Changing IS Coffee
Advertisers
DISCLAIMER
CoffeeTalk does not assume the responsibility for validity of claims made for advertised products and services. We reserve the right to reject any advertising. Although we support copyrights and trademarks, we generally do not include copyright and trademark symbols in our news stories and columns. CoffeeTalk considers its sources reliable and verifies as much data as possible. However, reporting inaccuracies can occur, consequently readers using this information do so at their own risk.
POSTMASTER
SUBSCRIPTIONS
The cost of a subscription in the U.S. is $47.50 per year; in Canada, the cost is $72.00. Free to qualified industry professionals. Non-qualified requests may be rejected. Publisher reserves the right to limit the number of free subscriptions. For subscription inquiries, please call 206.686.7378
COFFEE IS CHANGING
{ So Should You } COFFEETALK
T{he coffee industry in the United States is currently valued at $88.9 billion and is continuing to grow. This growth is largely attributed to the rising demand for specialty coffee and unique coffee-drinking experiences. Specifically, younger generations, including Millennials and Gen Z, actively seek out distinctive coffee establishments that prioritize sustainability, ethical sourcing, and innovative coffee options.
The popularity of specialty roasts, distinct flavors, and immersive coffee shop settings has significantly contributed to the overall increase in sales for these businesses. In fact, the U.S. coffee market is following a similar pattern to the wine and craft beer industries, where consumers are willing to pay a premium for specific brands and products. Specialty coffee brands and merchants are capitalizing on the coffee industry's growth by focusing on specialty coffees, high-end roasting and brewing systems, and creating immersive coffee-drinking environments.
Coffee has become a longstanding habit for many people across generations, and a combination of trends has led to an increase in coffee consumption. Businesses are paying more attention to practices at origin, using higher quality ingredients, and creating an experiential aspect to the drink. These factors have contributed to the rise of the $88.9 billion U.S. coffee industry.
Consumers have been enjoying premium and specialty coffee for decades, influenced by industry pioneers such as Seattle's Best Coffee, Peets, and Starbucks, the availability of high-quality at-home brewing systems, and the emergence of specialty coffee brands nationwide. Coffee is recognized as a profitable sector because it is an integral part of many consumers' daily routines, whether enjoyed at home, outside the home, or both.
Sustainability is a crucial factor in the coffee industry as consumers are becoming more aware of the environmental and social consequences of coffee production. They prioritize brands that promote sustainable farming methods and support coffee farmers and their families. This emphasis on sustainability can also be seen in other industries.
When choosing a product, consumers consider factors such as business practices and impact on the environment and society. The environment is particularly important to younger coffee drinkers. Successful coffee businesses work closely with coffee producers worldwide to ensure high-quality coffee while also benefiting coffee farmers and their families. The story behind a product has become extremely important to consumers, influencing their purchasing decisions.The pandemic saw a surge in the popularity of immersive coffeehouses, as people sought a change of scenery from their homes. These unique establishments allowed customers to witness the
coffee bean roasting process and even select their preferred beans, watching them travel through a pneumatic tube system. This proprietary roasting system ensured that a freshly brewed cup of coffee was ready within a minute.
The owner of a well-known coffee shop in New York is dedicated to providing a unique experience for her customers. She observed a shift away from sleek and modern environments in coffeehouses, with a growing preference for a comfortable and nostalgic atmosphere. Her goal is to create a shop that feels like an extension of the neighborhood's living room, rather than a spotless, picture-perfect establishment.
According to a representative from a prominent consulting firm, millennials and Gen Z are drawn to unique coffee experiences, such as nitrogen-infused nitro coffee, which offers a smooth and creamy texture. These younger generations consume more coffee than their parents and have a particular preference for drinks like cold brew and iced coffee. Coffee chains and ready-to-drink options are increasingly offering chilled coffee options to cater to the need for convenient, on-the-go consumption.
A spokesperson from a renowned coffee company emphasized that millennials and Gen Z are driving innovation in the coffee industry. To successfully integrate coffee into their daily routines, the industry must consider the needs, lifestyles, and expectations of these consumers.
Understanding and catering to consumer preferences is crucial for the continued growth and evolution of the coffee industry.
The coffee industry faces various challenges, including increasing costs and changing traffic patterns due to the pandemic. As younger generations become more discerning about their coffee preferences, industry standards continue to rise. However, rising costs and the rise of remote work present new obstacles for coffee businesses. The cost of alternative milk has doubled compared to a few years ago, and labor costs have significantly increased, making it difficult to maintain stable menu prices.Since 2020, traffic patterns have undergone significant changes that have directly impacted the consumption of coffee. In the past, customers followed consistent routines and frequented coffee shops at specific times, particularly in downtown areas. However, the rise of hybrid work arrangements has led to customers having more flexible schedules, resulting in unpredictable patterns for coffee businesses. Now, peak times occur at unconventional hours, while previously busy periods have become quieter. As a result, this unpredictability has become the new norm within the industry.
Despite these challenges, there is confidence in the industry's ability to adapt to this new normal. Rather than competing with every coffee company in the market, the key is to identify a unique niche and concentrate efforts in that area.
PRESERVING FRESHNESS
{
Aseptic Package for the Perfect Iced Coffee }
AASHI
MISHRA, SENIOR CONTENT WRITER RESEARCH NESTER
T{he demand for iced coffee is constantly increasing, with over 50% of Americans enjoying it daily. Packaging plays a crucial role in delivering a delightful iced coffee experience. Aseptic packaging has become the preferred choice for packaging iced coffee due to its ability to preserve freshness and prolong shelf life.
A recent report by Research Nester projects that aseptic packaging will reach a value of USD 35 billion by 2033, growing at a CAGR of 10%. This highlights the advantages of aseptic packaging in the food and beverage industries.
UNDERSTANDING ASEPTIC PACKAGING
Aseptic packaging involves sterilizing both the packaging and its contents, filling the package in a clean environment. This process ensures that the product remains free from bacteria and microorganisms, extending its freshness and maintaining its
quality. Aseptic packaging is commonly used for beverages as it effectively preserves freshness, flavor, and nutritional goodness.
ASEPTIC PACKAGING OFFERS
ADVANTAGES TAILORED TO THE NEEDS OF COFFEE PRODUCTS
1. Extended Shelf Life:
Aseptic packaging keeps the iced coffee fresh and high quality for a longer duration, without the need for refrigeration or preservatives. When filled under aseptic conditions, the beverage can last for at least 12 months or longer. This allows manufacturers to produce larger quantities and distribute over a wider area, boosting overall revenue.
2. Preserving Flavor and Aroma:
The packaging process involves sterilizing both the product and its packaging separately before filling and sealing in a contaminationfree environment. This ensures the iced coffee maintains its delicate flavors, aromas, and distinctive qualities, delivering a consistent and delightful experience to consumers.
3. Convenience:
Aseptic packaging offers convenience for consumers. These packages are shelf-stable, making them easy to transport and store without refrigeration. This is useful for people on the go or situations where refrigeration is limited, such as outdoor events or camping trips. Aseptic packaging is ideal for cold brew coffee because it keeps freshness and flavors intact. The sterilized packaging ensures that the distinct qualities of the brew, including its aroma and acidity, are preserved. This means people can enjoy the taste and convenience of cold brew coffee whether they're at work, traveling, or at home.
Functional cold coffee with added ingredients has become trendy in the beverage industry. This choice allows health-conscious consumers to incorporate protein or supplements into their daily routine while enjoying a delicious drink. Aseptic packaging plays a role in preserving the quality and effectiveness of these ingredients over time.
PRESERVING FRESHNESS
Continued from page 8
By safeguarding the balance of these ingredients, the packaging ensures that the beverage continues to offer its health benefits while delivering a refreshing experience.
Bag-in-box packaging is a convenient choice for iced coffee beverages because it provides portability. This packaging involves a bag filled with the product, which is enclosed within a protective outer box. Aseptic bag-in-box packaging maintains freshness and high quality, allowing for easy dispensing and a longer shelf life. It's a perfect solution for people on the go or food establishments catering to busy individuals.
Aseptic packaging for coffee has seen advancements and increasing popularity due to changing consumer preferences and the demand for grab-and-go beverages. Let's explore some emerging trends in packaging for cold coffee. Ready-to-Drink (RTD) Single-Serve Formats: The packaging for cold coffee has adapted to the rising trend of consuming coffee on the go with single-serve options. The Ready-to-Drink (RTD) segment of the coffee industry has experienced remarkable growth, with a 30% increase in the past couple of years. Small and convenient packages of RTD coffee provide consumers with the freedom to enjoy their preferred iced coffee at any time and place, without the hassle of preparation or brewing.
INNOVATIVE PACKAGING SHAPES AND DESIGNS
Companies are exploring unique packaging designs to differentiate their products and make them more appealing. This includes introducing bottle shapes, sleek cans, and environmentally friendly pouches. These options attract customers' attention and offer convenient choices for enjoying cold coffee.
NITRO COLD BREW IN CANS
Nitro cold brew has gained popularity due to its smooth texture and flavor, similar to draft beer. Nitro cold brew is now being packaged in cans to maintain the infusion of nitrogen. When the can is opened, consumers can enjoy the creamy foam that accompanies it.
SUSTAINABLE AND ECO-FRIENDLY PACKAGING
With growing environmental awareness, consumers are seeking eco-friendly and sustainable packaging options. Aseptic packaging solutions made from biodegradable materials are gaining popularity, especially for cold coffee products.
FINAL THOUGHTS
In conclusion, aseptic packaging has revolutionized the coffee industry by extending shelf life, preserving flavor and quality, and enabling the development of cold coffee products without preservatives. Bag-in-box aseptic packaging brings convenience and reduces waste. Aseptic packaging remains crucial in ensuring that coffee lovers worldwide can enjoy high-quality beverages.
DIRECT TRADE
{
Do's and Don'ts }
ROCKY RHODES
INTERNATIONAL COFFEE CONSULTING GROUP
{“ Back In the Day” (which is what all old-person stories start with) the idea of direct trade was basically a romantic fantasy of travelling to exotic lands, meeting indigenous peoples and creating cross-continental relationships that bring economic prosperity to all parties. But as it turned out, the economies of business caused people to wake from their dreams and get on with business as usual.
But there is good news. With the creativity of our industry and a desire to improve quality of coffee and the lives of those producing it, we are finding ways to make direct trade happen. This article will attempt to explain the process and economy of trading coffee and then proposing ways to make direct trade happen.
HOW COFFEE IS TRADED
For many readers this will be a refresher on the coffee supply chain, but it is important to understand the process steps to get coffee from ‘there to here’ and some costs associated.
AT THE FARM
Coffee is planted and grown. Trees need to be pruned, the ground weeded, nutritional inputs provided, and pests controlled. Finally coffee
needs to be harvested. This involves labor to harvest, transport to mills and a layer of management to pay and receive cash for the labor and trading of coffee cherries.
AT THE MILL
Some farms have their own mill. Many more do not and sell their coffee to a mill. Either way this function must be completed. Coffee is “processed” which is our industry’s way of saying “get the seed out of the cherry”. Back in the day (there it is again) this was merely a functional process. Faster and cheaper was the goal. Now this is a professional process that has a large contribution to flavor development. Processing can now be longer and more expensive, but that can be a good thing when it comes to flavor.
Once the seed is out it needs to get ‘cleaned’ of defects and sorted into lots. The lots are then warehoused waiting to be sold. (Or sold waiting to be shipped). In the end the coffee is ready for export.
AT THE EXPORTER
Coffee is purchased from the mills. Sometimes it is held as-is and sometimes re-blended into larger lots. The sales teams find buyers and the logistics teams figure out the paperwork needed to move the coffee to a consuming country. Then arrangements
are made to get the coffee into a container, insured, on a boat and moved across some large body of water.
AT THE IMPORTER
Paperwork is produced to land the coffee and deal with the inspections process. Trucks are arranged to take the coffee to a warehouse (or direct to a roaster) where it is off loaded and warehoused again. Their sales teams reach out to roasters, send samples and eventually sell all or part of the lot and arrange shipping to the roaster.
AT THE ROASTER
Coffee samples are received, and the coffee quality team determines a buy decision. When the coffee is received the process happens again to ensure that what was expected is what arrived.
And now the transaction is complete!! Coffee went from there to here! As with any complex system there are many variations to this process, but the fundamental steps are the same.
THE COSTS OF THE SYSTEM
As you read the process steps above, try to imagine the steps that can be eliminated if you did your own direct trade. The answer is ‘not much’. How you get it done might change but the functions remain and because of a lack of economies of scale it is absolutely going to cost more money to try and
DIRECT TRADE
Continued from page 12
bypass the current system. If you ‘cut out the middlemen’ you absorb the functions onto yourself and since you are not proficient or efficient in these functions it will cost more. That doesn’t mean you can’t do it; it just means your cost per pound will go up.
THE PHILOSOPHY VS THE REALITY OF DIRECT TRADE
There are two major drivers for doing ‘direct trade’ business with a farm. 1) To reward the farmer with a higher price for their green coffee and have the satisfaction of putting the money in their hand. 2) To build a relationship that can be shared in a story that when told will get people to pay more for the cup of coffee they hold in their hands. In the end the green coffee will cost you more but if you can sell it for more because of the story, both you and the farmer can make more money. Nice, but the reality is that depending on scale, this is not going to work.
To find a farmer to do business with usually requires flying to, and hiring a guide in, the desired country. You drive around talking with people not inclined to trust you and try to build a working relationship. This could take weeks of your time and the associated costs. You find a farmer, but it turns out they do not mill their coffee, someone else does. Now you can buy from the mill, but you don’t get to put that money in the hands of the farmer since you will buy it from the mill. Now you have the coffee. Do you put it in a suitcase and fly home? If you bought that small of a lot your cost per pound is now near $100! If you don’t carry it with you then you will need to arrange export / import paperwork, a shipping company and insurance… you get the idea. This is complicated and not romantic at all.
SO DO THIS INSTEAD
Ask to go on a buying trip with your favorite importer and tell them what you are trying to do. You are a good customer, and they want you to be successful so you will buy more coffee. Ask to be introduced to, and to tour some farms. Find out what creative things they are doing with processing. Make a friend.
Now that you have a relationship, you can do business. If the farmer sells to the mill and your importer buys that coffee from the mill, you can make the system work for you. There are a couple options. 1) Tell your exporter how much of this coffee you want to buy. Transact that business in the ‘normal’ way. Then give the farmer a ‘bonus’ of $X per pound for use of their story. 2) Agree to pay the farmer for his cherries and have your importer help you negotiate paying for the service of milling exporting and importing the coffee.
In the end, all of the supply chain functions are done professionally, and less expensively than if you did it yourself. You will be paying more for the coffee, but that is kinda the point, right?
Now that the relationship is made, your life will change. Your heart will change. You will accept the responsibility of being a great partner for what will likely become more of an extended family than a trading partner. Direct Trade not only improves the lives of those growing the coffee but also you and your customers lives by making the connection through coffee and making the world smaller.
General Packaging
29.75893,-95.36769
ANNOUNCEMENTS
E2
ENTRADA BY GENERAL
The ENTRADA, Model E2 fills the need where more expensive equipment cannot be justified. The model E2 is an air operated machine patterned after General's rugged hydraulic models 70 and 80.
Franke
35.98245,-86.51994
FEATURES INCLUDE:
• Easy Access for adjustments and maintenance
• PLC controlled with touch screen operator interface
•"C" model with temperature control and touch display
•"P model with indicating impulse control and seal cooling
• Multiple filler options available { generalpackaging.com }
FRANKE NAMES CHAD BOWMAN VICE PRESIDENT OF SALES
Franke Coffee Systems - Americas, a leading global provider of professional coffee solutions, is pleased to announce the appointment of Chad Bowman as Vice President of Sales. Reporting to Corrie Byron, President of Coffee Systems Americas, Bowman will spearhead sales strategies for the convenience store channel, expand market presence, and enhance customer relationships across North America. With over 20 years of experience in sales and leadership within the professional coffee and beverage industry, Chad Bowman brings a wealth of expertise and a proven track record of success to Franke Coffee Systems. In his new role, Bowman will leverage his deep industry knowledge to identify new business opportunities, develop robust sales strategies, and lead a high-performing sales team. Collaborating closely with the marketing team, he will ensure that Franke Coffee Systems' offerings meet the evolving needs of customers in the c-store and specialty coffee space. { us.coffee. franke.com }
