THIS ISSUE: COLD BREW & READY-TO-DRINK PRODUCTS
WINTER 2021 | Vol. XXXIV No.2
w e r B lo d
Che scue to t Re
CONTENTS WINTER ISSUE 2021
08 10
GROWING UP
Building Bridges between Coffee & Beverage CONNOR ROELKE
SHELF STABLE COLD BREW SHINES Roasters & Retailers Embrace New Innovations LAUREN PFEIFFER
12 THE VIEW
Cold Brew to the Rescue
06
KERRI GOODMAN & JAKE LEONTI
How Groundworks Coffee Became a National Brand Through a Can
KARL SEIDEL
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WHAT’S BREWING IN THE UK?
14
FEELING INNOVATIVE
16
La Colombe's Unique Approach to Product Development JAKE LEONTI
JAKE LEONTI
Valuable Products Conveyed Without Using Air
MARK LINDERMAN
JAMES NASH
BREAKING INTO GROCERY 09
BOOSTED PROFITS
MY JOURNEY IN COFFEE
11
ROASTERS ROCK
The Coffee Global Supply Chain and Covid Stresses
18
ROCKY RHODES
COFFEETALK MAGAZINE
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Don Pablo Coffee Roasting Company
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Fres-co System USA Inc.
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Java Jacket
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Primera Technology Inc.
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3, 23, 24
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JAKE LEONTI jake@coffeetalk.com { x2 }
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CoffeeTalk Magazine
THE VIEW
{ Cold Brew to the Rescue } KERRI GOODMAN & JAKE LEONTI
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elcome to CoffeeTalk’s 2021 Winter Issue. We are excited to share industry expert’s experience to help your achieve success in your businesses. Our Editor-in-Chief, Jake Leonti, has put together an exciting package of editorial around Cold Brew success stories to inspire and educate including how Groundwork Coffee achieved brand success in grocery, Bkon’s cold brew technology breakthrough, NOBL Beverages’ focus on innovation and Coffee Nitro’s UK achievements through innovation. I think my favorite quote from these articles is from
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nly a year ago. It was not unusual for a coffee roaster to be focused entirely on a single revenue stream that aligned with their production line. Anyone solely focused on foodservice customers or retail cafes paid the price for putting all their eggs in one basket. The companies that had already diversified their revenue streams and insulated their businesses through various sales channels have managed to weather the storm. Cold-brew and other RTD coffee beverages
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Connor Roelke, “To win in beverage is not to conform to the rigidity built by the giants of yesterday. There is nothing that matters to specialty coffee more than building exceptional experiences for customers.” Another compelling topic near and dear to my heart is addressed by Rocky Rhodes as poses the question, ‘What is coffee worth?’ He suggests a more thoughtful pricing model would start with, ‘How much does it cost to produce?’ Only after that information is known can one determine what is needed to make a reasonable profit and a sustainable life for the farmer.
played an enormous role in keeping many coffee businesses afloat. Cold-brew has been the single most significant product innovation in coffee since espresso. Its growth has been so tremendous that it is almost a guaranteed success if you already have a successful brand. Variations on recipes, added ingredients, and packaging formats leave an open field for boundless interpretations. Cold-brew has allowed small brands to create a national presence and large brands to build a new revenue pipeline with
I very much appreciate Karl Seidel’s article on Boosted Profits, more important than ever in today’s challenging economic environment. And finally, Mark Linderman shares an inspiration tale of his Journey in Coffee, reminding us that coffee is what bonds family, friends and even strangers. “Coffee, for me, is a gesture of hospitality and goodwill to be shared. I am truly blessed to share a bit of happiness with my healthcare brothers and sisters through the joy of coffee! Great coffee has always brought me happiness, and this is what I intend to spread through my roasting.”
Kerri
little investment risk as it requires no added equipment or training and very little care to maintain. This beverage category has become ‘the Little Can That Could,’ and it continues to grow. As people shelter in place and do the majority of their shopping online, cold brew, RTD, and shelf-stable products are the low-hanging fruit. Every coffee company should have a product in this category as part of their offering, and that is why this issue is dedicated to this beloved beverage.
Jake
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WINTER ISSUE | 2021
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GROWING UP
{ Building Bridges between Coffee & Beverage } CONNOR ROELKE | CEO, NOBL BEVERAGES
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hen we put the final screw in our first walk-in cooler, we backed up to admire our handiwork. Standing before us was a freshly built eight-foot-tall plywood box, complete with insulation and spray foam, perfectly encapsulating two large stainless tanks of cold brew coffee. Precariously bolted to the side was a large air conditioning unit, modified to run nearly continuously, serving as the refrigeration source for our crude walk-in cooler. I was concerned that the floor could not support the weight, but that was a problem for later. We had kegs to fill and orders to deliver. It's not hard to remember our first facility because there was not much to remember. In the back half of a photography studio, situated in the sleepy town of Newmarket, New Hampshire, we produced twenty-eight kegs of coffee per day. Those kegs had to be delivered the very next day, considering our limited cold storage. If we didn't have orders, we would stop by our highest volume coffee shops and convince the owners to take them. We knew, and they knew, that they would need them soon; it was nearly impossible to keep up with the steady stream of customers itching to try our signature Nitro Cold Brew. It was 2015, practically a lifetime ago, when you consider the incredible growth that ready-to-drink specialty coffee has seen. Over the past few years, the scale has changed by a factor of 10. From our humble roots of 340 square feet, we're now on our third facility, a 34,000 square foot state-of-the-art beverage plant. We've built each facility from the ground up, allowing us to incorporate
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scaled beverage processes and systems that bring perfectionism to extraction and packaging. Regardless of the medium - bulk, bag-in-box, bottles, or cans, every beverage we produce here is done with exacting precision. In building our facility, we created a coldchain distribution system to support our products and our partners' products in the Northeast. We had to. We could not bear the compromise that shelf stability brought to our beverages. I imagine most professionals in specialty coffee that have pursued packaged beverages have come to a similar conclusion. NOBL Beverages is not a specialty coffee company; we are expert brewers. It is simply not possible to be exceptional in beverage and exceptional in roasting, so we chose the former. Coffee is an art, and I am not an artist. But all good artists need support, galleries to display their work, and studios to practice their craft. We are both of these to our artist partners. We have brought logic, order, and perfectionism to specialty beverage production, precisely the type of partnership that allows for the best-packaged beverages on earth.
The beverage industry continues to be driven by the titans of sugar-filled soft drinks and cleverly branded tap water. To compete in that space and make a real difference, quality and genuine innovation are the only way forward. The coffee industry can finally bridge the gap between specialty coffee and beverage, and we've collectively allowed for real disruption in the space. To win in beverage is not to conform to the rigidity built by the giants of yesterday. There is nothing that matters to specialty coffee more than building exceptional experiences for customers. To construct these experiences is to avoid all compromises. Leaving quality behind when freshly roasted coffee leaves the view of your roast-master is a sacrifice that we do not need to make, even with the arm-twisting of archaic distribution systems and rigid retailers. There can be room on the shelves for specialty coffee in the broader beverage category by staying focused on beverage quality. Big Beverage is not paying attention, which is a perplexing proposition in the context of the craft beer revolution. It's time to make our mark on the non-alcoholic space. COFFEETALK MAGAZINE
BREAKING INTO GROCERY
{ How Groundworks Coffee Became a National Brand Through a Can } JAKE LEONTI | EDITOR-IN-CHIEF, COFFEETALK
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here is no denying that CPG and RTD were vital to many businesses over the last year. Groundworks Coffee is a roaster and retailer based in Los Angeles, CA, and grocery, which helped keep them afloat through the turbulent year. But how did they get that foot in the door? Groundworks is a relatively small company with 12 cafes, and 70% of their business coming from food service. Despite this, they have RTD cold brew distributed throughout 40 states in the US, with only two people leading the sales force. I connected with Groundworks Sales Manager, Craig Mueller, to discuss how they have managed to grow this market channel. Straight off the bat, I asked, "What is the secret sauce for getting into grocery? Advertising? Using Brokers? What?" Craig laughs a little and comes right back, "It's a combination of things. First, our brick and mortar coffee shops gave us visibility and conveyed our brand image and reputation for quality. Then it was the quality of the product."
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Groundworks is uniquely positioned by having both a roasting facility and a cold brew facility. They control the quality control process on everything from the sourcing and roasting of the coffee to the brewing and packaging. They also prefer to self-distribute to see the final product to the end-user. Self-distribution can be an occasional hindrance to some large box retailers, but it is considered an asset for most. Controlling these steps also allows them roast and brew to order when they receive a PO rather than holding more extensive inventory. "That's all fine and good but assuming everyone has a good coffee, what made the difference in growing the grocery business?" I ask. "The biggest thing is having a great brand story and compellingly communicating that. Creating relationships and then always adding value to those relationships. I spend a lot of time just talking with our partners and asking what works and what doesn't work. They all respond heavily to our brand story and then pass that along." "How do you grow from your local specialty grocers to being in 40+ states?" I follow.
"Showing traction and sharing data. Once we get into a store, we try to help push our product however we can. Whether through TPR (temporary price reductions), social media ads with geotags to push products in those local markets, or digital coupons to get people ordering from their phones. Once we can show a great performance, we take that track record and show how successful we are. We used to do some demo programs; however, they are costly and do seem to yield the best results for us." "What's next for Groundworks?" I ask. Craig quickly answers, "We have been incredibly focused on updating all our systems to support our coffee shops with mobile ordering and updating our website with more robust e-commerce. These tools will help us grow in the new environment, and we will continue to push in the CPG and RTD streams." What this small sales force has been able to accomplish with a relatively small coffee company over the last five years is impressive. I'll be watching to see where their products pop up next.
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SHELF STABLE COLD BREW SHINES { Roasters & Retailers Embrace New Innovations } LAUREN PFEIFFER | DIRECTOR OF MARKETING, BKON
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old coffee, it’s a hot seller, and consumers can find it everywhere, from cafés to grocery, convenience, and online. Historically, it’s been difficult for roasters and retailers to scale a cold coffee program for growth across all these channels. Shelfstable cold brew breaks down operational barriers but has historically not met the quality standards that brands desire. As a result, your cold coffee program is likely reliant on the cold supply chain, that frenemy that keeps things real on the flavor front but creates an operational cluster on the back end. But shelf-stable cold coffee is currently having a breakthrough. There are two primary heat treatment methods used to create the shelf-stable cold brew, retort, and UHT. Retort is initiated after a can is filled by applying heat and pressure for multiple minutes. UHT is used with Bag-in-Box, Tetra Pak, and PET bottles and differs in that the liquid is first heated for up to 6 seconds and then filled in sterilized packaging.
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The gentler UHT method is known for a more positive flavor outcome, but while UHT cold brew has existed for several years, it’s fallen short on delivering the distinguished flavor you taste with a fresh cold brew. Recent advancements have led brands to partner with BKON to commercialize shelf-stable products that utilize our patented brewing technology to achieve optimal flavor.
By streamlining their brewing with BKON, Caffe Vita has extended that consistency to their multi-serve CPG product as well, allowing them to bring the café experience direct to people’s homes. Shipping cold coffee was never a reality before their shelf-stable formats launched. “It has allowed us to reach audiences all around the world. We’ve had orders from customers as far as Japan.” Van Petten noted.
Seattle headquartered Caffe Vita has felt the positive effects of this distinction. They desired a cold coffee program that circumvented refrigeration requirements while still maintaining product integrity. They found their partner in BKON and created a multi-channel program that includes 5-gallon KEGX Bag-in-Box (BiBs) for their cafes and wholesale accounts and a 2 Liter multi-serve CPG BiB.
“Transitioning to a shelf-stable program has allowed us to move away from the cold chain by removing the need for large refrigeration space in our warehouse since the product can be stored at room temperature,” said Lorenzo de Amicis, National Service Manager for Caffe Vita. “It has also made managing our cold brew stock simpler. The extended shelf life and reduced waste allow us to purchase more at a time, reducing purchase costs.”
“We used to brew in-house at each of our locations and spent a lot of resources testing for quality at each cafe,” said Kate Van Petten, Marketing Director for Caffe Vita. “Now we have the consistency of quality across locations with less effort.”
The benefits of shelf-stable cold brew are real and making it possible for retailers, roasters, and coffee brands to think differently about their cold coffee program.
COFFEETALK MAGAZINE
BOOSTED PROFITS
{ Valuable Products Conveyed Without Using Air }
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KARL SEIDEL | MARKETING DIRECTOR, CABLEVEY CONVEYORS
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or coffee roasters and processing companies with high-value product susceptible to damage, material breakage and loss is a costly problem that can damage the bottom line. Tubular cable conveyors can significantly reduce product damage, maintenance, energy use, and noise. Even a difference between 1% and 5% waste can mean the difference between profit or loss. To convey such a delicate product, processors should avoid conveyors that may force fragile material through stressful phases during transport that could impact its integrity while still meeting high throughput requirements. Given this need, some coffee processors are reconsidering conveying sensitive, high-value product using high-velocity airpower through tubes bends, or sweeps before it is transferred into bins or containers. Nippon Coffee Trading Co., headquartered in Osaka, Japan, sought a solution for delicately conveying its green coffee. Since its founding in 1953, Nippon Coffee has remained committed to providing its customers with the world's highest quality coffee. In 2015, the company reported sales of $86.7 million. With demand continuing, Nippon sought out a conveying system that offered more gentleness, WWW.COFFEETALK.COM
flexibility, as well as lower maintenance than the conveyors it had relied on in the past. Nippon Coffee installed a cable conveyor system in 2015 and discovered the technology provided a solution that met its requirements for gentleness, flexibility, and low maintenance, as well as food safety.
Coffee processors can decrease product damage down to 1-2% with this slower process, where product is gently transferred at low speed, so there is minimal to no damage. This gentler approach to handling coffee products also extends equipment longevity, reducing required maintenance.
"Before 2015, we used bucket, pneumatic, and belt conveyor systems to transport coffee at our facility," says Mr. Taro Takeda, President of Nippon Coffee Trading Co. "With cable technology, we've enjoyed a high-performance system that offers great flexibility and required very little maintenance expense over the years."
The tubular cable conveyor systems can convey up to 2000 cubic feet per hour (56m3/hr.) of delicate product with numerous layouts using multiple inlets and outlets.
Nippon Coffee gently transports approximately 600 – 800 kilograms of green coffee beans every hour. Food safety is also a high priority for Nippon Coffee and its Japanese consumers. In this regard, the system's enclosed tubing eliminates opportunities for elements within the environment to contaminate the beans. Tubular cable conveyor systems move product through a sealed tube using a coated, flexible stainless-steel drag cable pulled through on a loop. Solid circular discs (flights) are attached to the cable, which push the product at low speed through the tube without the use of air, preserving product integrity and minimizing waste.
Since pneumatic systems convey product at high velocity, this typically requires larger, power-hungry motors that run fans, blowers, and rotary valves. In certain systems, a pressure tank requiring compressed air consumes additional power. In terms of noise level, pneumatic conveying systems also generate considerable noise. Aero-mechanical systems, running at high speed, generate considerable motor and disc noise as well. Given that smaller motors are used, tubular cable systems are quieter overall and utilize much less energy. In regards to energy, they utilize about one-tenth that of pneumatic systems. The electricity savings by using a tubular conveyor can be sizeable, with a 1-year ROI in some cases.
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MY JOURNEY IN COFFEE MARK LINDERMAN | OWNER, SOUTH SIDE COFFEE CO. NEW JERSEY
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My journey in coffee began in June of 2020. At this time, I was just starting out and looking for direction. Some of this came through a great conversation I had with a very pleasant Diedrich representative, Margie Paulson, who was very informative and sparked my interest in their roasting equipment. Honestly, being a new company, I was a bit intimidated and I did not know if I could make this roasting dream work. And yet I knew I needed to support our men and women here in the US. If I was to take my small roasting company to the next level, it had to be American-built. Over the next couple of months, I did in-depth research on roasters and their manufacturers. I spoke to representatives and owners evaluating support, warranty, part availability, ease of use, and aesthetics. My deciding point came late in September of 2020. I had enrolled for an official roasting class at the "LAB" with Royal NY. It was there where I truly fell in love with the Diedrich roaster. The ease of use, the reproducibility of batches, and the quality of the IR 5 had me sold. I communicated my experience with Christine at Diedrich and shared my story of being a frontline healthcare worker. She, in turn, shared my story with Mr. Karl Schmidt, and between the two of them, they were able to offer me free shipping and crating, making the purchase more manageable. After a family meeting and praying on it, we felt it was the right decision. Christine's thoughtful cards are well appreciated; it made us feel that we have bought into a family with values versus just being another purchase.
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ROASTING
Although I only started roasting in 2020, coffee has been ingrained in my soul as far back as I can remember. It has always been more than a morning pick me up; it's what bonded my family, friends, and even strangers. Coffee, for me, is a gesture of hospitality and goodwill to be shared. I initially got into roasting for personal, slightly selfish reasons: I have always been on a quest for the perfect cup, purchasing and sampling coffee everywhere I go. Yet, I grew tired of paying high prices to only be disappointed by low quality or poorly roasted coffee. I have traveled abroad many times and never experienced a bad cup of coffee. There is a great sense of pride in Europe's coffee culture lacking in my local community. So, I went online, ordered a small air roaster, ordered greens, and started this journey. My small batches were far from perfect, but a thousand times better than anything I was purchasing in-store or at the so-called local roaster. I started to take coffee to family and friends; the best part was to see their faces light up when the coffee hit their lips and ask where this was purchased. Then saying it was the best cup of coffee they had experienced. After a few months of air roasting and
people always asking me to sell them coffee, I decided to purchase the HUKY Roaster and start a small business. I immersed myself in whatever roasting books I could find, educated myself on roasting techniques, took a course on building a wholesale coffee business, and learned to use Artisan. After months of self-taught roasting and selling coffee, I enrolled in roasting school at Royal New York. Here is where I learned cupping, density, moisture evaluation, and proper roasting technique. I roasted on Diedrich’s IR-5, and to me, this was the pinnacle of my coffee journey! Yet
it was only the beginning. I took what I learned at RNY and immediately incorporated it into my techniques. I now had the education I could not get from books! As coffee sales increased, word of mouth began to spread like wildfire, and I knew at this point I was on to something good. COFFEETALK MAGAZINE
COFFEE & HEALTHCARE:
Around March, when the pandemic peaked, the outpouring from the local community was tremendous. Local businesses and restaurants provided us with meals, snacks, drinks, and especially coffee. Coffee is what kept many of us fueled to continue long shifts, not knowing when we would be home to see our families again. It was the community's way of thanking us for all we were doing. In June, when most businesses were closed or limited, I began my roasting journey... After gaining quick recognition from family and friends, I began to share coffee with my coworkers at the hospital. This was a real hit, and it was time for me to do my part by bringing happiness to those I work with as the pandemic raged on. As more and more people tasted my coffee, the word began to spread, and before I knew it, people were asking for coffee all the time. I now faced a new burden; I could not meet the demand with my tiny air roaster, so in late July, I ordered the 500g "HUKY T". This would now allow me to roast four pounds per hour and offered the opportunity to learn and share more with those I worked with in Radiology.
During this time, I was also able to donate coffee to the employees of a local cancer center based out of NYC. As my small company continued to grow, the 500g roaster became a burden as I was spending endless hours to meet the demand of customers and donations. To say the least, nights and weekends were completely consumed roasting after working indeterminate hours as MRI Department Manager. Although it has been a lot of work, it has definitely been rewarding. Roasting has been an outlet, allowing me to free my mind of the stress endured while working at a hospital during this terrible pandemic. I know the IR-2.5 will take my small business to the next level and allow me to donate more coffee to the deserving men and women who put themselves at risk on a daily basis. I am truly blessed to share a bit of happiness with my healthcare brothers and sisters through the joy of coffee! Great coffee has always brought me happiness, and this is what I intend to spread through my roasting. Mark can be reached at info@southsidecoffeeco.com
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WINTER ISSUE | 2021
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WHAT’S BREWING IN THE UK? JAMES NASH | COFFEE NITRO
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old Brew coffee has been slower to take off in the UK than in the US – is that down to our innate resistance to leaving the well-trodden path of tradition (if it is not broke, don’t fix it), or a reluctance to take a chance on something different? Some in Britain still believe that Cold Brew is just coffee that has gone cold. Of course, they could not be further from the truth. Part of the challenge is that the UK is still very much an espresso-based coffee culture. American filter coffee is only served in the tourist centers of London. Cold brew itself only showed up a handful of years ago in independent specialty cafes. Even with the progress of our innovative entrepreneurs it can be noted that the pallet here is decidedly more agreeable at a lower TDS (Total Dissolved Solids). Despite our espresso habit there is something about cold brew that is favored when it is not as strong. Whatever the reason, it is indisputable that, prior to the Covid 19 pandemic, Cold Brew coffee was starting to see some traction with major retailers and coffee shops. A major push was underway to get Cold Brew out in the
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marketplace. However, this initial rush left little room for quality or consistency, or shelf life. Some flyby-night operations were brewing in empty garages that bared a striking resemblance to a haunted house rather than a sterile food facility. When Coffee Nitro first started, we were the only brewers in an actual BRC certified facility with proper filtration and packaging equipment. We’ve seen it all, from filling by hand and crown capping with no cold storage for holding to brewing straight from buckets in the corner. Thankfully, much progress has been made over the years and quality and hygiene have been on the rise. BIB (bag in box) is now leading the way for trade with various cans and single-serve options following close behind. At Coffee Nitro, we know the process of producing this wonderfully balanced delicate drink involves careful attention to and understanding
of the relationships between your blend of beans, grind size, grams per liter, brew times, TDS, filtration, and filling methods. Every stage is vital, for example, the grind size. Goldilocks understood about things having to be ‘just right.’ That grind size is so very important; too small and low yield, too big, and you don’t get the flavor - but have the size ‘just right’ and get the perfect taste and yield. Have no doubt – Cold Brew will bounce back in a big way when life resumes. The core product keeps on giving, and from trade to retail, you can expect excellent opportunities to appear worldwide. Our own experience certainly bears this out. Having introduced a sensational dispense system to coffee shops, we see a rising demand for Cold Brew in London. Recently we have seen a larger demand for cans as consumers seek to repeat their pleasant coffee experience more flexibly and conveniently. There are so many innovative and irresistible options to explore and delight the consumer. So, all in all, there is more to Cold Brew than meets the eye.
COFFEETALK MAGAZINE
FEELING INNOVATIVE
{ La Colombe's Unique Approach to Product Development } JAKE LEONTI | EDITOR-IN-CHIEF, COFFEETALK
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TD cold brew coffee has grown at an exponential rate over the past ten years. According to mintel. com, RTD cold brew sales exploded between 2010 and 2015 by 339%. No wonder every coffee company in the country is trying to figure out how they can get in on the action. La Colombe has been there from the beginning as a very early adopter of cold brew RTD single serve. They started out brewing small batches, bottling themselves, and crown-capping their bottles by hand. Today they have their well-known draft latte cans that enjoy nationwide distribution. Innovation has defined La Colombe's path and success in RTD. I took a moment to catch up with Partner and VP of Wholesale Nicolas O'Connell and Co-Founder and CEO Todd Carmichael to discuss their approach to innovation and how it has served them in their business.
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One of the key insights I picked up was that La Colombe is unique in its intuitive approach to decision making rather than relying on over-wrought data. For example, when I asked Todd, 'What are the key variables LCT (La Colombe Torrefaction) considers when developing a new product? Demographics? Market reports? consumer data?' Todd answers, "Ultimately, I'm looking for a 'missing something.' Something that I love and others might love too. Part of the magic of innovation is understanding that empty space and trying to fill it." "What is your process for developing new products, Todd? Take me through the cold brew shandy, for example," I ask. "All innovation is a single spark and then a long grind, or a flash of inspiration followed by endless ditch digging. The spark for the lemon shandy came
COFFEETALK MAGAZINE
from an intern, Carli, who was studying food science. When she mentioned it, I unwisely dismissed it, yet OK'd her to make some for the team to taste. She was right; it bounces. With other products, like Draft Latte on tap, Draft Latte in a can, the cold brew on tap system, or even the dragon, the spark begins in my head, and I grind it forward alone or with one other person. Once we get it on its feet, we pull in other people as we go. Like I say ad nauseam, "nothing is ever finished," especially not me, and certainly not coffee. There should always be more."
Seeing the can all over the country from Hawaii to Maine, I had to ask, "Nico, what did the Draft Latte mean to your business?"
Nicolas reinforces this idea when he explains the development of the original Draft Latte. "Todd was obsessed, and we took the prototype to Expo West and pre-sold cans. We did not have a product yet, and we had to finish everything in time to deliver on our contracts. No one was there to guide us because no one had done it before - we were explorers. Of course, we had to launch before we were finished. We are still not finished. We are still working on it."
Intuition plays a significant role in how the company is managed, from La Colombe's hiring to their innovation down to the customer experience they deliver. This approach can be advantageous as it is difficult for other companies to anticipate what you will do next if your decisions are not led by publicly known trends and analytics. We are all excited to see what will come next.
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Nico smiles and gets excited to explain, "It was an enormous lift to give us a national footprint. It has also increased wholesale. The cans act as our mini billboards. Every detail of the can has been perfected from the visual architecture of the design to the sensory aspect of the lip guard." It is a complete expression of the luxury brand that La Colombe conveys.
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Roasters Rock
THE COFFEE GLOBAL SUPPLY CHAIN AND COVID STRESSES { Some Excerpts from the ICO Coffee Development Report } ROCKY RHODES | CEO, INTERNATIONAL COFFEE CONSULTING
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couple of decades ago, the concept of ‘direct trade’ was a fantasy and a business fallacy for most small to medium-sized roasters. There was just no cost-effective way to meet the farmer, shake hands, make a deal and move the coffee effectively. It is still hard, but according to the ICO report, we are making a difference and moving the needle for producers and their quality of life. Let’s define the Coffee Global Value Chain. In a C-GVC there are transformative functions that happen in multiple countries, acted upon with high-efficiency operations, and manipulated with business relationships that benefit all with the transfer of knowledge and technology. In other words; from the people that grow coffee to the people that consume it, there is an agreement that each party does what they are best at and enhance the other parties, so the whole chain thrives. The growing, exporting, importing, roasting and retailing of coffee is
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centuries old. Doing it on purpose for the benefit of all is rather new. Small roasters doing direct trade projects and really building a solid relationship upon which to do business is the current emerging model.
benefits from production.” It then proceeds to define three types of upgrading: PRODUCT, FUNTIONAL, and PROCESS upgrading.
‘What is coffee worth?’ is a question at the core of building an effective C-GVC. The old model based everything on the commodities market pricing for Arabica and Robusta. A good C-GVC attempts to use a more thoughtful pricing model that starts with, ‘How much does it cost to produce?’ From there one can determine what is needed to make a reasonable profit and a sustainable life for the farmer.
Much of what we as roasters do falls into the PRODUCT upgrade category. Once we have decided upon our trading partners, we will offer technical support to build on the quality of coffee being produced. We help with education on best practices in growing, harvesting and varietal selection. We work together to explore different processing methods that might yield better flavors. We also help advise on social and environmental marks that would increase the value for the final customers in the C-GVC.
Using production cost as a jumpoff point then exploring all the intermediary steps will create a model where value can be increased through ’upgrading’. As stated in the report, “Upgrading can be defined as producers or firms moving to higher value activities to increase the added value, capabilities, and
To do this requires investment. It takes time and money to bring about change. That is why, at the core of the C-GVC is the relationships of the participants. People want to do business with those they know, like, and trust. There is a realization that a win for one will be a win for all and that the chain will only be as strong as the weakest link. COFFEETALK MAGAZINE
Once the PRODUCT upgrades are underway, the next logical step is PROCESS upgrades. Make the production, buying / selling and exporting more efficient. Reduce costs in the roasting facility so the product cost will still be appealing at the retail level. FUNTIONAL upgrades might be to help your growing partners learn to roast some of their coffee for internal consumption or to perhaps export roasted coffee. A great C-GVC will look for all sorts of creative ways to do the upgrades for the benefit of all. ENTER COVID -19
Coffee producers have a tough time in normal market environments. They take risks on borrowing money to plant, prune, and improve the farm. They have to locate seasonal workers and pray the weather does what it has to do to yield a crop. If they are successful, they sell more coffee, pay back the loan and turn a profit. It is not by any stretch of the imagination an ‘easy life’. Just after many countries were finished with the 2019-2020 harvest, a pandemic hit the world. This catastrophe is boiled down to a “Market Disruption” in the coffee analysis world and is categorized with climate change, Political instabilities and other health crisis. What it means is the possible demolition of the farmers world and an end to the C-GVC that was created. WWW.COFFEETALK.COM
The solution however is the relationships built in the C-GVC. There are several sets of anecdotal evidence showing that consuming countries provided cash, education, long term contracts and support services like health care for the communities that were growing the coffee for the chain. They realized that C-GVC is not temporary or self-serving. It is long term, ‘in it together’ attitudes that create the strength.
The total ICO report is about 100 pages. This is just a small takeaway for those of us that desire more direct relationships with producers. The rest of the report can be found here: https://www.internationalcoffeecouncil.com/cdr2020
With the education, health training and some financial help, farms are bringing in the 2020-2021 crop now while still battling the pandemic. NEAR TERM OUTLOOK
Can the small to medium sized roaster really make a dent on the global problems of farmer poverty, food security and sustainable practices? The answer is of course yes. It may be a small dent now but it is a growing trend with no end in sight. This relationship buying is recognized by the ICO as an important part of meeting the UN’s Sustainable Development Goals. Coffee consumption was up in 2020 and is predicted to be up again in 2021. It is just going to be delivered differently. That is where innovations of the downstream participants in the C-GVC must succeed for the betterment of all. Finding ways to get coffee to where the people are buying it is 2021’s brass ring for roasters and retailers.
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
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COSTELLINI'S FRAPPE MIXES ADD PROFITS!
Costellini's
47.6144219,-122.1923372
With Costellini's you can! Clean Smooth Finish... No funky after taste to mask your premium coffee! Made with enticing vanilla bean, fill the cup with ice, top with milk, dump in blender 1/3 cup frappe mix, 1 or 2 shots of espresso. Blend and go. { costellinis.com }
SMALL BATCH SPECIALTY COFFEE
We roast multiple small-batch coffee roasters in a process that is half art and half science. Instead of using heating elements in our hoppers to shorten the roast cycle or a quench to cool the coffee, and roasting by the ton like most roasters usually do, we roast in small, air-cooled batches, by sight, smell, and sound. This assures that the natural sugars in the bean are being caramelized in just the right way to bring out their optimum flavor. The use of sophisticated computer profiling systems ensures quality and consistency. We are true artisans! { donpablocoffee.com }
Don Pablo Coffee Roasting 25.7741728,-80.19362
Fres-co
40.3220483,-75.3279538
MOVING FROM RIGID TO FLEXIBLE PACKAGING?
Moving into flexible packaging from rigid materials is a big step. While it may require a considerable investment of time and other resources, the payoff can be huge for you and your company. Download this easy-to-use checklist can help you make the move by offering: Five quick questions about your product, your labeling, your end users’ needs; Tips for what to consider before making the leap to flexible; Help on whether your company should consider flexible packaging for your product. { fresco.com }
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2021 | WINTER ISSUE
COFFEETALK MAGAZINE
ANNOUNCEMENTS
CABLEVEY CONVEYORS HIGH-VOLUME SOLUTION
The 8” (203.2mm) diameter high-volume cable conveyor can be customized to move your specialty materials with virtually zero breakage. Examples include whole roasted coffee beans, pet food, rice and breakfast cereal. These systems are designed to handle high volume and can operate on multiple planes with the same gentle conveying as our smaller diameter tube, cable, and disc systems. Similar to Cablevey’s smaller diameter tube systems, the interior of the 8” system is designed to meet your swab-test standards and offers a variety of cleaning elements, and an internal mini-inspection camera.
Cablevey
41.2963365,-92.6449612
{ cablevey.com }
KAFFELOGIC: WORLD RELEASE
Kaffelogic is the latest sample roaster making an impact on professional and home roasters around the world. At its core is the Kaffelogic Studio profiling software. Kaffelogic is the worlds first roaster to incorporate human logic with its predictive PID control system. Its roast automation system uses a goal-oriented feedback loop driven by temperature trends during the roast. It is a form of PID control that other brands of roaster do not use and mimics what an expert does by looking ahead and making changes based on where the roast is heading, not just momentary temperature. Available in USA soon.
Kaffelogic
-43.530955,172.6366455
{ kaffelogic.com }
Add a Scoop
35.4094178,-80.5800049
POWDERED NUTRITIVES FOR MAXIMUM HEALTH
Add a Scoop Blends are a wide range of functional supplements. Almost all Add a Scoop Blends have no color or flavor, making them easy to add to your favorite blended drink. On our website you’ll find detailed information on each blend’s ingredients and benefits, so you can pick the one that’s just right for you. { addascoop.com }
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