s basic tastes (thus, “Trinity”): a base layer of yogurt for acidity, a middle strata of espresso for bitterness, and a top coating of bitter and sweet from espresso kissed by a milkpersimmon foam.

As I’ve seen over many years developing menu items for cafes that serve illy, beyond-theordinary specialty drinks excite and delight guests, keep them coming back for more, build later-day traffic and healthily boost margins.

Open customers’ eyes to the possibilities beyond a pump or two of syrup, and the smiles will follow. Smiles will also come to the faces of baristas and other staff, who will rejoice in expressing their creativity and feel a deeper sense of contribution to the business. Not to mention, the R&D can be a blast.

Tips for the budding beverage builder? To quote the Jedi Masters, “Use the Force.” Start with an idea in mind and then let creativity carry you away. Something rich in texture?

More savory than sweet? Coffee more prominent in taste and aroma, more in the background? Something ideally paired with seasonal food menu items? Ponder those kinds of questions and you’ll be on the right track.

There are some rules of thumb, especially for adult beverages. Espresso’s high concentration of flavor in small quantities of liquid make it the most versatile ingredient for specialty drinks.

And when priming the pump, keep the coffeeto-syrup ratio at 1:1. For brewed coffee, whether pour over, syphon, Chemex, or even standard filtered drip, adjust that ratio to one ounce of liquor per six ounces of coffee.

Keep the innovation going and develop a pipeline of fun, original, seasonally-inspired treats. If you haven’t gotten on board yet, the holiday season is the ideal time to turn up the heat, when caloric concerns are put on hold and the festive mood invites indulging.

I’ve created upwards of 150 coffee drinks over the years, none more memorable than my first, and perhaps simplest preparation. The key was starting with a precise goal in mind, critical to any culinary experimentation. My objective was to create a beautifully balanced, delicious iced espresso. I was still living in Italy, so espresso was the only viable option. I was growing tired of the cold coffee served at bars (Italian for “coffee shop”), nearly always an unbalanced, oxidized, nearly rancid liquid mixed with water and sugar, cooled over an overly long period of time in the fridge.

Identifying slow cooling as the main flavor-sapping culprit, I stole a page from the bartender’s playbook and filled most of a metal shaker with ice, tossed in a just-pulled double shot, stirred in a drop of water – about 10 percent of the drink’s total volume – and a hint of sugar. If it sounds Martinilike, you’re on the right path, with apologies to the shaken-not-stirred leanings of a famous Mr. Bond.

26

I started experimenting with the whole gamut of ingredients, from usual suspects like chocolate and cocoa (albeit in a variety forms) to wilder cards such as almond milk (the real thing, made with fresh almond paste from Sicily and water), coconut milk and water, ice creams, even jams and marmalades. And for later-day enjoyment, with a host of adult libations,

Giorgio Milos

In alcohol-laced creations, keep the espressoto-alcohol liquid volume ration at a one-to-one maximum, to keep the coffee taste prevalent. For drinks incorporating neutral spirits like vodka, or with drier taste profiles like tequila, use a touch of simple syrup or a sweet flavored syrup like vanilla to balance the relatively low sweetness of the coffee and spirit.

If it fits with your culture, you can even get customers in on the act. I helped run a cocktail contest for illy fans last year, out of which the delightful “Espressoda” emerged (10oz club soda, 0.5oz simple syrup, 0.5oz vanilla syrup topped with a single shot of espresso, on the rocks), now residing on the permanent menus of our partner cafes in San Francisco and elsewhere. If you want to maintain total control, launch a couple of new drinks of your own creation and have customers lobby for which should stay on the menu. That should generate a whole other kind of buzz!

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.

November 2014

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The Power of Good

Non-nutritive and "Fake Sugars"

O

ur desire for sweets is built in. Mothers’ milk contains twice as much milk sugar as cows’ milk, and, for that reason, all infant formulas are sweetened. Given that glucose (“blood sugar”) is brain food and that sweet milk is an infant’s sole nourishment, it follows that humans learn a deep predilection for sweets.

Surprisingly, we don’t need sugary foods to feed our nervous system. In fact, carbohydrates supply only 20 percent of our energy. This small need is easily met simply by eating vegetables. Fat is the body’s main fuel.

In spite of this, within the last 300 years, the amount of sweeteners eaten by the average American has increased by 4000 percent! In the 1700s, sugar consumption was 4 pounds per year.

Now it is over 100 pounds per year per person — approximately onefifth of our total calorie intake. A combination of price, prevalence, and our predilection for sweets has made this possible.

pleasant tasting powder, Wikipedia reports that it is not tasty off the vine but must undergo extensive processing to become palatable. It is pricier and more highly processed that stevia concentrate.

Be that as it may, the makers of Splenda have taken on monk fruit as their entry into the “natural” low calorie sweetener market. In this case, the fruit is reproduced using bacteria and then combined with erythritol and molasses. (Again, see “Fake Sugars”)

“Fake Sugars” “The artificial sweeteners that are widely seen as a way to combat obesity and diabetes could, in part, be contributing to the global epidemic of these conditions,” writes Alison Abbott on Nature.com, commenting on a study published by Nature in September 2014.

A team led by Eran Elinav of the Weizmann Institute fed mice various sweeteners – saccharin, sucralose and aspartame. After 11 weeks, the animals displayed glucose intolerance, a marker of propensity for metabolic disorders, including obesity and diabetes.

In this article from Nutrition News, we discuss “non-nutritive” sweeteners, many found at your local natural product store. We believe the majority of our readers are savvy about health and have learned the dangers of both high fructose corn syrup (HFCS) and chemical non-nutritive sugar replacements.1 However, revelatory information has recently come to light about both the high and low ends of sweetening choices: honey and “fake sugar”.

We discuss new findings about fake sugars. As always, we encourage you to play The “Is It Healthy?” Game to support your desire to make informed choices. The glycemic index is included for each sweetener discussed. The rating system for the glycemic index (GI) used here is based on glucose at 100 points.

Scores are as follows: High – above 70; Medium – 56 to 69; Low – 55 and below. All GI information provided by http://www.sugar-and-sweetenerguide.com/glycemic-index.html.

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Siri Khalsa

This is the first study to suggest a connection between artificial sweeteners and these conditions. Most interesting is the further connection between the sweeteners and an upset in the diverse community of bacteria that work in our intestines (microbiome).

Elinav’s team then used data from an on-going clinical nutrition study with 380 participants. The researchers found a correlation between clinical signs of metabolic disorder – such as increasing weight or decreasing efficiency of glucose metabolism – and the ingestion of artificial sweeteners.

Curious to know what would happen if lean healthy people used fake sugars, the team gave seven volunteers daily doses of artificial sweeteners for a week.

As a result, four became glucose intolerant. Further, there was a shift in their intestinal bacteria toward a balance known to be related to metabolic diseases. (The other three participants seemed resistant.)

What Are Non-Nutritive Sweeteners?

As stated, these are sweeteners with little or no nutritional value. “Low calorie sweetener” is the euphemism for synthetic chemical sweeteners. (See “Fake Sugars”.) Reduced calorie sweeteners are known as polyols. At this time, stevia and lo han fruit (monk fruit) are the only “natural” low cal sweeteners on the market. Brazzein, a protein- based sweetener, continues to wait in the wings.

Speaking to the unexpected relationship among the fake sweeteners and the altered microbiome, Martin Blaser, a microbiologist at NYU, commented that understanding how the fakes affect intestinal bacteria might engender new approaches to metabolic disease.

• Stevia (Stevia redaudiana) is an intensely sweet herb from South America. With a tale to tell, stevia has finally become the preeminent natural 0-calorie sweetener. The leaf is 30 times sweeter than sugar but when processed, it is 70-400 times sweeter. The vast majority of health benefits reported from research and consumer experience involve daily use of truly natural stevia concentrate.

Footnotes: 1 These compounds are Acesulfame K (Sunette), Aspartame (Equal or Nutrasweet), Neotame (aspartame without the phenylalanine), Splenda (a combination of sucralose and maltodextrin with a glycemic index of 80:100, nearly as high as glucose at 100), and saccharin (in use since 1979, most commonly sold as Sweet’N’Low).

• Lo han fruit extract (Siraitia grosvenori, sometimes called monk fruit) grows in China and is up to 300 times sweeter than sugar. Available as a

Okay people, here’s my comment: “You really can’t fool Mother Nature!”

Siri Khalsa, Editor Nutrition News www.NutritionNews.com

November 2014

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210) and is also published at http:// Additionally, Bühler has established a www.uvulids.com. uVu Lids are in use new Regional Centre of Excellence in across the country and users attest to Kenya. Providing training, as well as the time saved and increased safety. sales and service support, the centre Their reactions, as well as the Drivewill also allow coffee producers the Thru Challenge, are published at opportunity to witness first-hand http://www.uvulids.com/testimonials. sorting demonstrations of their green coffee samples.

Top Chefs to Participate in 2014 Vitamix® Challenge Champion Chemical Company Leading chefs Award from across the Champion Chemical country will soon Company’s MEGA compete on October 27 in the 2014 Descaler debuted at Vitamix Challenge during the 9th Coffee Fest Portland and was awarded annual StarChefs.com International 2nd place in the New Products Chefs Congress in New York City.

Category. MEGA Descaler is a scale The six chefs chosen to compete this and lime removing tablet comprised year include: of only food grade or kosher raw • Robert Sisca –Chef, Bistro Du materials, safe to use on all surfaces Midi, Boston, MA exposed to hard water. The MEGA • Melinda Dorn –Pastry Chef, Descaler is an effervescing tablet L’Etoile, Madison, WI that breaks down quickly in room • Marcos Fernandez –Chef, temperature water. For samples or Lakeland Yacht & Country Club, more information about the MEGA Lakeland, FL Descaler and other restaurant cleaning • Scott Drewno – Chef, The Source solutions, please contact Chris Evans

by Wolfgang Puck, Washington, with Champion Chemical Company at D.C. (800) 621-7868.

• Matt Bolus –Chef, The 404 Kitchen, Nashville, TN Follett Corporation • Courtney Weyl –Pastry Chef, announces the release of its wd~50, New York, NY newly redesigned Symphony Visit http://www.starchefs.com/ Plus™ ice and water cook/icc-sponsor/vitamix/vitamixdispensers and Maestro Plus™ challenge/2014 to learn more. ice machines.

While maintaining the Counter Culture Coffee and proven performance and Wilbur Curtis Co. to Host the reliability of the Symphony™ Big Eastern Regional Coffee and Maestro™ product lines, Competition in Durham, NC, Symphony Plus dispensers November 21-23 and Maestro Plus ice machines Counter Culture represent the next step in Follett’s Coffee and Wilbur ongoing efforts to meet the demanding Curtis Co. will needs of the healthcare and host the annual Big foodservice markets with solutions Eastern Regional Coffee Competition, that provide sanitation, serviceability, the last leg of this year’s U.S. Regional sustainability and overall low life cycle Coffee Competition season, on costs. For more information, contact November 21–23 at the Durham Follett Corporation at 800.523.9361 or Convention Center (301 W Morgan marketing@follettice.com.

Street). Produced by the Barista Guild of America and the Specialty Coffee Roastar Association of America, the event has Custom printed coffee bag two divisions: the Barista Competition manufacturer Roastar announced this and the Brewers Cup, both platforms week the addition of an HP Indigo for baristas to exhibit their individual 20000 digital printing press to their pursuits of excellent coffee. Visit scaa. printing and bag manufacturing org, counterculturecoffee.com or facility in Wausau, WI. With the wilburcurtis.com. wider 30” printing format and exceptional print quality of the new press, the company plans to expand on their current line of custom printed GrindDefine third page ad_November.indd 1

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bags while maintaining the fastest lead time in the industry. The wider digital printing format will allow Roastar to efficiently manufacture larger bag sizes, and also produce printed roll stock for customers operating their own converting equipment. Installation and testing of the new printing press is currently underway with a projected completion date of early 2015.

Sunergos Coffee of Louisville, KY takes 1st place in America’s Best Espresso Competition, National Championship After winning America’s Best Espresso regional competition in Chicago, 2013, Louisville’s Sunergos Coffee returned to defend that title in the Bi-Annual National Championships of America’s Best Espresso hosted and organized by Coffee Fest, one of the top coffee trade shows in America.

Sunergos Coffee was declared America’s Best Espresso National Champion having bested the best coffee roasters including second place Resilient Coffee Roasters of Richland, WA and third place Goshen Coffee Company of Chicago, IL. Representing Sunergos Coffee was Kenny Smith who leads Sunergos’s Wholesale Department and Consulting team.

Swiss Water Decaffeinated Coffee Company Announces Opening of New Seattle Office and Improved Logistics Capabilities Swiss Water Decaffeinated Coffee Company (SWDCC) today announced that it has opened an office in Seattle, WA. David Kastle will lead the Seattle team, joined by Coffee Trader Sarah Kluth. Rounding out the Seattle Office Team is Anthony Truscello. Concurrent with the Seattle opening, SWDCC has improved its logistics and customer management capabilities.

For more information, please contact: Andrea Piccolo, Brand Manager at Swiss Water Decaffeinated Coffee Co. Inc. Email: apiccolo@swisswater.com THE QUIET ONE from Vitamix Greatly Reduces Blending Noise to Maintain a Peaceful Atmosphere Vitamix ®, a world leader in high-performance blending equipment for home and commercial use, offers The Quiet One®. A powerful, premium blender, The Quiet One offers advanced vibration dampening technology, delivers exceptional blends for a consistently superior product and significantly improves speed of service. Specifically created for coffee shops and high-end bars, it’s ideal for

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Weldon Coffee Flavorings' New Labels are a Hit The new label design of Weldon's Coffee Flavorings is a hit with their Loyal, FlavoredCoffee fans as well as new customers. All the labels are color coded and designed to showcase each flavor. These pure liquid flavorings are completely free of sugar, artificial sweeteners, creamers, powders, and syrups, allowing each customer to use their sweetener of choice. Each bottle flavors 118 (8 oz.) servings and comes with a pre-measured pump.

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Winners of the National Championships of the America’s Best Espresso, America’s Best Coffee House and Winners of the Latte Art World Championship Open Announced Coffee Fest held its final show for 2014 in Portland, OR, this October. During the show, Coffee Fest held the final competitions for America’s Best Coffeehouse and America’s Best Espresso as well as the Latte Art World Championship Open. The winners of the DaVinci Gourmet America’s Best Coffeehouse National Championships are: 3rd, Café Grumpy, out of Brooklyn, NY; 2nd, Klatch Coffee out of Los Angeles, CA; 1st, Palace Coffee Co. hailing from Canyon, Texas. The winners of the America’s Best Espresso National Championships are: 3rd is Goshen Coffee out of Edwardsville, IL; 2nd,Resilient Coffee Company from Richland, WA; and 1st place is Sunergos Coffee; of Louisville, Kentucky. The winners of the Latte Art championship are: 3rd place, Daisuke Tanaka. In 2nd place is Kenta Tamura and the 1st place winner is Yusuke Ota. Finally, the Best New Products in Consumable and in Non-Consumable competition. The winners of the Consumable products are: 1st, Jindilli Beverages for their Milkadamia; 2nd goes to Cappuccine for their Tart Culture Smoothie; in 3rd place we have ELEMENT Snacks for its ELEMENT. In the Non-Consumable New Product winners are: 1st, MicroGreen for its inCycle Coffee Cups and lids. In 2nd, Champion Chemical Company for its MEGA Descaler and 3rd place, Espresso Supply for its Bonavita 1.7L Gooseneck Variable Temperature Kettle.

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